Course Study Information

Course title: CORPORATE FINANCE

Course Code:

ECTS :

Academic Year: 2021-2022

Program: PGE M1/2Y MSc

SECTION 1: INTRODUCTION

WELCOME
This Course Study Information (CSI) provides details to assist your study with the course offered at
SKEMA Business School.
Please read this CSI carefully. If you have any concerns or questions, please contact the Course
Instructor or Academic Program Coordinator.

COURSE INSTRUCTOR’S PRESENTATION

(Feel free to add your self-introduction)

Email:
Consulting time & channel: (any time by email, or appointment via wechat, etc)

ACADEMIC COORDINATOR:
Email:

Office:

Office Hours:

The Course Study Information (CSI) (this document) can be accessed via K2. (https://k2.skema.edu/)
SECTION 2: COURSE OVERVIEW

COURSE DESCRIPTION
This course introduces the major investment and financing decisions. We will shed light on the time
value of money, the interest rates and the investment valuation. We will focus on the different ways of
financing between equity and debt. Then, we will present the relationship between risk, return and the
cost of financing.

COURSE LEARNING OBJECTIVES

- The main course learning objective is to bring students to develop a rigorous analytical
framework of the major investment and financing decisions.
Learning Areas
• Knowledge (facts, concepts, ideas, and theories) / by the end of the course, students will be
knowledgeable of the…
K1. Purpose of corporations (shareholder primacy versus corporate social responsibility)

K2. Financial statements (balance sheet, income statement and cash flow statement)

K3. Time value of money, net present value, and internal rate of return
K4. Discounting cash flow and relative evaluation methods

K5. Risk measurement methods and the relation between risk and return

K6. Cost of capital

• Abilities - (Epistemic Knowledge) (how practitioners work & think) / by the end of the
course, students will be able to…
EK1. Recognize and write financial statements

EK2. Apply the time value of money and estimate the net present value and the internal rate of return

EK3. Appraise investment project

EK4. Estimate the value of equity and debt and estimate the value of a firm

COURSE POLICY
How you expect the students to behave in class: Access to computer & mobile phone, camera status for
online class. Interaction, participation, assignment etc.
• For this course, students do not need to be good in maths, but need to work hard and regularly
(every week). They must prepare every week by reading the slides and the book chapters. They
 must do the weekly assignments (read the CONNECT book chapters and prepare the exercises
for the tutorials) before attending the course.
• Grading is based on:
• Continuous assessment: CONNECT weekly chapters reading 10%
• Mid term: MCQ 40% (1 hour)
• Final Exam: MCQ and open questions 50% (2 hours)
• Particular course policy: no laptop in classroom

SECTION 3: COURSE ORGANISATION

Readings &
Sessions Learning Areas Topics covered Learning Activities
preparation
Financial Read the chapters on
Management and CONNECT book and answer
K1-K2, EK1 chap. 1, 2, 3
1/10 the Business the related questions and
Environment prepare the tutorial exercises
The time value of
Same as above
K3, EK2 money and net chap. 4
2/10
present value
The internal rate
of return and Same as above
K3, EK2 chap. 6
3/10 other investment
rules
Making capital
investment
Same as above
K4, EK3 decisions, chap. 7
4/10
Incremental cash
flows
How to value chap. 5.4-5.9 Same as above
K4, EK4
5/10 stocks – Shares
How to value Same as above
K4, EK4 chap. 5.4-5.9
6/10 stocks – The DDM
How to value chap 5.1-5.3, 16.1-16.3, Same as above
K4, EK4
7/10 bonds 16.5
Same as above
Risk and return –
K5 chap. 9.1-9.5 Same as above
8/10 Statistics
Risk and return,
chap. 10.1-10.3, 10.8- Same as above
K5 CAPM and the
9/10 10.9
cost of equity
The weighted
Same as above
K6, EK4 average cost of chap. 12.1-12.7
10/10
capital WACC
SECTION 4: ASSESSMENT

ASSESSMENT SUMMARY

Learning Areas covered Form of assessment Length Weighting Due date

K1 to K6 Continuous assessment: CONNECT
weekly chapters reading variable 10% xx
TBD Quiz 1 hour 40% xx

K1 to K6, EK1 to EK4 Final Exam: MCQ and open 2 hours 50% xx
questions

Assessment Details & Grading Criteria

See on K2

SECTION 5: LEARNING RESOURCES

MANDATORY RESOURCES (textbooks, references apps…)

Corporate Finance, Hillier, Ross, Westerfield, Jaffe and Jordan, 4th European edition, available at
https://k2.skema.edu/ in the course Corporate Finance CONNECT

RECOMMENDED READINGS
Regular reading of the Financial Times is recommended