2017 | Corporate Finance I

2017　Corporate Finance I

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Academic unit or major: Graduate major in Technology and Innovation Management

Instructor(s): Kozu Tomotake

Class Format: Lecture

Media-enhanced courses

Day/Period(Room No.): Thr11-12(W936)

Group: -

Course number: TIM.A534

Credits: 1

Academic year: 2017

Offered quarter: 3Q

Syllabus updated: 2017/10/4

Lecture notes updated: -

Language used: Japanese

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Syllabus

Course description and aims

This course focuses on the Corporate Finance problems that how CFOs and CROs mange and improve Enterprise Value. Topics include financial statement analysis, basic financial mathematics (mainly fixed income mathematics), investment theories, enterprise valuation and M&A strategy. This course introduces not only theories but also applications to actual business situations.
Students will consider and practice such applications to actual corporate activities by using the basics of Corporate Finance theories and its relationship acquired through this course.

Student learning outcomes

By the end of this course, students will be able to:
1) Perform basic valuation using financial statement analysis and basics of fixed income mathematics.
2) Understand basics of investment theories and compute Enterprise Value

Keywords

Corporate Finance, Enterprise Valuation, Financial Statement Analysis, Fixed Income, Risk Management, Derivatives

Competencies that will be developed

✔ Specialist skills

Intercultural skills

Communication skills

Critical thinking skills

✔ Practical and/or problem-solving skills

Class flow

In the first half of the course, students will learn financial statement analysis and the basics of finance mathematics. In the latter half of the course, students will learn actual Enterprise Valuation Methodology.
Not only theories but also actual business cases will be introduced throughout the whole course.

Course schedule/Required learning

	Course schedule	Required learning
Class 1	Introduction / Basic problems in Corporate Finance	Understand the area of Corporate Finance.
Class 2	Financial Statement Analysis BS, PL, Cash Flow and Financial Indicator Analysis	Understand Financial Statements and Compute Financial Indicators.
Class 3	Financial mathematics 1 Present Value, Fixed income mathematics, risk quantification	Understand simple interest, compound interest, continuous compound interest, discount factors, etc.
Class 4	Financial mathematics 2 Yield curve modeling, sensitivity analysis	Understand Yield Curve modeling procedure, Sensitivity Analysis
Class 5	Investment on major financial products Bond and Stock	Understand basics of bond and stocks and their market
Class 6	Investment theory and practices 1 mean-variance portfolio, Capital Asset Pricing Model (CAPM), Enterprise Value	Understand basics of Investment theories
Class 7	Investment theory and practices 2 Theory and case of Enterprise Valuation and Project Valuation	Computation of Enterprise Value
Class 8	Investment theory and practices 3 and M&A strategy Investment on Securitization products and M&A schemes	Compute Securitization products and Understand M&A strategy

Textbook(s)

Reference books, course materials, etc.

R.Brealey, S.Myers, F.Allen 『Principles of Corporate Finance, 10/e』 Nikkei BP Marketing,　ISBN-978-4-8222-4860-4，(Japanese)

Assessment criteria and methods

Students' knowledge of theories of corporate finance, and their ability to apply them to problems will be assessed.
Report (100%)

Related courses

Corporate Finance Ⅱ

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

Basic knowledge of mathematics including differential-integral equation, statistics, matrix algebra.

TOKYO INSTITUTE OF TECHNOLOGY