GC University, Faisalabad
Course Outline
E-mail: [email protected]
Instructor Name: Mr. Muhammad Sajid
Degree, Semester: MS (2nd)
Faculty Name: Management & Administrative Sciences Department: Business Administration
Course ID:
Course Title:
MSBA-807. 3 Credit Hours.
Advanced Financial Management
Office Hours:
Course
M 10-11 a.m., T 11-12 a.m., W 01-02 p.m., or by appointment
This course provides students with an in-depth examination of the decisions that a financial
Description:
manager must make. Students will be introduced to the theoretical and practical
underpinnings of the capital budgeting, capital raising and dividend policy decisions.
Students are also introduced to firm valuation.
After successfully completing the course, students will be able to:
1. Evaluate the corporate governance structure of firms and examine the interactions, from a
governance perspective, between firm management, financial markets and stakeholders.
2. Evaluate the risk profile of firms. Specifically, they will be able to estimate the costs of
capital, including debt and equity capital using financial data. They will also be able to
evaluate prospective projects that are available to firms.
3. Evaluate the capital structure of firms. Specifically, they will be able to qualitatively
assess the levels of debt and equity in a firms capital structure as well as quantitatively
measure the optimal capital structure for a firm.
4. Qualitatively assess the dividend payout policy of firms.
5. Value a firm using discounted cash flow valuation and relative valuation models.
Prerequisite:
Financial Management & Corporate Finance
Materials:
Text: Damodaran, A., 2014, Applied Corporate Finance: A Users Manual, Latest Edition,
John Wiley & Sons.
Additional materials, such as research articles, case studies, websites, etc. will be provided
in class as they become relevant.
Test Website:
http://wiley.com/college/damodaran
Nontraditional A research-intensive course requiring an original and independent research paper/project on
Format:
a finance related topic under the supervision of a faculty member. Directed research and
study done independently of a regularly scheduled class.
Grading
A-F (Traditional). Moreover, Your final grade will be will be determined by the following
System:
weights:
Assignments/Exercises: 05%
Midterm Exam: 15%
Final Exam: 30%
Term Paper: 50%
Assignments and Exercises: Assignments will be provided prior to exams to prepare
students for the midterm and final exams. Details of the comprehensive term paper will be
provided separately. There will also regularly be in-class exercises that provide additional
preparation for the exams.
Syllabus:
The following serves as a tentative outline for the course. All chapters listed will be covered
to some extent, time permitting. Students will only be responsible for sections of chapters
covered in class.
Topic
The Foundations
The Objective in Decision Making
The Basics of Risk
Risk Measurement and Hurdle Rates in Practice
Measuring Return on Investments
Project Interactions, Side Costs, and Side Benefits
Capital Structure: Overview of the Financing Decision
Capital Structure: The Optimal Financial Mix
Capital Structure: The Financing Details
Dividend Policy
Analyzing Cash Returned to Stockholders
Valuation: Principles and Practice
Chapter #
1
2
3
4
5
6
7
8
9
10
11
12