复旦大学管理学院 School of management, Fudan university (Spring 2013) MANA130004 Financial Management Course Outline ZHANG Xiaorong FANG Shuhong HUANG Jianbing ZHOU Xin
复旦大学管理学院 School of Management, Fudan University (Spring 2013) MANA130004 Financial Management Course Outline ZHANG Xiaorong FANG Shuhong HUANG Jianbing ZHOU Xin
Financial manageme . Course Information Course description Financial Management is a required course for all undergraduates in the School of Management, Fudan University The objective of this course is to provide the students with an understanding of basic theories and tools in finance and how to apply the knowledge in solving corporate financial problem: The course consists of four parts, covering issues related to both financial markets and the firms' financial operations. The first part introduces the basic concepts of finance, discusses the time value of money, and gets the PV formula and the NPv rule. The second part examines the valuation of financial assets(such as bonds and stocks) with the PV formula, and then focuses on real assets valuations, i.e, firms'capital budgeting decisions, in which cash flow analysis, practical investments and sensitivity analysis will all be covered The third part analyzes the risk-return relationship and how cost of equity is determined Specifically, Portfolio Theory and Capital Assets Pricing Model will be introduced. The last part relates to the firms financing decisions, including the methods of financing, WACC and capital structure theories The course requires a great amount of real examples to prove and demonstrate the concepts and theories. In addition to the lecturing, students will be given 3-5 min cases to discuss in the class, which may account for 15-20% of the classroom time. Students will also do 2 after-class case studies in groups and give presentations in the class Students' grading in the course is composed of class participations, case analysis and the performance in the final exam Course Objectives The objective of the course is to help students Understand the basic concepts, theories, principles and approaches in finance Apply the knowledge in valuing different instruments in the financial markets Apply the knowledge in firms on how to make financial decision Course materials Textbook Richard A. Brealey, Steward C. Myers and Franklin Allen; Principle of corporate Finance, 10th Edition 2012 McGraw-hill
Financial Management 2 I. Course Information Course Description Financial Management is a required course for all undergraduates in the School of Management, Fudan University. The objective of this course is to provide the students with an understanding of basic theories and tools in finance and how to apply the knowledge in solving corporate financial problems. The course consists of four parts, covering issues related to both financial markets and the firms’ financial operations. The first part introduces the basic concepts of finance, discusses the time value of money, and gets the PV formula and the NPV rule. The second part examines the valuation of financial assets (such as bonds and stocks) with the PV formula, and then focuses on real assets valuations, i.e., firms’ capital budgeting decisions, in which cash flow analysis, practical investments and sensitivity analysis will all be covered. The third part analyzes the risk-return relationship and how cost of equity is determined. Specifically, Portfolio Theory and Capital Assets Pricing Model will be introduced. The last part relates to the firms’ financing decisions, including the methods of financing, WACC and capital structure theories. The course requires a great amount of real examples to prove and demonstrate the concepts and theories. In addition to the lecturing, students will be given 3-5 min cases to discuss in the class, which may account for 15-20% of the classroom time. Students will also do 2 after-class case studies in groups and give presentations in the class. Students’ grading in the course is composed of class participations, case analysis and the performance in the final exam. Course Objectives The objective of the course is to help students · Understand the basic concepts, theories, principles and approaches in finance; · Apply the knowledge in valuing different instruments in the financial markets; · Apply the knowledge in firms on how to make financial decision. Course Materials Textbook Richard A. Brealey, Steward C. Myers and Franklin Allen; Principle of Corporate Finance, 10th Edition, 2012 McGraw-Hill
ial man Refe Stephan A. Ross, Randolph W. Westerfield, and Jeffrey F Jaffe; Corporate Finance McGraw-Hill Eugene F Brigham and Louis C. Gapenski; Financial Management: Theory and Practice, South-Western Cengage learning Mini cases I-Investing or Financing Sony sold its' Sony City Osaki buildi 2-Adidas' Social Responsibility st of capital lend Policy an Take- outhern
Financial Management 3 References Stephan A. Ross, Randolph W. Westerfield, and Jeffrey F. Jaffe; Corporate Finance, McGraw-Hill Eugene F. Brigham and Louis C. Gapenski; Financial Management: Theory and Practice, South-Western Cengage Learning Mini Cases 1 – Investing or Financing: Sony sold its‘ Sony City Osaki’ building 2 – Adidas’ Social Responsibility 3 – Identifying your opportunity cost of capital 4 – Dividend Policy and Microsoft 5 – Investment Detective Take-home Cases 1– Acid Rain: The Southern Company 2 – Valuing Coca-Cola
