EPOKA UNIVERSITY
FACULTY OF ECONOMICS AND ADMINISTRATIVE SCIENCES
DEPARTMENT OF BANKING AND FINANCE
COURSE SYLLABUS
2025-2026 ACADEMIC YEAR
COURSE INFORMATIONCourse Title: CORPORATE FINANCE |
| Code | Course Type | Regular Semester | Theory | Practice | Lab | Credits | ECTS |
|---|---|---|---|---|---|---|---|
| FINT 405 | B | 1 | 3 | 0 | 0 | 3 | 7.5 |
| 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 , Thursday 17:00-18:00 |
| 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) | Master of Science in FinTech |
| Classroom and Meeting Time: | E-212/ Thursday 18:00 |
| 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: | 60% required |
| Course Description: | - |
| Course Objectives: | The objective of this course is to equip students with a solid understanding of the fundamental principles and tools of corporate finance, enabling them to analyze financial statements, evaluate investment opportunities, manage risk, and make sound financing decisions. The course aims to develop both conceptual knowledge and practical analytical skills, fostering the ability to apply financial theory to real-world corporate decision-making. Through this foundation, students will be prepared to critically assess financial strategies, understand the drivers of firm value, and navigate complex financial environments with confidence. |
|
BASIC CONCEPTS OF THE COURSE
|
| 1 | Time Value of Money (TVM): The idea that money available today is worth more than the same amount in the future due to its earning potential. |
| 2 | Financial Statements and Cash Flow: Interpreting balance sheets, income statements, and cash flow statements to assess a firm’s financial position. |
| 3 | Capital Budgeting: Evaluating investment projects using NPV, IRR, payback period, and real options to make informed financial decisions. |
| 4 | Valuation of Securities: Determining the value of bonds, stocks, and entire firms using DCF, dividend discount models, comparables, and free cash flows. |
| 5 | Risk and Return: Measuring risk and expected return for individual securities and portfolios, including diversification and the CAPM framework. |
| 6 | Cost of Capital: Estimating the cost of equity, debt, and WACC to guide investment and financing decisions. |
| 7 | Corporate Governance and Agency Problems: Understanding the conflicts of interest between managers and shareholders and the mechanisms to align incentives. |
|
COURSE OUTLINE
|
| Week | Topics |
| 1 | Review of Syllabus and Introduction to the Course (Chapter 1): This chapter introduces the foundational concepts of corporate finance, focusing on how firms make investment, financing, and dividend decisions to create value. Students explore the role of financial managers, the importance of cash flow over accounting profits, and how agency conflicts shape corporate governance. FinTech perspective: The discussion connects traditional corporate finance principles to Fintech innovations such as decentralized governance, automated financial decision-making, and regulatory technology (RegTech). (Pages 1-19) |
| 2 | Chapter 2: Financial Statements and Cash Flow (This chapter examines how financial statements reflect a firm’s economic position and cash-generating capacity. Students learn to interpret balance sheets and income statements, distinguish between accounting profits and actual cash flows, and understand the interplay between liquidity, leverage, and value creation. Fintech perspective: How Fintech tools such as automated reporting, blockchain-based accounting, and real-time cash flow analytics are transforming traditional financial statement analysis and management.) (Pages 20-41). |
| 3 | Chapter 4: Discounted Cash Flow Valuation (This chapter introduces the principles of valuing cash flows over time using discounted cash flow (DCF) methods. Students learn to compute present and future values, apply discounting across multiple periods, and assess the value of firms and financial instruments based on expected cash flows. FinTech Perspective: Linking these core valuation techniques to Fintech applications such as algorithmic valuation models, digital lending platforms, and automated credit risk assessment.) (Pages 85-132). |
