This course is a professional basic and core course for the entire financial discipline. It covers the most important basic concepts and issues in the field of corporate finance, such as corporate investment, financing decisions and financial markets, with emphasis on the importance of corporate finance in the field of economic research and practical operations. This course covers virtually all areas of corporate finance, including real and financial asset pricing, corporate governance, theoretical models and quantitative tools for investment decisions, financing decisions, asset pricing models based on corporate finance, and corporate mergers and acquisitions. Our main goal is to strengthen the understanding of basic theoretical knowledge and the application of quantitative analysis tools. In teaching, practical cases and numerical calculation exercises are combined to emphasize practical application, so as to further improve the understanding and application of material operation of company investment and financing decisions. The teaching objects are students majoring in finance and those who are interested in corporate finance. We combine theory with reality, apply theory to the reality of Chinese companies, and grasp the basic theory and cutting-edge development context of corporate finance through rich case analysis.
This course covers nine chapters, which includes：
1. Introduction to corporate finance
2. Company valuation issues
3. The trade-off relationship between risks and returns
4. Company investment
5. Capital Markets
6. Financing and distribution decisions
7. Corporate agency issues
8. Mergers and acquisitions
9. New finance empowerment.
Through this course, students will be able to decipher profound questions about the operation and development of companies. They will also know how to use different tools and methods to finance, invest and manage risks for companies. It will be helpful for students to study in scientific research, work in the industry, and prepare for CFA, CPA and other relevant exams.
The audience of the course is: students who intend to study abroad or want to try an international teaching environment, and international students in China.
1 Introduction to Corporate Finance: What is Corporate Finance?
Fundamentals of Corporate Investment Decisions: Valuation Issues
2.1 Time value of money: Present Value and Discount Part1
2.1 Time value of money: Present Value and Discount Part2
2.2 Application of Time Value of Money: Bond Valuation Part1
2.2 Application of Time Value of Money: Bond Valuation Part2
2.3 Application of Time Value of Money: Stock Valuation Part1
2.3 Application of Time Value of Money: Stock Valuation Part2
Risks and Benefits
3.1 Benefit and Risk: Capital Asset Pricing Model (CAPM) Part1
3.1 Benefit and Risk: Capital Asset Pricing Model (CAPM) Part2
3.1 Benefit and Risk: Capital Asset Pricing Model (CAPM) Part3
3.1 Benefit and Risk: Capital Asset Pricing Model (CAPM) Part4
3.2 Benefit and Risk: Single Factor of Arbitrage Pricing Model (APT)
3.2 Benefit and Risk: Multiple Factors of Arbitrage Pricing Model (APT)
Methods of Company Investment Decision
4.1 Investment Valuation Method 1: Net Present Value Rule
4.1 Investment Valuation Method 2: Internal Rate of Return Method and Profit Index Method
4.1 Investment Valuation Method 3: Rule of Payback Period
4.2 Project Analysis Method 1: Real option method
4.2 Project Analysis Method 2: Sensitivity Analysis and Break-even Analysis
Efficient Capital Markets and Behavioral Finance
5.1 Efficient Capital Markets and Behavioral Finance: Definitions and Implications
5.2 Efficient Capital Markets and Behavioral Finance: Basics and Types
5.3 Efficient Capital Markets and Behavioral Finance: Misunderstanding and Meaning
Corporate Financing Decisions
6.1 Financial Markets and Financial Intermediaries
6.2 Financing Instruments and Financing Methods: Stock and Equity Financing
6.2 Financing Instruments and Financing Methods: Bond and Debt Financing
6.3 Payment Policy: Dividend Payout and Share Repurchase
6.4 Capital Structure: MM theorem Part1
6.4 Capital Structure: The ”Double-edged Sword” Nature of Financial Leverage Part2
Corporate Governance: Agency Problem
7.1 What is the Agent Problem: Definition and Cause
7.2 How to Solve Agency Problem: Supervision and Incentive
Mergers and Acquisitions
8.1 What is the Merger and Acquisition?
8.2 How to Conduct Mergers and Acquisitions?
8.3 How to Counter Hostile Takeover?
New Finance Enabling Company Development
9.1 Basics: Overview of Fintech
9.2 Application: FinTech Solutions for the Financial Industry
9.3 New Finance Enables Company Development: What is Inclusive Finance?
9.4 New Finance Enables Company Development: The Application of Inclusive Finance
9.5 New Finance Enabling Company Development: Green Finance
