THE COURSE IN A NUTSHELL

Office Hours: Wednesday, 10.00-12.00 and Thursday 13.00-15.00 or by appointment

E-mail: anisavrenozi@unyt.edu.al

Tel: +355 4 451 2345

 

Technology Expectations: Students should be familiar with Excel and PowerPoint. Continuing and regular use of e-mail is expected. Students must have simple calculators in class.

 

  1. ABOUT THE COURSE
    • Course Purpose:

The main purpose of this course is to provide a) a strong conceptual framework for understanding managerial finance and the dynamic economic environment in which corporate financial decisions are made and b) assess the main tools extensively used by financial managers and their applicability in decision-making.

 

  • Course Description:

The main subject of this course is the financial management of corporations, whose decision making is generally of two types: Investment decisions and Financing decisions. This course provides an extension of the main topics of finance theory presented in financial accounting & managerial accounting and provides an in-depth knowledge of corporate financial management and decision-making as foundations to be practiced in advanced/applied finance. The material to be explained during the course is organized in three parts. The first part of this course introduces the topics of corporate governance and importance of the concept and usage of the net present value in the selection of profitable investments & financing opportunities. The second part of the course focuses on the theory of risk and how it is used to estimate expected/ required returns. The third part of the course focuses on the importance of considering market anomalies, market efficiency, payout policy and capital structure when selecting among different investment/financing opportunities.

 

  • Course Objectives:

Upon completion of this course, students should be able to:

  • Analyse the concept of time value of money and its applicability in financial management;
  • Critically evaluate various investment alternatives and competently select the one that fits the firm’s strategy;
  • Assess the cost of capital and evaluate how it affects the financial management choices of a corporation;
  • Critically assess the relevance of risk/return relationship in the financial decisions of a corporation;
  • Apply appropriately the discounted cash flow model and critically assess its relevance in the financial management of the corporation;
  • Identify and define the instruments available to maximize a firm’s value;
  • Perform moderate calculations of risk.
  • Critically assess ethical dilemmas/considerations in decision-making process and provide potential ethical solutions under different scenarios requiring financial management decisions.
  • Demonstrate the ability to synthesize and apply the learned tools and methods such as NPV, discounted cash flow model, cost of capital, capital structure, CAPM, etc., carefully and accurately to well-defined new problems, on individual and group basis.
  • Demonstrate the ability to select the appropriate investment valuation method in project analysis exercises, and provide the rationale which investments should a firm choose and how the firm raises funds for the selected investments.

 

  1. Required Textbook: Richard A. Brealey, Stewart C. Myers, Franklin Allen. Principles of Corporate Finance, 10th edition, New York: McGraw-Hill/Irwin, 2011.

 

Additional Materials

In class, students will be supported with additional reading materials required to gain a broad/in depth comprehension of specific lectures.

 

  1. Weekly Schedule
WEEK DATE TOPICS & HOMEWORK
I 12/10 ·      Course introduction, subjects, and requirements.

·      Goals and Governance of the Firm;

·      An Overview of Corporate Financing

Homework: Chapters 1 & 14

II 19/10 Mother Teresa Day; No Classes: To be rescheduled within the same week.
·      How to Calculate Present Values

Homework: Chapter 2

III 26/10 ·       Valuing Bonds
·       The Many Different Kinds of Debt

Homework: Chapter 3 & 24.

IV 02/11 ·         The Value of Common Stocks
Quiz No. 1

Homework: Chapter 4

V 09/11 ·          The Net Present Value and Other Investment Criteria

Homework: Chapter 5

VI 16/11 ·          Making Investment Decisions with the Net Present Value Rule
*Review for Midterm Exam

Homework: Chapter 6

VII 23/11 MID-TERM EXAM
VIII 30/11 Liberation Day; No Classes: To be rescheduled within the same week
·          Introduction to Risk and Return

Homework: Chapter 7

IX 07/12 ·          Portfolio Theory and Capital Asset Pricing Model

Homework: Chapter 8

X 14/12 ·       Risk and the Cost of Capital

Homework: Chapter 9

XI 21/12 ·         Project Analysis
Quiz No. 2

Homework: Chapter 10

XII 11/01 ·         Payout Policy

Homework: Chapter 16

XIII 18/01 ·          Does Debt Policy Matter?

