COURSE SYLLABUS
FUNDAMENTALS OF FINANCE
1. Module Code: INS2015
2. Number of credits: 3
3. Pre-requisite: INE1051
4. Teaching language: English
5.Lecturer Information:
No Name Qualification Email Cell phone
1. Đỗ Phương Huyền Master huyendp@isvnu.vn 0915 045 860
2. Chu Văn Hùng Master hungcv@isvnu.vn 0913 000 899
6. Main aim(s) of the module
The primary course objective is to give students the capacity to understand the theory and apply,
in real world situations, the techniques that have been developed in corporate finance. This will
help students to see the big picture of corporate finance so that they can understand how things
fit together.
7. Learning Outcomes of the module
By successful participation in INS2012, students will be able to
For Knowledge
1. UNDERSTAND the role and purpose of financial management
2. REMEMBER differences between profit and cash flow, time value of money
3. UNDERSTANDthe primary issues in the formulation of a financial strategy;
4. APPLY managing the dividend policy;
5. ANALYZE various sources of finance and estimate WACC
6. EVALUATE how firms undertake investment appraisals;
7. EVALUATE appropriate valuation of shares and bonds.
8. CREATE prospectus of raising funds
For Skills
* Professional Skills
9. APPLY financial concepts to their own lives and to the broader social world.
10. ANALYZE argument and explain financial issues.
11. EVALUATE the diversities and complexities of financial tools and financial sources
avalable in the capital market.
12. CREATEan atmosphere where the questions of finance may be discussed
* Soft skills
13. POSSEDE effective learning and self-learning skills;
14. MANAGE time and self-control in learning and in work;
15. MASTER teamwork skills such as group formation, team planning, leadership and
motivation for the team, able to maintain teamwork, DEVELOP teamwork skills within the
group and cooperate with other groups.
16. ACQUIRE relevant management and leadership skills, such as performance objectives and
motivation. CONTROL and EVALUATE workplace activities;
17. COMMUNICATE effectively in the workplace, including: argumentation, conceptual
arrangement, written and oral communication, communication with individuals and
organizations. BE well-versed in other skills such as text editing, presentations, mail
management.
For Ethics and attitudes
* Personal ethics and attitudes
18. HAVE good moral qualities, and appropriate personal qualities such as willingness to cope
with difficulties and risk tolerance, persistence, flexibility, confidence, hard work,
enthusiasm, self-reliance, willingness to improve and innovate. BE creative, responsible and
active in the work.
* Professional ethics and attitudes
19. HAVE good professional ethics and professional behavior. BE independent, creative and
aware of intellectual property rights. RESPECT confidentiality and information safety.
HAVE a serious attitude and enthusiasm for work, HAVE the spirit of cooperation with
colleagues.
* Social ethics and attitudes
20. HAVE the sense of law observance, social responsibility. SUPPORT and PROTECT the
right and the development of innovation. HAVE a firm political stance and are conscious of
serving the people, building and protecting the country.
8. Assessment methods
Assessment Items Value Note
1. Attendance and 10% - Check attendance 2 times per meeting
Participation Note: Absence 1 time is counted as absence ½ class
meeting. Students who are absent more than 20% of
class meetings will not be allowed to attend final exam.
- Students who actively participate in the lecture 3
times or more will receive 0.5 bonus point, 6 times or
more will receive 1 bonus point. The maximum bonus
point received is 1.
3. Mid-term 30% Includes 2 sections – MCQs and Problems. 90 minutes.
- MCQs include 10 questions (total 2 marks).
- Problems include 4 questions (total 8 marks)
4. Final Exam 60% 90 minutes.
-MCQs ( 10 questions – total 2 marks)
- Problems include 4 question ( total 8 marks)
Total 100%
9. Required textbook(s) and recommended books
9.1. Required textbook(s)
[1] Ross, Westerfield and Jordan. (2015) 11th edn; Fundamentals of Corporate Finance.McGraw
Hill.
