Login Create Account

Back to Course Catalog

MBF805Management Sciences3 Unitsintermediate

Corporate Finance

This course introduces students to corporate finance, focusing on decisions made by firms with financial implications. It covers corporate financial analysis, tools, and techniques used daily. The course explores investment, financing, and dividend decisions, emphasizing the application of theory to real-world scenarios. Students will learn financial planning, working capital management, capital structure, and risk assessment. The course also addresses mergers, re-organizations, and international finance, equipping students with skills for effective financial management.

Generate AI Study Notes

Transform this course into personalized study materials with AI

26h

Study Time

13

Weeks

2h

Per Week

intermediate

Math Level

Course Keywords

Corporate FinanceInvestment DecisionsFinancial AnalysisCapital StructureDividend Policy

Course Overview

Everything you need to know about this course

Course Difficulty

Intermediate Level

Builds on foundational knowledge

65%

intermediate

📊

Math Level

Moderate Math

📖

Learning Type

Theoretical Focus

Course Topics

Key areas covered in this course

1

Corporate Finance Overview

2

Financial Statement Analysis

3

Investment Decisions

4

Financing Decisions

5

Dividend Policy

6

Capital Structure

7

Risk Management

8

International Finance

Total Topics8 topics

Ready to Start

No specific requirements needed

This course is designed to be accessible to all students. You can start immediately without any prior knowledge or specific preparation.

Assessment Methods

How your progress will be evaluated (3 methods)

assignments

Comprehensive evaluation of course material understanding

Written Assessment

tutor-marked assignments

Comprehensive evaluation of course material understanding

Written Assessment

final examination

Comprehensive evaluation of course material understanding

Written Assessment

Career Opportunities

Explore the career paths this course opens up for you

Financial Analyst

Apply your skills in this growing field

Investment Banker

Apply your skills in this growing field

Portfolio Manager

Apply your skills in this growing field

Corporate Treasurer

Apply your skills in this growing field

Management Consultant

Apply your skills in this growing field

Industry Applications

Real-world sectors where you can apply your knowledge

BankingInvestment ManagementCorporate FinanceConsultingInsurance

Study Schedule Beta

A structured 13-week journey through the course content

Week

1

MODULE I: OVERVIEW OF CORPORATE FINANCE

4h

Unit 1: Introduction to Corporate Finance

2 study hours

•Read the unit introduction to understand the scope of corporate finance.
•Define corporate finance and identify its key components.
•Explain the goals of corporate finance and the tools used.
•Complete the self-assessment exercise to test understanding.

Unit 2: Objective Function in Corporate Finance

2 study hours

•Understand the need for an objective function in corporate finance.
•Explain the characteristics of the 'right' objective function.
•Discuss the classical objective and its organizational structure.
•Identify conflicts and costs associated with wealth maximization.

Week

2

MODULE I: OVERVIEW OF CORPORATE FINANCE

4h

Unit 3: Forms of Business

2 study hours

•Define a proprietorship, a partnership, and a corporation.
•State the advantages of the corporate form of business organization.
•Explain the goals of the corporate firm and managerial goals.
•Complete the self-assessment exercise to test understanding.

Unit 4: Agency Problems and Control of Corporations

2 study hours

•Explain what an agency relationship is.
•State what agency problems are and how they come about.
•Explain the incentives that managers in large corporations have to maximize share value.
•Complete the self-assessment exercise to test understanding.

Week

3

MODULE I: OVERVIEW OF CORPORATE FINANCE

2h

Unit 5: Financial Market and the Corporations

2 study hours

•State what a dealer market is.
•Explain what you understand by a financial market.
•Differentiate between primary and secondary markets.
•Differentiate between dealer and auction markets.

Week

4

MODULE II: UNDERSTANDING FINANCIAL STATEMENT

4h

Unit 1: Principal Financial Statement

2 study hours

•Understand how the financial statements income statement, balance sheet, and statement of cash flows are constructed.
•Understand the general accounting principles.
•Explain how the accounting principles influence the preparation of financial statement.

Unit 2: Financial Ratios

2 study hours

•Explain the nature and classification of financial ratios used in financial statement analysis.
•Compute ratios from financial statements –the income statement and balance sheet.
•State relationship between the computed ratios and its influence on decision making.

Week

5

MODULE II: UNDERSTANDING FINANCIAL STATEMENT

4h

Unit 3: Analysis of Financial Ratios

2 study hours

•Compute financial ratios from financial statement.
•Explain and establish relationship between the computed ratios.
•State the importance of ratio in decision making.

Unit 4: Financial Planning and Control

2 study hours

•Explain the two dimensions of the financial planning process.
•Explain the role of financial planning.
•Understand the basic components of a financial plan.
•Discuss the relative importance of external financing and growth to firms.

