Kurso programos
FINANCIAL MANGEMENT II (BS at Vilnius University 3'rd year International Business Group)
VILNIUS UNIVERSITY
BUSINESS SCHOOL
FUNDAMENTALS OF CORPORATE FINANCE
Prepared by prof. dr. Arvydas Paškevičius
The course Fundamentals of Corporate Finance introduces the fundamentals of financial management of a public company, therefore it may be attended by the students who are only starting to study financial disciplines.
The course of Fundamentals of Corporate Finance covers the concepts of cash flows, the fundamentals of financial analysis and introduces the principles of long-term financial planning and various cases of calculation of time value of money.
The purpose of the course is not only to acquaint the students with the fundamental concepts of corporate managerial finance but also to formulate practical skills while solving elementary financial problems. Therefore, the course includes not only theoretical lectures but also practical work and home assignments. The course consists of 48 hours, 5 credits.
SCHEDULE
|
Nr. |
S.D. |
Data |
Time |
Room |
Chapter |
Notes |
|
1 |
Thu |
08 February 2018 |
9:00-10:30 |
212 |
Stock Valuation |
|
|
2 |
Thu |
08 February 2018 |
11:00-12:30 |
212 |
Stock Valuation |
Homework: Chapter 8 Questions and Problems # 1-18 |
|
3 |
Thu |
15 February 2018 |
9:00-10:30 |
212 |
Stock Valuation practice |
|
|
4 |
Thu |
15 February 2018 |
11:00-12:30 |
212 |
Stock Valuation practice |
Homework: Chapter 8 Questions and Problems 13-18 and Test Questions |
|
5 |
Thu |
22 February 2018 |
9:00-10:30 |
EC |
Stock Valuation: Preparation to the Test #1 |
|
|
6 |
Thu |
22 February 2018 |
11:00-12:30 |
212 |
Net Present Value and other investment Criteria |
Homework: Chapter 9 Questions and Problems # 1-6 |
|
7 |
Thu |
01 March 2018 |
9:00-10:30 |
212 |
Net Present Value and other investment Criteria |
|
|
8 |
Thu |
01 March 2018 |
11:00-12:30 |
212 |
Net Present Value and other investment Criteria PRACTICE |
Homework: Chapter 9 Questions and Problems # 6-16. Chapter 9 Test Questions |
|
9 |
Thu |
08 March 2018 |
9:00-10:30 |
|
Business trip |
|
|
10 |
Thu |
08 March 2018 |
11:00-12:30 |
|
|
|
|
11 |
Thu |
15 March 2018 |
9:00-10:30 |
212 |
Net Present Value and other investment Criteria PRACTICE |
|
|
12 |
Thu |
15 March 2018 |
11:00-12:30 |
212 |
Net Present Value and other investment Criteria Preparation to the Test |
Homework: Preparation for examination. Self-test |
|
13 |
Thu |
22 March 2018 |
9:00-10:30 |
EC |
Test #2 |
|
|
14 |
Thu |
22 March 2018 |
11:00-12:30 |
212 |
Making Capital Investment Decisions |
Homework: Chapter 10 Questions and Problems # 1-5 |
|
15 |
Thu |
29 March 2018 |
9:00-10:30 |
212 |
Easter holidays |
|
|
16 |
Thu |
29 March 2018 |
11:00-12:30 |
212 |
|
|
|
17 |
Thu |
05 April 2018 |
9:00-10:30 |
212 |
Making Capital Investment Decisions |
|
|
18 |
Thu |
05 April 2018 |
11:00-12:30 |
212 |
Making Capital Investment Decisions PRACTICE |
Homework: Chapter 10 Questions and Problems # 6-18. Chapter 10 Test Questions |
|
19 |
Thu |
12 April 2018 |
9:00-10:30 |
212 |
Making Capital Investment Decisions PRACTICE |
|
|
20 |
Thu |
12 April 2018 |
11:00-12:30 |
212 |
Making Capital Investment Decisions Preparation to the Test #3 |
Homework: Preparation for examination. Self-test |
|
21 |
Thu |
19 April 2018 |
9:00-10:30 |
EC |
Test #3 |
|
|
22 |
Thu |
19 April 2018 |
11:00-12:30 |
212 |
Project analysis and evaluation |
Homework: Chapter 11 Questions and Problems # 1-3; 5-15. Chapter 11 Test Questions |
