Numbering Code	U-ECON00 20602 LJ44	Year/Term	2022 ・ First semester
Number of Credits	2	Course Type	Lecture
Target Year	From 2nd to 4th year students	Target Student
Language	Japanese	Day/Period	Tue.3
Instructor name	Rusudan Kevkhishvili (Graduate School of Economics Senior Lecturer)
Outline and Purpose of the Course	Students will learn the basics of corporate finance theory, which is important for making financial decisions for companies. Students will study important concepts and theories such as the law of one price, time value of money, Net Present Value (NPV) decision rule, and Capital Asset Pricing Model (CAPM). In addition, by performing numerical calculations and data analysis using Excel, students will deepen their understanding of the application of these theories in practice.
Course Goals	By completing this course, students will ・understand the basics of corporate finance theory, and ・acquire basic skills in numerical calculation and data analysis using Excel.
Schedule and Contents	Topics covered in class 1. Firms and Financial Statements (Textbook Chapters 1-2) 2. Time Value of Money, the Law of One Price, NPV Decision Rule (Textbook Chapter 3) 3. Valuation of a Stream of Cash Flows (Textbook Chapter 4) 4. Interest Rates, Yield Curve, and the Opportunity Cost of Capital (Textbook Chapter 5) 5. NPV and IRR Decision Rules and Investment Decision Making (Textbook Chapter 6) 6. Expected Future Cash Flow of a Project (Textbook Chapter 7) 7. Bond Valuation (Textbook Chapter 8) 8. Dividend-discount Model, Discounted Free Cash Flow Model, and Stock Valuation Methods (Textbook Chapter 9) 9. Risk and Return, Firm-specific Risk vs. Systematic Risk (Textbook Chapter 10) 10. Optimal Portfolio Selection and Capital Asset Pricing Model (CAPM) (Textbook Chapter 11) 11. Estimation of the Cost of Capital (Textbook Chapter 12) 12. Investor Behavior, Efficiency of Market Portfolio, and Multifactor Model (Textbook Chapter 13) 13. Equity and Debt, Modigliani-Miller Propositions (Textbook Chapter 14) 14. Debt and Taxes (Textbook Chapter 15) 15. Feedback Practice problems will be given every week and solutions will be provided in the following week. Instructions regarding the Excel operations necessary for applying the theory will be given in class.
Evaluation Methods and Policy	Grades will be reported as raw scores on a scale of 100 points. Evaluation methods and weights: Quizzes (40%), Final Exam (60%)
Course Requirements	Knowledge of basic statistics and basic Excel knowledge
Study outside of Class (preparation and review)	Review of course materials is mandatory. Students should prepare for the quizzes by solving the practice problems independently.
Textbooks	Textbooks/References	Corporate Finance: Introduction [2nd Edition], Jonathan Berk, Peter DeMarzo, (Maruzen Publishing), ISBN:978-4-621-06610-2, translated in Japanese by Keiichi Kubota, Toshio Serita, Hitoshi Takehara, and Toshifumi Tokunaga
References, etc.	Introduction to Corporate Finance 2nd Edition, Nobuyuki Isagawa, (Nikkei Bunko), ISBN:978-4-532-11368-1, in Japanese