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, 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 Text:

Financial Management. Theory and Practice, by Brigham, and Ehrhardt (10th ed.) Harcourt College Publishers, 2002.

Additional Readings:

1. The Wall Street Journal    2. Internet Access    3. Investor's Business Daily    4. 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     July 18, 2002

Final Exam            Date     July 30, 2002

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 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.

Grading:

The scores will be averaged based on the following weights:

Exam 1                            30%
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, 020, T & Th, 6:00-9:55 p, BA135, Martin, Summer II, 2002

Instructor: Dr. Mahmoud M. Haddad

Office: Business Administration 24

Office telephone: (731) 587-7249 Office Fax: (731)587-7241

Email: mhaddad@utm.edu
URL: http://www.utm.edu/~mhaddad

Office hours: 9:00 to 12:00 am, M  W & 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.
 

FINANCE 710

Office Hours: 10:00-11:45 am. M  & W, other times by appointment.

                             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.

JULY 30, 2002              ******* FINAL EXAM *******

NOTE: