GMBAGlobal MBA Program

In terms of financial management, corporate managers should be able to deal with two fundamental issues: (1) Selecting an investment project that maximizes the value of a firm, and (2) Choosing an appropriate financial policy (of dividend or capital structure) to persuade investors or banks to provide funds. This course aims at providing basic principles of corporate finance and investment theories. The course covers topics such as concepts of net present values and cost of capital, valuation of debt instruments (bonds) and equities, firm valuation and portfolio theories. In cases, the course uses problem sets and statistics such as cash flows or share prices that require students to calculate an answer or build a model by spread-sheet software.

In this course, students will be able to:
1. Understand key theories, principles and trends in corporate finance
2. Demonstrate effective approaches to the analysis of corporate finance structure and corporate financial statements, using applicable ratio analysis tools and techniques
3. Assess the practical application of models and theories to decisions on investment
4. Understand how investors evaluate corporations in the capital market and what corporate managers try to do to maximize their firm values.

Will be able to gain“DP1”,“DP2”,“DP3”and“DP4”.

英語 / English

1. Lecturing: Students will be asked to calculate problem sets on each chapter of the textbook or similar practices might be required
2. Case analysis: Students will be assigned to create and submit a brief report to analyze a certain publicly-traded company for applying financial models and for learning investment decision making methods intensively
(3. Sessions with guest speakers: Probable. Students might be required to submit response papers.)

あり / Yes

なし / No

※各回の授業形態は予定です。教員の指示に従ってください。

第1回：Financial Management
Overview

BMA Chapter 1. A general guidance on the course method. Understand the basic concept of corporate finance and goal of corporation. In order to comprehend the role of financial management, discuss the relationships amongst corporate managers, shareholders, banks and other stakeholders.

第2回：How to Calculate Present Values

BMA Chapter 2. Understand the basics of net present value calculation

第3回：Valuing Bonds

BMA Chapter 3. Understand the time value of money and the term structure of interest rate. Learn the basics of corporate bond and credit market

第4回：Valuing Common Stocks

BMA Chapter 4. Understand the basic concept of dividends and cash flows, the valuation methods of equities such as DCF and EVA

第5回：Net Present Value and Making Investment Decisions

BMA Chapter 5 and 6. Understand meaning, definitions and types of evaluating the investment project including payback period, NPV, IRR, etc.

第6回：Risk and Return, Portfolio Theory and the Capital Asset Pricing Model (CAPM)

BMA Chapter 7 and 8. Understand risk as the dispersion of returns. Understand the relationship between risk and return in the capital market. Understand the implication of beta as the expected return by the investor and the impact on the firm valuation.

第7回　：Risk Return and Cost of Capital – Chapter 7

BMA Chapter 9. Understand how to measure cost of equity and the concept of weighted average cost of capital. Able to compare and evaluate projects with different life spans.

第8回：Financial Markets and Market Efficiency

BMA Chapter 13. Understand the structure of financial market. Discuss the significance of efficient market hypothesis and the concept of behavioral finance.

第9回：Corporate Financing

BMA Chapter 14 and 15. Overview the variety of corporate financing methods. Understand the decision making on issuing securities.

第10回：Payout Policy and Capital Structure

BMA Chapter 16. Understand the optimum level of debt and dividend payout. Discuss how capital structure impacts on firm values, based on theories such as Modigliani-Miller (MM) Theorem

第11 回：Debt Financing

BMA Chapter 17. Understand how debt policy matters on firm values, based on theories such as Modigliani-Miller (MM) Theorem

第12回：Financial Analysis and Investors

BMA Chapter 28, 29 and 30. Understand the basics of ratio analysis including ROE and importance of financial planning

第13回 ：M&A and Corporate Restructuring

BMA Chapter 31, 32 and 33. Understand the corporate growth cycle, the dynamics of M&A activities, and how a leveraged buyout (LBO) works in order for a private equity fund to capture the values created by turnaround

第14回：Current Issues on Corporate Finance and Capital Market

Review key principles of corporate finance and discuss the recent issues of corporate governance and capital market such as ESG related debate.

Those who are not familiar with the basics of finance and accounting would need some self-study to enhance the level of basic understanding. Lecture notes would be provided in the form of power point presentation. Please refer to the content in advance in going through the text to facilitate your understanding.

Brealey, R., Myers, S., and Allen, F., “PRINCIPLES OF CORPORATE FINANCE” 13th Edition [BMA], McGraw-Hill, (2020)
ISBN10: 1260013901
ISBN13: 9781260013900

Lecture notes in a form of power point presentation would be provided in advance together with necessary cases.　

Ross, S., Westerfield R., Jaffe J. and Jordan B., “CORPORATE FINACE”, 12th Edition, McGraw-Hill, (2019)
ISBN10: 1259918947
ISBN13: 9781259918940

Final Assignments (Case analysis): 40%
Mini exams and interim assignments: 30%
Contribution to the class and reponse papers: 30%

Active feedbacks from the class are highly appreciated. Also the situations in corporate finance and capital market may vary between regions or countries. I would appreciate if you could bring insights or practical experiences in your home country into the class discussion.

Excel is required to utilize financial models and simulations .