| 4 | Chapter 5: NPV and Other Investment Rules (This chapter focuses on evaluating investment opportunities using Net Present Value (NPV) and alternative decision criteria such as IRR, payback period, and profitability index. Students explore the theoretical foundations and practical limitations of each method in guiding capital budgeting decisions. FinTech Perspective: Fintech applications such as automated project evaluation, AI-driven investment screening, and real-time scenario analysis illustrate how technology enhances decision-making precision and efficiency in modern financial management. (Pages: 133-168). |
| 5 | Chapter 6: Making Capital Investment Decisions (This chapter develops the analytical framework for identifying and measuring incremental cash flows in capital budgeting decisions. Students learn to distinguish relevant from irrelevant costs, analyze project cash flows under varying definitions of operating income, and assess the impact of inflation on investment value. FinTech Perspective: Connecting these principles to Fintech innovations such as predictive analytics, data-driven forecasting, and digital simulation tools that enhance the precision of investment decision-making. (Pages 169-204) (ASSIGNMENT OF THE CASE STUDY) |
| 6 | Chapter 7: Risk Analysis, Real Options, and Capital Budgeting (This chapter examines methods for incorporating risk and uncertainty into capital budgeting decisions. Students learn to evaluate project risk using sensitivity and scenario analysis, perform Monte Carlo simulations, and understand the strategic value of managerial flexibility through real options. FinTech perspective: Fintech applications such as advanced risk modeling, AI-driven simulation platforms, and blockchain-based decision environments that enhance the sophistication of investment analysis under uncertainty.) (Pages 205-234) |
| 7 | Chapter 8: Bonds and Bond Valuation: (This week covers the fundamentals of bond valuation and the determination of interest rates. Students learn how bond prices and yields respond to market conditions, credit risk, and inflation, and how to value government and corporate bonds. FinTech perspective: Fintech applications, including algorithmic trading, digital fixed-income platforms, and blockchain-based bond issuance, tokenization of bonds) (Pages 235-269) |
| 8 | Review Session for Midterm Exam |
| 9 | Midterm Exam |
| 10 | Chapter 9: Stock Valuation (This chapter focuses on methods for valuing equity, including dividend discount models, comparables, and free cash flow approaches. Students learn to estimate key parameters and interpret stock market signals to assess intrinsic value. FinTech perspective: Fintech applications such as AI-driven stock valuation models, automated screening of comparable companies, and real-time market analytics for informed investment decisions.) (Pages 270-298). |
| 11 | Chapter 11: Return, Risk, and the Capital Asset Pricing Model (This chapter explores the relationship between risk and return, focusing on portfolio theory and the Capital Asset Pricing Model (CAPM). Students learn to calculate expected returns, variances, covariances, and construct efficient portfolios that optimize risk-return trade-offs. FinTech perspective: Algorithmic portfolio optimization, robo-advisory services, and AI-driven risk analytics for designing and managing investment portfolios.) (Pages 328-370) |
| 12 | Chapter 13 :Risk, Cost of Capital, and Valuation (This chapter examines how firms determine the appropriate discount rate to value investments and securities, focusing on the cost of equity, debt, and overall weighted average cost of capital (WACC). Students learn to estimate beta, apply CAPM, and integrate these measures into project and firm valuation. FinTech perspective: Include automated cost-of-capital estimation, AI-enhanced beta computation, and digital tools for dynamic project valuation and financial modeling.) (Pages 393-429). |
| 13 | Case Study Presentations |
| 14 | Review Before Final Exam |
| Prerequisite(s): | NA |
| Textbook(s): | Corporate Finance, Stephan A. Ross, Randolph W. Westerfield, Jeffrey Jaffe, and Bradford D. Jordan, McGraw-Hill 13th edition. |
| Additional Literature: | Fundamentals of Corporate Finance, Stephan A. Ross, Randolph W. Westerfield and Bradford D. Jordan, McGraw-Hill 12th edition or any later other edition. / Fundamentals of Corporate Finance, Brealey, Myers and Marcus (any edition) |
| Laboratory Work: | NA |
| Computer Usage: | Yes |
| Others: | No |
|
COURSE LEARNING OUTCOMES
|
| 1 | Analyze balance sheets, income statements, and cash flow statements to evaluate a firm’s financial performance and liquidity. |
