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COURSE SYLLABUS
Ross, S. A., Westerfield, R., & Jaffe, J. F. (2013). Corporate finance (10th ed.).
18 Text Book
McGraw-Hill Education.
FIN4117 Course Syllabus Summer 2016
1. Ehrhardt, M., & Brigham, E. (2016). Corporate finance: A focused approach. Cengage
Learning.
2. Brealey, R. A., Myers, S. C., Allen, F., & Mohanty, P. (2012). Principles of corporate finance.
19 Reference Tata McGraw-Hill Education.
3. https://www.youtube.com/channel/UCv6YtbTdb5s6PX18Jn9OACQ
4. http://www.investopedia.com/
Bring your own scientific calculator to participate effectively in classroom
Equipment
20 activities. You are not allowed to borrow from others in the classroom during
& Aids
class activities.
Looking at the right-hand side of the balance sheet of companies, one can easily
find out that companies can finance their assets by issuing debt and equity
securities. The basic issues revolve not only around making decisions as to how
much debt or how much equity be used to finance assets but also around decisions
Course as to what types of debt securities or equity securities be issued. It is also not a
21
Rationale recent phenomenon that leasing has become one of the popular ways of financing
corporate assets. In order to achieve the goal of shareholder wealth maximization,
these corporate financing decisions are crucial. The Corporate Finance course is
therefore essential for the business students who are the future corporate
managers.
The Corporate Finance course initially introduces the students with the corporate
form of business organizations and its financing environment. After that the course
familiarizes the students with the implications of capital market environment for
Course
22 corporate financing decisions. Remaining part of the course covers the concepts,
Description
theories and applications related to long term debt and equity financing, valuation
and capital budgeting of leveraged firms, corporate payout policies, lease
financing, merger and acquisitions, and financial distress.
The objectives of the course are to
1. Introduce the corporate financing environment and impact of efficient
capital market on corporate financing decisions.
2. Explain the concepts and theories of corporate capital structure
Course 3. Discuss the link between corporate leverage and investment decision
23
Objectives making techniques
4. Elaborate dividend policy and lease financing decisions
5. Explain corporate decisions related to merger, acquisition, divestiture, and
financial distress situations.
Letter Marks % Grade Point Letter Marks% Grade Point
Grade Grade
A (Plain) 90-100 4.00 C+ (Plus) 70-73 2.33
A- (Minus)FIN4117
86-89 3.67 C (Plain) Course66-69
Syllabus 2.00 Summer 2016
B+ (Plus) 82-85 3.33 C- (Minus) 62-65 1.67
B (Plain) 78-81 3.00 D+ (Plus) 58-61 1.33
24 Course
B- (Minus) 74-77 After the successful
2.67 D (Plain) completion
55-57 of this
1.00course, the students will be able to:
Learning F (Fail) <55 0.00
Letter Grade Marks %
1. Identify
Grade Point
the financing
Letter Grade Marks%
environment of corporations and understand the
Grade Point
A (Plain)
Outcomes
90-100 4.00 impact
C+of efficient market
(Plus) 70-73 hypothesis
2.33 on corporate financing decisions
A- (Minus) (CLOs)
86-89 3.67 2. Interpret
C (Plain)
the concepts66-69 2.00 related to corporate capital structure and
and theories
B+ (Plus) 82-85 3.33 C- (Minus) 62-65 1.67
B (Plain) 78-81 3.00 dividend policy 58-61
D+ (Plus) 1.33
B- (Minus) 74-77 2.67 3. Evaluate different 55-57
D (Plain) methods of 1.00assessing projects and compare lease as a
F (Fail) <55 0.00
long term financing method along with traditional debt and equity
financing
4. Analyze different aspects of mergers, acquisitions, and divestitures for a
corporation
5. Recognize corporate financial distress situation and deal with its
consequences
Teaching Lecture, open discussion, class exercises, case studies, group activities
25
Methods
26 Topic Outline
Grading
28
Policy
FIN4117 Course Syllabus Summer 2016