TOTC1110 — Mô hình tài chính công ty
Course description
The course provides concepts of the firm's value in financial markets and the methods for determining firm value, referred to as Market Value;
It approaches firm valuation through the Modigliani & Miller model and the OPM model based on the following inputs:
+ Cost of capital and the risk adjustment method under the CAPM model.
+ Simulation of future profit streams.
+ Debt leverage (capital structure) and corporate income tax, personal income tax.
From these models, the course proceeds to discuss topics in corporate financial management: raising capital through securities issuance, borrowing, and leasing assets; project investment and investment project appraisal, determining the residual value of a project; profit distribution through dividend policy and retained earnings.
The course also integrates knowledge of financial statements in order to discuss how to use a firm's financial ratios together with the trading price of its stock and the Beta risk coefficient, in which the Beta coefficient is used to extract latent information.
Main content:
The issue of valuing the fundamental value of the firm. Extracting information through fundamental financial ratios such as ROIC, EPS, g(EPS), MVA, and others.
The MM theorems on the relationship between firm value, capital structure, and cost of capital.
The OPM model, which views equity as the price of a European call option on the firm's value.
The relationship between the various types of taxes and the benefits arising from the tax shield, leading to clientele effects in Investment and the optimal capital structure.
Combining MM and CAPM to determine the Beta coefficient of an all-equity (100% equity) firm. Separating the firm's operating risk from market risk.
The Gordon growth valuation model and dividend policy, capital-raising policy.
Valuation of financial leases and operating leases.
Application topics in: risk management, M&A, project appraisal and project risk management, issuance of convertible bonds and other financial assets. CFO decision-making and compensation models based on Game Theory.
Course requirements
Regulations on eligibility for the end-of-course examination
The attendance score must be 5 or higher (in accordance with the University's general regulations).
Method of evaluating the attendance score: see Appendix 2, Rubrics 1.
Regulations on class attendance
Students are responsible for attending all class sessions in full.
In case of absence due to force majeure, students must take the initiative to study the material through the resources provided by the lecturer and other required readings.
Regulations on classroom conduct
The course is conducted on the principle of mutual respect between learners and instructors;
Take complete notes and participate in answering questions;
Read the required materials in advance;
Complete homework assignments;
Do not make noise or disturb others, and do not eat during class;
Laptops, tablets, and mobile phones may only be used for the purpose of taking lecture notes and performing calculations for study, and must absolutely not be used for any other purpose.
Regulations on submitting major assignments
Learners who fail to submit the required individual/group assignment will receive a score of 0 (zero).
After the prescribed deadline, one point will be deducted for each day a submission is late.
11. SYLLABUS ADJUSTMENT TIME
June 2024
APPENDICES
Appendix 1. EXAMINATION MATRIX
Weight in the course grade: 50%
Format: Essay examination
Duration: 90 minutes
Number of questions: 5 questions per exam
Appendix 2. RUBRICS
Rubrics 1. Evaluation of the attendance score
Weight in the course grade: 10%
Evaluated over 8 seminar sessions.
* Note: 10+ : may be considered for bonus points added to the 40% assessment score when the attendance score is 10.
Criteria for evaluating participation in discussions
CLOs of the attendance evaluation
Rubrics 2. Evaluation of the major assignment/group presentation
Weight in the course grade: 20%
Learning outcomes and assessment
The training management system automatically evaluates the level of CLO attainment according to the University's general algorithm. The course learning outcomes are assessed by students and the University after the end-of-course examination.
Lecturers
- Tran Chung Thuy M.Sc.
- Nguyễn Quang Huy
Teaching plan
Week 1
Week 2
Week 3
Learning resources
- Financial Theory and Corporate Policy. 3rd Edition — Thomas E. Copeland, J. Fred Weston, Addison-Wesley Publishing Co, 2003
- Financial Theory and Corporate Policy - Student Solutions Manual. 4th Edition — Thomas E. Copeland, J. Fred Weston, Addison-Wesley Publishing Co, 2005
- including lecture slides and seminar slides — Editorial Team of the Faculty of Mathematical Economics, Lecture Slides for Corporate Financial Models, 2023
- Financial Management. Cengage Learning Asia Pte Ltd — Eugene F. Brigham, Joel F. Houston, 2009
- Corporate Finance. 5th Edition — Jonathan Berk, Peter DeMarzo, Published by Pearson Education, 2019