University of Split Department of Professional Studies CORPORATE FINANCE II COURSE SYLLABUS

Transcription

1 University of Split Department of Professional Studies CORPORATE FINANCE II COURSE SYLLABUS

2 Type of study programme Study programme COURSE DETAILS Professional study ECTS FINANCE AND ACCOUNTING Course title Corporate Finance 2 Course code ECTS (Number of credits allocated) Course status Year of study Semester Course Web site SRF018 6 Core Second Fourth (summer) Total lesson hours per Lectures 30 semester Practicals 30 Prerequisite(s) Lecturer(s) Language of instruction None Department of Finance and Accounting: Marko Miletić, senior lecturer Croatian, English

3 COURSE DESCRIPTION Course Objectives: Learning outcomes On successful completion of this course, student should be able to: Course content Explain the concept, role and impact of investment policy, capital structure and dividend policy. Adoption of theoretical knowledge to create cash flow projections in the capital budgeting process. Adoption of theoretical knowledge about the dividend policy determinants Use mathematical and software tools (MS Excel) to support the investment policy of companies 1. Distinguish the impact of the general financial policy on the company's value. 2. Describe the process of capital budgeting 3. Calculate the cash flows of the project 4. Connect the risk of capital investment with the opportunity cost of capital 5. Distinguish methods for the evaluation of capital investment 6. Identify the dividend policy of companies 7. Comment dividend policy of companies 8. Examine the impact of the capital restructuring on the company's value 9. Determine the level of break-even point in the process of capital restructuring 10. Use MS Excel in the process of capital budgeting and capital restructuring Fundamental financial policies and their impact on the value of the company. Optimization of the basic financial policies in function of creating value for the company. Investment policy. Expected rates of return - financing costs for the company. The weighted average cost of capital (WACC). Capital Budgeting. The calculation of cash flows of the project and the application of opportunity cost of capital. Methods for evaluation of projects, their advantages and disadvantages. Dividend policy. Important dates for dividend payments. The impact of dividend policy on the value of the company. Determinants of dividend policy. Capital structure policy. Capital restructuring and calculation of breakeven point for the capital restructuring. Influence of capital structure policy on corporate value.

4 CONSTRUCTIVE ALIGNMENT Learning outcomes, teaching and assessment methods Activity Alignment of students activities with learning outcomes Student workload ECTS credits Learning outcomes Lectures 30 hours / 1 ECTS 1,2,3,4,5,6,7,8,9 Practicals 30 hours / 1 ECTS 3,5,6,7,8,9,10 Preparation, mid-term exam 60 hours / 2 ECTS 1,2,3,4,5,6,7,8,9 Preparation mid-term exam in the MS Excel 15 hours / 0,5 ECTS 10 Self-study 30 hours / 1 ECTS 1,2,3,4,5,6,7,8,9,10 Office hours and final exam 15 hours / 0,5 ECTS 1,2,3,4,5,6,7,8,9,10 TOTAL: 180 hours / 6 ECTS 1,2,3,4,5,6,7,8,9,10 CONTINUOUS ASSESSMENT Continuous testing indicators Class attendance and participation First mid-term exam Second mid-term exam First mid-term exam in MS Excel Second mid-term exam in MS Excel

5 FINAL ASSESSMENT Testing indicators final exam (first and second exam term) Theoretical and practical exam (written) Practical exam in MS Excel Previous activities (include all continuous testing indicators) Testing indicators makeup exam (third and fourth exam term) Theoretical and practical exam (written) Practical exam in MS Excel Previous activities (include all continuous testing indicators) PERFORMANCE AND GRADE Percentage Criteria Grade 50% - 60% basic criteria met sufficient (2) 61% - 74% average performance with some errors good (3) 75% - 89% above average performance with minor errors very good (4) 90% - 100% outstanding performance outstanding (5) ADDITIONAL INFORMATION Teaching materials for students (scripts, exercise collections, examples of solved exercises), teaching record, detailed course syllabus, application of e-learning, current information and all other data are available by MOODLE system to all students.