ESOPExchange Students from Overseas Program

This course is an introduction to financial management for companies which operate globally. The course discusses the basic principles of financial management and applies them to the decisions faced by financial managers in global firms. The objective is to familiarize the student with financial concepts and tools used in business. The course provides an introduction to standard financial decision-making tools, the role of stock and bond markets, the risk & return tradeoff, and foreign exchange markets in a Japan based context.

The fundamental goal of this course is to equip you, as a future business person, with a working knowledge of finance as a tool. Upon completing this course students should:
1) be familiar with financial securities such as stocks and bonds (Japan context).
2) be able to explain and critique a net present value and internal rate of return analysis for a project (financial decision making).
3) be able to explain the risk-return trade-off as discussed in finance.
4) acquire working knowledge (familiar with) of EXCEL for discounting exercises and other finance related functions.
5) develop a solid understanding of the link between topics covered in finance and international business (and other areas/fields in business).
6) acquire the basic skills and knowledge to undertake more advanced course work in the area of finance.

英語 / English

The class consists of lectures, weekly assignments and case discussion. Feedback on assignments and numerical exercises provided during class when appropriate. Select assignments will involve some research (data collection and analysis). Active class participation is encouraged. Familiarity with the content covered in an introductory (basic) finance course and EXCEL is recommended.

あり / Yes

なし / No

授業形態/methods of teaching：対面/face to face

※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。

1[対面/face to face]：Overview of Course and Introduction to Stocks

Define and discuss the role of stocks (securities markets) within the Japanese context.

2[対面/face to face]：Introduction to Bonds

Introduce the IPO process. Define and discuss the role of bonds (securites markets).

3[対面/face to face]：Introduction to Japanese Capital Markets

An overview of the history and unique characteristics of Japanese capital markets.

4[対面/face to face]：Introduction to Japanese Capital Markets

Main banks, Keitetsu, Mutual/Cross Sharholding, Shareholder perks, etc.

5[対面/face to face]：Discounting and Time Value of Money

Introduction to the mechanics of discounting. Examples include obtaining the price of a straight bond.

6[対面/face to face]：Perpetuities and the Dividend Discount Model

Extending the discounting technique to perpetuities. Examples include obtaining the price of a share of stock.

7[対面/face to face]：Introduce financial decision making rules.

Net Present Value Rule and Internal Rate of Return Rule

8[対面/face to face]：Understanding Risk and Return

Measuring risk:
variance and standard deviation. Introduction to the Sharpe ratio.

9[対面/face to face]：NPV and IRR Case

Case study applying NPV (IRR). Use of Excel.

10[対面/face to face]：Capital Asset Pricing Model

Obtaining the cost of equity.

11[対面/face to face]：Weighted Average Cost of Capital

Cost of equity, cost of debt, and tax savings effect of debt.

12[対面/face to face]：The Foreign Exchange Market and Purchasing Power Parity

An introduction to the foreign exchange market (Japanese yen) and determining the fair exchange rate.

13[対面/face to face]：Topics

Cover topics of interest to the class.

14[対面/face to face]：Final Test

Final Test and Wrap-up.

Students are expected to review the assigned readings and notes prior to class, review notes after class, and complete weekly assignments (3~4 hours per week on average). Reviewing concepts and numerical exercises on a regular basis is especially important in building block oriented courses such as finance.

Recommended Text
Akashi Hongo, A Bilingual Introduction to Corporate Finance, 2nd edition, Chuo Keizai, 2019.

Notes and other readings provided by the instructor (posted on Hoppi).

R. Brealey, S. Myers, and A. Marcus, Fundamentals of Corporate Finance, (international paperback) McGraw Hill.

Other references and readings provided in class (posted on Hoppi).

1) Active, constructive participation (10%)
2) Assignments (40%)
3) Final test (50%)
Regular class attendance is required.

There are no student comments that would require major changes to the course.

Notebook PC or pad with access to EXCEL. Access to stable internet connection.

Students are asked to attend the first class (in-person) in order to enroll in the course. Recommend students take an introductory course in accounting, business, or economics prior to enrolling in this course.