Course Contents

• Working Capital Management: Float and Cash Management, Cash Collection, Disbursement, Credit and Receivables. Inventory Management Techniques • Risk and Return: Expected Returns and Variances, Portfolios, Expected Return, Systematic and Unsystematic Risk, Diversification and Portfolio Risk, Capital Asset Pricing Model, Beta, The Security Market Line • Cost of Capital: The Cost of Capital: Some Preliminaries, The Cost of Equity, The Cost of Debt and Preferred Stock, The weighted Average Cost of Capital • Leverage and Capital Structure: The Effect of Financial Leverage, Capital Structure, Corporate Taxes and the Capital Structure, Bankruptcy Costs, Optimal Capital Structure, Observed Capital Structure. • Dividends and Dividends Policy: Cash Dividends and Dividend Payments, Dividend Policy Theory, Stock Repurchase, Stock Dividends and Stock Splits • Raising Capital: The Financing Life Cycle of a Firm: Early Stage Financing and Venture Capital, Selling Securities to the Public, Alternative Issue Methods, Underwriters, IPOS and Underpricing, New Equity Sales and the Value of the Firm, The Cost of Issuing Securities, Issuing Long –Term Debt

Course Synopsis

Corporate finance is a goal-oriented activity that involves financial planning, decision making and financial investment. This course is intended to guide the students regarding the overall structure and application of financial Public and corporate sector.

Course Learning Outcomes

This course is designed to help students develop a deeper understanding of the issues and the basic tools needed for organization’s manager. After studying this course, the students should be able: • To evaluate and formulate effective working capital polices in day to day operations. • To make effective use of financial resources available to an organization. • To evaluate various alternatives available to acquire fixed assets. • To perform Sensitivity and Scenario analysis for decision making