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2020　Corporate Finance

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Academic unit or major
Undergraduate major in Industrial Engineering and Economics
Instructor(s)
Inoue Kotaro 
Class Format
Lecture / Exercise    (ZOOM)
Media-enhanced courses
Day/Period(Room No.)
Mon3-4(西9号館311号室)  Thr3-4(西9号館311号室)  
Group
-
Course number
IEE.D302
Credits
2
Academic year
2020
Offered quarter
1Q
Syllabus updated
2020/9/18
Lecture notes updated
-
Language used
Japanese
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Course description and aims

In this course, the instructor will explain the basics of finance theory (modern portfolio theory) and discuss the basic theory of managerial finance (corporate finance) with a focus on the relationship between corporate management and the capital market.
First, the instructor will explain the basics of modern finance theory, such as corporate investment decision-making, capital cost, and CAPM (capital asset pricing model). Further, the instructor will introduce the discovery of behavioral finance, which emerged as a challenge to modern finance theory, to help students understand the realities of the capital market. Then, students will study topics which could be considered the central topics for managerial finance—corporate capital structure, investment policy, and corporate governance. This course is planned for greater emphasis on corporate investment decisions than on security investments.

Student learning outcomes

By the end of this course, students will be able to:
1. Understand the basics of portfolio theory and managerial finance and be prepared to work on issues applying financial theories.
2. Understand the mechanism of a capital market and corporate management, the core of a capitalist society, and have knowledge for optimal management and market structuring.

Course taught by instructors with work experience

✔ Applicable How instructors' work experience benefits the course
Instructor of this course has experience as a practitioner in financial market and coporate advisory businesses for total 15 years. He will incorporate the experience in all classes by adding practitioner's perspectives.

Keywords

Capital Budget, Cost of Capital, Modern Portfolio Theory, Behavioral Finance, Capital Structure, M&A, Corporate Governance

Competencies that will be developed

✔ Specialist skills Intercultural skills Communication skills ✔ Critical thinking skills ✔ Practical and/or problem-solving skills

Class flow

This course consists of lectures and case studies. (This year, all the classes will offered online.)
The lectures will follow a textbook. Case studies will require working in groups and active participation in the class. Students must do the following:
1. Read the textbook chapter listed for each class before the lecture.
2. Submit class assignments.

Course schedule/Required learning

  Course schedule Required learning
Class 1 Introduction: Corporate management and capital market Read and understand significant points of Chapter 1
Class 2 Value of time and Capital Budgeting 1 Read and understand significant points of Chapters 2 & 3
Class 3 Capital Budgeting 2 Read and understand significant points of Chapters 3
Class 4 Capital asset pricing model 1 Read and understand significant points of Chapter 4
Class 5 Capital asset pricing model 2 Read and understand significant points of Chapter 5 & 6
Class 6 Equity pricing Read and understand significant points of Chapter 7 & 8
Class 7 Fixed Income Bonds Read and understand significant points of Chapters 9
Class 8 Capital structure 1 Read and understand significant points of Chapter 10
Class 9 Feedback of past assignments and Explanation of the Final Assignment Read materials of the Final Assignment
Class 10 Capital structure 2 Read and understand significant points of Chapter 10 & 11
Class 11 Market Efficiency and Investment Read and understand significant points of Chapters 12
Class 12 Finance theory and practice: Discussion with a Leader of Finance Practitioner Prepare for class disucssion on the assigned firm by group
Class 13 Corporate Governance Read and understand significant points of Chapters 15
Class 14 Summary

Out-of-Class Study Time (Preparation and Review)

To enhance effective learning, students are encouraged to spend approximately 100 minutes preparing for class and another 100 minutes reviewing class content afterwards (including assignments) for each class.
They should do so by referring to textbooks and other course material.

Textbook(s)

Finance, Basic+ Series, Chuou-Keizai-Sya, Kotaro Inoue, Hiroshi Takahashi, Naosi Ikeda

Reference books, course materials, etc.

Lecture Note will be uploaded on OCW-i
Reference Book: Corporate Finance: Second Edition, 2011, Jonathan Berks and Peter DeMarzo, Peason Education

Assessment criteria and methods

Assignments　100%
Additional Points: Class participation points Max 20%

Related courses

  • IEE.D201 ： Introduction to Management
  • IEE.D202 ： Basic Accounting

Prerequisites (i.e., required knowledge, skills, courses, etc.)

Class Participants are required to have completed the course of Basic Accounting or have equivalent knowledge of accounting.

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