| COURSE DESCRIPTION | ||||
| College | College of Administrative & Financial Sciences | Department | Finance | |
| Course Name | Corporate Finance | Course Code: | FIN201 | |
| Credit Hours | 3 credit Hours | Contact Hours | 3 | |
| Language | Arabic | English | ||
| Track | College Req. | § Dep. Req. | Concentration | |
| Level | Level 5 | Prerequisite | FIN101 | |
| Course Description:
This course is a completion of the principles of finance. It examines important issues in corporate finance from the perspective of financial managers. The course focuses on the concept of net present value used to analyse how investment and financing decisions interact to affect the value of the firm. The course covers also capital budgeting, under uncertainty, leasing and leveraged buyouts, treatment of dividend policy and capital market efficiency, as they relate to the value-maximization objective of the firm. While the course is not designed to dwell on abstraction, the basic theoretical underpinnings of the various topics are a prerequisite to competent analysis and intellectual discussion. The course emphasizes the development of problem-solving skills based on a good understanding of the business environment as opposed to pure theorizing or mindless numbers exercises. |
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| Course learning outcomes:
1. Understand the basic concepts of corporate finance 2. Understand capital budgeting and learn how to deal with decision making under risk. The role of risk in financial decisions 3. Learn about the importance of the financing decision and optimum capital structure 4. Forecast and evaluate corporate cash flows; 5. Estimate the cost of capital |
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| 6. Describe the different ways the firm distributes cash to shareholders, their motivation and effects on shareholder’s wealth and understand how firms establish dividend payout policies.
7. Understand the major features public and private debt as well as the covenants and repayment provisions of debt. |
| Course Major Topics:
1. Course Introduction Week 2. Introduction to Corporate Financing 3. How Corporations Raise Venture Capital and Issue Securities 4. Debt Policy 5. Payout Policy 6. Long-Term Financial Planning 7. Short-Term Financial Planning 8. The Weighted-Average Cost of Capital and Company Valuation 9. Mergers, Acquisitions, and Corporate Control 10. Options 11. Risk Management 12. International Financial Management 13. What We Do and Do Not Know about Finance |
| Learning Resources
· Textbook Breasley, Myers, & Marcus: Fundamentals of Corporate Finance, 7th Edition (2012), McGraw- Hill, ISBN 9780078034640; 9780077410711 |
| Grading:
Course works (assignments, quizzes, projects, case studies, board discussion): 25% Midterm exam 25% Final Exam 50% |
