Corporate Finance

CATALOG DESCRIPTION: The course focuses on developing a knowledge and a broad understanding of core issues in corporate finance. It also enables students, through the application of appropriate tools and techniques, to evaluate and solve complex corporate finance problems developing numerical reasoning and the ability to interpret financial data.

RATIONALE: Future Financial Managers should possess the knowledge and the ability to manage corporate risk, evaluate long-term projects, raise and optimally allocate funds.

LEARNING OUTCOMES: As a result of taking this course, the student should be able to:

1. Understand and discuss the role and purpose of finance in corporations and the nature of financial decisions companies make.

2. Demonstrate knowledge and understanding of financial ratios and their interpretation.

3. Understand and use various capital budgeting techniques on decision making.

4. Demonstrate knowledge and understanding of the risk return relationship and the concept of efficient market hypothesis.

5. Discuss various sources of finance available to the firm and the impact that capital structure and dividend policy have on firm value.

6. Analyse short-term financial planning in corporate decisions.

METHOD OF TEACHING AND LEARNING: In congruence with the teaching and learning strategy of the college, the following tools are used:

- Class lectures, and practical problems (case studies) solved and discussed in class.

- Homework assignments: Most of these assignments require the use of advanced spreadsheet applications such as building alternative scenarios and performing sensitivity analysis.

- Office hours: students are encouraged to make full use of the office hours of their instructor.

- Use of blackboard.

- The incorporation of Thomson Reuters Eikon sessions in order to combine theory with practice and accomplish 1st Assessment

ASSESSMENT:

Summative:

1st assessment – Individual Coursework/ Project (1,700 – 2,200 words) 50%

Final assessment: In-class written examination (Two-hour, closed-book, problems/essays combination) 50%

Formative: Case Studies, Excel applications 0%

The formative assignments prepare students for the examinations and ensure that students are actively engaged during the term. The “Coursework-Project” tests Learning Outcomes 1, 2, 4, 5. The final assessment tests Learning Outcomes 1-6. The final grade for this module will be determined by averaging all summative assessment grades, based on the predetermined weights for each assessment. If students pass the comprehensive assessment that tests all Learning Outcomes for this module and the average grade for the module is 40 or h