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207 Giải Phóng,Bạch mai, Hà Nội, Việt Nam

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TOTC1110 — Mô hình tài chính công ty | Chương trình đào tạo NEU

TOTC1110 — Mô hình tài chính công ty

Credits
3
Showing intake
K66-2024
Requested intake
K68

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

Lecture 1. Course introduction Overview of the firm and corporate financial activities Overview of the firm and the CFO Performance measurement Basic DCF valuation
References
[1] Chapter 13 [5] Chapters 1, 2, 3
Activities
Lecturer - Introduces the syllabus, textbook, reference materials, software, slides, etc. - Delivers the theory according to the lecture/slide content - Provides guidance on reading the textbook and reference materials - Asks students to review the knowledge of the prerequisite courses - Asks students to preview the examples, questions, and exercises for Seminar 1 - ... Students - Preview the syllabus - Read the materials - Review the knowledge of the prerequisite courses

Week 2

Seminar 1. - Discuss the examples, questions, and exercises of Seminar 1 - Provide guidance on the format, topics, and deadlines for the Data and the group analysis/presentation
References
[1] Chapter 13 [2] Chapter 13 [3] Lecture slide 1
Activities
Lecturer - Reviews the knowledge of Lesson 1 - Forms groups for the major assignment/group presentation. Students - Read the materials in advance - Follow the examples, questions, and exercises and answer the questions - Form groups for the group assignment
Assessment
- Attendance check - Answering questions on the content of Seminar 1 - Level of completion of in-class exercises - Appendix 2, Rubrics 1

Week 3

Lecture 2. Overview of the firm and corporate financial activities (continued) 2.1. Behavioral incentives of the CEO 2.2. Case-study example

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
References
[1] Chapter 13 [5] Chapters 1, 2, 3
Activities
Lecturer - Delivers the theory according to the slide content - Introduces the examples in the slides - Provides guidance on reading the textbook and reference materials - Asks students to preview the examples, questions, and exercises for Seminar 2 Students - Read the materials in advance - Preview the examples and complete the required exercises

Week 4

Seminar 2 - Discuss the examples in Lecture 2 - Discuss the questions and the results of the exercises of Seminar 2
References
[1] Chapter 13 [2] Chapter 13 [3] Lecture slide 2
Activities
Lecturer - Provides guidance on discussing the examples in the lecture, and the questions and exercises in Seminar 2 Students - Read the materials in advance - Participate in discussing the content and exercises related to Lesson 2
Assessment
- Attendance check - Answering questions on the content of Seminar 2 - Level of completion of in-class exercises - Appendix 2, Rubrics 1

Week 5

Lecture 3. Capital structure and cost of capital Firm value and the MM1 theorem Cost of capital and the MM2 theorem Valuation under personal income tax conditions
References
[1] Chapter 15 [2] Chapter 15 [5] Chapters 1-8
Activities
Lecturer - Delivers the theory according to the slide content - Introduces the examples in the slides - Provides guidance on reading the textbook and reference materials - Asks students to preview the examples, questions, and exercises for Seminar 3 Students - Read the materials in advance - Preview the examples and complete the required exercises
Assessment
…

Week 6

Seminar 3 - Discuss the examples in Lecture 3 - Discuss the questions and the results of the exercises of Seminar 3
References
[1] Chapter 15 [2] Chapter 15 [3] Lecture slide 3
Activities
Lecturer - Provides guidance on discussing the examples in the lecture, and the questions and exercises in Seminar 3 Students - Read the materials in advance - Participate in discussing the content and exercises related to Lesson 3
Assessment
- Attendance check - Answering questions on the content of Seminar 3 - Level of completion of in-class exercises - Appendix 2, Rubrics 1

Week 6

Midterm test
Activities
Lecturer: - Provides the exam paper and proctors the exam strictly - Answers students' questions related to the exam paper. Students: - Review the lessons and take the exam seriously - Read the textbook and related materials in advance to understand the theoretical content to be studied.

