Course outline
Course unit title
Name and title of lecturer
Level of course
Semester
ECTS credits
Student’s working hours
Prerequisites
Language of instruction
Objectives of the course
Develop theoretical and
practical skills in financial
management of capital
investment that would facilitate
abilities to plan, organise,
analyse and assess a company‘s
development and expansion
projects.
Corporate Finance
Prof. Dr. Arvydas Paškevičius
Cycle 1
5
5
Contact hours
48
lectures 24
seminars 16
practical classes
laboratory classes
consultations 8
Independent work
82
Total 130
Subjects previously graduated by students: finance management,
microeconomics, macroeconomics, accounting
Lithuanian, English
Learning outcomes
Assessments methods
Abilities to plan a company‘s Choose a company and assess its
financial performance and
feasibility for capital investment.
assess the expediency and
The results obtained shall be
reasonableness of capital
presented in the classroom.
investment.
Ability to calculate the net
current value using the
discounted cash flow method.
Calculate the net current value of a
sample investment project. The
results obtained shall be presented
in the classroom.
Ability to calculate the criteria Calculate the indices of payback
of payback period, discounted period, discounted payback period,
payback period, average
average accounting rate of return,
accounting return, internal rate internal rate of return and the rate of
of return, and the profitability return index.
index.
The results obtained shall be
presented in the classroom.
Ability to identify the
Draw up the tables for the cash flow
proceeds from and costs of a
calculations of a capital investment
capital investment project and project. The results obtained shall
present the same in financial
be presented in the classroom.
cash flow forms.
Ability to assess the costCalculate the net current value of a
reducing investment and
sample investment project. The
calculate the minimum tender results obtained shall be presented
price.
in the classroom.
1
Be able to analyse capital
investment projects applying
the “what-if” analysis method,
also to calculate the
accounting and financial
“break-even” points.
Teaching methods
Course unit content
Develop a pessimistic, most
probable and optimistic scenarios of
the sample investment project, also
to calculate the accounting and
financial “break-even” points. The
results obtained shall be presented
in the classroom.
During the lectures students shall be presented and explained the
theoretical material. At home and during the seminars (practical
classes) by solving problems-tasks and analysing specific cases the
students will take in the theoretical material and acquire practical
skills.
The course is used to introduce the students to the fundamentals of
the management the capital investment in a public company. the
range of subjects covered by the course include: net present value,
the payback rule, discounted payback, average accounting return,
internal rate of return, profitability index, project cash flows: a first
look; incremental cash flows; pro forma financial statements and
project cash flows; more on project cash flow; alternative definitions
of operating cash flow; some special cases of cash flow analysis;
evaluating NPV estimates, scenario and other “what-if” analyses;
break-even analysis; operating cash flow, sales volume, and breakeven; operating leverage; additional considerations in capital
budgeting.
Subject title
Subject listing
Contact hours
1. Introduction to the “Course on
4
Corporate Finance“
2. Net Present Value and Other
14
Investment Criteria
3. Making Capital Investment
14
Decisions
4. Project Analysis and
16
Evaluation
Total 48
Reading list
Independent work
hours
6
24
24
28
82
Publication
year
Author and title of the publication
Publishing house
1994
Pinigų laiko vertė [Money time value] A. Paškevičius.
2009
Fundamentals of Corporate Finance, Stephen A. Ross, Randolph
W. Westerfield, Bradford D. Jordan,
Brealey R.A., Myers S., Allen F. „Principles of Corporate
Finance“
Additional reading
Apskaitos apžvalga
1994m.
McGraw-Hill
2010
Publication
year
Author and title of the publication
2010
2010
Financial Management, Ray M. Brooks
Capital Markets, Fabozzi Modigliani
McGrawHill
Publishing house
2
Pearson
Pearson
Assessment requirements
Final assessment criteria
Composition of the final
accumulative grade:
The subject description
prepared by:
Approved by the Department:
Approved by the Study
Programme Committee:
Analysis and solutions of tasks and problems at seminars, attendance
of lectures and practical classes, interim tests, examination.
The grade assigned for problem solution at seminars is multiplied by
0.15.
The grade assigned for case study task solution is multiplied by 0.10.
Colloquium tests shall be taken by electronic means at the
Examination centre. Students are required to solve not less than 50%
of all tasks presented in four tests. Where the grade for the
colloquium is above 4, it is multiplied by 0.25 and shall be added to
the final result.
The final accumulative grade shall be composed of:
Problem solutions at seminars – 15 %
Case study task solution – 10%
Grade from colloquium 1 – 25%
Grade from colloquium 2 – 25%
Grade from colloquium 3 – 25%
Prof. Dr. Arvydas Paškevičius
Name, date
Chairman: signature, date
3