Course outline free essay sample

The problem sets for each lecture will be discussed in the lectures. 2. 2 To prepare for each lecture, we advise the following approach: (a) Read the lecture notes first. B) Attempt the problem set next. Also, for extra practice at the end of each FIT textbook chapter there are multiple choice questions, exercises and review questions. The answers to these items are contained in the FIT Study Guide. In each set of lecture notes, we recommend several for you to do. (c) Use FIT and the Act as a reference to clarify your understanding of the law. You are only responsible for what is in the Lecture Notes and Problem Sets.There is much more in the Act and in the FIT textbook than what we cover in this course. If you have questions, please ask them in class or post them on the Model arum. But before you do that, please try to look the answer up for yourself. This course will provide audience the information and tools to make them pro of taking financial decision. The course will go into detail into time value of money, valuing bonds and stocks, risk and return, capital budgeting, debt policy, dividend policy and so on. Required Course Materials amp; Text Books 1. Fundamentals of Corporate Finance- Ross, Westerfield, Jordan. McGraw Hill, 8th Edition, 2010 Reference books 2. Corporate Finance- Ross Westerfield, Jaffe, 7th Edition, McGraw Hill, 2005. 3. Fundamentals of Corporate Finance- Brealy Mayers, Marcus, Irwin McGraw Hill, 2nd Edition, 2005 4. Principles of Corporate Finance- Brealy, Mayers. Irwin McGraw Hill, 6th Edition 2000 5. Introduction to Corporate Finance- Robert S. Harris, John J. Pringle, 1989, Foresman amp; Company 6. Corporate Finance-Theory amp; Practice- Aswath Damodaran, 2nd edition, John Willy amp; Sons, 2001. 7. Fundamentals of Financial Management- James C. Van Horne, John M. Wachowich Jr. 13th edition, Prentice Hall 8. Fundamentals of Corporate Finance- David WhiteHurst, McGraw Hill, 6th edition, 2004. Evaluation: Quizzes: One in Every week| 5%| Class Participation amp; Attendance + DBC | 10%| First Term Part of the book| 15%| Mid Term Part of the book| 20%| Final Term entire book | 35%| Assignment and 1st Presentation (Based on 1/3rd of the course)| 5%| Project, 2nd Presentation and Field Trip (On entire course)| 10%| Total | 100%| Letter Grades| Grade Points| Marks| A| 4. 0| 90-100| B| 3. 0| 80-89| C| 2. 0| 70-79| D| 1| 60-69| F| 0. 0| lt;60| Assignment, Report, and Presentation: Assignment is required to complete this subject. Two presentations are set for improving the communication skills as well as depth in the subject. A final report towards the end of the course is compulsory to cover the subject matter to reflect the topical contents. Assignments, reports and presentations must be presented on time. Project, Presentation and Field Trip To be acquainted with the industry operating in deferent sectors in the country, a field trip is included in this course to complete the related project which will be given as the class progress. You are required to demonstrate you work by presenting your project paper on the final presentation. Miscellaneous It is a student’s responsibility to read text assignments before the scheduled classes. It is also recommended that students should spend at least three hours (on the average) preparing for each hour of class time. Topical Contents with Readings Time Frame| Learning Objects| Course Instructor| Reference| | | | | | PART ONEOVERVIEW OF CORPORATE FINANCE| | | Week 1| CHAPTER 1 Introduction to Corporate Finance Chapter 1 describes the role of the financial manager and the goal of financial management. It also discusses some key aspects of the financial management environment. | AAYK| RWJ| Week 1| CHAPTER 2 Financial Statements, Taxes, and Cash Flow Chapter 2 describes the basic accounting statements used by the firm. The chapter focuses on the critical differences between cash flow and accounting income; it also discusses why accounting value is generally not the same as market value. | AAYK| RWJ| | PART TWOFINANCIAL STATEMENTS ANDLONG-TERM FINANCIAL PLANNING| | | Week 2| CHAPTER 3 Working with Financial Statements This chapter discusses different