Course Contents

1. Working Capital Management: Float and Cash Management, Cash Collection, Disbursement, Credit and Receivables. Inventory Management Techniques 2. Short Term Financing: Trade Credit, Bank Loans, Banker’s Acceptances, Commercial Finance Company Loans, Commercial Paper, Secured sources of short term financing. 3. 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 4. 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 5. 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. 6. Dividends and Dividends Policy: Cash Dividends and Dividend Payments, Dividend Policy Theory, Stock Repurchase, Stock Dividends and Stock Splits. Final Project: Students are required to conduct a thorough literature search (books, journals, trade magazines, newspapers, websites etc.) in order to prepare the research project. It is expected that the project covers the relevant module from course outline.

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 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 corporate 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.