Professional Documents
Culture Documents
Spring- 2017
Course Information
Course Objective:
Lecture Plan:
Readings Quiz &
Classes Topics Assign
ment
01 Introduction of Financial Ch # 1 (Ref. Book 1)
Management
Define Financial
Management
Legal Form of business
organizations
Goal of the Firm
Agency Issue
Time Value of Money Ch # 4 (Ref. Book 1)
Present value (Single
Amount, Annuity, Mixed
02 Stream) Quiz # 1
Future Value (Single
Amount, Annuity, Mixed
Stream)
Compounding Interest more Ch # 4 (Ref. Book 1)
frequently than annually
03
Loan Amortization
Growth Rate
Case of TVM
Case Study 1: Time Value of
04
Money-The Buy vs Rent decision
(IVEY Publishing)
Relevant Cash Flows Ch # 8 (Ref. Book 1)
Initial investment
05
(outflows)
Operating Cash Inflows
Terminal Cash flows
06 Project’s relevant total
cash flows
Capital Budgeting Techniques: Ch # 9 (Ref. Book 1)
Introduction
07
Techniques of Capital
Budgeting
Other Advance Techniques Ch # 9 (Ref. Book # 1)
Projects with unequal
08 lives
Projects with unequal
Scale
09 Capital Rationing Ch # 9 (Ref. Book # 1)
10 Practice Questions
Assignment
11 Cases of Capital Budgeting:
#1
Case Study 2: National Toys Ltd
Case Study 3: Hola Kola-The
Capital Budgeting Decision.
12
(Thunderbird School of Global
Management)
Capital Structure: Ch # 12 (Ref. Book # 3)
Theories of Capital
Structure
Modigliani and Miller
Capital Structure
13 Irrelevance
M&M Capital Structure
Model with Taxes
Agency Cost/Trade off
Model of Corporate
Leverage
Pecking Order Theory
14 Market Timing Theory
Behavioral Aspect
Weighted Average Cost of Ch # 11 (Ref. Book # 2)
Capital
15 Quiz # 2
Cost of Capital for Non-Listed
Firms (Through Levered Beta)
16 Practice Questions-WACC
General Guidelines:
1. Students must bring text book and Scientific Calculator in the Class. Students are
required to have studied the relevant topics in advance from the course book.
2. Each written assignment should be prepared on separate sheet of paper in
handwriting. The front page of each assignment should contain the following
information: -Course Title -Name of the student -Assignment number -Date
prepared -Date submitted. The assignments should be submitted to class CR before
the start of the class. The class CR should ensure to submit them together to the
teacher at the very start of the class. No assignment shall be accepted once the class
starts. If an assignment is late, it can be submitted with the very next assignment
(but not thereafter) and shall be marked ‘late’. The assignments shall be marked on
completeness and timely submission. Late assignments shall be penalized
3. There will be surprise Quizzes. A total of ‘03’ quizzes shall be taken and 3-m shall
be taken into account for grading. ‘m’ will be at the discretion of the teacher.