Corporate Finance

Course Overview

This course aims to provide students with a comprehensive understanding of corporate finance, focusing on key concepts such as finance functions, financial management objectives, time value of money, risk assessment, and corporate finance decisions. Students will engage in theoretical discussions, practical exercises, and case studies to enhance their knowledge and skills in corporate financial management.

Course Objective

  • Understand the fundamental concepts of finance and financial management.
  • Learn about the time value of money and risk assessment.
  • Develop skills in making corporate finance decisions regarding financing, investment, and rewards.
  • Gain knowledge of capital structure theory, capital budgeting, and leverage.
  • Understand working capital management and recent trends in India.
  • Learn about dividend policy, profit management, and the regulatory framework for dividend policy.

Pedagogy:s

  • Lectures: Theoretical foundations and key concepts will be taught through interactive lectures.
  • Hands-on Activities: Practical activities to apply learning in real-world scenarios.
  • Case Studies: Real-world examples to illustrate the application of corporate finance concepts.
  • Workshops: Collaborative sessions to enhance understanding and encourage diverse perspectives.
  • Practical Exercises: Exercises to build practical skills in making corporate finance decisions.

Course Outcomes

By the end of the course, students will be able to:

  • Understand and apply fundamental finance concepts and financial management objectives.
  • Assess the time value of money and risk in financial decision-making.
  • Make informed corporate finance decisions regarding financing, investment, and rewards.
  • Develop and implement capital structure theories, capital budgeting, and leverage strategies.
  • Manage working capital effectively and understand recent trends in India.
  • Develop and implement dividend policies and profit management strategies within the regulatory framework.

Session Plan

Corporate Finance

Session No. Unit Topics Activities
1 Unit 1: Concept of Finance Finance Function Lecture/Discussion
2 Objectives of Corporate Financial Management Lecture/Discussion
3 Profit vs Wealth Maximization Lecture/Discussion
4 A Case of Optimization Case Study
5 Recent Changes in Corporate Financial Management Lecture/Discussion
6 Unit 2: Time, Value & Risk Present & Future Value Lecture/Discussion
7 Valuation & Security Workshop
8 Concept of Risk Lecture/Discussion
9 Types of Risk Lecture/Discussion
10 Measurement of Risk Workshop
11 Unit 3: Corporate Finance Decisions Financing, Investment, and Rewards Decisions Lecture/Discussion
12 Unit 4: Investment Decision Theory of Capital Structure Lecture/Discussion
13 Capital Budgeting Workshop
14 Leverage Lecture/Discussion
15 Cost and Capital Workshop
16 Unit 5: Finance Decision Working Capital Management Lecture/Discussion
17 Cash, Inventory, and Accounts Receivable Workshop
18 Recent Trends in WCM in India Lecture/Discussion
19 Unit 6: Reward Decision Dividend Policy Lecture/Discussion
20 Management of Profit Lecture/Discussion
21 Regulatory Framework for Dividend Policy Lecture/Discussion

References:

  • Damodaran, A. (2014). Applied Corporate Finance. Wiley.
  • Van Horne, J. C., & Wachowicz, J. M. (2008). Fundamentals of Financial Management. Prentice Hall.

Textbooks:

  • Brealey, R. A., Myers, S. C., & Allen, F. (2017). Principles of Corporate Finance. McGraw-Hill Education.
  • Ross, S. A., Westerfield, R. W., & Jaffe, J. (2019). Corporate Finance. McGraw-Hill Education.