Corporate Finance, Joint Program Tel-U & UTP. The Online Joint Class between Telkom University (Tel-U) and Universiti Teknologi PETRONAS (UTP) on the topic of Corporate Finance was held in two session on Thursday, 25 February and 4 March 2021 by International Office of Telkom University at 9 AM (Indonesian Time) or 10 AM (Malaysian Time). Dr. Sita Delyana Firmiaty, lecturer at Telkom University and AP Dr. Maran Marimuthu, lecturer at Technology at Universiti Teknologi PETRONAS are the guest’s lecturers who shared a topic on the Corporate Finance for session 1 and 2.

The Corporate Finance Session was attended by 133 international and national students from both universities on the first session, meanwhile on the second session it was attended by more than 70 participants. All participants who attended the corporate finance class will be given an e-certificate if they can join for both sessions.

On the first session of corporate finance, Dr. Maran discussed several goals to maximize Corporate Finance. He explained that investment decisions are related to decisions made by the investors themselves or the upper management level related to the amount of funds to be deployed in investment opportunities. Simply put, choosing the type of assets in which the company will invest funds is itself referred to as an investment decision. He also explained that in corporate finance, there are three objectives that investors should understand well when making investment decisions. They are:

1. Understand the motivation for the key capital budgeting expenditures and the streps in the capital budgeting, is the process of the identifying, and evaluating a firm’s investment
2. Define basic capital budgeting terminologies
3. Calculate payback, NPV, IRR and PI (formulae, Financial tables and virtual financial calculator).

Meanwhile, in the corporate finance session, Dr. Sita discussed about the Risk and Refinements in Capital Budgeting: comparing projects with unequal lives. She explained that the financial manager must often select the best of a group of unequal-lived projects. If the projects are independent, the length of the projects lives is not critical. However, when unequal-lived projects are mutually exclusive, the impact of differing lives must be considered because the projects do not provide service over comparable time periods. Furthermore, she also explained the annualized net present value (ANPV) approach is an approach to evaluating unequal-lived projects that convert the net present value of unequal-lived, mutually exclusive projects into an equivalent annual amount (in NPV terms).

Corporate Finance Basic Foundation

The basic foundations of Corporate Finance by looking at how organization decide which projects to invest in and how best to raise funds. These two issues are of paramount importance to all stakeholders, but especially to shareholders in for-profit organization, managers in the public sector and donors to the not-for-profit sector.

On the second session of Corporate Finance, Dr. Maran discussed several goals to maximize Corporate Finance, He explained that Corporate Finance has cash flow in capital budgeting that must be understanding they are:

1. To understand the components of CFs
2. To understand the concept of risk-adjusted cash flows
3. To synthesis the analyses/findings

He also explained that in Basic Terminologies of corporate finance, an important role in the understanding of contexts and specialized texts. Understanding the intricate terminological details of the technical and scientific contexts helps students comprehend what the main message of the document is, and it helps specialists to transmit the content more effectively.

Meanwhile, Dr. Sita discussed about the Risk and Refinements in Capital Budgeting. She explained that the rates of return that must be earned on a given project to compensate the firm’s owners adequately-that is, to maintain or improve the firm’s share price. She also explained in the Risk-Adjusted Discount Rates, there are two total risks that must be understood, as non-diversifiable risk and diversifiable risk. Non-diversifiable risk for securities is commonly measured using bate, which is an index of the degree of movement of an asset’s return on response to a change in the market return. However, in Diversifiable risk which result from uncontrollable or random event, can be eliminate through diversification.

The Corporate Finance is looking at how the organization decides which projects to invest and the best way to raise funds, and the tools and analysis used to allocate financial resources. These three issues are very important for all stakeholders, but especially for shareholders in non-profit organizations, managers in the public sector and donors in the non-profit sector.

In corporate finance session all participants must take the post tests, so the lecturers can monitor their knowledge about corporate finance. The corporate finance class was ran smoothly and interesting. Many participants was asking question about corporate finance.

There will more interested topics to discuss on the Online Joint Class Between Telkom University and University Teknologi PETRONAS. So, don’t forget to join the next Online Joint Class.(IO)***