Corporate Finance I

Instructor:

E.M.Rogova, Professor, Doctor of Science,

Higher School of Economics at St.-Petersburg 

 

 

Workload:

6,0 ECTS, 45 hours

 

Prerequisites:

no

 

Goals and objectives: 

The key aim of the course is to provide students with knowledge and skills in taking corporate financial and investment decisions, develop analytic instruments to assess the effectiveness and efficiency of such decisions, elaborate models of corporate financial management.

 

Course Content:

Topic 1. Goals and Government of the Firm

1. Corporate investment and financing decisions

2. The role of the financial manager and the opportunity cost of capital

3. Goals of the corporation

4. Agency problems and corporate governance

 

Topic 2. Financial analysis and financial modeling. Growth management

1. Principles of financial modeling.

2. Corporate growth strategies and their modeling

 

Topic 3. Introduction to Capital Markets and Investment Decision

1. Principles of investment decisions

2. DCF model. Net Present Value

3. Project analysis and capital budgeting

 

Topic 4. Calculation of cost of capital

1. Concept of cost of capital and its role in the modern corporate financial management.

2. Portfolio theory and CAPM

3. Stock valuation principles

4. Alternative approaches to the analysis of costs of equity

5. Bonds valuation. Cost of debt

6. Valuation of hybrid funding

7. The weighted average cost of capital (WACC)

 

Topic 5. Options

1. Definition of options

2. Valuing options: binomial model and Black-Scholes model

3. Constructing self-financing portfolio

4. Real options: definition and applications  

 

 

Teaching Methods:

Lectures and seminars, problem solving, home assignments

 

 

Course reading:

 

Core reading:

  • [BMA9] Brealey R.A., S.C. Myers, and F. Allen. Principles of Corporate Finance, 9th ed., McGraw-Hill, 2008
  • [Dam3] Damodaran A. Applied Corporate Finance. 3rd Edition. John Wiley and Sons Ltd., 2011 (access online at: www.damodaran.com)

 

Additional reading:

  • [BdM] Berk J., DeMarzo P. Corporate Finance. Second Edition. Boston: Pearson Education, 2011

 

 

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