The study of finance dose not seem to require any specialized gifts of an unusually high order. Is it not, intellectually regarded, a very easy subject compared with the higher branches of philosophy or pure science? An easy subject, at which very few excel! --John Maynard Keynes
Course Number: Finance 710
Course Title: Corporate Financial Management
This course will focus on analysis of financial problems associated with the internal financial management of business enterprises. The teaching methods are based upon lectures, case studies, and outside readings. The analysis will include determination of capital needs, the cost of capital, analysis of financial statements, capital budgeting decisions, lease financing, mergers, reorganization, multinational financial management, options, warrants, convertibles, and futures. This is an advanced course and I assume that you have a basic grasp of the techniques and language of finance.
Course Prerequisites: Accounting 711
Financial Management. Theory and Practice, by Brigham, Gapenski, and Ehrhardt (9th ed.) Dryden Press 1999.
1. The Wall Street Journal-Required
2. Internet Access
3. Barrons, Fortune and / or Financial Times
To provide a survey of the concepts and techniques of financial management and to relate these concepts to current issues in corporate finance.
There will be two exams. Each will consist of problems and essay questions. Material covered on the exams will come from the class and text. The exams will be given during the class periods on the following dates:
Exam 1 Date 09 & 11 March, 1999
Final Exam Date 11 & 06 May, 1997
All exams are required, if a student must miss an exam, he or she must give notice prior to the exam. In such case, the weight for the missed exam will be added to the weight of the final exam. Missing an exam without prior notification to the instructor will result in a score of zero and a failing grade for the course. The final exam will be comprehensive.
There will be several case studies assigned. Due dates, etc. will be forthcoming. The cases will be applications of the concepts and techniques covered in the course to corporate financial management.
The scores will be averaged based on the following weights:
Exam 1 30%
Final Exam 30%
Cases and Report 30%
Class Discussion 10%
No incomplete will be given except under the most extreme circumstances. The letter grades will be assigned on a 90-80-70 scale. Text problems will be covered in class. The problems to be covered will be assigned during the semester.
Withdrawal dates: February 5 - Last day to drop with a WD. February 26 - Last day to drop with a WP or WF. No withdrawals will be permitted after February 26 except for circumstances specified in the University Catalog.
Course Number, Section, & Semester: Finance 710, 01 & 91, Spring 1999
Instructor: Dr. Mahmoud M. Haddad
Office: Business Administration 24
Office telephone: (901) 587-7249 Office Fax: (901)587-7241
Email: email@example.com URL: http://www.utm.edu/~mhaddad/vita971.htm
Office hours: 9:30 to 12:00 a.m. and 2:30 to 5:00 p.m. Tuesday and Thursday.
Note: The lecture will emphasize the most important and/or difficult material. The lectures will complement the supplement text material. Appendices will not be covered unless otherwise specified.
Tentative Course Schedule
Date Chapter Topic
JAN 12 & 14 1 Introduction: An Overview of Financial Management
2 Financial Statements: Cash Flows, and Taxes
19 & 21 3 Analysis of Financial Statements
4 The Financial Environment: Markets, Institutions, Interest Rates, and Taxes
26 & 28 5 Risk and Return: The Basics
6 Risk and Return: Extensions
FEB 02 & 04 7 Time Value of Money
09 & 11 8 Bonds and their Valuation
9 Stocks and their Valuation
16 & 18 10 The Cost Of Capital
11 The Basics of Capital Budgeting
23 &25 12 Cash Flow Estimation and other Topics in Capital Budgeting
MAR 02 & 04 13 Risk Analysis and Real Options
09 & 11 ******** FIRST EXAM *******
16 & 18 NO CLASS-SPRING BREAK
23 & 25 19 Lease Financing
30 & APR. 01 20 Hybrid Financing: Preferred Stocks, Warrants, and Convertibles.
APR 06 & 08 24 Derivatives and Risk Management
13 & 15 25 Bankruptcy, Reorganization, and Liquidation
20 & 22
Mergers, LBOS, Divestitures, and Holding Companies
Multinational Financial Management
Pension Plan Management
27 & 29 TBA Case and Report are Due.
MAY 11 & 06 ******* FINAL EXAM *******