SUBJECTS

1. Presented issues should contribute to:
   1. better understanding of corporate finance, according to the many, growing and exciting theory and practice;
   2. better understanding of the risk and return, cost of capital and value of company or other organization;
   3. better understanding of investment analysis, financing desisions and dividend decisions as strategic financial desicions in company;
   4. better understanding of financial statements, financial analysis and financial performances of company;
   5. identifying key concepts within this financial discipline;
   6. the possibility of discussion and consideration of the financial manager role in the company, bank and other business systems;
2. Apply cognitive skills of analysis and evaluation to the financial management of organisations;
3. Apply both qualitative and quantitative skills in order to analyse problems, identify appropriate solutions and make decisions;
4. Work with material across a range of subject areas and to recognise the links and interrelationships between them;
5. Abstract meaning from information and communicate effectively in a manner appropriate to the context and audience using a range of media;
6. Plan and study independently.

1. Introduction to Corporate Finance
Demystification of corporate finance, Objective in Corporate Finance; Tools of corporate finance; Strategic financial decisions: financing decisions, investment decisions and dividend decisions, Objectives in decision making; Examining key elements of corporate finance; Analysis of the financial manager role; Objectives of the company; Maintenance of corporate relationships; Value maximisation.

2. Risk and Measuring Risk
Risk is a major element in both the global macro-economic and the firm level micro-economic model. Evaluation of the concept of risk; Defining Risk; Risk and return; Equity risk and Expected Returns; Risk in Borrowing: Default risk and cost of debt; Bond rating and interest rates; Cost of equity; Analysis how risk can be moderated or modified by regulatory and prudential supervision.

3. Investment Analysis and Appraisal
Investment Decision Rules; Working capital management; Cash conversion cycle and the motives for holding cash; Investment appraisal; Importance of inter-temporal choice and the time value of money; Measuring return on investment; Estimating earnings and cash flow for projects; Various investment appraisal techniques, including net present value, the payback method, internal rate of return and the profitability index; Ranking of investment projects; Cost of equity for projects; Managing cash flow and making good investment decisions.

4. Financing Decisions and Capital Structure
The importance of capital structure - the Modigliani-Miller theorem (MM) on the irrelevance of capital structure, traditional theory and other theories; Financing behaviour; Consideration of the roles of capital raising and management; Financing choice; Problem of short, medium and long term financing; Process of raising capital (financing process); How companies choose their capital structure; Optimal financing mix; Cost of capital; cost of equity; cost of debt; cost of hybrid securities; Weighted average cost of capital (WACC); Taxation effects; Financial distress; Agency costs; Signalling concerns, clientele issues and agency theory; Valuation of bonds; Default risk; Valuation of shares.

5. Dividend Decisions
Importance of corporate dividend policy; Dividend process; Measures of dividend policy; Theories of dividend: dividend irrelevance school and other schools; Dividend Tax disadvantage; Reasons for paying dividends; Analysing cash return to stockholders; Possible strategies and the dividend controversy.

6. Financial Analysis and Enterprise Value Indicators Understanding financial statements; Indicators for diagnosing the condition and the success of the company; Du Pont system of analysis; Issue of capital structuring and financial strength; Measuring value of liabilities and equity; Financial ratios as measure of company´s performance; Profitability and company value; Liquidity and the issue of capital protection; Company's sustainable growth rate; Restructuring and competitive ability of the company.

7. Corporate Finance and Valuation of Companies
Valuation: principles and practice; Importance of company valuation; Purpose of valuation; Discounted Cash Flow Valuation; Free cash flow to the firm; Free cash flow to the equity; Cost approach to the valuation; Relative Valuation.

REQUIRED READINGS (recommended course books):
Damodaran, A. (2014). Applied Corporate Finance. 4th ed. Theory and Practice. John Wiley & Sons.
Brealey, R., Myers, S., & Marcus, A. (2023). Fundamentals of Corporate Finance. 11th ed. McGraw Hill.
Pike, R., Neale, B., & Linsley, P. (2019). Corporate Finance and Investment, Decisions & Strategies. 9th ed. Pearson Education.

SUPPLEMENTARY READINGS:
Brooks, R. (2018). Financial Management: Core Concepts. 4th ed. Pearson Education, London.
Arnold, G., & Lewis,. D. (2019). Corporate Financial Management. 6th ed. Pearson .
Brigham, E.F., & Ehrhardt, M. C. (2023). Financial Management: Theory and Practice. 17th ed. Cengage Learning.
Ross, S. A., Westerfield, R. W., & Jordan, B. D. (2021). Fundamentals of Corporate Finance. 13tth Ed. McGraw-Hill.
Higgins, R. C., Koski, J. & Mitton, T. (2022). Analysis for Financial Management. 13th ed. McGraw Hill.
Penman, S. (2012). Financial Statement Analysis and Security Valuation. McGraw-Hill, Higher Education, Boston.
Parrino, R.; Kidwell, D., S., Bates, T., & Gillan, S. L. (2022). Fundamentals of Corporate Finance. 5th ed. John Wiley & Sons.
Reilly, F., Brown, K. C., & Leeds, S. J. (2018). Investment Analysis & Portfolio Management. 11th ed. Cengage