Course title
8M206400
Finance

yasuoka takashi
Class name
Finance
Keywords
  • Fund raising
  • Cost of capital
  • Business valuation
  • Enterprise valuation
Course description
This course introduces a basic approach to understanding businesses’ finance-related activities.
First, the course explains the function of financial markets and various methods of fundraising. Next, we learn about aspects of business valuation, and the cost of capital and cash flow are explained from a discounted cash flow (DCF) approach.
As a summary, we study some examples of mergers and acquisitions (M&A). Via these, students will gain a comprehensive understanding of the overall course.
The case study in the 12th lecture will be given by a specialist in this field.
Purpose of class
Understanding businesses’ finance-related activities.
Goals and objectives
  1. Concept of cost of capital with regard to business objectives.
  2. Understanding business valuation using DCF approach.
  3. Free cash flow with regard to enterprise valuation.
  4. Fundraising and capital markets.
Language
Japanese
Class schedule

Class schedule HW assignments (Including preparation and review of the class.) Amount of Time Required
1. Guidance; Meaning of the term "finance"; Money and currency systems; Gold standard; Credit currency system; Central banks. Handout 150minutes
2. Securities markets; Government bond yields and market interest rates; Government bond issuance and yields; Japan's budget. Handout 180minutes
3. Indirect finance and direct finance; Market-oriented indirect finance; Securitization; Features of securitization; Case study. Handout 150minutes
4. Securities markets; Primary market and secondary market in government bonds; Stock market; Nikkei 225 and TOPIX; Venture finance. Handout 180minutes
5. Fundraising; Stages of venture financing; Crowd funding; Initial public offerings. Handout 150minutes
6. Fundraising; Case study; Stock options; Accounting for stock options (example). Handout 180minutes
7. Issuing debentures; Standard bonds; Convertible bonds; Warrant bonds; Case study; Credit ratings; Recovery rate. Handout 180minutes
8. Capital cost; Discount rates; Present value; Stock price model; Dividend discount model; Exercise. Handout 180minutes
9. Gordon Growth Model; Capital cost; Bank loans; Tax savings; Weighted average cost of capital (WACC); Exercise. Handout 180minutes
10. Business valuation; Simple calculation; Payback method; DCF method; Internal rate of return method; Discount rate; Present value; Examples Handout 180minutes
11. Enterprise valuation implied from business valuation; Corporate income tax, Free cash flow; Case study of M&A. Handout 180minutes
12. M&A case study: Specialist lecture; Objective and result of M&A. Handout 180minutes
13. Enterprise valuation; Cash flow statement and free cash flow; Group work. Handout Handout 180minutes
14. Individual presentation, assignments will be given two or three weeks before; Case study of fundraising for large-scale M&A. Preparation for final paper 180minutes
15. Individual presentation, assignments will be given two or three weeks before; Case study of fundraising for large-scale M&A. Preparation for final paper 240minutes
Total. - - 2670minutes
Relationship between 'Goals and Objectives' and 'Course Outcomes'

Exercize 1 Exercize 2 Exercize 3 Exercize 4 Final report Total.
1. 15% 5% 20%
2. 15% 5% 20%
3. 15% 5% 5% 25%
4. 15% 20% 35%
5. 0%
Total. 15% 20% 20% 20% 25% -
Evaluation method and criteria
Discussion and questions: 15 pt.
Exercise: 25 pt.
Final report and presentation: 60 pt.

60 pt. of the final report is evaluated as follows:
 Final report answers to the request of the final subject. 70%-
 Final report properly answers to the request of the final subject.  80%-
 Final report properly and reasonably answers to the request of the final subject.  90%-
Textbooks and reference materials
Reference:Nakamura, Corporate finance, Hakutou shobou
Prerequisites
Completion of the course “Accounting” or equivalent knowledge.
Course objectives
Basic knowledge for corporate management
Office hours and How to contact professors for questions
  • A half hour before and after class
Relation to the environment
Non-environment-related course
Regionally-oriented
Non-regionally-oriented course
Development of social and professional independence
  • Course that cultivates a basic self-management skills
  • Course that cultivates an ability for utilizing knowledge
Active-learning course
About half of the classes are interactive
Last modified : Thu Apr 27 04:02:06 JST 2017