Financial manageme IL. Course Learning Outcomes(CLOs) On completion of this course, students should be able to Develop understanding theories, principles and approaches of finance.(CLOD) Develop the knowledge of concept, basic information and application of different instruments on financial market. (CLO2) Develop the knowledge for firms, how to make investment and financing decision. (CLO3) Develop capabilities for case study and analysis of financial management. (CLO4 Alignments of Program and Course Learning outcomes Undergraduate Program Learning Outcomes Course los 1. Solid theoretical basis, strong professional skills, and logical modes of CLO1 CLO2 thinking CLO3 2. Collection and measurement of data and information CLO2 CLO3 CLO4 3. Written and Verbal Communication Skills CLO3 CLO4 4 Research skill in problem solution CLO3 CLO4 5. A strong sense of social responsibility and high ethical standards CLO1 CLO4 Teaching and learning activities Lectures: basic concepts and knowledge will be presented in the class through In-class discussions: sometimes discussion questions are raised by the lecturer. Students are encouraged to participate in discussions and share opinions with their peers. These discussions encourage students to think more for certain arguable topics Assignments: students accomplish tasks using technologies covered in class. Through the assignments they can acquire hands-on experience using these technologies Group project: students forming groups to practice the research on one real company's study, analysis, planning, execution, presentation and evaluation Case study: students express and share their ideas and questions on the case related to international financial management in the class These discussions encourage students to think about the class materials after class Measurement of learning outcomes I Learning outc Teaching and learning activity Develop understanding Lectures, in-class discussions, Attendance, participation in theories, principles and assignments case stud discussions, assignments, case pproaches of finance tutorials (cloi) Develop the knowledge of Lectures, in-class discussions, Attendance, participation in
Financial Management 4 II. Course Learning Outcomes (CLOs): On completion of this course, students should be able to: · Develop understanding theories, principles and approaches of finance. (CLO1) · Develop the knowledge of concept, basic information and application of different instruments on financial market. (CLO2) · Develop the knowledge for firms, how to make investment and financing decision. (CLO3) · Develop capabilities for case study and analysis of financial management. (CLO4) Alignments of Program and Course Learning Outcomes Undergraduate Program Learning Outcomes Course LOs 1. Solid theoretical basis, strong professional skills, and logical modes of thinking. CLO1, CLO2, CLO3 2. Collection and measurement of data and information CLO2, CLO3, CLO4 3. Written and Verbal Communication Skills CLO3, CLO4 4. Research Skill in Problem Solution CLO3, CLO4 5. A strong sense of social responsibility and high ethical standards CLO1, CLO4 Teaching and Learning Activities Ÿ Lectures: basic concepts and knowledge will be presented in the class through. Ÿ In-class discussions: sometimes discussion questions are raised by the lecturer. Students are encouraged to participate in discussions and share opinions with their peers. These discussions encourage students to think more for certain arguable topics. Ÿ Assignments: students accomplish tasks using technologies covered in class. Through the assignments they can acquire hands-on experience using these technologies. Ÿ Group project: students forming groups to practice the research on one real company’s study, analysis, planning, execution, presentation and evaluation. Ÿ Case study: students express and share their ideas and questions on the case related to international financial management in the class. These discussions encourage students to think about the class materials after class. Measurement of Learning Outcomes Learning outcome Teaching and learning activity Assessment Develop understanding theories, principles and approaches of finance. (CLO1) Lectures, in-class discussions, assignments, case study, tutorials Attendance, participation in discussions, assignments, case study. Develop the knowledge of Lectures, in-class discussions, Attendance, participation in
Financial management concept, basic information assignments, case study discussions. assignments case and application of different tutorials instruments on financial arket (CLO2) Develop the knowledge for Lectures, in-class discussions, Attendance, participation in firms how to make assignments, case study Idy investment and financing decision.(CLO3 Develop capabilities for case Lectures, In-class discussions, Attendance, participation in study and analysis of case stud discussions, case study financial management (CLO4) I. Process for assessment n-class participation(20%) Participation in class discussion and playing a proactive role in other in-class activities. Assignments(20%) Individual assignments Final Examination(60%) 120-minute exam consist of multiple choice question and problems Cover most important issues related to the course
