HANOI FOREIGN TRADE UNIVERSITY

FACULTY OF BANKING AND FINANCE

TCHE321
CORPORATE FINANCE

REQUIRED TEXTS:
Ross, Stephen A, Randolph Westerfield, and Bradford D Jordan. Fundamentals of
Corporate Finance. McGraw-Hill/Irwin, 2006.
Brigham, E., & Houston, J. Fundamentals of financial management. South-Western
Cengage Learning, 2009.
CFA Institute, Corporate Finance and Portfolio Management (CFA Program Curriculum
Vol. 4). Wiley, 2010.

GRADING:
A students final grade will be based on the following measurements:
Participation in classes: 10%
Group Project: 30%
Final Exam: 60%

COURSE OUTLINE:
Overview of Lecture 1 What is Corporate Finance?
corporate Corporate Securities as Contingent Claims on
finance Total Firm Value
The Corporate Firm
Goals of the Corporate Firm
Financial Markets
Financial Lecture 2A The Balance Sheet
statement The Income Statement
analysis Net Working Capital
Financial Cash Flow
The Statement of Cash Flows
Lecture 2B Ratio Analysis
Du Pont system
Effects of improving ratios
Limitations of ratio analysis
Qualitative factors
Capital Lecture 3A Capital Budgeting
budgeting and Payback period
company Net present value
valuation Internal Rate of Return
Lecture 3B Cash flow estimation
Incorporating inflation
 Types of risk
Risk Analysis
Lecture 3C Evaluating projects with unequal lives
Identifying embedded options
Valuing real options in projects
Risk, return and Lecture 4A Stand-alone risk
asset pricing Portfolio risk
model Risk & return: CAPM / SML
Lecture 4B Key features of bonds
Bond valuation
Measuring yield
Assessing risk
Lecture 4C Features of common stock
Determining common stock values
Efficient markets
Preferred stock
Capital Lecture 5A Sources of capital
Structure Component costs
WACC
Adjusting for flotation costs
Adjusting for risk
Lecture 5B Business vs. financial risk
Optimal capital structure
Operating leverage
Capital structure theory
Financial and operating leases
Dividend Policy Lecture 6 Different Types of Dividends
Standard Method of Cash Dividend Payment
The Benchmark Case: An Illustration of the
Irrelevance of Dividend Policy
Repurchase of Stock
Taxes, Issuance Costs, and Dividends
Real World Factors Favoring a High Dividend
Policy
The Clientele Effect: A Resolution of Real-World
Factors?
What We Know and Do Not Know About Dividend
Policy