aspects of financial statements, including how the statement of cash flows is constructed, how to standardize financial statements, and how to determine and interpret some common financial ratios. AAYK| RWJ| Week 2| CHAPTER 4 Long-Term Financial Planning and Growth Chapter 4 examines the basic elements of financial planning. It introduces the concept of sustainable growth, which can be a very useful tool in financial planning. | AAYK| RWJ| | PART THREEVALUATION OF FUTURE CASH FLOWS| | | Week 3| CHAPTER 5 Introduction to Valuation: The Time Value of Money One of the most important questions in finance is: What is the value today of a cash flow to be rece ived at a later date? The answer depends on the time value of money, the subject of this chapter. AAYK| RWJ| Week 3| CHAPTER 6 Discounted Cash Flow Valuation This chapter expands on the basic results fromChapter 5 to discuss valuation of multiple future cash flows. We consider a number of related topics,Including loan valuation, calculation of loan payments, and determination of rates of return. | AAYK| RWJ| Week 4| CHAPTER 7 Interest Rates and Bond Valuation Bonds are a very important type of financialInstrument. This chapter shows how the valuation techniques of Chapter 6 can be used to determinebond prices. We describe essential features of bonds and how their prices are reported in the financial press. Interest rates and their influence on bond prices are also examined. | AAYK| RWJ| Week 4| CHAPTER 8 Stock Valuation The final chapter of Part Three considers the determinants of the value of a share of stock. Important features of common and preferred stock, such as shareholder rights, are discussed, and stock price quotes are examined. | AAYK| RWJ| First Term Examination beings from June 03 and must end by June 10 2013. The faculty is to designate Particular class hour for the Examination amp; regular classes to continue during the week| | PART FOURCAPITAL BUDGETING| | | Week 5 | CHAPTER 9 Net Present Value and Other Investment Criteria The most important subject in this chapter is net present value. Chapter 9 compares and contrasts net present value with other methods for selecting among alternative investment proposals. | AAYK| RWJ| Week 5| CHAPTER 10 Making Capital Investment Decisions This chapter describes how to actually do a net present value and discounted cash flow analysis. The primary aim of the chapter is to describe how to identify a project’s incremental cash flows. Chapter 10 also discusses how to handle such issuesas sunk costs, opportunity costs, financing costs, net working capital, and erosion. | AAYK| RWJ| Week 6| CHAPTER 11 Project Analysis and Evaluation This chapter discusses problems regarding the reliability of net present value estimates. It also describes some important tools for project analysis, such as break-even analysis, operating leverage, and sensitivity analysis. | AAYK| RWJ| | PART FIVERISK AND RETURN| | | Week 6| CHAPTER 12 Some Lessons from Capital Market History This chapter begins with a description of investors’ historical experiences in U. S. capital markets since 1926. It describes the lessons financial managers can learn from studying capital market history and introduces the important concept of an efficient capital market. | AAYK| RWJ| Week 7| CHAPTER 13 Return, Risk, and the Security Market Line This chapter describes the nature of the risk-return trade-off facing investors and firms. It shows how to use the risk-return trade-off to determine the required return on an investment. AAYK| RWJ| Week 7| CHAPTER 14 Options and Corporate Finance Options have widespread use in corporate finance. This chapter examines them in greater detail, beginning with ordinary stock options. We then explore a variety of applications and examples, including employee stock options, real options, warrants, and convertible bonds. | AAYK| RWJ| | PART SIXCOST OF CAPITAL AND LONG-TERMFINANCIAL P OLICY| | | Week 8| CHAPTER 15 Cost of Capital The discount rate used in capital budgeting is often the project’s weighted average cost of capital. This chapter identifies the components to be used in a project’s cost of capital, the method used to determine the cost of