Corporate Finance

1. Explain the nature and concept of corporate finance.
2. Explain financial market and the corporation.
3. Explain financial statement, ratios and analysis of financial ratios.
4. Explain how capital structure decision can be made.
5. Explain cost of capital and risk associated with cost of capital.
6. Explain mergers and re–organization.

13 weeks, about 46 hours in total. Yours will differ.

1. Week 1MODULE I: OVERVIEW OF CORPORATE FINANCE

   • Unit 1: Introduction to Corporate Finance · 2 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 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..

2. Week 2MODULE I: OVERVIEW OF CORPORATE FINANCE

   • Unit 3: Forms of Business · 2 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 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..

3. Week 3MODULE I: OVERVIEW OF CORPORATE FINANCE

   • Unit 5: Financial Market and the Corporations · 2 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..

4. Week 4MODULE II: UNDERSTANDING FINANCIAL STATEMENT

   • Unit 1: Principal Financial Statement · 2 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 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..

5. Week 5MODULE II: UNDERSTANDING FINANCIAL STATEMENT

   • Unit 3: Analysis of Financial Ratios · 2 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 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..

6. Week 6MODULE II: UNDERSTANDING FINANCIAL STATEMENT

   • Unit 5: Preparation of Estimated Income Statement and Balance Sheet · 2 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..

7. Week 7MODULE III: INVESTMENT AND FINANCING DECISION

   • Unit 1: Working Capital Management · 2 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 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..

8. Week 8MODULE III: INVESTMENT AND FINANCING DECISION

   • Unit 3: Cost of Capital · 2 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 hours

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

9. Week 9MODULE III: INVESTMENT AND FINANCING DECISION

   • Unit 5: Capital Budgeting · 2 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..

10. Week 10MODULE IV: DIVIDEND DECISION, CORPORATE STRATEGY AND FIRM VALUE

    • Unit 1: Types of Securities · 2 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 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..

11. Week 11MODULE IV: DIVIDEND DECISION, CORPORATE STRATEGY AND FIRM VALUE

    • Unit 3: Dividend Policy · 2 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 hours

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

12. Week 12MODULE IV: DIVIDEND DECISION, CORPORATE STRATEGY AND FIRM VALUE

    • Unit 5: Mergers and Re-Organizations · 2 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 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?.

13. Week 13Final Revision

    • Final Revision · 4 hours

      Review all modules. Work on assignments.