NMIMS SBM: Course Description

Executive MBA
Batch 2015-17 (Academic Year: 2015-16)

Course Code CF2012

Course Title CORPORATE FINANCE I

Course Dr. Chandan Dasgupta

Instructor/s
E-mail chandan.dasgupta@nmims.edu
Contact No.
Credit Value 1.5 credits ( 100 marks paper )

Programme & EMBA Batch 2015-17 (Academic Year: 2015-16)

Trimester
Pre-requisite NA
Learning a. Apply analytical techniques / models/ framework to reflect critically on
Objectives / financial decisions (CLO 1).
Outcomes b. Integrate functional areas of business to facilitate financial decisions.
(CLO 2).

SESSION PLAN
Session No. Topic
1 Introduction to Corporate Finance: Revision of Corporate Balance sheet and
relevant decision areas; Objectives - profit maximization Vs Shareholder
wealth maximization.
Reading: Chapter 1 (RWJ) : Introduction to Corporate Finance

2&3 Working Capital Management : Working capital planning, Operating and

cash cycle, Receivables management, Cash Management and budgeting
Reading: Chapter 26, 27, 28 (RWJ): Short term financing and planning, Cash
management, Credit management.

4 Working Capital Management

Case: Butler Lumber Company

5 Working Capital Financing

Case: Comprehensive ltd
6 Long term decisions Time Value of money
Reading: Chapter 4 (RWJ): Discounted Cash Flow Valuations

7&8 Long term Decision - Investment in long term assets - Discounting and Non
discounting methods (PB, ARR, NPV, IRR, PI, MIRR), Computation of Cash
flows.
Reading: Chapter 6, 7 (RWJ): Net Present Value and Other Investment
Rules, Making Capital Investment Decisions.

9 Long term decisions

Case: Investment Analysis and Lockheed Tri Star (HBS 9-291-031)

10 Long term decisions

Case: Phuket Beach Hotels: Valuing mutually exclusive projects (Centre for
Asian business cases- HKU145)
 11 & 12 Cost of Capital Weighted Average Cost of Capital and Capital structure
theory.
Reading: Chapter 15,16 (RWJ): Capital structure
Leveraged Betas and the cost of capital (HBS 9-288-036)

13 Cost of Capital
Case: Nike Inc.: Cost of Capital (Darden Business Publishing UV0010)

14 Dividend decision
Reading: Chapter 18 (RWJ) : Dividends and other payouts

15 & 16 Making Capital structure Decisions EBIT EPS analysis, indifference point,
leverage.
Case: Blaine Kitchenware ( HBS 4040)

17 Long term sources of finance Different forms of debt, equity and hybrid
instruments.
Reading: Chapter 14, 19, 20(RWJ): Long term financing, Issuing securities to
the public, Long term debt.

18 Overview of EVA

19 Valuation of a firm
Reading: Chapter 17 (RWJ): Valuation and Capital Budgeting for the levered
firm.
Case: Sampa Video, Inc. (HBS 9-201-094)

20 Mergers and Acquisitions

Cooper Industries

Pedagogy Conceptual understanding through problem solving

Case discussion

Assessment Specific assessment methods / tasks %

methods in weighting
Alignment a b
with Intended Class Participation 10%
learning
Class Test 20%
outcomes
Group Presentation 20%
Final Exam 50%

Reading List Text:

and Ross, S.A., Westerfield, R. W., Jaffe, J., Kakani, R. K. (2009).
References Corporate Finance 8th Edition. Tata McGraw Hill Education.

Reference:
Brealey, R. A. & Myers, S. C. (2003) Principles of Corporate Finance
7th Edition, Mc Graw Hill.