Syllabus
Course # 301
Financial Management
| Course Instructor: |
Shah Saeed Hassan Chowdhury,
Associate
Professor
Department of Finance and Banking
University of Rajshahi, Rajshahi-6205, Bangladesh
Office: Room # 316, Dean’s Complex
E-mail:
hchowdh@yahoo.com
|
| Text for this course: |
Corporate Finance: Theory and Practice – E. T. Aswath Damodaran, 2nd edition, John Wiley & Sons (2002) |
| |
Handouts: Will be supplied by me, if needed |
Appointments: You can talk to me about my course or lectures
on two days determined by both you and me. We will fix the appointment dates
and time in the class. On each of these days, I will allot one hour for consultation.
You can meet me on other days in case of emergency. But you still have to fix
an appointment for that. Usually, I prefer to consult on the appointment dates.
Students should come with specific topic(s) with basic understanding of that.
Points/Marks Distribution:
| Final |
40 |
| First Tutorial |
3 |
| Second Tutorial |
4 |
| Assignments, Presence etc |
3 |
| Total |
50 |
Topics of the Course:
| Introduction |
| |
Introduction to corporate finance
Corporate finance and the firm
Principles of corporate finance
Corporate financial decisions, firm value, and equity value
Tools of corporate finance
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| Objectives in Corporate Finance |
| |
Objectives in corporate finance Stockholder wealth maximization
Stock price maximization and agency costs
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| Risk & Return |
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Basics of risk Definition
Risk and expected return
Diversifiable and non-diversifiable risk
CAPM and factor models for measuring risk
Measuring default risk
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| Cost of Capital I |
| |
Estimation of cost of capital for
firms Why cost of capital
Cost of equity
Cost of equity to cost of the firm
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| Cost of Capital II |
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Estimation of cost of capital for projects Definition of projects
Equity risk and cost of equity for project
Default risk and cost of equity for projects
Financing mix and cost of capital for project
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| Capital Structure Decisions |
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Financing decisions Financing options: Equity, debt, and hybrid securities
Internal vs. External financing
The process of raising capital
Why publicly traded company?
Benefits and costs of debt
Concept of no-optimal capital structure
Concept of optimal capital structure
Cost of capital approach to optimal financing mix
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| Dividend Policy |
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Dividend decisions Dividend irrelevance school
“Dividends are bad” school
“Dividends are good” school
Empirical evidence on dividend policy
Managing changes in dividend policy
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| Valuation Techniques |
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Valuation Concept of valuation
Fundamental valuation model
From equity and debt valuation to firm valuation
Asset-based approach to valuation
Recent development in value measurement – EVA, SVA, and MVA
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Feedback: Unlimited classes
Approximate Number of Total Classes: 40
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