AMERICAN INTERNATIONAL UNIVERSITY-BANGLADESH

Faculty of Business Administration

BBA PROGRAM
FIN4001: CORPORATE FINANCE
COURSE OUTLINE

Course Code : FIN4001

Credit Hours :3
Semester : Fall, 2010-2011
Section : E
Class room : 132
Class Schedule : Sun/ Tuesday (05:00 PM to 06:30 PM)
Credit point value :3
Instructor : Dr. Mohammed Kamrul Hasan
Office : Campus 1, 3rd Floor (Adjacent to Exam control Room 134)
Contact : 9886116, 9887935 Ext- 118
E-mail : khasan@aiub.edu
Prerequisite : Financial Management (BBA-3116)

Course Description :
Finance is the language of business and therefore it is very important for any business student to have a sound
understanding of financial information. Corporate Finance deals with investment and financing decision,
hence the aim of this course is to make students familiar with investment and financing decision-making
process in corporate level. Topics that will be covered in this course are alternative investment rules, NPV and
capital budgeting, Capital market theory, capital structure, dividend policy, mergers, acquisition, divestures
etc. As stipulated in the university catalogue, students should already have completed required courses in
accounting, business mathematics & statistics, and economics.

Textbook
Corporate Finance, 7/e, by, Stephen A. Ross, Randolph W. Westerfield, Jeffrey Jaffe, McGraw–Hill

Conduct of the courses:

Class room lectures, tutorials, home assignments, quizzes, and exams.

Course Assessment:
The final grade for this class will be based on the points achieved on the following areas:

Mid Term Session Final Session

Quizzes 15% Quizzes 15%
Assignment & Homework 25% Assignment & Homework 25%
Class Attendance & Participation 10% Class Attendance & Participation 10%
Mid-Term Examination 50% Final-Term Examination 50%
Total 100% Total 100%
Weight Converted into 40% Weight Converted into 60%

Quizzes:
Altogether 6 quizzes may be taken during the semester. The quizzes generally based on previous class lectures.
No make up quizzes will be taken. Students are strongly recommended not to miss any quizzes.

Assignment:
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 The topic of the assignment will be informed in the class. All the assignments will be individual/group based
and they must be submitted by the deadline. No late submissions will be accepted.

Class behavior & policy:

A. Students are expected to attend class and be on time. Students must have 80% attendance of the total
number of classes. Otherwise, the students will receive a “UW” grade. It is entirely the responsibility of the
students to collect the materials that has been missed due to failure of attending any classes for any reason
whatsoever. Let it be reminded that lectures will not be repeated. Withdrawal from class is not automatic. The
student who desires to withdraw is responsible for processing the withdrawal.

B. Students are encouraged to actively participate in the class discussion and ask relevant questions.

C. Students must turn off their cell phones or put on silent mode prior to entering the classroom.

D. Honesty is the best policy. Any sort of academic dishonesty will result in severe consequences and may lead
to receiving a failing grade for the course.

Lecture Schedule*

Week Chapter No. of lectures Topics

Introduction with the students, discussion of the course outline, the mission and
---- 1
1 the vision of AIUB
1 1 Introduction to Corporate Finance
2 6 2 Some Alternative Investment Rules (WACC & APV)
3 7 2 Net Present Value and Capital Budgeting
4 9 2 Capital Market Theory: An Overview
Risk and Return: Capital Asset Pricing Model (CAPM)
5, 6 10 4
Market efficiency
7 -- 2 Review for the Mid-Term Examination
8 MID-TERM EXAMINATION
Capital Structure: Basic Concept
9 15 2
Company valuation
10, 11 16 2 Capital Structure: Limits to the use of debt
12 18 2 Dividends and Other Payouts
13 21 2 Leasing
Mergers and Acquisitions
14 29 2
Financial distress
15 -- 2 Review for the Mid-Term Examination
16 FINAL EXAMINATION

***Note: The instructor reserves the right to make any changes to the above course outline if
deem necessary and will be announced accordingly. ***

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