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EMBA BG 6
Lecturer: Jyoti Gupta
Date: 6-11.5.2014
SYLLABUS
Module Objectives
The objective of this course is to provide students with a survey of the basic principles of financial
management. The course first introduces tools and techniques, including Time Value of Money, Net
Present Value Analysis, and Risk and Return, and the effect of leverage. The rest of the course focuses
on the applications of these tools and techniques on common, important issues in corporate finance,
including capital budgeting, capital structure policy, cost of capital estimation, financial planning, and
simple valuation. Underpinning this entire course is the concept of creating value.
Preliminary tasks
None
Course work
A combination of formal lectures, case analysis and group discussion. The cases to be presented in
groups in front of the class
Evaluation
Participants will be evaluated on two (2) aspects:
1. Case assignments/presentations 40%
2. Individual Final Examination 60%
Readings
Participants are required to read selected chapters (1, 29,3, 4, 5, 6, 7, 8, 9, 10, 14, 15, 17 and 18 )
from Principles of Corporate Finance by Brearly and Myers,Seventh Edition, Editor McGraw-Hill.
Chapter 1 finance and the financial manager
Chapter 29 financial analysis and planning
Chapter 3 how to calculate present values
Chapter 4 the value of common stocks
Chapter 5 why net present value leads to better investment decisions tha
other criteria
Chapter 6 making investment decisions with net present value rule
Chapter 7 introduction to risk, return and the opportunity cost of capital
Chapter 8 risk and return
Chapter 9 capital budgeting and risk
Chapter 10 a project is not a black box
Chapter 14 an overview of corporate financing
Chapter 15 how corporations issue securities
Chapter 17 does debt policy matter?
Chapters 18 how much should a firm borrow
Schedule
Day 1
11:00 13:00 Overview of Finance, Role of financial managers
13:00 14:00 LUNCH BREAK
14:00 15:30
Financial statements, Balance sheet, Income statement,
Shareholders and
Managers, Financial objectives and goals
15:30 15:45 Break
15:45 17:15 Measures and Performance of Value Creation
17:15 17:30 Break
17:30 19:00 Case Study in groups
18:00 18:30 Closing
Day 2
9:00 11:00 Time value of money, Present Value, Future Value
11:00 11:30 Break
11:30 13:00 Valuating of Financial Securities, Bonds and shares
13:00 14:30 LUNCH BREAK
14:30 16:00 Risk and Return
16:00 16:30 Break
16:30 18:00 Case Study in groups
18:00 19:00 Closing
Day 3
9:00 11:00 Capital asset pricing model
11:00 11:30 Break
11:30 13:00
Cost of capital of a firm, the determinants and weighted
average cost of
capital ( WACC )
13:00 14:30 LUNCH BREAK
14:30 16:00 How to determine WACC of a firm
16:00 16:30 Break
16:30 18:00 Case Study in groups.
18:00 19:00 Closing
Day 4
9:00 11:00 Capital Budgeting Decisions
11:00 11:30 Break
11:30 13:00
Defining Financial Profile of an Investment Project, Hurdle
rate and selection
13:00 14:30 LUNCH BREAK
14:30 16:00 Group presentations
16:00 16:30 Break
16:30 18:00 Case Study in groups
18:00 19:00 Closing
Day 5
9:00 11:00 Different sources of long term financing
11:00 11:30 Break
11:30 13:00 How firms issue securities
13:00 14:30 LUNCH BREAK
14:30 16: 00 Group Presentations
16:00 16:30 Break
16:30 18: 00
Financial Analysis of firms,Financial planning and
valuation, IPO
18:00 19:00 Exam preparations
Day 6
11:00 13:00 Group presentations
13:00 - 14:30 LUNCH BREAK
14:30 - 16:00 Closing