COURSE INFORMATION Course Title: FUNDAMENTALS OF CORPORATE FINANCE

Code	Course Type	Regular Semester	Theory	Practice	Lab	Credits	ECTS
BAF 233	B	3	3	0	0	3	5

Academic staff member responsible for the design of the course syllabus (name, surname, academic title/scientific degree, email address and signature)	Dr. Nertil Mera nmera@epoka.edu.al
Main Course Lecturer (name, surname, academic title/scientific degree, email address and signature) and Office Hours:	Dr. Nertil Mera nmera@epoka.edu.al , Tuesday 10:00-12:00
Second Course Lecturer(s) (name, surname, academic title/scientific degree, email address and signature) and Office Hours:	NA
Language:	English
Compulsory/Elective:	Compulsory
Study program: (the study for which this course is offered)	Bachelor in Economics (3 years)
Classroom and Meeting Time:	E-311/ Monday 10:40 AM
Teaching Assistant(s) and Office Hours:	NA
Code of Ethics:	Code of Ethics of EPOKA University Regulation of EPOKA University "On Student Discipline"
Attendance Requirement:	75% required
Course Description:	BAF 233 - Fundamentals of Corporate Finance: Finance function and role of financial manager, financial statements and analysis, cash flow concept, time value of money, risk versus return with a consideration of liquidity, financial forecasting, planning and control, working capital policy, current asset management, capital budgeting and related techniques.
Course Objectives:	The primary objective of this course is to familiarize the student with basic concepts of corporate finance which is the life blood of any business and its various decision variables in the areas of financing, investment and dividend decisions. This course will introduce you to the theories and techniques of managing capital resources and uses within the framework of shareholder wealth maximization. A substantial part of the course is devoted to the proper methods of computing cash flows and determining market values. In addition, we will examine the sources of capital available to businesses and learn how to allocate assets efficiently

BASIC CONCEPTS OF THE COURSE

1	Future Value
2	Present Value
3	Capital Budgeting

COURSE OUTLINE

Week	Topics
1	Review of Syllabus and Introduction to the Course (Chapter 1): This is an introductory lecture presenting students with the general rules, course assessment criteria, specific requirements, textbook and other learning materials, and the main chapters to be taught in this course. In addition it gives an overview of financial management. This chapter focuses on: 1.1 Finance: A Quick Look 2, 1.2 Business Finance and the Financial Manager 4, 1.3 Forms of Business Organization 7, 1.4 The Goal of Financial Management 9, 1.5 The Agency Problem and Control of the Corporation 12, and 1.6 Financial Markets and the Corporation 15) (Pages 2-21)
2	Chapter 2: Financial Statements, Taxes and Cash Flow (This chapter focuses on: 2.1 The Balance Sheet 23, 2.2 The Income Statement 27, 2.3 Taxes 31, and 2.4 Cash Flow 33) (Pages 22-49).
3	Chapter 3: Working with Financial Statements (This chapter focuses on: 3.1 Standardized Financial Statements 51, 3.2 Ratio Analysis 54, 3.3 The DUPont Identity 64, 3.4 Internal and Sustainable Growth 68, and 3.5 Using Financial Statement Information 72) (Pages 50-95).
4	Chapter 4: Introduction to Valuation- The Time Value of Money (This chapter focuses on: 4.1 Future Value and Compounding 98, 4.2 Present Value and Discounting 104, and 4.3 More on Present and Future Values 108) (Pages 97-121).
5	Review of Chapters (1-4) and Quiz
6	Chapter 5: Discounted Cash Flow Valuation - Part I (This chapter focuses on: 5.1 Future and Present Values of Multiple Cash Flows 123, 5.2 Valuing Level Cash Flows: Annuities and Perpetuities 131, 5.3 Comparing Rates: The Effect of Compounding Periods 140, and 5.4 Loan Types and Loan Amortization 145) (Pages 122-164).
7	Midterm Exam
8	Chapter 5: Discounted Cash Flow Valuation - Part II (This chapter focuses on: 5.1 Future and Present Values of Multiple Cash Flows 123, 5.2 Valuing Level Cash Flows: Annuities and Perpetuities 131, 5.3 Comparing Rates: The Effect of Compounding Periods 140, and 5.4 Loan Types and Loan Amortization 145) (Pages 122-164) + Exercises.
9	Chapter 6: Interest Rate and Bond Valuation (This chapter is focused on: 6.1 Bonds and Bond Valuation 166, 6.2 More on Bond Features 175, 6.3 Bond Ratings 180, 6.4 Some Different Types of Bonds 182, 6.5 Bond Markets 186, 6.6 Inflation and Interest Rates 190, and 6.7 Determinants of Bond Yields 192) (Pages 165-204).
10	Chapter 7: Equity Markets and Stock Valuation (This chapter is focused on: 7.1 Common Stock Valuation 206, 7.2 Some Features of Common and Preferred Stock 216, and 7.3 The Stock Markets 220) (Pages 205-236).
11	Chapter 8: NPV and Other Investment Criteria (This chapter is focused on: 8.1 Net Present Value 238, 8.2 The Payback Rule 242, 8.3 The Average Accounting Return 246, 8.4 The Internal Rate of Return 248, 8.5 The Profitability Index 257, and 8.6 The Practice of Capital Budgeting 258) (Pages 237-274).
12	Chapter 9: Introduction to Capital Investment Decisions (This chapter is focused on: 9.1 Project Cash Flows: A First Look 276, 9.2 Incremental Cash Flows 277, 9.3 Pro Forma Financial Statements and Project Cash Flows 279, 9.4 More on Project Cash Flow 283, 9.5 Evaluating NPV Estimates 291, 9.6 Scenario and Other What-If Analyses 293, and 9.7 Additional Considerations in Capital Budgeting 297) (Pages 275-299).
13	Chapter 9: Capital Investment Decisions - Part II (This chapter is focused on: 9.1 Project Cash Flows: A First Look 276, 9.2 Incremental Cash Flows 277, 9.3 Pro Forma Financial Statements and Project Cash Flows 279, 9.4 More on Project Cash Flow 283, 9.5 Evaluating NPV Estimates 291, 9.6 Scenario and Other What-If Analyses 293, and 9.7 Additional Considerations in Capital Budgeting 297) (Pages 275-299).
14	Review Before Final Exam

