FIN622 : Corporate Finance

Course Overview

Course Synopsis

Corporate Finance is all about the basic principles and concepts used in the financial matters of an enterprise. This course has been designed to produce quality financial managers as needed by the growing business community in Pakistan. The contents are latest and are very much applicable in current business environment. The syllabus encompasses Capital & Risk, Treasury, Working Capital Management and valuations of financial instruments. A latest tag of “Mergers & Acquisition” has also been attached at a very basic level in order to familiarize the students with the latest happenings and developments in this subject. The financial knowledge about Foreign Exchange Markets has also been provided within the syllabus of this course.

Course Learning Outcomes

Upon successful completion of this course, students will be able to:

  • Appreciate the role of Financial Manager that takes appropriate decisions and helps him to develop common language of business to all internal and external users of financial data.
  • Explore how key financial ratios are used to assess the financial health of a firm.
  • Recognize how forecasting is used to make financial decisions.
  • Have assessment for the solution of basic problem of: what investment to make and how to pay for that?
  • Evaluate different investment proposals keeping in view the concept of time value of money, risk and returns.
  • Evaluate the different types of securities such as common stocks, preferred stocks and bonds.
  • Identify and analyze the key concepts, terminologies and principles of firm operations and financial markets. Like Cash Budgeting, Cash Management, Credits and Receivables Management, Inventory Management, International Business Finance.
  • Recognize the key ethical ramifications of purposeful accounting decisions.


Course Calendar

1 Introduction to Corporate Finance
2 Comparison of Financial Statements
3 Time Value Of Money
4 Discounted Cash Flow & Effective Annual Interest
5 Bond
6 Term Structure Of Interest Rates
7 Common Stock Valuation
8 Capital Budgeting
9 Methods Of Project Evaluations
10 Methods Of Project Evaluations (Cont....)
assignment 1
11 Methods Of Project Evaluations (Cont...)
12 Advance Evaluation Methods
13 Operating Leverage & Capital Rationing
Quiz 1
14 Capital Rationing
15 Risk & Returns
16 Portfolio & Diversification
Quiz 2
17 Securities Market Line & Capital Asset Pricing Model – CAPM
18 Cost Of Capital & Capital Structure
19 Cost Of Debt & Weighted Average Cost Of Capital (WACC)
GDB 1
20 Capital Structure And Financial Leverage
21 Capital Structure & Cost Of Equity: Modigliani And Miller Model
22 Problems associated with high gearing & Dividend Policies
23 Dividend Policy & Financial Planning
24 Budgeting Process
25 Cash Flow Statement & Working Capital Management
26 Working Capital Management 1
27 Working Capital Management
28 Cash Management
29 Inventory Management 1
30 Inventory Management 2
31 Credit Policy
Quiz 3
32 Credit Policy And Introduction Of Mergers & Acquisitions
34 Acquisitions
33 Mergers & Acquisitions
35 Share Valuations
36 Corporate Restructuring
37 Financial Distress and Foreign Exchange Market
38 Currency Risks 1
39 Currency Risks 2
40 Interest Rate Risk & Forward Rate Agreements
41 Interest Rate Futures
42 Foreign Exchange Market’s Options
43 Foreign Exchange Market’s Swaps
44 Exchange Rate System & Multinational Companies (MNCs)
45 Foreign Investment