Corporate Finance and Capital Markets｜Kyoto University OpenCourseWare

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Numbering Code	P-MGT75 50026 LE44	Year/Term	2022 ・ First semester
Number of Credits	2	Course Type	Lecture
Target Year		Target Student
Language	English	Day/Period	Fri.5
Instructor name	KUMAGAI GORO (Graduate School of Management Visiting Professor)
Outline and Purpose of the Course	This course introduces students to the basic knowledge, theory and techniques used in practice of corporate finance. It covers a number of topics related to corporate investment and capital markets, including corporate financing decisions and capital structure decisions. It aims to help student learn to apply fundamental ideas of theory of value and risks to problems in the area of corporate finance that reflect the complexities that the real-world entails. Using the standard text book written by R, Brealey, S. Myers and F. Allen, we would explore such topics as the Theory of Value, Risks, Corporate Finance and Financial Decision, Payout Policy and Capital Structure, as well as Debt Financing. Classes will be held in an interactive manner, with active participation from the students expected. To facilitate participation and reinforce learning of the materials taught in class, we will have group discussions every session at the end of the class. Using the case method, students will be assigned with one business case for the report and presentation component held at the last class of this course. This is to motivate discussions of the gap between rigorous finance theory and its applications to practical problems in corporate finance, and the thought process required to bridge this gap. The course will also place emphasis on analyzation and presentation skills. It will be important to explain your positions to each other and to argue convincingly for your recommendations in your reports and presentations.
Course Goals	Understanding of the basic concepts and valuation techniques related to the corporate finance.
Schedule and Contents	(Course Schedule and Contents) #1 and 2 Part 1: Value, Friday 8th and 15th April #3 and 4 Part 2: Risks, Friday 22nd April and 6th May #5 and 6 Part 3: Best Practices in Capital Budgeting Friday 13th and 20th May #7 and 8 Part 4: Corporate Finance, Financing Decision and Market Efficiency, Friday 27th May and 3rd June #9 and 10 Part 5: Payout Policy and Capital Structure, Friday 10th and 24th June #11 and 12 Part 7: Debt Financing, Friday 1st and 8th July #13 and 14 Final Presentation, Friday 15th July The course will utilize Principles of Corporate Finance text book written by R, Brealey, S. Myers and F. Allen, as well as Harvard Business Cases to lead students through the essential logic linking financial and capital structure and firm value. The complementary session, “Introduction to the Financial and Capital Markets”, may be offered if needed by those students who are not familiar with the finance and investment. Attendance to this course will not be required but voluntary. ※Each session should consist of two 1.5-hour lectures.
Evaluation Methods and Policy	Class Attendance: 10% Participation & Group Discussion: 20% Assignment 1: 15% Assignment 2: 15% Final Presentation and Q&A: 20% Final Report: 20%
Course Requirements	None
Study outside of Class (preparation and review)	Students are encouraged to read the relevant chapters of the text book for each lecture in advance. Students may be asked to submit the answers to the chapter-end questions during the course. Students strongly encouraged to take the HBS introductory online course voluntarily. The URL of the online course will be uploaded to the PandA.
Textbooks	Textbooks/References	Principles of Corporate Finance, R, Brealey, S. Myers and F. Allen, McGraw Hill Higher Education; 12th edition [2016] ※30 copies will be ready for rent to those students who cannot afford to purchase his or her own copy.
References, etc.	(Reference book, etc.) ・Analysis for Financial Management, Robert C. Higgins, McGraw-Hill; 11th edition [2015] ・Investment Banking: Valuation, Leveraged Buyouts, and Mergers & Acquisitions, Joshua Rosenbaum, et al, Wiley; 2nd edition [2013] ・Investment Valuation: Tools and Techniques for Determining the Value of any Asset, Aswath Damodaran, Wiley; 3rd edition [2013]