Course Plan

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COURSE PLAN
BACHELOR OF SCIENCE IN BUSINESS ADMINISTRATION (BSBA)
IIIRD YEAR
FIFTH SEMESTER
PRINCIPLES OF CORPORATE FINANCE
COURSE CODE – FIN 211
PREPARED BY
LECTURE. SALIM ALSHEHRI
LECTURER
DEPARTMENT OF FINANCE
COLLEGE OF BUSINESS ADMINISTRATION
SALMAN BIN ABDULAZIZ UNIVERSITY
Course Plan/– Finance Department, CBAH
Printed on 23/03/2016
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Salim Alshehri,
Lecturer
Phone (Office):- +966 1 5887555
Kingdom of Saudi Arabia
Salman Bin Abdulaziz University,
College of Business Administration,
Hotat Bani Tamim
Department of Finance,
Fax: - +966 1 5887501
Cell – 0540744429
E – Mail: - [email protected]
Office Hours: Saturday to Wednesday or by appointment
From11.00 AM to 13.00 PM
Course Plan/
Scheme of Work
Programme
Course Code
Course Title
Year
Semester
Learning
Outcomes
BSBA in Finance
FIN 211
Principles of Corporate Finance
Three
Fifth

Understand the meaning of finance and its main principles

Appreciate the time value of money

Demonstrate the relationship between the risk and return

Understand the application of various capital budgeting techniques

Awareness about debt and equity valuation methods
References:
A: Lawerence J. Gitman. (2009). Principles of Managerial Finance: Pearson Education. (12th edition).
Session Concept / Topic to Teach
Session Objectives Resources
Remarks
Introduce myself – background, experience,
etc.
Set ground rules – students to ask if they do
not understand a word/phrase; pls come on
time; there will be mid-term & end of term
final exam.
Introduce the course
1. Introduction to Managerial Finance
 Why Study Managerial Finance?
Teacher & Subject
introduced;
Students to know why
study and what is the
course about.
Course Outline/Syllabus
PPT -1
Handout from book -1
Define finance, its major
areas and opportunities
Refs:
A – pg 4 to pg 21
3
1.
Introduction to Managerial Finance
 Firm and its Legal forms
Explain the legal forms
of business organisation
Refs:
A – pg 4 to pg 21
4
1.
Introduction to Managerial Finance
 Relationship to Economics and
Describe the managerial
Refs:
1
2
Course Plan/– Finance Department, CBAH
Printed on 23/03/2016
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Session
Concept / Topic to Teach
Accounting
Session Objectives
Resources
finance function and its
relationship to
economics and
accounting. (to be
contd.)
A – pg 4 to pg 21
Remarks
5
1.
Introduction to Managerial Finance
 Relationship to Economics and
Accounting
Describe the managerial
finance function and its
relationship to
economics and
accounting.
Refs:
A – pg 4 to pg 21
6
1.
Introduction to Managerial Finance

Primary Activities of the Financial
Manager
Identify the primary
activities of the financial
manager.
Refs:
A – pg 4 to pg 21
7
1.
Introduction to Managerial Finance

Goals of the Firm
Explain the goal of the
firm, corporate
governance, the role of
ethics, and the agency
issue.
Refs:
A – pg 4 to pg 21
8
1.
Introduction to Managerial Finance

Goals of the Firm
Explain the goal of the
firm, corporate
governance, the role of
ethics, and the agency
issue.
Refs:
A – pg 4 to pg 21
9
Review and Concept Check:
 Why Study Managerial Finance?
 Firm and its Legal forms
 Relationship to Economics and
Accounting

