Corporate Finance

2024/2025

Учебный год

ENG

Обучение ведется на английском языке

6

Кредиты

Кто читает:

Кафедра финансового менеджмента (Нижний Новгород) (Факультет экономики НИУ ВШЭ (Нижний Новгород))

Статус:

Маго-лего

Когда читается:

1, 2 модуль

Преподаватели

Аверьянов Антон Юрьевич

Россохин Владимир Валерьевич

Course Syllabus

Abstract

The study of this course is aimed at acquiring knowledge and developing skills in financial management of a modern company. The main emphasis of this discipline is on decisions aimed at increasing the market value of the company. Two types of such decisions are considered: investment decisions and decisions on financing the company. Accordingly, the main criterion for all the problems and issues under consideration is the change of the market value of the company. In addition, the course pays attention to the assessment and management of project risks. In this context, projects are meant primarily related to real investments. Attention will also be paid to the capital structure and dividend policy. As a result of studying this discipline, students will also gain certain knowledge and skills in valuation of financial assets such as stocks and bonds. The study of this discipline is based on the following disciplines: · Probability Theory and Statistics · Econometrics · Microeconomics · Macroeconomics · Accounting and Analysis

Learning Objectives

• Acquiring knowledges about the goals of corporations and company management Acquiring knowledges about the analysis of investment decisions. Acquiring skills to calculate present value and net present value. Acquiring skills in assessing the value of financial assets. Acquiring knowledges about risk, classification of risk types. Acquiring skills in calculating risk indicators. Acquiring risk management skills. Acquiring skills in calculating the discount rate to calculate the present value. Acquiring knowledges about financing decisions. Acquiring knowledges about theories of capital structure. Acquiring skills to calculate the weighted average cost of capital. Acquiring skills to calculate adjusted present value.

Expected Learning Outcomes

• Calculates present value and net present value. Evaluates investment decisions using present value and net present value.
• Analyzes alternative indicators that are competitors to the net present value indicator. Recognizes differences in investment project performance indicators.
• Solves the problem of investing under conditions of limited resources. Calculates the value of financial instruments (stocks and bonds). Identifies the impact of risk on the performance indicators of an investment project.
• Argues for the definition of risk. Identifies different types of risk. Calculates the risk premium. Determines the discount rate using the capital asset pricing model. Calculates the discount rate using alternative approaches to the CAPM model. Highlights approaches to calculating the discount rate when beta cannot be calculated.
• Recognizes the factors that have the greatest impact on project efficiency. Develops approaches to project risk management. Recognizes the impact of financial and operational leverage on the beta value.
• Develops methods and approaches to motivating and rewarding managers. Recognizes performance indicators of corporate managers.
• Distinguishes investment decisions and their impact on company value. Recognizes the difference between the impact of financing decisions and investment decisions on company value. Analyzes forms of market efficiency. Analyzes the relevance of dividend policy.
• Describes the impact of financial leverage on firm value in a competitive, tax-free economy. Illustrates the impact of corporate and personal taxes. Recognizes the impact of financial distress costs. Highlights the trade-off theory of capital structure. Highlights the pecking order theory of capital structure.
• Calculates the weighted average cost of capital. Calculates the adjusted present value.

Course Contents

• Present value and opportunity costs. Valuation of financial assets using net present value rules. Evaluation of investment decisions using net present value rules.
• Risk, Return and Opportunity Costs. Risk Assessment and Risk Management.
• Financing decisions. Dividend policy and capital structure.

Assessment Elements

• Test work №1
  Test work №1 is carried out in writing form.
• Test work №2
  Test work №2 is carried out in writing form
• Independent work
• Exam
  The exam form is written. The duration of the exam is 80 minutes. During the exam, it is not allowed to use communication devices, computers, laptops. The use of a calculator is allowed. It is forbidden to use lecture and seminar materials. The schedule of the examination session provides for the possibility of viewing the work. After the end of the review period, the final grades, taking into account the exam, are put in the discipline sheet.

Interim Assessment

• 2024/2025 2nd module
  0.4 * Exam + 0.2 * Independent work + 0.2 * Test work №1 + 0.2 * Test work №2

Bibliography

Recommended Core Bibliography

• Principles of Corporate Finance, 11th global ed., XXVIII, 889 p., AP 1-10, Gl 1-18, I 1-25, Brealey, R. A., Myers, S. C., Allen, F., 2014

Recommended Additional Bibliography

• Corelli, A. Analytical Corporate Finance / Angelo Corelli. – 2nd ed. – Cham, Switzerland: Springer Nature Switzerland AG, 2018. – (Springer Texts in Business and Economics). - Текст: электронный // DB Springer Books [сайт]. - URL: https://link.springer.com/book/10.1007/978-3-319-95762-3
• Thibierge, Ch. A Practical Guide to Corporate Finance: Breaking the Financial Ice / Christophe Thibierge, Andrew Beresford. – Basingstoke, Hampshire: Palgrave Macmillan, 2015. – Текст: электронный // DB Springer Books [сайт]. - URL: https://link.springer.com/book/10.1057/9781137492548

Authors

• ROSSOKHIN VLADIMIR VALEREVICH
• Егорова Екатерина Игоревна