GBPGBP (Global Business Program)

The firm makes investment, financing and payout decisions. This course will provide students with a concrete basis for understanding how those financial decisions should be made. It will focus on basic and core topics in an introductory level of corporate finance rather than attempt to cover a whole spectrum of corporate finance due to time constraints.

Upon completing the course, students will be able to
1) understand what goals the management should pursue.
2) evaluate the projects in a concrete way.
3) calculate the value of the firm.
4) understand the concept of cost of capital.
5) understand the link between the firm value and financing choices.
6) understand when the payout policy of the firm matters.
7) solidify an understanding of business and financial news.

This course is strongly related to the "DP1-1" diploma policies and fairly related to the"DP1-2", "DP1-3", "DP2-1", "DP2-2", "DP3" and "DP4" policies.

英語 / English

Course materials including lecture slides will be posted. Every class starts with the explanation of key concepts by the lecturer. Students are encouraged to actively take part in class discussion as well as Q&As. Feedback on assignments will be delivered at the beginning of class.

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[オンライン/online]：Corporate Finance and the Financial Manager

-Role of the financial manager
-Goal of the firm

2[対面/face to face]：Introduction to Financial Statement Analysis

-Firm's disclosure of financial information
-Financial statement analysis
-Interpreting a statement of cash flows

3[対面/face to face]：A Quick Review: Time Value of Money

-Present and future values of cash flow streams
-Special cases of cash flow streams (perpetuity, annuity, growing cash flows)

4[対面/face to face]：Valuation and the Firm: Investment Decision Rules, Part 1

-Net present value decision rule

5[対面/face to face]：Valuation and the Firm: Investment Decision Rules, Part 2

-Internal rate of return decision rule
-Comparison of NPV and IRR rules
-Alternative decision rules

6[対面/face to face]：Valuation and the Firm: Fundamentals of Capital Budgeting

-Determining incremental free cash flow
-Analyzing the project in practice

7[対面/face to face]：Risk and Return: The Cost of Capital

-The application of Capital asset pricing model
-Weighted average cost of capital
-Using the WACC to value a project
-Project-based costs of capital

8[対面/face to face]：Raising equity capital

-Understanding of equity finance
-Initial public offering
-Seasoned equity offering

9[対面/face to face]：Debt financing

-Understanding of debt finance
-Different types of debt financing
-Limits that protect the interests of bondholders

10[対面/face to face]：Capital Structure, Part 1

-Capital structure choices
-Capital structure in perfect capital markets
-MM propositions

11[対面/face to face]：Capital Structure, Part 2

-Capital structure with taxes and costs of bankruptcy and financial distress
-Optimal capital structure

12[対面/face to face]：Payout Policy, Part 1

-Cash distributions to shareholders
-Dividend versus share repurchase in a perfect capital market

13[対面/face to face]：Payout Policy, Part 2

-Tax disadvantage of dividends
-Payout versus retention of cash
-Advice for the financial manager

14[対面/face to face]：Wrap-up

Brief overview and final examination

It is advisable to read financial and economic news as often as possible. Students should submit all homework assignments on time. Preparatory study and review time for this class are 2 hours each.

The textbook is the latest global edition of `Fundamentals of Corporate Finance' by Jonathan Berk, Peter DeMarzo, and Jarrad Harford, Pearson. For your reference, it will also be used in Introduction to Finance in Fall 2021. This course will cover several chapters related to core topics of corporate finance.

Any standard textbooks which have the title of `corporate finance' will be helpful. Just as an example, Stephen Ross, Randolph Westerfield and Bradford Jordan, Fundamentals of Corporate Finance, McGraw-Hill Education, recent editions.

Grades will be based on the following composition:
class participation (20%),
homework assignment (30%),
and final examination (50%).

The lecturer will try to explain key concepts more clearly so that it is easier to understand.

Students can use their own pocket calculators and/or laptop computers during the class.

It is desirable that students have taken Introduction to Finance, or have equivalent knowledge. The lecturer will quickly review the time value of money which is the key concept in Introduction to Finance and also indispensable in understanding core topics of corporate finance, to bring memories back.