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NHTC1110 — Corporate Finance 2. | Chương trình đào tạo NEU

NHTC1110 — Corporate Finance 2.

Credits
3
Self-study hours
90
Showing intake
K68-2026

Course description

This course provides an in-depth discussion of how firms manage the capital structure, dividend policy, working capital management, and merges and acquisitions (M&As).

Specifically, this course will cover the following topics:

- How a company manages its capital structure.

- How a company distributes the cash flow to shareholders.

- How a company manages its working capital.

- How a firm implements mergers and acquisitions.

Course requirements

Requirements for taking final /terminal exams

There are 1 group presentation, 1 mid-term test, and 1 final exam. The group presentation accounts for 20% of the total grade, the mid-term test accounts for 20% of the total grade, and the final exam accounts for 50% of the total grade. Students have permission to take the final exam when they attend more than 80% of the total classes, attend the mid-term test, and submit group assignment on time. Make-up exams will not be offered. The following rules apply to exams:

Make a notation of the exam dates.

Final Exam is a closed-book exam. You must turn off all cell phones or any other personal technology.

If you do not bring an ID to the exam, you will receive a 0 for the exam.

No food or drinks will be allowed during an exam.

When time is called, stop writing.

Please make sure you do not engage in any behavior that may appear to be cheating.Late report

Requirements for attending classes

Students are required to participate in the discussion of the class by asking and answering question, especially in the presentation time.

Class participation points will be based on general class attendance, contribution in class and compliance with the class rules delineated below. Poor class attendance, little contribution in class or non-compliance with class rules will result in a poor class participation grade.

Requirements for in-class behaviour

Communication:

Studies show that students who engage in one-on-one discussions with the instructor about the course receive better grades. I, therefore, encourage your discussion with me. You can communicate during office hours, email or in class discussions. You also are welcome to make separate appointments. I will be available before and after class, but only for short questions. I also encourage feedback on the classes, lectures, teaching and reading material. We enhance the class every semester and your thoughts are valuable in the process.

Intellectual Property:

All materials presented in class lectures including PowerPoint presentations and those materials given are intellectual property of the instructor unless otherwise copyrighted. Any reproduction or publication of this material without prior written permission is strictly forbidden.

Arrive on time and ready to begin when the class starts. If you arrive late for more than 30 minutes, you will not be counted for that class. Note that this class is intended for registered students only.

Come prepared – read the readings assigned.

Turn off cell phones during classes.

Do not engage in individual discussions

No food in class time

Participate by contributing comments and questions during the discussions. The instructor will call on students during the class if the participants do not volunteer.

Please use common courtesy and polite manners in class.

Teaching plan

Chapter 1
References
Return and risk: The Capital Asset Pricing Model (CAPM) 1.1. Securities return, variance, and covariance 1.2. The return and risk for portfolio 1.3. The efficient set for two assets 1.4. Diversification 1.5. Relationship between risk and expected return (CAPM)
Activities
- Introducing about the structure of the course, the group presentation and the exams. - Reading at home: RWJ chapter 11 - Lecturing - Discussion at class
Assessment
Participation, Quiz
Chapter 2
References
Risk, cost of capital, and valuation 2.1. The cost of capital 2.2. Estimating the cost of equity 2.3. Estimating the cost of fixed income securities 2.4. The weighted average cost of capital
Activities
- Reading at home: RWJ chapter 13 - Lecturing - Discussion at class
Assessment
Participation, Quiz
Chapter 3
References
Capital structure: Basic concepts and limits to the Use of debt 3.1. The capital structure question 3.2. Financial leverage and firm value 3.3. Modigliani and Miller theory
Activities
- Reading at home: RWJ chapters 16, 17 - Lecturing - Discussion at class

Learning resources

  • Course book:
  • Reference books
  • Other required materials and information:
Assessment
Participation, Quiz
Chapter 3 (cont.)
References
Capital structure: Basic concepts and limits to the Use of debt 3.4. Costs of financial distress 3.5. Integration of tax effects and financial distress costs 3.6. Other capital structure theories
Activities
- Reading at home: RWJ chapters 16, 17 - Lecturing - Discussion at class
Assessment
Participation, Quiz
Chapter 4
References
Dividends and other payout 4.1. Different types of payouts 4.2. Standard method of cash dividend payment 4.3. Dividend theories 4.4. Repurchase of stock 4.5. Stock dividends 4.6. Stock split
Activities
- Reading at home: RWJ chapter 19 - Lecturing - Discussion at class
Assessment
Participation, Quiz
Chapter 5
References
Short-term finance and planning 5.1. Tracing cash and net working capital 5.2. The operating cycle and the cash cycle 5.3. Some aspects of short-term financial policy
Activities
- Reading at home: RWJ chapter 26 - Lecturing - Discussion at class
Assessment
Participation, Quiz
Chapter 5 (cont.)
References
Short-term finance and planning 5.4. Cash budgeting 5.5. The short-term financial plan
Activities
- Reading at home: RWJ chapter 26 - Lecturing - Discussion at class
Assessment
Participation, Quiz
Chapter 6
References
Cash Management 6.1. Reasons for holding cash 6.2. Understanding float 6.3. Investing idle cash 6.4. Cash management model
Activities
- Reading at home: RWJ chapter 27 - Lecturing - Discussion at class
Assessment
Participation, Quiz
Chapter7
References
Credit and inventory management 7.1. Credit and receivables 7.2. Terms of the sale 7.3. Analyzing credit policy 7.4. Inventory management 7.5. Inventory management techniques
Activities
- Reading at home: RWJ chapter 28 - Lecturing - Discussion at class
Assessment
Participation, Quiz
Chapter 8
References
Merges, Acquisitions and Divestitures 8.1. The basic forms of acquisitions 8.2. Synergy 8.3. The NPV of a merger 8.4. Friendly versus hostile takeovers 8.5. Defensive tactics 8.6. Going private and leverage buyouts 8.7. Divestures
Activities
- Reading at home: RWJ chapter 29 - Lecturing - Discussion at class
Assessment
Participation, Quiz
Chapter 1-8
References
Mid-term test
Activities
Individual exam
Assessment
Exam
Chapter 1-8
References
Presentation (3 groups)
Activities
Group presentation
Assessment
Group report and presentation
Chapter 1-8
References
Presentation (3 groups)
Activities
Group presentation
Assessment
Group report and presentation
Chapter 1-8
References
Presentation (3 groups)
Activities
Group presentation
Assessment
Group report and presentation
Chapter 1-8
References
Presentation (3 groups) and review.
Activities
- Group presentation - Review the course
Assessment
Group report and presentation
Final exam
Activities
Students take exams according to given schedule
Assessment
(i) Multiple choices Rubric 3