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

Course Description:

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

Course Text:

Financial Management. Theory and Practice, by Brigham, Gapenski, and Ehrhardt (9th ed.) Dryden Press 1999.

Additional Readings:

1. The Wall Street Journal-Required

2. Internet Access

3. Barrons, Fortune and / or Financial Times

Course Objective:

To provide a survey of the concepts and techniques of financial management and to relate these concepts to current issues in corporate finance.

Exams:

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.

Cases:

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.

Grading:

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: mhaddad@utm.edu 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.

 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                       26                                     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 *******