Week 7

Lecture 4. Capital structure and cost of capital (continued) 4.1 Combining MM and CAPM 4.2 Valuation in the case of risky debt - The OPM model 4.3 Empirical issues
References
[1] Chapter 15 [2] Chapter 15
Activities
Lecturer - Delivers the theory according to the slide content - Introduces the examples in the slides - Provides guidance on reading the textbook and reference materials - Asks students to preview the examples, questions, and exercises for Seminar 4 Students - Read the materials in advance - Preview the examples and complete the required exercises

Week 8

Seminar 4 - Discuss the examples in Lecture 4 - Discuss the questions and the results of the exercises of Seminar 4
References
[1] Chapter 15 [2] Chapter 15 [3] Slides for Chapter 2.
Activities
Lecturer - Provides guidance on discussing the examples in the lecture, and the questions and exercises in Seminar 4 Students - Read the materials in advance - Participate in discussing the content and exercises related to Lesson 4
Assessment
- Attendance check - Answering questions on the content of Seminar 4 - Level of completion of in-class exercises - Appendix 2, Rubrics 1

Week 9

Lecture 5. Dividend policy 5.1 Growth valuation 5.2 Dividend policy 5.3 Optimizing shareholder value
References
[1] Chapters 14, 16 [2] Chapters 14, 16 [5] Chapters 8-12
Activities
Lecturer - Delivers the theory according to the slide content - Introduces the examples in the slides - Provides guidance on reading the textbook and reference materials - Asks students to preview the examples, questions, and exercises for Seminar 5 Students - Read the materials in advance - Preview the examples and complete the required exercises
Assessment
…

Week 10

Seminar 5 - Discuss the examples in Lecture 5 - Discuss the questions and the results of the exercises of Seminar 5
References
[2] Chapter 16 [3] Lecture slide 5
Activities
Lecturer - Provides guidance on discussing the examples in the lecture, and the questions and exercises in Seminar 5 Students - Read the materials in advance - Participate in discussing the content and exercises related to Lesson 5
Assessment
- Attendance check - Answering questions on the content of Seminar 5 - Level of completion of in-class exercises- - Appendix 2, Rubrics 1

Week 11

Lecture 6. Dividend policy (continued) 6.1 Extending the growth valuation model 6.2 Empirical issues of dividend policy.
References
[1] Chapters 14, 16 [2] Chapters 14, 16
Activities
Lecturer - Delivers the theory according to the slide content - Introduces the examples in the slides - Provides guidance on reading the textbook and reference materials - Asks students to preview the examples, questions, and exercises for Seminar 6 Students - Read the materials in advance - Preview the examples and complete the required exercises

Week 12

Seminar 6 - Discuss the examples in Lecture 6 - Discuss the questions and the results of the exercises of Seminar 6
References
[1] Chapter 16 [2] Chapter 16
Activities
Lecturer - Provides guidance on discussing the examples in the lecture, and the questions and exercises in Seminar 6 Students - Read the materials in advance - Participate in discussing the content and exercises related to Lesson 6
Assessment
- Attendance check - Answering questions on the content of Seminar 6 - Level of completion of in-class exercises - Appendix 2, Rubrics 1 - Submission of the group assignment

Week 13

Lecture 7. Applications in Corporate Finance 7.1 Asset leasing 7.2 Project appraisal and risk analysis 7.3 Cash-flow risk and firm risk 7.4 M&A
References
[1] Chapter 17 [4] Chapter 2 [5] Chapters 9, 10
Activities
Lecturer - Delivers the theory according to the slide content - Introduces the examples in the slides - Provides guidance on reading the textbook and reference materials - Asks students to preview the examples, questions, and exercises for Seminar 7 Students - Read the materials in advance - Preview the examples and complete the required exercises

Week 14

Seminar 7 - Discuss the examples in Lecture 7 - Discuss the questions and the results of the exercises of Seminar 7 - The groups present their group assignments
References
[1] Chapter 4 [2] Chapter 5 [3] Lecture slide 7
Activities
Lecturer - Provides guidance on discussing the examples in the lecture, and the questions and exercises in Seminar 7 - Comments on the group assignments Students - Read the materials in advance - Present the group assignment and comment on other groups' assignments - Participate in discussing the content and exercises related to Lesson 7
Assessment
- Attendance check - Answering questions on the content of Seminar 7 - Presentation of the group assignment - Level of completion of in-class exercises - Appendix 2, Rubrics 1

Week 15

Seminar 8 - The groups present their group assignments - Review and summarize the course - Provide exam guidance and answer questions
Activities
Lecturer - Comments on the group assignments - Synthesizes and summarizes the knowledge from the lectures - Organizes the types of questions for the final exam - Works through some questions from the reference exam questions Students - Present the group assignment and comment on other groups' assignments - Review the entire course content and the reference questions
Assessment
- Attendance check - Presentation of the group assignment
Final examination
References
The entire content from Lecture 1 to Lecture 7
Activities
Essay examination
Assessment
Appendix 1: examination matrix