Week

6

MODULE II: UNDERSTANDING FINANCIAL STATEMENT

2h

Unit 5: Preparation of Estimated Income Statement and Balance Sheet

2 study hours

•Sales estimates are crucial for preparing pro forma financial statement.
•Percentage of sales method is an approach to preparing pro forma income statement.
•A judgmental approach is used for the preparation of pro forma balance sheet.

Week

7

MODULE III: INVESTMENT AND FINANCING DECISION

4h

Unit 1: Working Capital Management

2 study hours

•Explain what working capital means.
•Highlight on the basic tradeoffs on working capital.
•State the benefits and costs of holding cash.
•State the benefits and costs of holding inventory.

Unit 2: Capital Structure Decision

2 study hours

•State the meaning of capital structure.
•Enumerate the factors determining capital structure.
•Evaluate a company's capital structure.
•Explain the benefit of capital structure.

Week

8

MODULE III: INVESTMENT AND FINANCING DECISION

4h

Unit 3: Cost of Capital

2 study hours

•Explain what cost of capital means.
•Differentiate between cost of equity and cost of capital.
•Understand how the components of cost of capital can be estimated or calculated.

Unit 4: Risk Associated With Cost of Capital

2 study hours

•Explain what risk is in line with cost of capital of a given project.
•Explain the different types of key risk components.

Week

9

MODULE III: INVESTMENT AND FINANCING DECISION

2h

Unit 5: Capital Budgeting

2 study hours

•Explain what are the options embedded in capital budgeting.
•Explain how these options can be valued using option pricing models.
•Identify how these values can be used in conjunction with traditional capital budgeting analysis.

Week

10

MODULE IV: DIVIDEND DECISION, CORPORATE STRATEGY AND FIRM VALUE

4h

Unit 1: Types of Securities

2 study hours

•Recognize the different types of securities markets.
•Be aware of the basic characteristics of brokers and investment advisors.
•Understand how to buy and sell securities.
•Answer questions about choosing a broker or an investment advisor.

Unit 2: Bonds and Warrant

2 study hours

•Describe financing options beyond the regular or stocks and bonds.
•Identify situations where convertible securities and warrants can be profitably used to meet a financing requirement.
•Estimate the value of warrants and explain why organizations and investors seek these products.

Week

11

MODULE IV: DIVIDEND DECISION, CORPORATE STRATEGY AND FIRM VALUE

4h

Unit 3: Dividend Policy

2 study hours

•Explain when a firm should be pressured to increase its payout to stockholders and how such a firm should defend it.
•Explain when a firm be pressured to reduce its payouts to stockholders and what are the consequences of excessive dividends.
•Explain what types of firms have the most flexibility in setting dividend policy?

Unit 4: Corporate Growth

2 study hours

•Explain the meaning of organizational growth.
•Explain the ways in which organizations achieve growth.
•Explain the problems encountered with organizational growth.

Week

12

MODULE IV: DIVIDEND DECISION, CORPORATE STRATEGY AND FIRM VALUE

4h

Unit 5: Mergers and Re-Organizations

2 study hours

•Explain how widely used is synergy as a motive for acquisitions? What are the different forms synergies can take?
•How should synergy be valued?
•Explain if diversification is a good motive for acquisition.

Unit 6: International Finance

2 study hours

•Say what the determinants to changes in currency rates are.
•Explain how determinants can be used in forecasting expected cash flows in another currency and converting these cash flows into domestic currency?
•Explain if investment analysis of foreign projects be done in local currency or in the firm's domestic currency?

Week

13

Final Revision

4h

Final Revision

4 study hours

•Review all modules
•Work on assignments

This study schedule is in beta and may not be accurate. Please use it as a guide and consult the course outline for the most accurate information.

Course PDF Material

Read the complete course material as provided by NOUN.

Access PDF Material

Study Tips & Exam Preparation

Expert tips to help you succeed in this course

1

Review financial statement analysis techniques from Units 1-3 thoroughly.

2

Practice calculating financial ratios and interpreting their significance.

3

Create concept maps linking Units 7-9 capital structure and cost of capital concepts.

4

Work through numerical examples in Units 10-12 to master capital budgeting.

5

Focus on understanding the trade-offs in dividend policy from Unit 13.

6

Allocate study time evenly across all modules, but prioritize complex calculations.

7

Review all TMAs and address areas of weakness identified by your tutor.

8

Create flashcards for key terms and formulas for quick recall during the exam.

Related Courses

Other courses in Management Sciences that complement your learning

Public Policy Analysis

Entrepreneurship

Materials Management

View All Management Sciences Courses