Corporate Finance

Course Code: FIN 322

Credit Hour: 3

Course Group: Specialization Courses: Finance

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Corporate Finance: Corporate Firm and Goals of Corporate Firm, Agency Costs and Set of Contract Perspective, Managerial Goals, Separation of Ownership and Control, Goals of Corporate Finance, Finance Function and Firm’s Objectives, Role of The Financial Manager, Principles of Valuation, Discounted Cash Flow, Capital Budgeting.

Capital Market: Investment and Consumption Model; Review of Capital Structure; Issue of Corporate Securities – Stocks and Bonds, IPO Under Pricing; Long Run Performance of Ipos.

Financial Planning: Strategic Plan, Operating Plan, Financial Plans, and Sales Forecast, Forecasting Financial Statements; Percentage of Sales Forecasting; Other Forecasting Methods.

Mergers and Acquisitions: Forms of Acquisitions, Tax Forms of Acquisitions, Synergy from Acquisitions, Value of The Firm After Acquisitions, Reduction in Risk, Bad Reasons for Mergers, NPV Of A Merger.

Financial Distress: Bankruptcy, Liquidation and Reorganization; Corporate Restructuring – Corporate Alliance, Divesture, Equity Carve Out, LBO.

Long Term & Short-Term Finance Decision: Investment Decision, Project Evaluation, Liquidation and Reorganization, Short-Term Financing.

Capital Structure and Dividend Policy Leverage and the Value of The Firm, Dividend Policy.

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Texts:

Ross, Westerfield and Jaffe, Corporate Finance – 7 th Edition, McGraw Hill Inc., Boston, 2005.

Brigham, Gapensky and Ehrhardt, Financial Management – Theory and Practice – 9 th Edition the Dryden Press, New York, 1998.

Van Horne, Financial Management and Policy – 12th Edition, Prentice-Hall Inc., New Delhi, 2001.