right-97472500-909955-93853000
right-97472500-909955-93853000
-819150391160MIM22016 syllabus
Finance
template 2023-2024
0MIM22016 syllabus
Finance
template 2023-2024
-6813562771775MIM22016 finance Syllabus
2022-2023
00MIM22016 finance Syllabus
2022-2023
Table of Contents
1.Course Data PAGEREF _Toc132876305 h 32.Lecturer33.Course Description34.Learning Goals35.Didactic Approach46.Course Literature46.1Core course literature47.Sessions47.1Description of the sessions58.Class attendance59.Examination59.1Overview59.1.1Examination components used in this course59.1.2Weighting of the examination components59.2Submission guidelines for assignments69.3Grading69.4Examination requirements69.5Individual assignment79.5.1Description individual assignment79.5.2Assessment rubric individual assignment89.6Group assignment09.6.1Description group assignment09.6.2Assessment rubric group assignment0
Course DataCourse code:MIM22016
ECTS credits:3
Teaching hours:24
Consultation hours:2
Study hours:58
Total hours:84
Program:MSM-MM
LecturerName: Frans Boumans
E-mail: f.boumans@hccnet.nl
Short profile: Frans Boumans worked more than 25 years as corporate banker at Mees & Hope, MeesPierson and ING and lectures for over 25 years (E)MBA (international) finance courses at various universities. For several universities he also developed Treasury Management courses. He received his MSc from Erasmus University in Rotterdam and his MBA at the Simon School, University of Rochester (NY)
Course DescriptionThis course introduces key topics in corporate financial management, focusing on valuation and value creation. The topics covered include time value of money, the valuation and role of debt and equity, capital budgeting/project evaluation techniques, company valuation, cost of capital and capital structure decisions, and working capital management (short-term financing). Students are presented with a conceptual framework for understanding and innovatively applying these concepts to address issues and tasks commonly faced by corporate decision makers. The learning outcomes are achieved through hands-on application of the theory to real cases and intensive in-class applied work.
Learning GoalsDublin Descriptor (DD) MM program learning goals Course learning goals
DD1: Knowledge and understanding Participants are able to demonstrate their advanced knowledge and comprehension of the various management-related disciplines. Students will identify and analyze the factors that affect corporate value and the importance of financial resources management within the firm
DD2: Applying knowledge and understanding Participants are able to apply principles, theories and models pertaining to the management discipline in the context of 21st century organizations that are active in or for global, emerging markets. Students will apply financial models to real-life corporate issues and will learn how to make effective financial decision, based on the situation of the company
DD3: Making judgements Participants are able to propose appropriate solutions for fundamental management challenges of sustainable organizations. Students will evaluate the financial situation of the company and will be able to assess the consequences of decisions made by the management in actual real life cases
DD4: Communication Participants are able to present and defend views effectively through a variety of oral and written communication modes. Students will formulate their arguments clearly will use professional tools to show the result of the analysis they have conducted
DD5: Learning skills Participants are able to reflect on their own learning & professional development. Students will find relevant information and data about companies and will be able to organize the data they find and be ready to use it for analysis
Didactic ApproachTeaching methods include lectures, problem solving, Excel group-work, and class room discussions to elucidate and enhance students understanding of theoretical concepts. The instructor strongly encourages students to read the relevant textbook material prior to class and be independent learners as well. Students are asked to bring their laptops to every class and be ready to use Excel for problem solving and data analysis.
Course LiteratureCore course literatureHillier, Clacher, Ross, Westerfield, Jordan, Fundamentals of Corporate Finance, 1st European edition Mc Graw ISBN 9780077131364
SessionsDate Session Time Topics Required reading
15 April 2024 1 9:00-12:30 Introduction to Financial Management Chapter 1, 2, 3
15 April 2024 2 13:30-16:30 Financial Analysis and Planning (forecasting) Chapter 1, 2, 3
16 April 2024 3 9:00-12:30 Capital Budgeting (+ case) Chapter 8, 9, 10
16 April 2024 4 13:30-16:30 Equity and Debt (banks and bonds) (+ case) Short term financial
planning (+ case) Chapter 6, 7, 14, 17
18 April 2024 5 9:00-12:30 Cost of capital of a company, Capital structure, dividends, International corporate
finance, M&A Chapter 13, 15,
16, 18, 19, 20,
22
18 April 2024 6 13:30-16:30 Capita selecta like Behavioral Finance,
Fintech Paper(s)
19 April 2024 7 9:00-12:30 Group presentations 19 April 2024 8 13:30-16:30 Wrap up Description of the sessionsClasses normally run as a mix of direct (front) teaching, interactive discussion with the class, application of theory to real-life cases. The practical application of the theory is done using Excel or other software, and students are engaged both individually and in groups. Part of class time is dedicated to group work.
