Dr. Mahmoud M. Haddad
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, 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.
Financial Management. Theory and Practice, by Brigham, and Ehrhardt (10th ed.) Harcourt College Publishers, 2002.
1. The Wall Street Journal-Required
2. Internet Access-Required
3. 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 March 23 & 24, 2003
Final Exam Date May 1, 6 & 7, 2003
All exams are required, if a student must miss an exam, he or she must give notice prior to the 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 and Report:
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. One written report is required from each student.
The scores will be averaged based on the following weights:
Final Exam 30%
Cases and Report 35%
Class Discussion 05%
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: Last day to drop with a WD. Last day to drop
with a WP or WF. *** See University Rules***
No withdrawals will be permitted after deadline date except for circumstances specified in the University Catalog.
Course Number, Section, & Semester:
Finance 710, 001, T & R, 1:00-2:15p, BA33, Martin, Spring, 2003
Finance 710, DM1, R, 4:00-6:35p, GH 209, Martin, Spring, 2003.
Finance 710, PD1, R, 5:00-7:35p, Oak Ridge, Spring, 2003.
Finance 710, LU1, W, 6:50-9:25p, 28, Jackson, Spring, 2003.
Instructor: Dr. Mahmoud M. Haddad
Office: Business Administration 214
Office telephone: (731) 587-7249 Office Fax: (731)587-7241
Office hours: 9:00 to 12:00 am, T R & 3:30-6:50p W.
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
2 Financial Statements: Cash Flows, and Taxes
3 Analysis of Financial Statements
4 Financial Planning and Forecasting Financial Statements
5 The Financial Environment: Markets, Institutions, interest Rates, and Taxes
6 Risk and Return: The Basics
7 Risk and Return: Portfolio Theory and Asset Pricing Models
8 Time Value of Money
9 Bonds and their Valuation
10 Stocks and their Valuation
11 The Cost Of Capital
12 Putting the pieces Together: Corporate Valuation and Value-Based Management
13 The Basic of Capital Budgeting: Evaluating Cash Flows
14 Cash Flow Estimation and Risk Analysis
15 Option Pricing with Applications to Real Options
20 Lease Financing
21 Hybrid Financing: Preferred Stocks, Warrants, and Convertibles
24 Derivatives and Risk Management
TBA Multinational Financial Management
TBA Case and Report are Due.
May 1, 6 &7, 2003 ******* FINAL EXAM *******