Course Code
Course Code
Course Title
FIN 04 C
Classification:
CORPORATE FINANCE II TERM: III Credit: 2.5 NA This course aims at providing students with an understanding of corporate investments decisions and analysis of investment and financial risk. It gives exposure to basic concepts underlying valuation of stock and bonds and overview of derivative instruments. By the end of this course students should be able to: 1. Illustrate the estimation of project cash flows 2. Apply various capital budgeting tools and techniques while make investment decision 3. Explain the rationale of leverage analysis 4. Apply the concepts of time value of money in bond valuation 5. Define the need for derivative instruments. Output to: NA NA Module 1: 2 Credits Capital Budgeting DCF vs Non-DCF Techniques of Capital Budgeting, Estimating Project Cash Flows, Risk Analysis of Projects cash Flows, Investment appraisal techniques Pay back, Accounting rate of return, Net present Value, Internal Rate of return, Modified Internal Rate of Return, Capital Rationing and Profitability Index, Issues in Capital budgeting. Leverage analysis operating leverage and Financial Leverage, break-even point, EBIT-EPS analysis. Stock and Bond valuation Module 2: 0.5 Credits Dividend Policy Dividend policy in Practice, Stock buyback, Bonus Issue; Stock. Overview of Derivative securities Options, Future and Forwards. Preparation of comprehensive Business plan 1. Prasanna Chandra (2006) Financial Management Theory and Practice (6th Edition) Tata Mcgraw-Hill Publishing Company Limited, New Delhi. 2.Brealey R.A. and S.C.Myers (2005) Principles of Corporate Finance 9th Edition, Mcgraw-Hill 3. Pandey I M (2004) Financial management Vikas Publishing House Pvt. ltd., New Delhi. 4. Khan lain (2000) Basic Financial Management (7th Edition) Tata McGraw-Hill Publishing Company Limited, New Delhi. 5. Aswath Damodaran (1999)Applied Corporate Finance John Wiley & Sons. 6. Shapiro and Balbier (2000), Corporate Finance, Pearson Education Its a core course.
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