Class attendanceClass attendance is compulsory for this course and any absence from class (also if classes are delivered online) should be reported to the lecturer and program administrator before the start of the class.
A participant attending less than 75% of the classes of the course, will be required to submit a course assignment.
Class attendance is recorded by means of a pass/fail examination component.
ExaminationOverviewExamination components used in this courseExamination components Deadline
Individual assignment April 27, 2024
Group assignment April 19, 2024
Class attendance n/a
Weighting of the examination componentsExamination components Weighting of total grade
Individual assignment 70%
Group assignment 30%
Class attendance 0%
Submission guidelines for assignmentsParticipants must submit all assignments in Moodle. If assignments are submitted after the deadline, they will be considered as a No Grade. In this event, participants will be asked to submit a new assignment which will be considered as a resit.
Ensure that your assignment clearly indicates the course abbreviation, your name, and student number when uploading to Moodle. Do not send your assignment by e-mail to the lecturer directly unless you experience problems uploading to Moodle. In this case, please copy in the program administrator.
For all submitted assignment papers, the writing and referencing style prescribed by the American Psychological Association (APA) must be used, including the bibliographic reference system of APA. Except for the line spacing which should be Single (1.0).
Grading Grade Description
Pass
(sufficient) 10.0 Outstanding
9.0; 9.5 Very Good
8.0; 8.5 Good
7.0; 7.5 More than satisfactory
6.0; 6.5 Satisfactory
5.5 Pass
Fail
(insufficient) 5.0 Almost satisfactory
4.0; 4.5 Unsatisfactory
3.0; 3.5 Very unsatisfactory
2.0; 2.5 Poor
1.0; 1.5 Very Poor
0.0 Use is at the discretion of the Board of Examiners
No Grade (NG) Inability to determine result
The final grade of the course is given as a whole or a half grade on a scale from 0.0 to 10.0. A grade as from a 5.5 is considered sufficient. A grade below 5.5 is considered as an insufficient grade.
In case it is not possible to determine a result, for instance if a student is registered for the examination but has not actually taken the examination or part thereof, the examination will be graded with a No Grade (NG).
The grading scale should be interpreted as in the table on the right.
It is important to understand that this scale is based on the Dutch grading system. You can read more about it here: https://www.studyinholland.nl/dutch-education/dutch-grading-system.
Please note that at least a 5.5 grade and/or a pass must be obtained for each examination component of the course in order to secure a pass in the course.
Examination requirementsPlease make sure that you check the MSM-MBA and MSM-MM Education and Examination Regulations (MSM-MBA/MM-EER) for your specific program. The MSM-MBA/MM-EER provides clear regulations related to examinations, grading and general program requirements. It is the participants responsibility to understand and follow the regulations of the MSM-MBA/MM-EER.
Additionally, please ensure that you do not commit plagiarism or any other academic misconduct. Rules and regulations regarding academic misconduct can be found in the MSM-MBA/MM-EER and on the MSM website.
Tips for academic writing and information on how to prevent plagiarism can be found here.
Individual assignmentDescription individual assignmentThe Individual Assignment is worth 70% of the final grade. It focuses on an essay which relates to the topics discussed in class and challenges the students to elaborate on the proposed topic with the help of some guidance questions and reflection points. Students get the chance to show their understanding of the course material while being challenged on critical thinking and problem solving. The text of the assignment is split into parts that serve as guidance (steps) towards the completion of a report that contains all the required information. As clarified in the assignment, the calculations have to be done in Excel, and submission includes both the Excel file with solutions to the calculations, and a well-structured report that elaborates on the solutions to both the quantitative and qualitative parts.
