Strategic corporate finance – teaching plan 2020

Strategic corporate finance – teaching plan 2020

Session	Lecture topic	Reading(s)
1.    March 10 (Tue) 10-13 14:30-17:30	The finance function Capital markets and market efficiency	WH: Chapter 1 of the recommended text WH: Chapter 2 of the recommended text ML: Chapters 1 and 2. ML: Chapter 9 Slides: managing the finance function. Slides: on objectives of financial management. Slides: financial strategy. Slides: on profitability, liquidity and solvency. Slides: on PE ratio. Slides: time value of money. Slides: agency theory. Slides: capital market. Slides: money market. Slides: efficient market hypotheses. Slides: random walk theory. Slides: Capital asset pricing model. Video: Financial objectives of firms. Video: Influences on financial objectives. Video: Finance functions. Video: CFO attributes. Video: Financial strategy. Video: capital market. Video: key players of the capital market. Video: efficient market hypothesis. Video: efficient markets and random walk. Basic concept of finance: Video: time value of money. Video: how to calculate present value. Video: present value of a perpetuity. Videos on financial ratios Ratio analysis on profitability. Ratio analysis on gearing. Ratio analysis: shareholder ratios. Ratio analysis: P/E ratio. Ratio analysis: total shareholder return. Ratio analysis: return on assets (ROA). Ratio analysis: decompose ROA. Ratio analysis: liquidity ratios. Ratio analysis: asset turnover ratio. Finance portal information on Power Assets. e-reading: the changing face of the finance function. e-reading: capital market. e-reading: efficient market theory. e-reading: random walk theory.
2.    March 11 (Wed) 10-13 14:30-17:30	Sources of capital: equity Sources of capital: debt and hybrid finance	WH: Chapter 4 of the recommended text. WH: Chapter 5 of the recommended text ML: Chapter 8 Slides: bonds and debentures. Slides: types of share. Slides: sources of capital. Slides: long-term financing (debt). Slides: pecking order theory and tradeoff theory. Video: sources of finance. Video: introduction to debt and equity financing. Video: what is equity. Video: equity finance. Video: nominal and market values of shares. Video: share valuation - calculation. Video: factors that affect share prices. Video: how to calculate market capitalization. Video: private placement. Video: rights offering. Video: source of finance: retained profit. Video: different types of shares. Video: long-term debt. Video: debentures. Video: types of bonds. Video: how bonds work. Video: relationship between bond prices and interest rates. Video: convertible bond. Videos: term loans 1/ term loans 2. Video: equity vs debt. Video: pecking order theory. Video: external sources of finance (short-term): bank overdrafts and loans. Video: source of finance: factoring. e-reading: long-term finance.
3.    March 12 (Thu) 10-13 14:30-17:30	Leasing and an introduction to cost of capital Cost of capital and capital structure	WH: Chapter 5 & 9 of the recommended text. WH: Chapter 9 of the recommended text. ML: Chapter 10 Slides: lease finance. Slides: on factoring and invoice discounting. Slides: short-term financing. Slides: capital structure. Slides: financing decision (capital structure). Slides: cost of capital. Slides: stock valuation. Video: market value of debt (the formula). Video: risk and reward: an introduction. Video: capital asset pricing model (CAPM). Video: introduction to beta in CAPM. Video: risk, return and CAPM. Video: introduction to cost of capital. Video: nominal and real interest rates. Video: weighted average cost of capital. 1 Video: weighted average cost of capital 2. Video: a lecture on capital structure. Video on financial leverage. Video: capital structure and financial leverage. Video: optimal capital structure. Video: capital structure models. Video: calculating cost of equity using CAPM. Video: hire purchase and leasing. Video: principal agent problem. Video on rating agencies. Video on the yield curve. Video on bond prices and yields. e-reading: cost of capital (CIMA). e-reading: capital structure.
4.    March 13 (Fri) 10-13 14:30-17:30	Investment appraisal & capital budgeting Dividend policy	WH: Chapter 6 of the recommended text. WH: Chapter 10 of the recommended text. ML: Chapters 4 and 5 ML: Chapter 12 Slides: investment appraisal. Slides: on NPV. Slides: dividend types. Slides: dividend policy. Slides: dividend yield. Slides: buyback of shares. Video: investment appraisal techniques.Video on payback period method. Video: NPV method. Video: ARR method. Video: IRR. Video: NPV and IRR explained. Video: shareholder ratios. Video: dividend and dividend policy. Video: introduction to dividend policy. Video: dividend payout ratio. Video: dividend yield. Video: Gordon growth model on share valuation. Video: dividend irrelevance. e-reading: dividend policy e-reading: investment appraisal process. e-reading: basic investment appraisal techniques.
5.    Apr 2 (Thu) 10-13 14:30-17:30	Mergers and takeover	WH: Chapter 11 of the recommended text. Slides: merger & acquisition. [1] Slides: merger and acquisition. [2] Video: mergers and acquisitions. Video: Introduction to M&A (ACCA). Video: valuation methods. Video: reasons for M&A failures. Reviewing financial portal information: Power Assets. e-reading: mergers and acquisitions (CIMA).
6.    Apr 3 (Fri) 10-13 14:30-17:30	Revision	Video: financial statement analysis - market value measures. Video: financial analysis made easy. Video: how to analyze income statement (case study). Video on EBITDA. Reviewing annual reports: exercise: Power Assets 2018.

References

Watson, D. and Head, A. (2013). Corporate Finance (Principles and Practice), 6th Edition, Pearson [recommended text]. [WH]

McLaney, E. (2009) Business Finance: Theory and Practice 8th Edition, Pearson. [ML]

e-resources
FB group on the subject.
FB group on videos on the subject.
FB group on ratio analysis.