Corporate Finance
Instructor: Тајана Сердар Раковић, PhD, Associate Professor
The aim of the course is to provide an in-depth understanding of contemporary corporate financial decision-making in a global, institutional, and macroeconomic environment. The course integrates the theory and practice of financing, investment, and dividend policy with financial statement analysis, financial planning, liquidity management, security, and sustainable corporate growth. Special attention is devoted to accounting frameworks for financial reporting and their importance for financial analysis, the assessment of financial performance, and corporate financial decision-making. Particular emphasis is placed on the processes and models of corporate restructuring, including changes in capital and ownership structure, status transformations, rehabilitation, bankruptcy, privatization, and other forms of corporate transformation aimed at preserving and enhancing financial stability and long-term firm value. The course further examines the role of the financial system and institutional constraints in shaping corporate financial decisions, with a specific focus on the characteristics of developing economies.
| Code : | 2О14РКФИ |
|---|---|
| Status: | C |
| Semestar: | 9th |
| Number of classes per week: | 2+2 |
| ЕECTS: | 7 |
| Teachers: |
Жељана Јовичић,
PhD Associate Professor Тајана Сердар Раковић, PhD Associate Professor |
| Prerequisites: | No |
| Learning Outcomes (gained knowledge): | Upon completion of this course, students will be able to analytically and critically evaluate key corporate finance decisions, including financing, investment, and dividend policy decisions, within a global, institutional, and macroeconomic context. Students will develop the ability to interpret and apply different accounting frameworks for financial reporting in the function of financial analysis, performance assessment, and managerial decision-making. They will gain proficiency in financial analysis and planning methods, liquidity management, sustainable growth, and corporate financial balance, as well as in techniques for valuing capital and financial instruments. A specific learning outcome relates to the ability to select, evaluate, and apply appropriate corporate restructuring models, while considering their financial and institutional implications. Through the course, students develop the capacity to integrate theoretical concepts, empirical data, and financial statements in making complex corporate financial decisions at the level of management and capital owners. |
| Subject Contents: | Strategic financial decisions, including financing, investment, and dividend policy decisions; methods of capital valuation based on market approaches. The concept and objective of the corporation in the context of the global economic and financial environment; institutional constraints and the specific characteristics of developing economies; the role of the financial system. Accounting frameworks for financial reporting under US GAAP and IFRS, their differences, and their importance for financial analysis and corporate decision-making. Financial analysis, including profitability ratios, activity ratios, liquidity ratios, financing ratios, market ratios, and the DuPont system of analysis. Financial planning and management, including long-term and short-term planning, budgeting, and cash flow planning. Growth management and the concept of sustainable growth rate. Liquidity as a lever for achieving the primary objective of the firm and long-term financial balance. Security as a lever for achieving the primary objective of the firm, capital management, and the financial characteristics of the balance sheet. Corporate restructuring, including restructuring models, changes in legal form, status transformations, economic and financial rehabilitation, corporate divestiture, sale and liquidation of firms, bankruptcy, share repurchases, diversification and concentration of ownership, privatization, and corporate segmentation. |
| Teaching Methods and Learning Activities: | Teaching methods include lectures, practical exercises, independent seminar papers prepared under the supervision of the instructor, regular and e-consultations, discussions of real-world business cases, case studies, and interactive exercises developed by students. Lectures and practical sessions are based on two-way communication, with the aim of facilitating students’ understanding of course content through practical examples, illustrations, and concrete problem-solving tasks. |
| Literature: | Required Literature: Mikerević, D. (2014). Korporativne finansije. Banja Luka: Ekonomski fakultet; Finrar Recommended Literature: Damodaran, A. (2014). Applied Corporate Finance: Theory and Practice. 4th ed. Wiley. Berk, J., & DeMarzo, P. (2023). Corporate finance. Pearson. Higgins, R. C., Koski, J. L., & Mitton, T. (2022 ). Analysis for Financial Management. McGraw Hill Penman, S. (2013). Financial Statement Analysis and Security Valuation. McGraw Hill. Gaughan, P. A. (2017). Mergers, Acquisitions, and Corporate Restructurings. Wiley. |
| Types of Assessment for the subject: | Colloquium I (0-20 points); Colloquium II (0-20 points); Final exam (0-50 points); Attendance (2point); Class activities (seminar papers, discussions, case studies) (0-8 points) |
| Special Remarks for the subject: | - |