Strategic corporate finance – teaching plan 2020: Oct-Nov.

 

Strategic corporate finance – teaching plan 2020: Oct-Nov.


 BA (Full) S3 BM  Int 11 (SV HK); assignment due: January 2021


Session

Lecture topic

Reading(s)

1.    October 27 (Tuesday)

 

10:00-13:00

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


e-readings: 

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: the basics of corporate governance.
Video: corporate governance (introduction).
Video: importance of financial performance measurement. [also an introduction to key performance indicators].
Video: capital market.
Video: what is a stock exchange.
Video: key players of the capital market.

Video: investment banks.
Video: efficient market hypothesis.
Video: efficient markets and random walk.
Video: capital market efficiency.

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: Asset turnover and ROCE (ACCA).
Ratio analysis: decompose ROA.
Ratio analysis: liquidity ratios.
Ratio analysis: asset turnover ratio.
Ratio analysis: comprehensive lecture (ACCA).

* Limitations of ratio analysis (CIMA).
Finance portal information on Power Assets.

* A revision on income statement (a briefing).

* A revision on balance sheet (a briefing).

* shareholders' equity on a balance sheet.

e-reading: the changing face of the finance function.
e-reading: principles of corporate governance.
e-reading: capital market.

e-reading: time value of money.

e-reading: Islamic capital market.
e-reading: efficient market theory.
e-reading: random walk theory.
e-reading: financial ratio analysis (ACCA) [pdf].

2.    October 28 (Wed)

 

10:00-13:00

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


e-readings: 

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: long term finance (CIMA).
Video: introduction to debt and equity financing.

* on solvency, gearing and risk (CIMA).
Video: what is equity.
Video: equity finance.
Video: types of equity shares.
Video: nominal and market values of shares.

Video: new share issues lecture part 2: rights issue (CIMA)./ part 1: public issues.

* Video : on theoretical ex-rights price (CIMA).
Video: what is a preferred stock.
Video: share valuation - calculation.
Video: factors that affect share prices.
Video: how to calculate market capitalization.
Video: private placement. (a briefing).
Video: rights offering.
Video: source of finance: retained profit.
Video: different types of shares.
Video: long-term debt.
Video: debentures.
Video: the components of  a bond.
Video: types of bonds.
Video: how bonds work.

Video: Eurobonds market.
Video: pricing a bond.
Video: relationship between bond prices and interest rates.
Video: convertible bond.
Video: how are bonds rated?
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.
e-reading: selecting sources of finance ACCA (pdf).
e-reading: types of shares (ACCA).
e-reading: a brief note on debentures (ACCA).

3.    October 29 (Thu)

 

10:00-13:00

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


e-readings: 

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 on security market line.
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: weighted average cost of capital - an introduction (CIMA).
Video: weighted average cost of capital (a comprehensive example, CIMA).
Video: a lecture on capital structure.

Video: capital structure (CIMA).
Video: theories on capital structure (ACCA).
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 (a brief lecture on yield curve).
Video on bond prices and yields.

e-reading: cost of capital (CIMA).
e-reading: capital structure.
e-reading: debt and gearing ratios (ACCA).
e-reading: optimum capital structure (ACCA).

4.    October 30 (Fri)

 

10:00-13:00

14:30-17:30

Investment appraisal & capital budgeting

 

Dividend policy

 

 

 

 

 

 

 

Mergers and takeover

WH: Chapter 6 of the recommended text.

 

WH: Chapter 10 of the recommended text.

 

ML: Chapters 4 and 5

 

ML: Chapter 12

 

WH: Chapter 11 of the recommended text.


e-readings: 

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: introduction to dividend policy (CIMA).
Video: corporate dividend policy (CIMA).
Video: dividend payout ratio.
Video: dividend yield.
Video: Gordon growth model on share valuation.
Video: dividend irrelevance.

e-reading: dividend policy
e-reading: dividend theory (ACCA).
e-reading: investment appraisal process.
e-reading: basic investment appraisal techniques.

5.    November 24 (Tue)

 

10:00-13:00

14:30-17:30

Assignment guidance


Annual reports fo CEC 759.

