Essentials of Finance

Course Objectives

This course is an introductory course to finance that is designed for those who wish to enhance their decision-making ability based on applying financial knowledge in business. The course is not intended for finance specialists; it targets students who have already learned the basics of accounting. In this course students will:

  • Develop an overall understanding of finance
  • Be enabled to describe the role of finance in corporate management in their own words
  • Develop the ability to independently conduct basic financial analysis in business fields

This course is intended for students who have already learned the basic concepts of accounting and are studying finance for the first time.

Recommended Preliminary Courses

- Essentials of Accounting

Theme/Reading Materials

Day 1
Session A
THEME Purpose and Overall Picture of Finance
CASE ・ Interactive Lecture: Finance ―2nd Edition― 
Unit1. BASIC CONCEPTS OF FINANCE
Session B
THEME Cash flow and the time value of money
CASE ・ Interactive Lecture: Finance ―2nd Edition― 
Unit1. BASIC CONCEPTS OF FINANCE
 
Day 2
Session A
THEME How to Measure the Value of Business/Project
CASE

・ Interactive Lecture: Finance ―2nd Edition―
Unit 2. PRESENT VALUE OF CASH FLOW AND INVESTMENT DECISION

・Lifestyle Laboratory

Session B
THEME How to Measure the Value of Business/Project (Continued)
CASE ・ Interactive Lecture: Finance ―2nd Edition―
Unit 2. PRESENT VALUE OF CASH FLOW AND INVESTMENT DECISION
 
Day 3
Session A
THEME Decision Making of Project Investment
CASE ・ Pandora Cosmetics Co.: Profitability Analysis for the Internet Channel
Session B
THEME Decision Making of Project Investment (Continued)
CASE ・ Interactive Lecture: Finance ―2nd Edition―
Unit 3. BUSINESS VALUATION AND THE COST OF CAPITAL
 
Day 4
Session A
THEME Concept of Investment Risks
CASE ・ Interactive Lecture: Finance ―2nd Edition―
Unit 4. QUANTIFYING RISKS AND DISCOUNT RATES
Session B
THEME Concept of Investment Risks (Continued)
CASE ・ Interactive Lecture: Finance ―2nd Edition―
Unit 4. QUANTIFYING RISKS AND DISCOUNT RATES
 
Day 5
Session A
THEME How to Enhance Corporate Value
CASE ・ Interactive Lecture: Finance ―2nd Edition―
Unit 5. ENTERPRISE VALUE AND CAPITAL STRUCTURE
Session B
THEME How to Enhance Corporate Value (Continued)
CASE ・ Interactive Lecture: Finance ―2nd Edition―
Unit 5. ENTERPRISE VALUE AND CAPITAL STRUCTURE
 
Day 6
Session A
THEME Other Topics about Enterprise Valuation
CASE

・ Interactive Lecture: Finance ―2nd Edition―
Unit 6. OTHER TOPICS ABOUT ENTERPRISE VALUATION 

・ New Market Entry by Industry Plastics Ltd.

Session B
THEME Investment evaluation comprehensive exercises
CASE ・ New Market Entry by Industry Plastics Ltd.

 

Textbook

Analysis for Financial Management. 11th ed.
Higgins, Robert C., 2015 (McGraw-Hill/Irwin)
ISBN-10: 0077861787
ISBN-13: 978-0077861780

Faculty

Toru Takahashi
Toru Takahashi
Accounting and Finance
Who likes accounting? Who does not like accounting? I would like to encourage both types of students to learn accounting as a manager. If you understand the basic principle, you will experience how much easier accounting is than you thought. In my class you will also learn how business activities reflect upon the financial statement, similarly you will be able to imagine business characteristics through looking at the statement. Consequently, you will become a master of accounting, the global business language!