each component, and how the component costs are combined into a weighted average cost of capital. | AAYK| RWJ| Week 8| CHAPTER 16 Raising Capital Chapter 16 examines the process of raising capital. Two of the most interesting subjects covered deal with firms that are just getting started and raise funds in the venture capital market and firms that are contemplating going public, for example, selling stock to the public for the first time. AAYK| RWJ| Week 9| CHAPTER 17 Financial Leverage and Capital Structure Policy This chapter shows what happens when the firm’s reliance on debt changes. It discusses taxes, bankruptcy costs, and capital structure decisions—those decisions concerning the extent to which a firm relies on debt. | AAYK| RWJ| Week 9| CHAPTER 18 Dividends and Dividend Policy To pay dividends or not to pay dividends? That is the que stion discussed in Chapter 18. This chapter identifies and discusses the important factors financial managers must consider in establishing a dividend policy. AAYK| RWJ| Mid Term Examination beings from July 03 and must end by July 10, 2013. The faculty is to designate Particular class hour for the Examination amp; regular classes to continue during the week. | | PART SEVENSHORT-TERM FINANCIAL PLANNINGAND MANAGEMENT| | | Week 10 | CHAPTER 19 Short-Term Finance and Planning To this point, we have described the decisions of long-term finance, including capital budgeting, capital structure, and dividend policy. This chapter introduces some aspects of short-term finance. Short-term finance is the analysis of decisions made when the relevant cash flows all occur in the near future. The focus of short-term finance is on current assets and current liabilities. | AAYK| RWJ| Week 10| CHAPTER 20 Cash and Liquidity Management Why do firms hold any cash? This is the question Chapter 20 attempts to answer, and it discusses some very good reasons for firms to do so. This chapter shows how firms can keep investments in cash low while still operating effectively. | AAYK| RWJ| Week 11| CHAPTER 21 Credit and Inventory Management This chapter looks at a firm’s decision to grant credit. Granting credit can result in increased sales for the firm, but this benefit must be balanced against the extra costs of a credit sale. The chapter also discusses some important financial aspects of inventory management. | AAYK| RWJ| | PART EIGHTTOPICS IN CORPORATE FINANCE| | | Week 11| CHAPTER 22 International Corporate Finance This chapter considers financial management issues that arise for firms with significant foreign operations. The most important new financial factor is exchange rates, and this chapter discusses various ways of dealing with foreign exchange in making financial decisions. AAYK| RWJ| Week 12| CHAPTER 23 Risk Management: An Introduction to Financial Engineering Corporations must cope with fluctuations in interest rates, commodity prices, and exchange rates. This chapter discusses how they do it, with particular attention paid to financial instruments such as futures contracts, options, and swap agreements. | AAYK| RWJ| Week 13| CHAPTER 24 Option Valuation In the first part of the chapter, the famous put-call parity condition is developed, followed by the even more famous Black-Scholes option pricing formula. Option â€Å"greeks† are discussed. The chapter concludes with a broad range of corporate finance applications of option pricing. | AAYK| RWJ| Week 14| CHAPTER 25 Mergers and Acquisitions This chapter describes the corporate finance of mergers and acquisitions. It shows that the acquisition of one firm by another is essentially a capital budgeting decision, and the NPV framework still applies. Tax, legal, and accounting aspects of mergers are discussed along with more recent developments in areas such as takeover defenses. AAYK| RWJ| Week 14| CHAPTER 26 Leasing Leasing is an important source of financing for companies of all sizes, and leasing introduces new possibilities for acquiring assets. This chapter considers the circumstances under which leasing makes sense and discusses other important financial management implications of leasing. | AAYK| RWJ| Final Examination declared by the registry. Stats from