Prerequisite(s):	NA
Textbook(s):	Essentials of Corporate Finance, Stephan A. Ross, Randolph W. Westerfield and Bradford D. Jordan, McGraw-Hill 10th edition.
Additional Literature:	Fundamentals of Corporate Finance, Stephan A. Ross, Randolph W. Westerfield and Bradford D. Jordan, McGraw-Hill 12th edition or any other edition. / Fundamentals of Corporate Finance, Brealey, Myers and Marcus (any edition)
Laboratory Work:	NA
Computer Usage:	Yes
Others:	No

COURSE LEARNING OUTCOMES

1	Recall key concepts of corporate finance, including time value of money, risk and return, and capital budgeting techniques.
2	Explain the importance of financial markets and institutions in the corporate finance landscape and Summarize the principles of financial analysis, including ratio analysis and cash flow analysis.
3	Apply the time value of money concept to evaluate investment opportunities and make informed financial decisions.
4	Demonstrate the ability to construct and interpret financial statements for assessing a company's performance.
5	Analyze various capital budgeting techniques (e.g., NPV, IRR) to assess the viability of potential projects.
6	Differentiate between different sources of finance and their implications for a firm’s capital structure.
7	Design a comprehensive financial plan that incorporates capital budgeting, financing decisions, and dividend policies.
8	Formulate strategic recommendations based on financial analysis and market conditions.
9	Critique the financial strategies of real-world companies using theoretical frameworks and empirical data.
10	Assess the impact of external factors (e.g., economic conditions, regulatory changes) on corporate financial decisions.

COURSE CONTRIBUTION TO... PROGRAM COMPETENCIES (Blank : no contribution, 1: least contribution ... 5: highest contribution)

No	Program Competencies	Cont.
Bachelor in Economics (3 years) Program
1	Students define the fundamental problems of economics	3
2	Students describe key economic theories	3
3	Students critically discuss current developments in economics	3
4	Students appropriately use software for data analysis	4
5	Students critically contextualize the selection of an economic problem for research within scholarly literature and theory on the topic	3
6	Students apply appropriate analytical methods to address economic problems	4
7	Students use effective communication skills in a variety of academic and professional contexts	4
8	Students effectively contribute to group work	3
9	Students conduct independent research under academic supervision	2
10	Students uphold ethical values in data collection, interpretation, and dissemination	5
11	Students critically engage with interdisciplinary innovations in social sciences	3
12	Student explain how their research has a broader social benefit	3

COURSE EVALUATION METHOD

Method	Quantity	Percentage
Midterm Exam(s)	1	30
Quiz	1	10
Final Exam	1	50
Attendance		10
	Total Percent:	100%

ECTS (ALLOCATED BASED ON STUDENT WORKLOAD)

Activities	Quantity	Duration(Hours)	Total Workload(Hours)
Course Duration (Including the exam week: 16x Total course hours)	16	3	48
Hours for off-the-classroom study (Pre-study, practice)	16	3	48
Mid-terms	1	10	10
Assignments			0
Final examination	1	15	15
Other	4	1	4
Total Work Load:			125
Total Work Load/25(h):			5
ECTS Credit of the Course:			5

CONCLUDING REMARKS BY THE COURSE LECTURER

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