BINUS BUSINESS SCHOOL

G5023 - Corporate Finance and Valuation

Syllabus
SCU : 3 credits

ECTS : NONE
Pre-requisites : NONE

Teaching Team : L2403 - Iwan Prijono Pontjowinoto, Ph.D ( iwan.pontjowinoto@gmail.com )

Unit Outline
Term 3 / 2010

Syllabus Designed by : Dr. Stephanus Remond Waworuntu, MBA.

BINUS BUSINESS SCHOOL

Joseph Wibowo Center - BINUS UNIVERSITY

Jl.Hang Lekir I No. 6 Kebayoran Baru, Jakarta Selatan 12120, Indonesia
 FM - BINUS - AA - FPA - 13 / R7

Version :1 Revision Date : 13 April 2009

Revision :1 Effective From : 18 April 2009

1. Course Description
An understanding of how financial decisions are made is the most essential factor in the success of
executives in any organization. A sound financial decision ensures maintenance and creation of
economic value or wealth. In general, finance executives are involved in three areas of decision
making: investment, financing, and operations. Corporate finance involves raising, allocating and
operating scarce resources across competing uses inside an organization. As a course for
executives, however, this course emphasizes more in investment, financing and business decision
as it is more strategic ones than the other. In addition, this course also disccuses a basic knowledge
about valuation, which is the heart of every finance decision, whether that decision is to buy, sell, or
hold but the pricing of any financial and real asset has become a more complex task in modern
financial markets. As valuation models are universal and not market -specific, they provide principles
and methods on how to value virtually any type of asset in any country.. allocation and Financing
decisions involve raising funds to finance the investment projects.
2. Learning Outcomes
This course is to give the students problem solving skills in finance from the point of view of
management and investors. In this setting, some basic finance tools are important. The tools are :
mathematics of finance (present value, future value, annuity, mixed stream, etc), risk-return models,
and valuation models. In addition, Sessions on business decision review various models and
techniques used to value firms, particularly in the context of an acquisition to reflect the trend in
finance area.
3. Course Structure
Classes & Participation
During classes, lecturer will use lecture and discussion/case mode to deliver the materials. Lecturer
will also apply a student-based learning by stimulating questions to students. Therefore, students are
expected to read the assigned chapters before the class so to be able to participate in the
discussion. Students are highly encouraged to actively participate in class discussions as
participation is part of grading.

Cases and Assignments

1. Each student will choose a private company of her/his own and estimate the value of the
company. The result will be presented and submitted in Session 12ab.
2. The assignment evaluation is based on the presentation and the thoroughness and the depth of
the written report.
3. Other assignments including homework will be given by the lecturer during class sessions.

Exams
Student will have an open book final exam. The forms of Exams can be multiple choice, short
answer, and essay.
4. Course Requirements
Student must attend all classes. Student must read references before class. Do not rely on lecturer’s
presentation slide or (if any) handout distributed by lecturer.
5. Text And Other Resourcces
5.1 Text

BINUS BUSINESS SCHOOL

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 FM - BINUS - AA - FPA - 13 / R7

Version :1 Revision Date : 13 April 2009

Revision :1 Effective From : 18 April 2009

Gabriel Hawawini and Claude Viallet, “Finance for Executive: Managing for Value
Creation”,, 3 Ed, South-Western, USA., -
5.2 Other Resources

-, Other course materials, if any, will be provided in class, -, -, -

6. Course Outline

Week Topic Description

1 Syllabus Explanation Ch 1 (SR)
Overview: Financial Management and Value Website: www.bi.go.id (see: SBI time series)
Creation
2 Understanding Balance Sheets and Income Ch 2 (SR)
Statements
3 Assessing Liquidity and Operational Efficiency Ch 3 (SR)

4 Measuring Cash Flows Ch 4 (SR)

5 Diagnosing Profitability, Risk and Growth Ch 5 (DL)

6 NPV and alternatives to the NPV Rule Ch 6 & 7 (DL)

7 Identifying Project’s Cash Flows Ch 8 (DL)

8 Valuing Securities and the Cost of Capital Ch 9 & 10 (DL)

9 Designing a Capital Structure Ch 11 (JT)

10 Valuing and Acquiring a Business Ch 12 (JT)

11 Managing for Value Creation Ch 13 and 14 (JT)

12 Individual Presentation (JT)

Assignment (written report) Due
Review

7. Assesment
7.1 Component

NO Components Percentage
1 Class Participation 20%
2 Presentation 20%
3 Induvidual Ass 30%
4 Final Exam 30%

7.2 Class Policies

A student’s honest attitude and conduct are valued, while cheating at any circumstances will not
be tolerated. During exams, students must bring their own pen and calculator.

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7.3 Submission And Collection Of Assignment

The assignment will be collected at the last class meeting. No late submission is accepted
regardless any reason provided
8. General Information
Students are required to be familiar with the BINUS UNIVERSITY – BINUS BUSINESS SCHOOL
Code of Conduct, and to abide by its terms and conditions.
8.1 Copying of Copyright Material By Student
A condition of acceptance as a student is the obligation to abide by the University’s policy on
the copying of copyright material. This obligation covers photocopying of any material using the
University’s photocopying machines, and the recording off air, and making subsequent copies ,
of radio or television broadcasts, and photocopying textbooks. Students who flagrantly
disregard University policy and copyright requirements will be liable to disciplinary action under
the Code of Conduct.
8.2 Academic Misconduct
Please refer to the Code of Conduct for definitions and penalties for Academic Misconduct ,
plagiarism, collusion, and other specific acts of academic dishonesty.
Academic honesty is crucial to a student's credibility and self-esteem, and ultimately
reflects the values and morals of the University as a whole. A student may work together with
one or a group of students discussing assignment content, identifying relevant references, and
debating issues relevant to the subject. Academic investigation is not limited to the views and
opinions of one individual, but is built by forming opinion based on past and present work in the
field. It is legitimate and appropriate to synthesize the work of others, provided that such work is
clearly and accurately referenced.
Plagiarism occurs when the work (including such things as text, figures, ideas, or
conceptual structure, whether verbatim or not) created by another person or persons is used
and presented as one’s own creation, unless the source of each quotation or piece of borrowed
material is acknowledged with an appropriate citation.
Encouraging or assisting another person to commit plagiarism is a form of improper
collusion and may attract the same penalties.
To prevent Academic Misconduct occurring, students are expected to familiarize
themselves with the University policy, the Subject Outline statements, and specific assignment
guidelines. Students should also seek advice from Subject Leaders on acceptable academic
conduct.
8.2.1 Guidelines To Avoid Plagiarism

8.2.2 Referencing For Written Work

Referencing is necessary to acknowledge others' ideas, avoid plagiarism, and allow
readers to access those others’ ideas. Referencing should:
1. Acknowledge others' ideas
2. Allow readers to find the source
3. Be consistent in format and
4. Acknowledge the source of the referencing format
To attain these qualities, the school recommends use of either the Harvard or
American Psychological Association style of referencing, both of which use the
author/date.

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Version :1 Revision Date : 13 April 2009

Revision :1 Effective From : 18 April 2009

8.2.3 Referencing Standards

APA style referencing.

Checked By Approved By

Tubagus Hanafi Soeriaatmadja, MBA., M.Si. Minaldi Loeis, M.Sc., MM.

Program Director - MM Executive Dean of Program
BINUS BUSINESS SCHOOL BINUS BUSINESS SCHOOL

BINUS BUSINESS SCHOOL

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