|
23 |
Thu |
26 April 2018 |
9:00-10:30 |
212 |
Project analysis and evaluation PRACTICE |
|
|
24 |
Thu |
26 April 2018 |
11:00-12:30 |
212 |
Project analysis and evaluation PRACTICE Preparation to the Test #4 |
Homework: Preparation for examination. Self-test |
|
25 |
Thu |
03 May 2018 |
9:00-10:30 |
EC |
Test #4 |
|
|
26 |
Thu |
|
|
| ||
|
27 |
Thu |
10 May 2018 |
9:00-11:00 |
EC |
EGZAM |
|
|
|
SYLLABUS
1. Introduction to Corporate Finance
1.1. Corporate Finance and the Financial Manager
1.2. The Forms of Business Organization
1.3. The Goal of Financial Management
1.4. The Agency Problem and Control of the Corporation
1.5. Financial Markets and the Corporation
2. Financial Statements and Cash Flow
2.1. The Balance Sheet
2.2. The Income Statement
2.3. Cash flow
3. Working with Financial Statements
3.1. Cash Flow and Financial Statements: A Closer Look
3.2. Standardized Financial Statements
3.3. Ratio Analysis
3.4. The Du Pont Identity
3.5. Using Financial Statement information
Lecture Notes Q&P Test Questions
4. Long-term Financial Planning and Growth
4.1. What is Financial Planning?
4.2. Financial Planning Models: A First Look
4.3. The Percentage of Sales Approach
4.4. External Financing and Growth
Lecture Notes Q&P Test Questions
5. The Time Value of Money
5.1. Future Value and Compounding
5.2. Present Value and Discounting
5.3. More on Present and Future Values
Lecture Notes Q&P Test Questions
6. Discounted Cash Flow Valuation
6.1. Present and Future Values of Multiple Cash Flows
6.2. Valuing Level Cash Flows: Annuities and Perpetuities
6.3. Comparing Rates: The Effect of Compounding
6.4. Loan Types and Loan Amortization
Lecture Notes Q&P Test Questions
7. Interest Rates and Bond Valuation
7.1. Bonds and Bond Valuation
7.2. More on Bond Features
7.3. Bond Ratings
7.4. Some Different Types of Bonds
7.5. Bond Markets
7.6. Inflation and Interest Rates
7.7. Determinants of Bond Rates
Lecture Notes Q&P Test Questions
8. Stock Valuation
8.1. Common Stock Valuation
8.2. Some Features of Common and Preferred Stock
8.3. Stock Markets
Lecture Notes Q&P Test Questions
9. Net Present Value and Other Investment Criteria
9.1. Net present value
9.2. The Payback Rule
9.3. The Discounted Payback
9.4. The Average Accounting Return
9.5. The Internal Rate Of Return
9.6. The Profitability Index
Lecture Notes Q&P Test Questions
10. Making Capital Investment Decisions
10.1. Project Cash Flows: A First Look
10.2. Incremental Cash Flows
10.3. Pro Forma Financial Statements and Project Cash Flows
10.4. More on Project Cash Flow
10.5. Alternative Definitions of Operating Cash Flow
10.6. Some Special Cases of Cash Flow Analysis
Lecture Notes Q&P Test Questions
11. Project analysis and evaluation
11.1. Evaluating NPV Estimates
11.2. Scenario and Other What-If Analyses
11.3. Break-Even Analysis
11.4. Operating Cash Flow, Sales Volume, and Break-Even
11.5. Operating Leverage
11.6. Capital Rationing
Lecture Notes Q&P Test Questions
LITERATURE
1. Fundamentals of Corporate Finance, Ross, S. A. 2016.
2. Principles of Corporate Finance, Brealey, Myers, 2016.
3. Financial Management, Ray M. Brooks. 2010.
4. Capital Markets, Fabozzi Modigliani. 2010 .
Textbook materials (access can be granted individually) Ch1 Ch2 Ch3 Ch4 Ch5 Ch6 Ch7 Ch8 Ch9 Ch10 Ch11
EVALUATION
Assessment requirements:
Analysis and solutions of tasks and problems at seminars, attendance of lectures and practical classes, interim tests, examination.
Final assessment criteria:
The grade assigned for problem solution at seminars is multiplied by 10%.
Where a student has missed not more than 25% of the total lectures and practical classes (seminars), 1 point or 10% are added to the final grade.
Colloquium tests shall be taken by electronic means at the Examination centre. Students are required to solve not less than 50% of all tasks presented in 4 tests. Where the grade for the colloquium is above 5, it is multiplied by 20% and shall be added to the final result. It is necessary to pass all 4 tests.
Composition of the final accumulative grade:
The final accumulative grade shall be composed of:
Problem solutions at seminars and lectures – 10 %
Attendance of lectures and practical classes – 10%
Grade from colloquium 1 – 20%
Grade from colloquium 2 – 20%
Grade from colloquium 3 – 20%
Grade from colloquium 4 – 20%
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