Homework: Chapter 17

Leasing

Homework: Chapter 25

XIV 25/01 Efficient Markets and Behavioural Finance
*Review for Final Exam

Case Discussion: Chapter 13

XV 08/02 FINAL EXAM

 

  1. Teaching Methods:

This course is built on the conviction that students build knowledge and skills by associating new materials with knowledge and experiences acquired before or concurrently to the learning activities. This requires active learning, vigorous discussions and active participation on the part of the students. While the instruction will include lectures where core concepts, important theories, and practical application will be explained, it is the continuous and consistent exercising of students, both in class with individual or group assignments and through weekly written homework, that guarantees the proper functioning of the course.

 

  1. Course Requirements:
    • Participation (10%): Participation extends beyond mere attendance. I expect students be in class and also actively engage into class discussion and other activities, individual or in larger and smaller groups. Expect your instructor to keep track of how often you contribute to class discussion (as a whole). Attendance is compulsory as per the University rules. The student may miss up to four hours without penalty. Each absence beyond the first four hours will cost you points off of your participation grade. The only exceptions to this rule are severe illness (doctor’s note required) and UNYT approved trips/activities. In general: this class is intensive and interactive. Missing class could seriously affect your grade.

 

  • Homework (10%): The weekly assignments are very important for fulfilling the learning objectives stated above. Assignments will be given every week at the end of the class and should be submitted the following week before class session in hard copy.

 

  • Quizzes (20%): Two quizzes will be held during this course. The main purpose of the quiz is to make students assess own learning before exams. Quiz format may combine a mixture of multiple questions, true/false, matching and short answer covering all readings and lectures covered in class.

 

  • Exams (60%): Two examinations will be taken, one midterm and a comprehensive final exam. Test format may combine a mixture of short answer, true/false, matching, sort answer and two essay questions covering all readings, lecture, hand-out and class discussion content.

 

  1. Criteria for Determination of Grade, including Evaluation Methods

 

Attendance, participation and preparation 10%
Homework 10%
Quizzes 20%
Mid Term Exam 25%
Final Exam 35%

 

 

 

 

 

 

 

 

 

 

 

Letter Grade Percent (%) Generally Accepted Meaning
   A 96-100 Outstanding Work
   A- 90-95
   B+ 87-89 Good work, distinctly above average
   B 83-86
   B- 80-82
   C+ 77-79 Acceptable work
   C 73-76
   C- 70-72
   D+ 67-69 Work that is significantly below average
   D 63-66
   D- 60-62
   F 0-59 Work that does not meet minimum standards for passing the course

 

  1. General Policies
  • Assignments will be collected at the beginning of the class session. No grade for late assignments will be given unless you make special arrangements with the instructor in advance via email communications.
  • As a place preparing you for ethical business decisions, UNYT put considerable emphasis on academic honesty. Any violation of academic honesty principles, e.g. plagiarism, will result in application of UNYT’s Honor Code policies.
  • Make-up exams will be given only in the case of a confirmed medical excuse. If possible, please advise the instructor in advance by email.
  • In case of absences, students are expected to collect the distributed materials from their classmates.
  • Electronic devices: Mobile phones (and other electronic devices) must be turned off and not used in class other than during breaks.

 

  1. Learning Difficulties:If you feel that you have encountered special learning difficulties or serious problems that interfere with your studies, please make an appointment with UNYT Counseling Center, Dr. E Cenko (enilacenko@unyt.edu.al) and/or the Academic Support Center, Dr. A Canollari (albanacanollari@unyt.edu.al).  For more information, please contact me and or your academic advisor.

 

Date Prepared and By Whom Prepared

 

October 2015                 Anisa Vrenozi, M.Sc.

Faculty: Business &Economics.

Department: Economics.

Grade: Undergraduate.

Majors: Business.

Study Fileds: Accounting, Business Administration, Economics, Finance, and Management.

Course Year: 2.

Course Program: UNYT.

Scheduele: MON 13-17:00

Instructor: Anisa Vrenozi, M.Sc.

Credits:

Prerequisite: Financial Accounting & Managerial Accounting