 

Subject revision

 e-readings: 

Slides: merger & acquisition. [1]
Slides: merger and acquisition. [2]

Video: mergers and acquisitions.
Video: Introduction to M&A (ACCA).
Video: mergers and acquisitions (CIMA lecture).
Video: valuation methods.
Video: reasons for M&A failures.

Performance evaluation:

Videos: 

* how to read an income statement.

* how to read a balanced sheet.

* how to analyze an income statement?

* how to analyze a balanced sheet?

* cash flow for beginners.

* how to read an annual report?

* evaluating financial performance (an introduction).

* financial performance (ACCA).

* financial statement analysis.
* Video: types of financial analysis.

* ACCA lecture on capital structure.

* how to calculate debt to equity ratio from a balance sheet.

* Warren Buffet's rule on current ratio and debt equity ratio.




e-readings: mergers and acquisitions (CIMA).

* complete list of financial ratios.

6.    November 25 (Wed)

 

10:00-13:00

14:30-17:30

Assignment guidance

 

Subject revision

 e-readings: 

Video: financial statement analysis - market value measures.
Video: financial analysis made easy.
Video: how to analyze income statement (case study).
Video on EBITDA.

* the irrelevance of dividends.

* capital structure of a business.

* efficient market hypothesis (a briefing).

* are markets efficient?

* is the stock market efficient?


e-readings:

* dividend irrelevance theory.

 

 

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

e-resources on strategic corporate finance.

Comments

Post a Comment

Popular posts from this blog

MBA Research Project [MGTM05] class [topup57/58/Full PF11] Teaching plan

Image
  MBA Research Project [ MGTM05 ] class [ topup57/58/Full PF11 ], 2023 (Nov)-2024(Mar) Synopsis Form: 18 Jan 2024   Proposal: 7 Mar 2024   Dissertation only Dissertation with 1 module Dissertation with 4 modules Dissertation: Jul 2024   HK Teaching Plan: Online class and classroom class Stream 1 Session Lecture Date (All online sessions) Topics 1 Nov 2-2023: 19:00-22:00   1) A briefing on the module guide I 2) review proposal and report samples Online session 1 *  HK U thesis portal :  *  Additional advice on dissertation projects . *  Dissertation table of contents template  [consulting-oriented project type) [compared that with  the academic-oriented project type ].  Dissertation table of contents template  (academic-oriented project type). *  Module guide info on dissertation report content . *  a sample on synopsis document . *  a sample of project proposal . *  the updated proposal te
Read more

Mind mapping the topic of gender

Image
Mind mapping the topic of gender Joseph Kim-keung Ho Independent Trainer Hong Kong, China Abstract: The topic of gender is a main one in Social Sciences. This article makes use of the mind mapping-based literature review (MMBLR) approach to render an image on the knowledge structure of gender. The finding of the review exercise is that its knowledge structure comprises four main themes, i.e., (a) Descriptions of basic concepts and information (b) Major underlying theories and thinking, (c) Main research topics and issues, and (d) Major trends and issues related to practices . There is also a set of key concepts identified from the gender literature review. The article offers some academic and pedagogical values on the topics of gender, literature review and the mind mapping-based literature review (MMBLR) approach. Key words: Gender , literature review, mind map, the mind mapping-based literature review (MMBLR) approach Introduction Gender is a main topic
Read more

Synopsis form - an example for a fake case

Synopsis form - an example on a fake case, made up by me Discipline related: other: innovation management Project Title:  An investigation of the innovation and managerial leadership capabilities of the Wong Tai Sin (WTS) Branch of the Lion Bank: a mixed methods research Project synopsis:  The dissertation project studies the Wong Tai Sin (WTS) branch of the Lion Bank (Hong Kong). It offers retail banking services to the WTS residents. The Lion Bank is a subsidiary bank of the CG Bank Group. The Wong Tai Sin branch management is concerned about the weak innovation and managerial leadership capabilities which affects its ability to compete in the district of Wong Tai Sin. These management concerns are of practical significance to this student, who is the deputy branch manager of the Wong Tai Sin Branch. The research objectives are: [objective 1] to evaluate the innovation capability of the WTS branch of the Lion Bank and [objective 2] to evaluate the managerial leade
Read more