Subject: Financial Management / Corporate Finance
Course Objective and Contents
1. Purpose:
To explain the observable financial decision of corporations and portfolio managers and to
interpreter the behavior of the securities markets and corporations which result from the decisions
of those managers and other agents.
The subject enables students to merge finance theories and corporate decision making process.
2. Objective:
1. Equip students with the theoretical principles and practical aspects relating to Corporate
Finance /Financial Management.
2. Equip students with relevant skills and techniques in analyzing investment opportunities in
order to make financial decisions with particular reference to finance and material
management.
3. Outcome:
Good comprehension of Corporate Finance/Financial Management: i.e. knowledge and ability to:
1. Identify and evaluate alternative sources of finance.
2. Identify and evaluate alternative investment opportunities.
3. Apply principles of Asset-Liability Management.
4. Design and evaluate appropriate corporate dividend policy.
4. Subject Main Contents:
I. Introduction to Corporate Finance and Basic Concept.
- Introduction to Corporate Finance
- Essential Concepts in Corporate Finance
II. Financial Planning, Control and Forecasting.
- Planning, Control and Forecasting
- Financial Analysis and Interpretation
- CVP / Break Even Analysis
III. Working Capital Management.
- Working Capital Policy
- Cash, Liquidity and Marketable Securities Management
- Credit Management and Policy
- Inventory Management System and Models
- Financing of Working Capital Requirements
Jan 2012 1 KAS Informatics
Subject: Financial Management / Corporate Finance
Course Objective and Contents
IV. Corporate Investment Decision.
- Capital Budgeting
- Investment in Securities and Portfolio Theory
- Leasing
V. Sources of Capital and Long-term Financing Decisions.
- Sources of Capital
- The Cost of Different Sources of Capital
- Financial Leverage and Capital Structure Policy
- Capital Markets
- Strategic Long Term Financing
- Rights Issue
VI. Valuation, Mergers and Acquisition.
- Valuation of Securities and Businesses
- Mergers and Acquisitions
VII. Retained Earnings and Dividend Decisions.
- Retained Earnings and Dividend Policy
VIII. International Aspects of Financial Management
5. Some of the Readings:
1. Arnold Glen, 2005, Corporate Financial Management: Prentice-Hall
2. Horne James C. 2001, Fundamental of Financial Management, 11th edition. ****
3. Waston, Denzil, Anthony Head, 2006, Corporate Finance, 4th Edition: Financial Times
/Prentice-Hall
4. ACCA, 2006, Advanced Corporate Reporting; ACCA
5. I.M Pandey, 2009, Financial Management, 9th edition.
Noel, A. M (0713 – 253385)
Jan 2012 2 KAS Informatics