Bangladesh University of Professionals
Faculty of Business Studies
Master of Business Administration (MBA)
Course Outline
Part A:
Course Title : Corporate Finance
Course Code : FIN-8603
Course Type : Major Course
Term & Section : MBA 6th Trimester, Major in Finance
Course Instructor : Sadman Kabir, Assistant Professor
Department of Business Administration-General, FBS, BUP
Email:
[email protected] Contact No: +880-1769028335 (Office), +880-1738777997 (WhatsApp)
Office Address: FBS Tower, 12th floor, Room- BS-1203
Pre-requisite : FIN-7302 Financial Management
Credit Value : 03
Total Marks : 100
Course Summary
This course examines important issues in corporate finance from the perspective of financial
managers who are responsible for making significant investment, financing, dividend distribution
and working capital management decisions for corporations. This course develops theoretical
framework for understanding and analyzing major financial problems of a company in market
environment. It covers the analysis of risk and real options, valuation of investment proposals,
theories and concepts of leverage and capital structure, dividend policy and financial distress. It
provides necessary knowledge in evaluating different management decisions and its influence on
corporate performance and value.
Course Learning Outcomes (CLO)
On successful completion of this course, students will be able to-
CLO 1 Understand the concepts of leverage, capital structure, dividend, mergers and financial
distress.
CLO 2 Measure degree of leverage and risk and identify optimal capital structure.
CLO 3 Estimate and analyze the cash flows, risk and real options related to capital budgeting.
CLO 4 Evaluate capital budgeting projects and effects of dividend payment.
CLO 5 Develop insights and apply skills to make financing, investment, dividend and working
capital management decisions for a corporation.
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Alignment of CLOs with Program Learning Outcomes (PLO)
PLO 1 PLO 2 PLO 3 PLO 4 PLO 5 PLO 6 PLO 7
CLO 1 3 1
CLO 2 1 3 1
CLO 3 1 3 2
CLO 4 1 2 2
CLO 5 3 1 3
Correlation: 3=High, 2=Medium, 1=Low
Course Content
Corresponding
Week Class Chapter Discussion Points Reference
CLOs
Chapter 1- Incremental Cash Flows
CLO 3
Making Capital The Baldwin Company: An Example Ross
1 1 CLO 4
Investment Alternative Definitions of Operating Chapter 6
CLO 5
Decisions Cash Flow
Chapter 1- Some Special Cases of Discounted
CLO 3
Making Capital Cash Flow Analysis Ross
2 2 CLO 4
Investment Inflation and Capital Budgeting Chapter 6
CLO 5
Decisions
Class Test 01
Chapter 2- Risk Sensitivity Analysis
3 3
Analysis, Real Scenario Analysis Ross CLO 2
Options, and Break-Even Analysis Chapter 7 CLO 3
Capital Budgeting
Chapter 2- Risk Real Options
4 4
Analysis, Real Decision Trees Ross CLO 2
Options, and Chapter 7 CLO 3
Capital Budgeting
Class Test 02
Chapter 3- Adjusted Present Value Approach
Valuation and Flows to Equity Approach
Weighted Average Cost of Capital Ross CLO 4
5 5 Capital Budgeting
Method Chapter 18 CLO 5
for the Levered
Firm
Chapter 3- A Comparison of the APV, FTE, and
Valuation and WACC Approaches
Valuation When the Discount Rate Ross CLO 4
6 6 Capital Budgeting
Must Be Estimated Chapter 18 CLO 5
for the Levered
Firm APV Example
Midterm Examination
Discuss leverage, capital structure,
Chapter 4-
breakeven analysis, the operating Gitman CLO 1
7 7 Leverage and
breakeven point, and the effect of Chapter 13 CLO 2
Capital Structure
changing costs on it.
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Understand operating, financial, and
total leverage and the relationship
among them.
Finding Optimal Capital Structure
Lease financing, Lease terminology
Financial Lease, Operating Lease
Review the types of leases, leasing
Chapter 5- arrangements Gitman CLO 3
8 8
Leasing The lease versus purchase decision Chapter 16 CLO 5
The effects of leasing on future
financing, and the advantages and
disadvantages of leasing.
Class Test 03
Elements of Payout Policy
Cash Dividend Payment Procedures
Share Repurchase Procedure
Chapter 6- Factors Affecting Dividend Policy Gitman CLO 1
9 9
Dividend Policy Types and Forms of Dividend Chapter 14 CLO 4
Theory of Dividend
Legal & Contractual Constraints of
Dividend
What is Financial Distress?
What happens in Financial Distress
Bankruptcy Liquidation and
Chapter 7- Ross CLO 1
10 10 Reorganization
Financial Distress Private Workout Vs Bankruptcy
Chapter 30 CLO 5
Predicting Corporate Bankruptcy
The Z-Score Model
Class Test 04
11 11 Review and Solve Class
12 12 Individual Presentation
Mapping Course Learning Outcomes (CLOs) with the Teaching-Learning & Assessment
Strategy
CLOs Teaching-Learning Strategy Assessment Strategy
CLO 1 Lecture, Group Discussion Class Test, Midterm, Final Exam
CLO 2 Problem Solving, Hands-on activities Assignment, Midterm, Final Exam
CLO 3 Problem Solving, Hands-on activities Class Test, Midterm, Final Exam
CLO 4 Problem Solving, Hands-on activities Term Paper, Midterm, Final Exam
CLO 5 Case Study, Group Discussion Class Test, Midterm, Final Exam
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Continuous Internal Evaluation (40 Marks)
Bloom’s Class Test Assignment Term Attitude Class Class
Category (12) (05) Paper /Conduct Participation Attendance
(10) /Manners (05) (05)
(03)
Remember 3
Understand 3
Apply 3 5
3 5 5
Analyze 3 5
Evaluate 5
Create
Summative Evaluation (60 Marks)
Bloom’s Midterm Term Final
Category (20) (40)
Remember 2 4
Understand 4 8
Apply 4 8
Analyze 4 8
Evaluate 4 8
Create 2 4
Text Book
Corporate Finance – (11th Edition) by Ross, Westerfield & Jaffe (McGraw-Hill/Irwin)
Principles of Managerial Finance, Lawrence J. Gitman and Chad J. Zutter, 13th Edition
Reference Books
Principle of Corporate Finance – (Latest Edition) by Richard A. Brealey and Stewart C. Myers.
(McGraw-Hill)
Fundamentals of Financial Management, Brigham E., Houston J., 15th Edition
Fundamentals of Financial Management, James C. Van Horne and John M Wachowicz, 12th
Edition
Financial Management, I.M. Pandey, 11th Edition
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Assignment Details
Assignment Topic Description/Instruction Submission Date &
Process
1. Making Capital Investment Mathematical Problem 5th Class,
Decisions Solution Handwritten,
Hard Copy.
Term Paper and Final Presentation
Term Paper Topic Description/Instruction Submission Date &
Process
th
1. Risk Analysis, Real Options Mathematical Problem 11 Class,
and Capital Budgeting Solution Handwritten,
2. Valuation and Capital Hard Copy.
Budgeting for the Levered
Firm
Page 5 of 5
