Course Syllabus
Goals and Governance of the Firm
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
Raising Capital
2.1 Venture Capital
2.2 The Initial Public Offering
2.3 Security Sales by Public Companies
2.4 Private Placements and Public Issues
Capital Structure (Excluding Bankruptcy)
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
Capital Structure: Limits to the Use of Debt
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
Cash Flow Determination I
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)
Cash Flow Determination II
6.1 Decision Making: Evaluating cost-cutting proposal
6.2 Setting bid price
6.3 Projects with different lives (unequal lives)
Project Analysis and Evaluation I
7.1 Evaluating NPV estimates: Forecasting risk
7.2 What-if analysis (Scenario analysis, Sensitivity analysis)
Project Analysis and Evaluation II
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
Efficient Markets and Behavioral Finance
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
Payout Policy
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
Mergers and Acquisitions I
11.1 Forms of Takeovers
11.2 Means of Acquisition
11.3 Types of Acquisitions
11.4 Accounting Treatment of Merger and Acquisition
Mergers and Acquisitions II
12.1 NPV of a merger - cash or shares
12.2 Defensive Tactics
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
Raising Capital
2.1 Venture Capital
2.2 The Initial Public Offering
2.3 Security Sales by Public Companies
2.4 Private Placements and Public Issues
Capital Structure (Excluding Bankruptcy)
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
Capital Structure: Limits to the Use of Debt
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
Cash Flow Determination I
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)
Cash Flow Determination II
6.1 Decision Making: Evaluating cost-cutting proposal
6.2 Setting bid price
6.3 Projects with different lives (unequal lives)
Project Analysis and Evaluation I
7.1 Evaluating NPV estimates: Forecasting risk
7.2 What-if analysis (Scenario analysis, Sensitivity analysis)
Project Analysis and Evaluation II
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
Efficient Markets and Behavioral Finance
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
Payout Policy
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
Mergers and Acquisitions I
11.1 Forms of Takeovers
11.2 Means of Acquisition
11.3 Types of Acquisitions
11.4 Accounting Treatment of Merger and Acquisition
Mergers and Acquisitions II
12.1 NPV of a merger - cash or shares
12.2 Defensive Tactics
Frequently Asked Questions
Q1 : What is corporate finance?
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.
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.