| 2 | Use discounted cash flow (DCF), dividend discount models, comparables, and free cash flow approaches to determine the intrinsic value of firms and financial assets. |
| 3 | Assess capital budgeting projects using Net Present Value (NPV), Internal Rate of Return (IRR), payback periods, and real options under uncertainty and inflation. |
| 4 | Quantify risk and return for individual securities and portfolios, and apply diversification principles to optimize investment decisions. |
| 5 | Determine the cost of equity, debt, and weighted average cost of capital (WACC) to support corporate valuation and investment decisions. |
| 6 | Integrate financial analysis, valuation, and risk assessment to guide managerial decisions on financing, investing, and dividend policy. |
| 7 | Explain the role of financial management in aligning stakeholder interests, managing agency problems, and ensuring effective corporate control. |
|
COURSE CONTRIBUTION TO... PROGRAM COMPETENCIES
(Blank : no contribution, 1: least contribution ... 5: highest contribution) |
| No | Program Competencies | Cont. |
| Master of Science in FinTech Program | ||
| 1 | Graduates will master the fundamentals of fintech, including technological innovations, digital financial services, and disruptive business models, and apply this knowledge to create fintech solutions. | 4 |
| 2 | Graduates will be proficient in blockchain technologies and cryptocurrency, understanding their applications in finance, such as digital currencies, smart contracts, and decentralized finance (DeFi) systems. | 3 |
| 3 | Graduates will gain expertise in digital banking and innovation, including the ability to design and manage digital banking solutions, improving customer experience and operational efficiency. | 3 |
| 4 | Graduates will demonstrate a deep understanding of corporate finance principles, enabling them to analyze complex financial scenarios and make informed strategic decisions. | 4 |
| 5 | Graduates will have the skills to thoroughly analyze financial statements and assess the financial health and performance of organizations, aiding in investment and decision-making processes. | 5 |
| 6 | Graduates will acquire advanced skills in big data analytics, enabling them to extract valuable insights from large datasets to drive data-driven financial strategies and decisions. | 3 |
| 7 | Graduates will apply machine learning and artificial intelligence techniques to analyze financial data, automate decision-making processes, and enhance risk management in the financial sector. | 2 |
| 8 | Graduates will gain knowledge in cybersecurity resilience, enabling them to understand cyber threats in financial systems and data and effectively cooperate in mitigating fraud risks in fintech operations. | 4 |
| 9 | Graduates will develop a strong ethical foundation and be equipped to navigate corporate social responsibility and sustainability challenges in the fintech industry, promoting responsible and sustainable financial practices. | 5 |
| 10 | Graduates will be capable of applying interdisciplinary knowledge to address complex challenges at the intersection of finance and technology, fostering innovation and adaptability in a rapidly evolving fintech landscape. | 4 |
|
COURSE EVALUATION METHOD
|
| Method | Quantity | Percentage |
| Midterm Exam(s) |
1
|
35
|
| Case Study |
1
|
10
|
| Final Exam |
1
|
50
|
| Attendance |
5
|
|
| 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 | 4 | 64 |
| Mid-terms | 1 | 20 | 20 |
| Assignments | 1 | 15.5 | 15.5 |
| Final examination | 1 | 30 | 30 |
| Other | 1 | 10 | 10 |
|
Total Work Load:
|
187.5 | ||
|
Total Work Load/25(h):
|
7.5 | ||
|
ECTS Credit of the Course:
|
7.5 | ||
|
CONCLUDING REMARKS BY THE COURSE LECTURER
|
|
This course has provided a comprehensive foundation in corporate finance, covering the principles of financial analysis, valuation, risk management, and capital budgeting. Students have gained the tools to evaluate investment opportunities, make informed financing decisions, and understand the role of corporate governance in aligning stakeholder interests. By mastering these core concepts, students are equipped to analyze real-world financial challenges, think critically about value creation, and apply rigorous decision-making frameworks in professional finance environments. Additionally, the course provides a FinTech perspective, highlighting how emerging technologies can enhance financial analysis, investment evaluation, and corporate decision-making in practice. |