Financial Management 5 concept, basic information and application of different instruments on financial market. (CLO2) assignments, case study, tutorials discussions, assignments, case study. Develop the knowledge for firms, how to make investment and financing decision. (CLO3) Lectures, in-class discussions, assignments, case study Attendance, participation in discussions, case study. Develop capabilities for case study and analysis of financial management. (CLO4) Lectures, In-class discussions, case study Attendance, participation in discussions, case study. III. Process for Assessment In-class participation (20%) § Participation in class discussion and playing a proactive role in other in-class activities. Assignments (20%) · Individual assignments. · Group assignments on case analysis. Final Examination (60%) · 120-minute exam consist of multiple choice question and problems. · Cover most important issues related to the course
Financial mana IV. Course Schedule Lecture Subject Supplement/Reference Homework Course Introduction Textbook-[BMA] Chapter What is Finance The Characteristics of cash flow a Mini Case l-investing or Financing: Sony sold its' Sony City a Mini Case 2 -Adidas' Social bi Present value Textbook-BMA] Chapter 2 me Value of Money Mini Case 3-ldenmtifying your Chapter 2 2.3 Question 13 Simple interest vs compounded opportunity cost of e 14.16.18 Interest 23.25.32 s Nominal rate vs. effective rate Bond valuation Textbook-[BMA] Chapter 3 BMA Bond Concept Chapter 3 Valuing Bond Question 16 m Bond Yield Stock valuation Textbook-[BMA] Chapter 4 Stock Concept Mini Case 4-Dividend Policy and Chapter Dividend discount model Price-earnings ratio Micros 18,22,25 Capital Budgeting Textbook-[BMA] Chapter 5,6,10 Capital budgeting method NPV s Mini Case 5-Imvestment Detective IBMAI 2、 Payback 3、 Profitability n Take-home case analysis 1-Acid Question Rain: The Southern Company 8,11,14 [BMA] 7 5、 Capital Rationing Chapter 6 NPV application Question 8 l、 Estimat 3. Equivalent Annual Cash flow Practicing problems I, Sensitivity analysis Question 2、 Scenario analysis 0.12 Risk and Return Textbook-[BMA] Chapter 7 Return of investment Uncertainty of investment Chapter 7 Portfolio s return and risk Markowitz Portfolio Theory 10.14.15
Financial Management 6 IV. Course Schedule Lecture Subject Supplement/Reference Homework 1 Course Introduction § What is Finance § The Characteristics of Cash Flow § Course Contents § Textbook – [BMA] Chapter 1 § Mini Case 1 – Investing or Financing: Sony sold its‘ Sony City Osaki’ building § Mini Case 2 –Adidas’ Social Responsibility 2,3 Present Value § Time Value of Money § Perpetuity and Annuity § Simple interest vs. compounded interest § Nominal rate vs. effective rate § Textbook – [BMA] Chapter 2 § Mini Case 3 – Identifying your opportunity cost of capital [BMA] Chapter 2 Question 13, 14, 16, 18, 23, 25, 32 4 Bond Valuation § Bond Concept § Valuing Bond § Bond Yield § Textbook – [BMA] Chapter 3 [BMA] Chapter 3 Question 16, 17 5,6 Stock Valuation § Stock Concept § Dividend Discount Model § Price-earnings ratio § Value of growth opportunity § Textbook – [BMA] Chapter 4 § Mini Case 4 –Dividend Policy and Microsoft [BMA] Chapter 4 Question 16, 18,22,25 7- 10 Capital Budgeting § Capital budgeting method l、NPV 2、Payback 3、Profitability 4、IRR 5、Capital Rationing § NPV application l、Estimating cash flow 2、Timing 3、Equivalent Annual Cash flow § Practicing problems 1、 Sensitivity analysis 2、 Scenario analysis 3、 Break-even analysis § Textbook – [BMA] Chapter 5,6,10 § Mini Case 5 – Investment Detective § § Take-home case analysis 1 – Acid Rain: The Southern Company [BMA] Chapter 5 Question 8,11,14 [BMA] Chapter 6 Question 8, 10,14,21,26, 28 [BMA] Chapter 10 Question 10,12 11 Risk and Return § Return of investment § Uncertainty of investment § Portfolio’s return and risk § Markowitz Portfolio Theory § Textbook – [BMA] Chapter 7 [BMA] Chapter 7 Question 10,14,15
Financial manageme Capital Asset Pricing Model CAPM Textbook-[BMA] Chapter 8 F CAPM Beta measure and test Take-home case analysis 2-Valuing[BMAl Coca-Cola Chapter 8 Capital Structure Decision Textbook-[BMA] Chapter IBMAJ Corporate Financing 14,15,17,18 How to finance for a firm estion 2、 Liability and Equity 6,7,10 Securities issue Question 3、 Seasoned off BMAl 16 I, Capital Structure Irrelevance Chapter 17 2、MMII 3, Capital Structure and Tax 4、wACC Chapter 18 5、 Financial distress Question 12,15,18,2 Course Wrap-up
Financial Management 7 12, 13 Capital Asset Pricing Model CAPM § CAPM § Beta measure and test § Textbook – [BMA] Chapter 8 § Take-home case analysis 2 – Valuing Coca-Cola [BMA] Chapter 8 Question 12, 16; 14 - 16 Capital Structure Decision § Corporate Financing 1、How to finance for a firm 2、Liability and Equity § Securities Issue 1、Venture Capital 2、IPO 3、Seasoned Offering § Capital Structure l、Capital Structure Irrelevance 2、MM II 3、Capital Structure and Tax 4、WACC 5、Financial Distress § Textbook – [BMA] Chapter 14,15,17,18 [BMA] Chapter 14 Question 6,7,10 [BMA] Chapter 15 Question 13,14 [BMA] Chapter 17 Question 11,19,21 [BMA] Chapter 18 Question 12,15,18,23 17 Course Wrap-up