9.2. Recommended text(s)
[1] Ross, Westerfield and Jordan. (2013) 10th edn; Fundamentals of Corporate
Finance.McGraw Hill.
[2] Arnold, G. (2003) Corporate Financial Management, 2nd edn, Prentice Hall.
[3] Brealey, R.A. and Myers, S.C. (2003),Principles of Corporate Finance, 7th edn, McGraw
Hill
[4] Ross, Westerfield ans Jaffe (2005), Corporate Finance, 7th edn, Mcgraw Hill
[5] International Review of Economics & Finance
[6] International Review of Financial Analysis
[7] Journal of Finance
[8] Journal of Financial Economics
[9] Journal of International Financial Markets, Institutions & Money
[10] Journal of Multinational Financial Management
[11] Quarterly Review of Economics & Finance
[12] Review of Financial Economics
10. Module’s description
This course examines important issues in corporate finance from the perspective of financial
managers who are responsible for making significant investment and financing decisions. The
concept of net present value is used to analyze how investment and financing decisions interact
to affect the value of the firm.
A large portion of the course covers capital budgeting, first without uncertainty. The course also
includes a treatment of dividend policy, as they relate to the value-maximization objective of the
firm.
We emphasize the development of problem-solving skills based on a good understanding of the
business environment as opposed to pure theorizing or mindless numbers exercises. Because of
the practical importance of the material and as an illustration of the relevant theory, we will
discuss examples and cases.
11. Course schedule / Teaching plan
Teaching procedure will include lecture, classroom discussions and small discussion groups. The
small discussion groups are an integral part of this class and are designed to provide the student
with an opportunity for self-expression and application of financial concepts to every-day life.
Multimedia such as video tapes are also used when applicable.
Week Content Reference Learning outcomes
Introduction to corporate finance
Corporate Finance and the Financial Manager
Forms of Business Organization
1 The Goal of Financial Management Chapter 1 1, 9,10,14
The Agency Problem and Control of the
Corporation
Financial Markets and the Corporation
2 Financial Statements, taxes and cash flow Chapter 2 2,3,10,14
The Balance Sheet
The Income Statement
Taxes
Why cash flows are important
Week Content Reference Learning outcomes
Cash Flow
Time value of money
Future value and compounding
Present value and discounting
Future and Present values of Multiple
3 Chapter 5&6 3,10,11,12, 15,17
cashflows
Annuities and perpetuities
Comparing rates: The effect of compounding
Case Team Presentation
Interest rates and bond valuation
Loan types and Loan Amortization
Bonds and bond valuation
4 & 5 More about Bond Features Chapter 7 7,9,11,18,19,20
Bond ratings
Different types of bonds
Bond markets
Stock valuation
Common stock valuation
6 Some features of common and preferred stocksChapter 8 7,9,11,14,15, 16,17
The stock markets
Case Team Presentation
7 Midterm exam 1,2,3,7,13,15
Net Present value and other investment
criteria
Net present value
The payback rule 6,7,10,11,14,15, 16,
8&9 Chapter 9
The discounted payback rule 17
The internal rates of return (IRR)
The practice of capital budgeting
Case Team Presentation
Cost of capital
10 Chapter 14 5,8,9,10,12,18,
Concept of the cost of capital
Week Content Reference Learning outcomes
Factors determining the weighted average cost
of capital(WACC)
Assumptions of the WACC
Computing the WACC
Case Team Presentation
Raising capital
Venture capital
Selling securities to the public
11&12 Underwriters Chapter 15 5,8,9,10,12,13
IPOs
New equity sales and the value of the firm
Case Team Presentation
Dividend policy
Three basic views of dividend policy
Factors affecting dividend policy
13 & 14 Dividend decision in practice Chapter 17 4, 8,9,10,14,15
Bonus shares and share splits
Share buybacks.
Revision
15 Final Exam 13