Instructions:
Students are expected to submit two files: an Excel file with all the calculations and a report (word or pdf file), by the given deadline.
Answers are graded as per grading rubrics (see below).
Please note that all submissions are checked for plagiarism, and cases will be reported and handled according to the MSM Academic Misconduct Policy and Procedure.
The Management of Corporate Finance
The assignment focuses on some areas of corporate finance, where managers are asked to make important decision for their companies. You shall put yourself in the position of the management team and understand the problems, find any issues if relevant, and possibly fix them. All calculations must be done in Excel.
Choose a listed (public) company and download the Financial Statements for the last 2 years. Write a brief introduction of the company, the business sector and the market. You are expected to present a brief but complete view of the company, industry sector and market.
Suppose the senior management of the chosen company has to decide whether or not to raise more capital in the form of debt or equity capital. Calculate (no referencing allowed) the cost of equity, cost of debt of the company and WACC. Explain what are (for any company) the factors that drive the choice between debt and equity (pros and cons of each option). You are expected to show good knowledge of capital structure. You are also expected to make the right calculation of discount rates and comment the results.
Look now at the company data that are relevant to short-term financing management, from the financial statements. Calculate the operating cycle and cash cycle of the company, for the past 2 years. Compare the results over the 2 years and comment. After that compare with industry values. You are expected to know how to perform cash cycle calculations and how to interpret the result in comparison with the industry.
The Excel file should include all the calculations, with names and values of the variables used. You are expected to include all the calculations in the Excel file.
The report should include an extensive summary (with comments) of all the work done. Make sure the text flows clearly and be straight to the point, by highlighting the results that you think are more interesting, and keeping the theory at the minimum. Include all answers, comments, interpretation of results, relevant Excel screenshots. The report should not exceed 10 pages in length (excluding Appendices). Take good care of the structure, layout, grammar, and APA compliance of the report.
Assessment rubric individual assignmentDD Weighting Assessment Criteria Expected performance standards 1 point (very poor) 2 points
(unsatisfactory) 3 points
(satisfactory) 4 points (good) 5 points
(outstanding)
situation of the
company DD3 10% Participants will evaluate the financial situation of the
company Evaluation of the financial situation of the company is very poor Evaluation of the financial situation of the company is
unsatisfactory Evaluation of the financial situation of the company is
satisfactory Evaluation of the financial situation of the company is good Evaluation of the financial situation of the company is
outstanding
10% Participants will be able to assess the consequences of decisions made by the management in actual
real life cases The consequences of managerial decisions are very poorly assessed The consequences of managerial decisions are poorly assessed The consequences of managerial decisions are sufficiently assessed The consequences of managerial decisions are well assessed The consequences of managerial decisions are very well assessed
DD4 10% Participants will
formulate their arguments clearly The formulation of arguments is very poor The formulation of
arguments is unsatisfactory The formulation of
arguments is satisfactory The formulation of arguments is good The formulation of
arguments is outstanding
10% Participants will use professional tools to show the result of the analysis they have
conducted Knowledge of professional tools is very poor Knowledge of professional tools is unsatisfactory Knowledge of professional tools is satisfactory Knowledge of professional tools is good Knowledge of professional tools is outstanding
DD5 10% Participants will find relevant information and
data about companies Ability to find data and information is very poor Ability to find data and information is
unsatisfactory Ability to find data and information is
satisfactory Ability to find data and information is
good Ability to find data and information is
outstanding
10% Participants will be able to organize the data they find and be ready
to use it for analysis Organization and use of data is very poor Organization and use of data is unsatisfactory Organization and use of data is satisfactory Organization and use of data is good Organization and use of data is outstanding
Group assignmentPlease note that failure to participate in group work (absence to class or lack of effort) may result in a 0.0 grade. Cases of free riding, lack of effort, no show, etc. by any group member should be promptly reported to the lecturer who can take disciplinary actions.Description group assignmentThe group assignment focuses on the financial analysis and equity valuation. It is to be solved in class by groups of students. The assignment spans over the duration of the course and consists in performing the ratio analysis and valuation of a listed company of your own choice. As clarified in the assignment, the calculations have to be done in Excel, and submission includes both the Excel file with solutions to the calculations, and a well-structured powerpoint which elaborates on the solutions to both the quantitative and qualitative parts.