August 11| Summer Semester- 2013 College of Business Administration BBA FIN 302, Corporate Finance Date| Day| Out come Material Covered| Reference Reading| Assignment | Due Date| 6-May-13| Monday| Introduction to the course| | | | -May-13| Tuesday| Financial Statements, Taxes, and Cash Flow| Chapter 2| | | 8-May-13| Wednesday| Financial Statements, Taxes, and Cash Flow| Chapter 2| | | 9-May-13| Thursday| | | | | 11-May-13| Saturday| | | | | 12-May-13| Sunday| | | | | 13-May-13| Monday| Working with Financial Statements| Chapter 3| Assignment | 3 June | 14-May-13| Tuesday| Working with Financial Statements| Chapter 3| | | 15-May-13| Wednesday| Long-Term Financial Planning and Growth| Chapter 4| | | 16-May-13| Thursday| | | | | 18-May-13| Saturday| | | | | 19-May-13| Sunday| | | | | 0-May-13| Monday| Introduction to Valuation: The Time Value of Money| Chapter 5| | | 21-May-13| Tuesday| Discounted Cash Flow Valuation| Chapter 6| | | 22-May-13| Wednesday| Discounted Cash Flow Valuation| Chapter 6| | | 23-May-13| Thursday| | | | | 25-May-13| Saturday| | | | | 26-May-13| Sunday| | | | | 27-May-13| Monday| Interest Rates and Bond Valuation| Chapter 7| | | 28-May-13| Tuesday| Stock Valuation| Chapter 8| | | 29-May-13| Wednesday| Stock Valuation| Chapter 8| | | 30-May-13| Thursday| | | | | 1-Jun-13| Saturday| | | | | 2-Jun-13| Sunday| | | | | First Term Examination beings from June 03 and must end by June 10 2012. The faculty is to designate Particular class hour for the Examination amp; regular classes to continue during the week| 3-Jun-13| Monday| Revision| | | | 4-Jun-13| Tuesday| 1st Term Exam| | | | 5-Jun-13| Wednesday| Presentation 1| | Project | 6 August| 6-Jun-13| Thursday| | | | | 8-Jun-13| Saturday| | | | | 9-Jun-13| Sunday| | | | | 10-Jun-13| Monday| Net Present Value and Other Investment Criteria| Chapter 9| | | 11-Jun-13| Tuesday| Making Capital Investment Decisions| Chapter 10| | | 12-Jun-13| Wednesday| Project Analysis and Evaluation| Chapter 11| | | 13-Jun-13| Thursday| | | | | 5-Jun-13| Saturday| | | | | 16-Jun-13| Sunday| | | | | 17-Jun-13| Monday| Some Lessons from Capital Market History| Chapter 12| | | 18-Jun-13| Tuesday| Return, Risk, and the Security Market Line| Chapter 13| | | 19-Jun-13| Wednesday| Return, Risk, and the Security Market Line| Chapter 13| | | 20-Jun-13| Thursday| | | | | 22-Jun-13| Saturday| | | | | 23-Jun-13| Sunday| | | | | 24-Jun-13| Monday| Options a nd Corporate Finance| Chapter 14| | | 25-Jun-13| Tuesday| Cost of Capital| Chapter 15| | | 26-Jun-13| Wednesday| Cost of Capital| Chapter 15| | | 27-Jun-13| Thursday| | | | | Mid Term Examination beings from July 03 and must end by July 10, 2012. The faculty is to designate Particular class hour for the Examination amp; regular classes to continue during the week. | 29-Jun-13| Saturday| | | | | 30-Jun-13| Sunday| | | | | 1-Jul-13| Monday| Raising Capital| Chapter 16| | | 2-Jul-13| Tuesday| Financial Leverage and Capital Structure Policy| Chapter 17| | | 3-Jul-13| Wednesday| Financial Leverage and Capital Structure Policy| Chapter 17| | | 4-Jul-13| Thursday| | | | | 6-Jul-13| Saturday| | | | | 7-Jul-13| Sunday| | | | | -Jul-13| Monday| Mid Term| Duration: 1 Hr| Syllabus| Chapter 9-17| 9-Jul-13| Tuesday| Dividends and Dividend Policy| Chapter 18| | | 10-Jul-13| Wednesday| Dividends and Dividend Policy| Chapter 19| | | 11-Jul-13| Thursday| | | | | 13-Jul-13| Saturday| | | | | 14-Jul-13| Sunday| | | | | 15-Jul-13| Monday| Cash and Liquidity Management| Chapter 20| | | 16-Jul-13| Tuesday| Cash and Liquidity Management| Chapter 20| | | 17-Jul-13| Wednesday| Cre dit and Inventory Management| Chapter 21| | | 18-Jul-13| Thursday| | | | | 20-Jul-13| Saturday| | | | | 21-Jul-13| Sunday| | | | | 2-Jul-13| Monday| Credit and Inventory Management| Chapter 21| | | 23-Jul-13| Tuesday| International Corporate Finance| Chapter 22| | | 24-Jul-13| Wednesday| Risk Management: An Introduction to Financial Engineering| Chapter 23| | | 25-Jul-13| Thursday| | | | | 27-Jul-13| Saturday| | | | | 28-Jul-13| Sunday| | | | | 29-Jul-13| Monday| Risk Management: An Introduction to Financial Engineering| Chapter 23| | | 30-Jul-13| Tuesday| Option Valuation| Chapter 24| | | 