The Primary textbook for the course is
- Essentials of Corporate Finance, by Ross, Westerfield and Jordan, fourth edition, McGraw Hill Publishers, ISBN 0-07-121057-7
Reference books will be
- Introduction to Finance by Lawrence J. Gitman and Jeff Madura, Addison-Wesley Publishers
- Foundations of Financial Management by Stanley B. Block and Geoffrey A. Hirt, McGraw Hill Publishers
Course Contents
- An overview of Financial Environment
- Financial Statements, Taxes and Cash Flows
- Time Value of Money and Discounted Cash Flow Valuation
- Valuation of Stocks and Bonds
- Net Present Value and other Investment Criteria
- Capital Investment Decision
- Risk and Return
- Cost of Capital
- Leverage and Capital Structure
- Raising Capital
- Working Capital Management
- Dividends
Finance: A Quick Look
- Four Basic Areas
- Business Finance
- Investments
- Financial Institutions
- International Finance
Business Finance
Addresses the following three questions:
- What long-term investments should the firm engage in?
- How can the firm raise the money for the required investments?
- How much short-term cash flow does a company need to pay its bills?
Investments
- Deals with financial assets such as stocks and bonds.
- It covers the following issues
- Pricing Financial Assets
- Associated Risks and Rewards
- Determining best mixture of financial investment
- Career opportunities in investment
- Stock Brokerage
- Portfolio Management
- Security Analysis
Financial Institutions
- Businesses dealing in financial matters
- Banks and Insurance companies
International Finance
- Covers international aspects of corporate finance, investment and financial institutions.