1. NAME OF COURSE  / MODULE CORPORATE FINANCIAL MANAGEMENT
2. COURSE CODE MFA3033
3. NAME(S) OF ACADEMIC STAFF  
4. RATIONALE FOR THE INCLUSION OF THE COURSE/MODULE IN THE PROGRAMME This is an extension course of “Principles of Financial Management (MFA 2013)”.  The course is exposing students with principles and techniques in making effective and efficient financial decisions.
5. SEMESTER & YEAR OFFERED Semester 4 /  Year 2 & Semester 5 / Year 3
6. TOTAL STUDENT LEARNING TIME (SLT)

 

 

Face to face:

L T P O
28 25 6

L=lecture ; T=Tutorial; P=Practical; O=Others (Exam)

Total Guided and Independent Learning:

121
7. CREDIT VALUE 121/40= 3.025 (3 credit); 2+2
8. PREREQUISITE (IF ANY) MFA2013 Principles of Financial Management
9. OBJECTIVES 1.    To familiarize students with the basic tools for making financial decisions.

2.    To highlight students on how a firm should raise the funds it needs to undertake its investments.

3.    To equip students with ample knowledge on how a firm should choose its capital structure.

10. LEARNING OUTCOMES At the end of the course, learners will be able to:

1.     Apply the basic tools for making financial decisions. (LO2, P2)

2.     Illustrate how a firm should raise the funds it needs to undertake its investments (LO3, CTPS3, C3)

3.     Prepare optimum capital structure in investment decision. (LO5, TS3, P4)

11. TRANSFERABLE SKILLS Student should be able to make optimum financial decision through a process of lectures, tutorial and group discussion.
12. TEACHING-LEARNING AND ASSESSMENT STRATEGY Teaching-learning strategy:

  • The course will be taught through a combination of formal lectures, exercise, case study, group work, using authentic materials, informal activities and various textbooks. Collaborative teamwork will be fosters throughout the course. The use of examination and internal reporting assessment will assess the student’s ability to apply theoretical concept in context.

Assessment strategy:

  • Formative
  • Summative
13. SYNOPSIS The course is exposing students with principles and techniques in making effective and efficient financial decisions.  Some of the aspects covered in the course are working capital management, capital budgeting analysis, short and long term financing, dividend policy, merger and acquisition as well as risk management.  The delivery is through lectures, tutorials and discussions.
14. MODE OF DELIVERY Lectures and tutorial (SCL)
15. ASSESSMENT METHODS AND TYPES
Component %
Continuous Assessments 50%
Final Examination 50%
Total 100%
16. CONTENT OUTLINE OF THE COURSE/MODULE AND SLT PER TOPIC
TOPIC lecture tutorial Test/Quiz/Exam Assignment Assessment(Library Seacrh) Self-study Total
Introduction to Corporate Finance 2 2 3 7
Valuation of Future Cash Flows 2 2 3 7
Capital Budgeting 4 4 6 14
Cost of Capital 2 2 3 7
Financial Leverage and Capital Structure Policy 2 2 3 7
Dividends and Dividend Policy 2 2 3 7
Working Capital  Management 6 6 9 21
Merger & Acquisitions 2 2 3 7
Risk Management 2 2 3 7
International Corporate Finance 2 2 3 7
Leasing 2 2 3 7
Continous Test/Quiz/Assessment 3 5 6 14
FINAL 3 9 12
TOTAL 28 25 6 5 15 42 121
17. REFERENCES Main reference:

1.     Ross, S. A., Westerfield, R. W., Jordan, B. D. 2012, Fundamentals of Corporate Finance.  9th Edition, McGraw Hill, New York.

Additional references:

1.     Brealy, A. R. & Mayers, C. S. 2011. Principles of Corporate Finance. 10th Edition. McGraw-Hill, New York.

2.     Berk, J., DeMarzo, P., and Harford, J. 2012, Fundamentals of Corporate Finance. 10th Edition, Pearson, Boston.

3.     Hirt, G.A, Block, S.A, Danielsen, B.R. 2011, Corporate Finance Foundations, 14th Edition, McGraw Hill, New York.

4.     Jordan, B.D., Westerfield, R.W., and Ross, S.A. 2011, Corporate Finance Essentials. 7th Edition, McGraw-Hil, Singapore.

 

Mapping of the course/module to the Programme Learning Outcomes

TOPIC Contact hours

(week)

Lesson Learning Outcome

(Students are able to…)

CLO KI Teaching & Learning Activities Assessment Tasks
Introduction to Corporate Finance

 

4

(1)

1.     Explain the goal of financial manager and the reason behind that goal.

2.     Identify the differences between accounting value and market value and the differences between accounting income and cash flow.

LO1

LO1

o Lecture

o Discussion

·   Feedback on discussion
Valuation of Future Cash Flows

 

4

(2)

1.     summarize the cash flows to a cash flow timeline

2.     Identify the value a series of many cash flows.

LO2

LO2

o Lecture

o Tutorial activity – exercises

·   Feedback on tutorial activity
Capital Budgeting

 

8

(3-4)

1.     Use the NPV and other basic rules to make investment decision.

2.     predict the cash flows needed in capital budgeting process

LO2

LO3

C2

CTPS3

o Lecture

o Tutorial activity – exercises

·   Feedback on tutorial activity
Cost of Capital

 

4

(5)

1.     Distinguish different ways to raise capital and explain the drivers of firm’s overall cost of capital.

2.     Evaluate the cost of each source and overall (weighted average) cost of capital.

LO2

LO3

CTPS3 o Lecture

o Tutorial activity – exercises

·   Feedback on tutorial activity
Financial Leverage and Capital Structure Policy  4

(6)

1.     Display the effect of financial leverage and the important elements of capital structure decision

2.     Formulate the optimal capital structure of a firm

LO2

LO5

CTPS3 o Lecture

o Tutorial activity – exercises

·   Feedback on tutorial activity
Dividends and Dividend Policy

 

4

(7)

3.     Explain the difference way in which corporations can make distribution to shareholders.

4.     Describe theory of dividend policy.

LO1

LO2

o Lecture

o Tutorial activity-Library Search

·   Feedback on article searching
Working Capital  Management

 

12

(8-10)

1.     Explain the cash cycle of the firm and why managing working capital is important

2.     Discuss strategies in working capital management.

 

LO1

LO2

CTPS3 o Lecture

o Tutorial activity – exercises

·   Feedback on tutorial activity

·

Merger & Acquisitions 4

(11)

1.     Distinguish the theory and process of merger and acquisitions.

2.     Compare the valuation and tools of merger and acquisitions.

LO2

LO3

CTPS3 o Lecture

o Tutorial activity – exercises

o Library Search

·   Feedback on tutorial activity

·   Feedback on library search

Risk Management 4

(12)

1.     Explain the use of derivatives to manage financial risk

2.     Demonstrate how to manage risk.

LO1

LO2

o Lecture

o Tutorial activity – exercises

o Library Search

·   Feedback on tutorial activity

·   Feedback on library search

International Corporate Finance

 

4

(13)

1.     Explain how exchange rates are quoted and what they mean

2.     Distinguish the different types of exchange rate risk and ways firms manage exchange risk.

LO2 o Lecture

o Tutorial activity – exercises

 

·   Feedback on tutorial activity

 

Leasing

 

4

(14)

1.     Explain the concept of leasing.

2.     Differentiate operating and financing lease.

LO1

LO2

o Lecture

o Tutorial activity – exercises

 

·   Feedback on tutorial activity