National
University of Management
Course: Corporate Finance
Instructed
by Dr. Ly Sok Heng
Objectives: Corporate Finance
aims to provide the students the general knowledge of efficient management and
evaluates the firms’ performance by using various analysis tools. The course
focuses on present value, risks and returns, asset evaluation, investment
decision and strategies, investment appraisal methods, capital budgeting, cost
of capital structures, etc.
Course Outline:
|
Chapter 1: |
Introduction
to Financial Management
- Basic Areas of Finance - Why Study Finance - Forms of Business Organization - Goal of Financial Management - The Agency Problem - Managing Managers |
|
Chapter 2: |
Financial
Statements, Taxes and Cash Flow
- The Balance Sheet - Market vs. Book Value - The Income Statement - Concept of Cash Flow |
|
Chapter 3: |
Working
With Financial Statements
- Standardized Financial Statements - Ratio Analysis - Du Pont Identity - Internal Growth rate - Sustainable Growth Rate - Why Evaluate Financial Statements? - Benchmarking |
|
Chapter 4: |
Introduction
to Valuation: The Time Value of Money
- Basic Definitions - Future Values - Present Values - The basic PV Equation - Refresher - Discount Rate - Finding the Number of Periods |
|
Chapter 5: |
Discounted
Cash Flow Valuation
- Multiple Cash Flows – Future Value - Multiple Cash Flows – Present Value - Saving for Retirement - Annuities and Perpetuities defined - Finding the Payment - Finding the Rate - Annuity Due - Effective Annual Rate (EAR) - Annual Percentage Rate |
|
Chapter 6: |
Interest
Rates and Bond Valuation
- Bond definitions - Present Value of Cash Flows as Rates
Change - Interest Rate Risk - Computing Yield-to-Maturity - The Bond Indenture - Bond Classifications |
|
Chapter 7: |
Equity
Markets and Stock Valuation
- Cash Flows to Stockholders - Dividend Growth Model - Supernormal Growth Problem Statement - Using DGM to Find R - Feature of Common Stock |
|
Chapter 8: |
Net
Present Value and Other Investment Criteria
- Good Decision Criteria - Net Present Value – Decision Rule - Payback Period - Average Accounting Return - Internal Rate of Return - Conflicts Between NPV and IRR |
Main
Textbook: Stephen A. Ross, Randolph W.
Westerfield, Bradford D. Jordan (2008)
Fundsmentals of
Corporate Finance,
Eighth Edition, McGraww-Hill.
.
Other References:- Arthur J. Keown,
John D. Martin, J. William Petty, David F. Scott, Jr (2005), Financial Management,
Tenth Edition, Prentice Hall.
- Lawrence J. Gitman (2003), Principles of
Managerial Finance,
Tenth Edition.