Numbering Code	P-MGT75 60106 LE44	Year/Term	2022 ・ First semester
Number of Credits	2	Course Type	Lecture
Target Year		Target Student
Language	English	Day/Period	Tue.4・5 every 2 weeks
Instructor name	ARAI TOMIO (Part-time Lecturer) ISAGAWA NOBUYUKI (Graduate School of Management Professor)
Outline and Purpose of the Course	This course covers the theory and its implications for broad financial decisions made by corporations, which range from capital budgeting to mergers and acquisitions.
Course Goals	This course intends to give the students a thorough understanding of corporate financial policies, the pricing and use of financial instruments, and financial markets.　Students will build a solid academic and analytical foundation to make good decisions in today's complex economic systems.
Schedule and Contents	Topics related to capital budgeting and the cost of capital are explained in the first half of the semester. Capital structure, payout policy, and M&A are the main topics discussed in the second half of the semester. 1.　 Discounted Cash Flow Valuation 2.　 Investment Decision Criteria 3.　 Mean-Variance Approach 4.　 Capital Asset Pricing Model (CAPM) 5.　 Multifactor Models of Risk 6.　 Estimating the Cost of Capital 7.　 Capital Structure: MM Propositions 8.　 Debt and Taxes 9. Financial Distress, Managerial Incentives, and Information 10.　Payout Policy 11. Valuing Firms: WACC and APV Methods 12. Valuing Firms: Residual Income and EVA Valuation Methods 13. Mergers and Acquisitions 14. Risk Management 15. Real Options
Evaluation Methods and Policy	Term Examination(60%) and Assignments(40%)
Course Requirements	Basic knowledge of both college mathematics and accounting is required.
Study outside of Class (preparation and review)	Students are requested to read the chapters of Berk/DeMarzo(2019) before the lecture that will cover that topic. Test your understanding of the material by doing the Concept Checks in each chapter of Berk/DeMarzo(2019).
Textbooks	Textbooks/References	Corporate Finance, Global edition, Berk, J. and P. DeMarzo,, (Pearson, 2019), ISBN:978-1292304151
References, etc.	Financial Modeling, Fourth Edition, Benninga, S.,, (MIT Press, 2014), ISBN:978-0262027281 Valuation: Measuring and Managing the Value of Companies, 7th Edition, McKinsey & Company Inc., et al.,, (Wiley, 2020), ISBN:978-1119610885 Investment Science, 2nd ed., Luenberger, D.,, (Oxford Univ. Press, 2013), ISBN:978-0199740086