Outline FM

Download as doc, pdf, or txt
Download as doc, pdf, or txt
You are on page 1of 3

1

Financial Management
Programs & Class: MBA-

Semester:

Credit Hours:3

Instructors:
Azhar Hussain
Post-requisite Courses:
1. Financial Management

Pre-requisite Courses:

1. IBF
Evaluation:
1. Participation in Class Discussion
2. Quizzes and assignments
3. Mid-Term Examinations
4.

Final Examination

Fall -2015

10%
20%
30
%
40
%

Recommended Books:
1
Financial Management

Theory & Practice 10th Edition by Eugene


F. Brigham and Louis C. Gapenski

For discussion on Local perspective, additional material will be disseminated


before session.
Digital & Web Resources:
1. www.kse.com.pk
2. www.sbp.org.pk
3. www.yahoo.com/finance

Kindly Maintain 70% Attendance in class other


wise..
Contact On This [email protected]

2
Course Outline

An overview of Financial Management


Valuation Models
Securities Vs Derivatives, General Valuation Model,
Bond Valuation, Preferred Stock Valuation common Stock Valuation, Stock
Market Equilibrium.

Cost of Capital
Capital Components and Costs, Cost of Debt, Cost of
Preferred Stocks, Cost of Retained Earnings, CAPM Approach, DCF
Approach, Bond Yield Plus Risk Premium Approach, Comparison, Cost of
Newly Issues Common Equity , WACC, MCC Schedule in Capital
Budgeting.

Basics of Capital Budgeting


Importance of Capital Budgeting, Ideas for
Capital Projects, Project Classifications, Securities Between Capital
Budgeting and Securities Valuation Capital Budgeting Decision Rules, NPV
Vs IRP, Modified IRR, NVP Vs PI Methods, Present Value of Future Cost

Project Cash Flow Analysis


Cash Flow Estimation, Relevant Cash
Flows, Tax Effects, Changes in Net Working Capital, Cash Flow Analysis,
Replacement Analysis , Estimation Bias, Evaluating Projects with Unequal
lives, Abandonment Value, Adjusting for Inflation.

Long Term Financial Planning


Strategic Plans, Operating plans, Sales
Forecasts, Financial Statement Forecasting, Formula Method for
Forecasting AFN, Forecasting Financial Ratios with Changes in Balance
Sheet, Forecasting Financial Statements Variables, Computerized Financial
Planning

Capital Structure Decisions


Business and Financial Risk, Capital
Structure Theory, Target Capital in Structure when Cash Flow are
prepetuties, Considerations and Approaches in capital Structure Decisions.

Dividend Policy
Dividends vs. Capital Gains: Investors Preference,
Dividend Policy in Practice, Changing Policies , Dividend Reinvestment
Plans, Influence on Dividend Policy, Stock Repurchases, Stock Dividend
Stock Splits, Tests of dividend Theories, Dividend stability ,

IPO
Working Capital Management

Final project Of Financial Management


1. Select any company that is listed on Karachi Stock
Exchange (KSE)
2. Prepare 5 year Performa Financial Statements
3. Estimate 5 year Free Cash Flows and calculate
a. Firms value
b. Value of Equity
c. Share Price
4. Estimate optimal capital structure of firm
5. Design Distribution Policy for firm (Dividend distribution
only)
6. Identify and manage working capital decisions for firm
Note: You have to submit your work in both soft (MS word
and excel files) and hard (report only) copies of report.
Deadline for this assignment is 5th December, 2015.

You might also like