31-Jul-13| Wednesday| Mergers and Acquisitions| Chapter 25| | | 1-Aug-13| Thursday| | | | | -Aug-13| Saturday| | | | | 4-Aug-13| Sunday| Shab – e Qudr| 5-Aug-13| Monday| Leasing| Chapter 26| | | 6-Aug-13| Tuesday| Review class| | | | 7-Aug-13| Wednesday| Eid – ul Fitr| 8-Aug-13| Thursday| | 9-Aug-13| Friday| | 11-Aug-13| | Final Exam will be declared by the registry| - Attendance a nd Punctuality (academic regulations, page no. 22, IUBAT bulletin) You are required to attend all classes or other class meetings officially designated for this course. You are also required to complete all assignments. IUBAT or me may make specific requirements about attendance and class participations. I therefore, may assign a final â€Å"F† grade in the course to you if you fail to meet any one of the requirements. Only three absences in a course with acceptable reasons may be excused by the instructor in a semester. Permission of the Dean is required to remain absent in three or more consecutive classes for reasons beyond control (e. g. sickness) by you. Remaining absent in class in this course without permission will be served with a notice of warning. Unexcused absences will lead to reduced course grade, suspension from the course or dismissal from the course. You must be punctual in attending classes. Coming late in a class will be penalized. Habitual late comers may be suspended or dismissed from the course. Late submission of assignments etc. will also be penalized by reducing the grade earned on the assignment. You are also required to attend all seminars, workshops, debates, ceremonies or other officially designated activities. Failure to do so will reflect on the conduct of the student. Academic Offenses (academic regulations, page no. 3, IUBAT bulletin) The students and faculty are jointly responsible for the academic standards and reputation of the university. It is well recognized that intellectual honesty is the basic requirement for development and acquisition of knowledge. Intellectual honesty is a pre-requisite for continued membership in the university community. Forms of intellectual dishonesty are plagiarism, cheat ing in examinations, aiding and abetting cheating, use of assignment prepared by others, impersonation of another student at an examination, misrepresentation of information, falsification of academic records, and unruly behavior with instructor. If a student is detected by the instructor in committing academic offense, it may result in an â€Å"F† grade for the course or even dismissal of the student from the university. Dress and Behavioral Code for Students For male students: Trouser and full/half sleeve shirts with necktie, T-shirts with collar/golf shirt, Suit, Blazer, Sweater, Jacket, and Muffler in winter. Shawl not allowed. Polished shoes, Sandal/Sandal shoes are not allowed, Clean shaved ( if not keeping beard and/or mustache), Decent haircut, Wearing ID while in the campus. Presentation attires are strictly to be maintained to Suit, Tie, Dress Slacks and Dress Shirt * Shirt/T-shirt (with collar)/golf shirt (with collar) to be tucked in * Dress code may be relaxed for National days and ceremonial occasions. For female students: Salwar, Kamiz and Scarf (up-to-date, preferably cotton), Saree (professional attire not in class), Jeans, Kurta, Scarf, Skirt, Top, Scarf, Sweater, cardigan, Jacket, Muffler. Shawl not allowed, Shoes or Sandal shoes with belt and low heel. Sandals not allowed, Properly tied up hair, Limited jewelry and make-up, Wearing ID card while in the campus. * Presentation attires are strictly to be maintained to Suit, Dress Slacks and Dress Shirt *Dress code may be relaxed for National days and ceremonial occasions. Behavioral Code: Speak in English all the time in IUBAT campus Do not talk loudly and make noise Do not run around or use offending words or impolite language to anyone Ragging is strictly forbidden in or outside the campus Smoking in the campus is prohibited by law - - Last But Not the Least - Additional classes are always encouraged from both the parties to catch up things that take more time to comprehend. It is your responsibility to attend the extra class when announced. - - - (Abdullah Al Yousuf Khan)