Trimester September 2012/2013
Rezzen Melaka
COLLEGE OF BUSINESS
UNIVERSITI UTARA MALAYSIA
COURSE CODE
COURSE
LECTURER
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CLASS
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BDFM8013
CORPORATE FINANCIAL STRATEGY
NASRUDDIN ZAINUDIN
(Office: Room 135, COB Main Building, UUM;
Phone: 04-928 6426; E-mail: nash@uum.edu.my)
Jasmine Hall, Queenspark Hotel, Melaka
Saturdays 3 p.m. – 9 p.m. (1/9; 29/9 & 13/10)
Sundays 9 a.m. – 3 p.m. (2/9; 30/9 & 14/10)
SYNOPSIS
This course is designed to develop doctoral students’ capabilities to plan, evaluate
and execute financial strategies within the context of firms’ overall corporate strategy
and ever-changing financial and economic environment. Emphasis will be given to
shareholder wealth creation, and the theoretical and practical issues in capital
investment and financing decisions.
OBJECTIVES
Students are expected to:
1. exercise professional judgement as expected as a senior manager, in
recommending, evaluating and executing firms’ strategic financial decisions;
2. understand how to deal with advanced and real life issues in capital investment
and financing decision;
3. expose students to the theoretical and empirical literature in the area of finance.
LEARNING OUTCOMES
At the end of this course, students will be able to:
1. evaluate and apply professional judgement on potential strategic investment
decision;
2. evaluate and apply professional judgement on potential strategic financing
decision;
3. measure the consequences of strategic decisions for shareholder value;
4. plan and evaluate merger and acquisition and other corporate restructuring
exercise as alternative financial strategy;
5. debate on key financial theories and their applicability in the real world;
6. undertake research work in the area of finance, particularly corporate finance.
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Trimester September 2012/2013
Rezzen Melaka
MODE OF DELIVERY
The class is highly interactive, involving lectures, discussion of case, journal articles
and current related issues. Students are expected to participate actively during the
classes.
REFERENCE
Bender, R and Ward, K (2008). Corporate Financial Strategy. 3rd Ed., Elsevier
Science and Technology Books.
Berk, J. & DeMarzo, P. (2007). Corporate Finance. USA: Pearson.
Ogden, J. P., Jen, F. C. & O’Connor, P. F. (2003). Advanced Corporate Finance:
Policies and Strategies. New Jersey: Prentice Hall.
Ross, S. A., Westerfield, R. W., Jaffe, J. And Jordan, B.D. (2008). Modern Financial
Management, 8th Ed., New York: McGraw-Hill.
Smart, S. B. Meggisson, W. L. & Gitman, L. J. (2004). Corporate Finance. USA:
Thomson Learning.
ASSESSMENT
The assessment will comprise contribution and participation in class discussion that
will be held throughout the semester, a series of quizzes, group/individual cases and
assignment with presentations, and journal article reviews which make up the
coursework, and a final examination. The allocation of marks is as follows:
Coursework
Final Examination
60%
40%
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Trimester September 2012/2013
Rezzen Melaka
COURSE CONTENT
No.
Topics
Introduction
1
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Overview of Corporate Financial Planning and Strategy
Overview the key concept of corporate finance and the link
with shareholders wealth
Operating performance and market performance
The internal and external context of corporate financial strategy
2
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The business operating and strategic context
The capital and financial markets
Strategic Investment Decision I
3
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Review the Net Present Value and Internal Rate of Return
criteria
Incorporating local tax system in capital budgeting analysis
Incorporating real options in capital budgeting
Strategic Investment Decision II
4
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Incorporating risk in capital budgeting
Capital Budgeting for Levered Firms
Strategic Financing Decision I
5
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Market Imperfection and capital structure theory
Empirical evidence on capital structure theory
Innovations in the capital market
Strategic Financing Decision II
6
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Venture Capital and Private Equity
Initial Public Offerings
Right issues
Bond refunding
Leasing
Warrant and Convertible
Corporate Restructuring
7
8
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Accounting for Merger and Acquisition
Merger valuation
Divestiture and other forms of corporate restructuring
Risk Management and Corporate Governance
3