Instructions:
The assignment is to be solved in class or home (groups of approximately 4 students) using Excel for the calculations.
Students are expected to submit two files: an Excel file with all the calculations and a powerpoint, by the given deadline.
Answers are graded as per grading rubrics (see below).
Failure to participate in group work (absence to class or lack of effort) may result in a 0.0 grade.
Cases of free riding, lack of effort, no show, etc. by any group member should be promptly reported.
Company financial analysis and valuation
The assignment focuses on the analysis and valuation of the company assigned to your group.
The analysis is based on all types of financial ratio (horizontal over two years and vertical comparison to two peer companies or the industry averages).
The valuation method to be used is the Multiples and the Discounted Cash Flow (DCF) valuation. All calculations must be done in Excel.
Write a complete introduction to the company, industry sectors, and the latest financial news. Perform the financial analysis and valuation of the company by applying all the steps of the formulas and models as presented during the course. For the valuation you are expected to justify all the growth rates you choose to apply to the cash flows, as well as all the other inputs, with supporting literature or calculations. You are also expected to calculate all items correctly and indicate the sources of all input variables.
The Excel file should include all the calculations, with names and values of the variables used. Feel free to use the template provided by the instructor, or any other layout, as long as it is well-structured and easy to read and understand. You are expected to include all the calculations in the Excel file.
The sources of all input variables should be clearly stated and could be checked. In case of calculations, you are expected to justify your choice.
The presentation should include an extensive summary (with comments) of all the work done. The presentation should not exceed 10 slides (excluding Appendices). Take good care of the structure, layout (no copy paste complete excel tabs), using graphs and tables.
Assessment rubric group assignmentDD Weigh-
ting Assessment Criteria Expected performance standards 1 point (very
poor) 2 points
(unsatisfactory) 3 points
(satisfactory) 4 points (good) 5 points (outstanding)
DD1 20% Criterion 1: The group demonstrates its understanding and acquisition of the concepts and tools covered in class. Concepts and tools are not mentioned at all. Either inadequate concepts and tools are mentioned or not understood
correctly. A few concepts and tools are mentioned but not well understood and/or
explained. Most of the concepts and tools are mentioned and well explained. All concepts and tools are mentioned and perfectly explained. Additionally extra concepts and tools are selected that have not
been discussed in class.
DD2 35% Criterion 2: The group demonstrates its capacity to apply the acquired knowledge to real live situations and contemporary business problems. There is no application of knowledge visible in the
assignment. Concepts and tools are applied incorrectly. Some knowledge is applied but still lots of gaps. The group demonstrates a good level of application of concepts and tools to
the selected case. The group applies all concepts and tools to the selected case and demonstrates and outstanding ability of application of knowledge.
DD3 25% Criterion 3: The group is able to understand the need and impact of financial decisions and strategies on the overall business and is capable to
communicate it. Need and impact of financial decisions and strategies are
missing. Need and impact of financial decisions and strategies are explained
incorrectly. Need and impact of financial decisions and strategies are mentioned but not
well explained. Need and impact of financial decisions and strategies are clear and well explained. All aspects of need and impact of financial decisions and strategies are included and communicated in an outstanding manner.
DD4 10% Criterion 4: The group is able to explain its ideas and solutions in a clear way and coherent sequence. It demonstrates critical thinking and
ability to convince other stakeholders. There is no effort at all to explain ideas and solutions. The ideas and solutions explained are very unclear and confusing. The group explains a few ideas and solutions but the communication
lacks structure. Ideas and solutions are explained well and in a structured way which can convince other
stakeholders. Ideas and solutions are presented entirely clear and structured, which shows the groups ability of outstanding critical thinking.
DD5 10% Criterion 5: The group is capable to find, extract, sort, interpret and display data (quantitative and qualitative) to support its assumptions, financial and business decisions. They also demonstrate additional readings and
research through the bibliography. No data and additional reading are included to the paper. Incorrect or irrelevant data and literature is provided. Sufficient data and additional reading is included but not well presented. The provided data and additional literature is used and presented correctly, and supports the assumptions and decisions. An exceptional amount of data is provided and analysed to explain the assumptions and decisions. The group has selected a wide range of additional readings and research to support its findings.
