ADVANCED CORPORATE FINANCE

About this Course

Course Description

The subject develops the “art and science” of corporate decision making by applying corporate financial theory to cases of financial policy, financial instruments and valuation. In particular, this subject considers corporate investment decisions (project valuation, acquisition) and decisions that involve financing investments (raising capital, payout policy), while focusing on related theories of corporate finance. Greater emphasis is given on the determination relevant cash flows from a project and the impact of financing these projects has on its capital structure.

Course Learning Outcomes

1 ) Demonstrate lifelong learning skill in advanced corporate finance.
2 ) Demonstrate the managerial skill in advanced corporate finance.
3 ) Illustrate the corporate behavior in capital markets and the relationship of agent and principal in raising funds, allocating capital and distributing returns.

Course Details

STATUS : Open
DURATION : FLEXIBLE
EFFORT : 4 hours per week
MODE : 100% Online
COURSE LEVEL : Intermediate
LANGUAGE : English
CLUSTER : Business & Management ( SP )

 Syllabus

1.1 Corporate Investment and Financing Decisions
1.2 The Role of the Financial Manager and the Opportunity Cost of Capital
1.3 Goals of the Corporation
1.4 Agency Problems and Corporate Governance

2.1 Venture Capital
2.2 The Initial Public Offering
2.3 Security Sales by Public Companies
2.4 Private Placements and Public Issues

3.1 Capital structure decision
3.2 Determining optimal Capital structure
3.3 Factors in Capital Structure Decision
3.4 Value of Unlevered and Levered Firms

4.1 Cost of Financial Distress
4.2 Description of Costs
4.3 Integration of Tax Effects and Financial Distress Costs
4.4 Agency Cost of Equity
4.5 Pecking Order Theory
4.6 Signaling Hypothesis
4.7 Factor Affecting Capital Structure

5.1 Depreciation (Straight-line method)
5.2 Taxation (Tax liability and tax shield Techniques): Top-down approach, Bottom-up approach
5.3 Tax-shield approach
5.4 Operating cash flows (OCF)/Cash Flows After tax (CFAT): Net Initial Cash Flow (NICF), Net Annual Cash Flow
(NACF), Terminal Cash Flow (TCF)

6.1 Decision Making: Evaluating cost-cutting proposal
6.2 Setting bid price
6.3 Projects with different lives (unequal lives)

7.1 Evaluating NPV estimates: Forecasting risk
7.2 What-if analysis (Scenario analysis, Sensitivity analysis)

8.1 Break-even analysis (Accounting break-even, Cash break-even, Financial break-even)
8.2 Operating leverage : Degree Of Leverage (DOL), Degree of Financial Leverage (DFL), Degree of Total Leverage
(DTL)
8.3 Definition of managerial options
8.4 Definition of capital rationing

9.1 What is an Efficient Market?
9.2 The Evidence against Market Efficiency
9.3 Behavioral Finance
9.4 The Five Lessons of Market Efficiency

10.1 How Firms Pay Dividends and Repurchase Stock
10.2 How Do Companies Decide on Payouts
10.3 The Payout Controversy
10.4 Stock Dividend & Stock Split

11.1 Forms of Takeovers
11.2 Means of Acquisition
11.3 Types of Acquisitions
11.4 Accounting Treatment of Merger and Acquisition

12.1 NPV of a merger - cash or shares
12.2 Defensive Tactics

Our Instructor

DR. NORHISAM BIN BULOT

Course Instructor
UiTM Kampus Arau

WAN MOHD YASEER BIN MOHD ABDOH

Course Instructor
UiTM Kampus Arau

NOOR SHARIDA BINTI BADRI SHAH

Course Instructor
UiTM Kampus Arau

NOOR HAFIZHA BINTI MUHAMAD YUSUF

Course Instructor
UiTM Kampus Arau

ABDUL HAFIZ BIN YUSOF

Course Instructor
UiTM Kampus Arau

DR. NOR ANIS BINTI SHAFAI

Course Instructor
UiTM Kampus Arau

 Frequently Asked Questions

A1 : Corporate finance is the area of finance that deals with sources of funding, the capital structure of corporations, the actions that managers take to increase the value of the firm to the shareholders, and the tools and analysis used to allocate financial resources.