PRINCIPLES OF CORPORATE FINANCE
- Course Description
The objective of the course is to familiarize the students with the tools to value the cash flows at different periods and introduce the basic concepts of risk and return to understand the cost of capital. Besides, this course would develop the understanding of the concepts and tools that would help in capital investment decisions, which would maximize the value of the firm. In addition, the course would attempt to discuss how the capital is raised and what should be composition of capital in terms of debt and equity.
This will students understand what kind of assets the business needs to create/invest to maximize the return for the stakeholders. Besides, the course will help the students to understand what the best way is to fund these assets.
2. Student Learning Outcomes
As a result of succeeding in this course, executive students will be able to achieve the following objectives.
Enable students to value the cash-flows from assets
Enable students to understand role of risk in investment decisions
Enable students to understand the tools of capital budgeting, and capital investment decisions
Enable students to understand the efficient way to fund a capital investment
3. Organization and Delivery of the Course
The course will have following themes.
Learning the tolls for decision making learning the tools that is required to make the capital investment decisions. These tools are.
Time value of money
Understanding role of risk financial decisions
Valuation of assets
Estimating cost of capital
Learning to apply these tools to make capital investment decision
Calculating “Net Present Value” of an investment
Calculating “Internal Rate of Return” of an investment
Doing “Risk Analysis” of the planned project (financial)
Raising capital for the planned investment
Growth with Externally Fund: Deciding on the ratio of “Debt” and “Equity” in funding decision
Understanding the risk associated with the decision
Understand the role of “Dividend Policy” in “Capital Structure” of a firm
The course will be covered by provide live lectures, where the “Instructor” will make effort to explain the concepts. The concepts will be explained by providing real examples. The students are expected to do projects, that will involve application of concepts covered in live sessions.
4. Course Resources
The students are expected to read the textbook:
“Fundamentals of Corporate Finance” by Ross, Wasterfield, and Jordan (Indian Edition), Mc Graw Hill.
In addition to this, PPT, Case-lets, and other course write-ups will be provided.