Corporate Finance

This course will give students a solid understanding of the theories and concepts in corporate financial management. Students will learn how firms acquire capital, appraise projects and subsequently allocate that capital in order to increase shareholder wealth. An understanding of the relationship between risk and return will be developed allowing finance managers to make informed decisions.

Stock Market Chart

Course Structure

Goals & Governance of the Firm

  • Goals of a corporation

  • Company stakeholders

  • Separation of ownership and control

  • The role of the financial manager

Time Value of Money

  • Future and present value

  • Net present value

  • Perpetuities

  • Annuities

Capital Budgeting

  • What is capital budgeting?

  • Net present value of a project

  • Internal rate of return

  • Payback period

Valuing Bonds

  • Issuance and trading of bonds

  • Pricing of bonds

  • Bond yield

  • Risks associated with bonds

Valuing Common Stocks

  • Different types of stocks

  • Trading stocks

  • Calculating the price of a share

  • Gordon growth model

Risk & Return

  • Relationship between risk and return

  • Measuring portfolio risk

  • Calculating portfolio risk

  • Impact of individual securities on portfolio risk

Portfolio Theory & CAPM

  • The efficient frontier

  • The security market line

  • Capital asset pricing model

  • Arbitrage pricing theory

Cost of Capital

  • Sources of finance

  • Cost of debt and equity

  • Weighted average cost of capital

  • The effect of tax on the cost of capital

Dividend Policy

  • Advantages and disadvantages of adopting a divisional structure

  • Divisional performance measures

  • Transfer pricing

  • Non-financial measures of performance

Mergers & Acquisitions

  • What is working capital?

  • Managing inventories

  • Managing receivables and payables

  • Managing cash