THE COURSE IN A NUTSHELL
Office Hours: Wednesday, 10.00-12.00 and Thursday 13.00-15.00 or by appointment
Tel: +355 4 451 2345
Technology Expectations: Students should be familiar with Excel and PowerPoint. Continuing and regular use of e-mail is expected. Students must have simple calculators in class.
The main purpose of this course is to provide a) a strong conceptual framework for understanding managerial finance and the dynamic economic environment in which corporate financial decisions are made and b) assess the main tools extensively used by financial managers and their applicability in decision-making.
The main subject of this course is the financial management of corporations, whose decision making is generally of two types: Investment decisions and Financing decisions. This course provides an extension of the main topics of finance theory presented in financial accounting & managerial accounting and provides an in-depth knowledge of corporate financial management and decision-making as foundations to be practiced in advanced/applied finance. The material to be explained during the course is organized in three parts. The first part of this course introduces the topics of corporate governance and importance of the concept and usage of the net present value in the selection of profitable investments & financing opportunities. The second part of the course focuses on the theory of risk and how it is used to estimate expected/ required returns. The third part of the course focuses on the importance of considering market anomalies, market efficiency, payout policy and capital structure when selecting among different investment/financing opportunities.
Upon completion of this course, students should be able to:
In class, students will be supported with additional reading materials required to gain a broad/in depth comprehension of specific lectures.
|WEEK||DATE||TOPICS & HOMEWORK|
|I||12/10||· Course introduction, subjects, and requirements.
· Goals and Governance of the Firm;
· An Overview of Corporate Financing
Homework: Chapters 1 & 14
|II||19/10||Mother Teresa Day; No Classes: To be rescheduled within the same week.|
|· How to Calculate Present Values
Homework: Chapter 2
|III||26/10||· Valuing Bonds|
|· The Many Different Kinds of Debt
Homework: Chapter 3 & 24.
|IV||02/11||· The Value of Common Stocks|
|Quiz No. 1
Homework: Chapter 4
|V||09/11||· The Net Present Value and Other Investment Criteria
Homework: Chapter 5
|VI||16/11||· Making Investment Decisions with the Net Present Value Rule|
|*Review for Midterm Exam
Homework: Chapter 6
|VIII||30/11||Liberation Day; No Classes: To be rescheduled within the same week|
|· Introduction to Risk and Return
Homework: Chapter 7
|IX||07/12||· Portfolio Theory and Capital Asset Pricing Model
Homework: Chapter 8
|X||14/12||· Risk and the Cost of Capital
Homework: Chapter 9
|XI||21/12||· Project Analysis|
|Quiz No. 2
Homework: Chapter 10
|XII||11/01||· Payout Policy
Homework: Chapter 16
|XIII||18/01||· Does Debt Policy Matter?
Homework: Chapter 17
Homework: Chapter 25
|XIV||25/01||Efficient Markets and Behavioural Finance|
|*Review for Final Exam
Case Discussion: Chapter 13
This course is built on the conviction that students build knowledge and skills by associating new materials with knowledge and experiences acquired before or concurrently to the learning activities. This requires active learning, vigorous discussions and active participation on the part of the students. While the instruction will include lectures where core concepts, important theories, and practical application will be explained, it is the continuous and consistent exercising of students, both in class with individual or group assignments and through weekly written homework, that guarantees the proper functioning of the course.
|Attendance, participation and preparation||10%|
|Mid Term Exam||25%|
|Letter Grade||Percent (%)||Generally Accepted Meaning|
|B+||87-89||Good work, distinctly above average|
|D+||67-69||Work that is significantly below average|
|F||0-59||Work that does not meet minimum standards for passing the course|
Date Prepared and By Whom Prepared
October 2015 Anisa Vrenozi, M.Sc.