Unit 1
Introduction and Overview of Corporate Finance; Time Value of Money –Inflation- Cash flows Effects on accrual accounting -Free cash flow.
| Course Name | Corporate Finance |
| Course Code | 24COM331 |
| Program | B.Com. (Specialization in International Finance) |
| Campus | Mysuru |
Introduction and Overview of Corporate Finance; Time Value of Money –Inflation- Cash flows Effects on accrual accounting -Free cash flow.
Cash flows- Incremental project Cash flows -Net present value -Comparing projects -Project analysis under uncertainty: Scenario analysis-, Sensitivity analysis& Spreadsheet Modelling.
Discounted cash flow valuation- Sequential valuation Multiples valuation -Market ratios – Pricing- earnings ratios
Projecting sales growth- Trends in sales growth. Industry Economic analysis: Regressions Financial statement analysis, Ratio analysis & DuPont Identity- Leverage and Reconcile pro- forma financial statements.
Cost of capital WACC without and with taxes -Divisional –Perfect Market WACC- WACC Capital structure – Cost of equity Business and financial risk; Unlevered beta
Capital structure -Imperfect market WACC with taxes WACC with bankruptcy costs – Incorporating changes in leverage -Value of levered- Lenders and shareholders’ cost. Agency costs: Managers and shareholders capital structure
Raising capital IPOs -Private equity market Rights Corporate bond-Mergers and acquisitions: Forms of acquisitions Synergy and coinsurance effects -Financing acquisitions: Empirical evidence
Payout policy: Types of dividends- Irrelevancy of dividends -Taxes Stock repurchases& Dividend- Agency cost –Debt holder-shareholder conflicts, Manager-shareholder conflicts and Convertibles Capital structure.
Objective: To understand and apply financial theories and models so that optimal financial decisions can be made within companies and organizations.
Course Outcomes:
CO1: Understanding corporate finance, inflation, and cash flow effects.
CO2: Critically evaluate information from financial models.
CO3: Analyze business problems and identify the ethical aspects, provide a solution and defend it.
CO4: Understand how investment and financing decisions impact the value of a firm.
CO5: Evaluate corporate projects and make decisions based on financial data.
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COPO |
PO1 |
PO2 |
PO3 |
PO4 |
PO5 |
PO6 |
PO7 |
PO8 |
PO9 |
PO10 |
|
CO1 |
3 |
2 |
3 |
3 |
2 |
1 |
1 |
2 |
1 |
2 |
|
CO2 |
3 |
2 |
3 |
3 |
2 |
1 |
1 |
2 |
1 |
2 |
|
CO3 |
3 |
2 |
3 |
3 |
2 |
1 |
1 |
3 |
1 |
2 |
|
CO4 |
3 |
2 |
3 |
3 |
3 |
1 |
1 |
3 |
1 |
2 |
|
CO5 |
3 |
2 |
3 |
3 |
3 |
1 |
1 |
2 |
1 |
2 |
Textbooks:
Reference Books:
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