Primary Activities of the Financial
Manager

Goals of the Firm
Quiz-1
Refs:
A – pg 4 to pg 21
10
2.
Time Value of Money
 Why money has time value?
 Simple interest and Compound
interest
Discuss the role of time
value in finance, the use
of computational tools,
and the basic patterns of
cash flow.
PPT -2
Handout from book -2
Short questions
Refs:
A – pg 162 to pg 202
11
2.
Time Value of Money
 Discounting Vs Compounding
Understand the concepts
of future value and
present value, their
calculation for single
amounts, and the
relationship between
them.
Refs:
A – pg 162 to pg 202
12
2. Time Value of Money
 Discounting Vs Compounding
Find the future value
and the present value of
both an ordinary annuity
and an annuity due, and
find the present value of
Refs:
A – pg 162 to pg 202
Course Plan/– Finance Department, CBAH
Printed on 23/03/2016
Page 3 of 6
Session
Concept / Topic to Teach
Session Objectives
Resources
Remarks
a perpetuity.
13
2. Time Value of Money
 Discounting Vs Compounding
Calculate both the future
value and the present
value of a mixed stream
of cash flows.
Refs:
A – pg 162 to pg 202
14
2.
Time Value of Money
 Discounting Vs Compounding
Practice Problems
Refs:
A – pg 162 to pg 202
15
2.
Time Value of Money
 Discounting Vs Compounding
Practice Problems
Refs:
A – pg 162 to pg 202
16
MID EXAM -1
Assessment of Sessions 1-15
17
3.
Understanding the key
motives for capital
expenditure and the
steps in the capital
budgeting process.
PPT -3
Handout from the book -3
Capital budgeting and its practices.
 Overview of capital budgeting
Refs:
A – pg 380 to pg 404
18
3.
Capital budgeting and its practices.
 Overview of capital budgeting
Define basic capital
budgeting terminology.
Refs:
A – pg 380 to pg 404
19
3.
Capital budgeting and its practices.
 Capital budgeting techniques
Understand the role of
capital budgeting
techniques in the capital
budgeting process.
Refs:
A – pg 424 to pg 455
20
3.
Capital budgeting and its practices.
 Pay Back Period (PBP)
Calculate, interpret, and
evaluate the PBP.
Refs:
A – pg 424 to pg 455
21
3.
Capital budgeting and its practices.
 Net present Value(NPV)
Calculate, interpret, and
evaluate the NPV.
Refs:
A – pg 424 to pg 455
22
Review & Concept Check:
 Overview of capital budgeting
 Capital budgeting techniques
 Pay Back Period
 Net present Value(NPV)
Quiz-2
Refs:
A – pg 424 to pg 455
23
3. Capital budgeting and its practices.
 Internal Rate of Return (IRR)
Calculate, interpret, and
evaluate the IRR.
Refs:
A – pg 424 to pg 455
24
3. Capital budgeting and its practices.
 Comparing NPV and IRR
Techniques
Use NPV profiles to
compare NPV and IRR
techniques.
Refs:
A – pg 424 to pg 455
24
3. Capital budgeting and its practices.
 Conflicting Ranking
Discuss NPV and IRR
in terms of conflicting
ranking and the
Refs:
A – pg 424 to pg 455
Course Plan/– Finance Department, CBAH
Printed on 23/03/2016
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Work out
Session
Concept / Topic to Teach
Session Objectives
Resources
Remarks
theoretical and practical
strengths of each
approach.
25
3. Capital budgeting and its practices.
 Conflicting Ranking
Discuss NPV and IRR
in terms of conflicting
ranking and the
theoretical and practical
strengths of each
approach.
Refs:
A – pg 424 to pg 455
26
3. Capital budgeting and its practices.
 Conflicting Ranking
Discuss NPV and IRR
in terms of conflicting
ranking and the
theoretical and practical
strengths of each
approach.
Refs:
A – pg 424 to pg 455
27
MID Exam -II
Assessment of Sessions 16-26
28
Mini Project - Capital Budgeting
techniques & practices in Saudi Arabia
Explain the nuts &
bolts involved in this
project assignment by
using a spreadsheet.
Refs:
A – pg 380 to pg 404 ;
A – pg 424 to pg 455
29
4.
Understand the
meaning and
fundamentals of risk
and return.
PPT -4
Handout from the book-4
Risk and Return Analysis
 Risk & Return defined
Refs:
A – pg 228 to pg 262
30
4.
Risk and Return Analysis
 Attitudes to risk
Understand the risk
behaviour of
individuals
Refs:
A – pg 228 to pg 262
31
4.
Risk and Return Analysis
 Measures of Risk and Return
Describe procedures for
assessing and
measuring the risk of a
single asset.
Refs:
A – pg 228 to pg 262
32
4.
Risk and Return Analysis
 Measures of Risk and Return
Discuss the
measurement of return
and standard deviation
for a portfolio and the
concept of correlation.
(to be contd.)
Refs:
A – pg 228 to pg 262
33
4.
Risk and Return Analysis
 Measures of Risk and Return
Discuss the
measurement of return
and standard deviation
for a portfolio and the
concept of correlation.
Refs:
A – pg 228 to pg 262
34
4.
Risk and Return Analysis
 Measures of Risk and Return
Understand the risk and
return characteristics of
Refs:
A – pg 228 to pg 262
Course Plan/– Finance Department, CBAH
Printed on 23/03/2016
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Individual
assignment
Deadline: One week
from the date
assigned.
Session
Concept / Topic to Teach
Session Objectives
Resources
Remarks
a portfolio in terms of
correlation and
diversification.
35
4.
36
Risk and Return Analysis
 Measures of Risk and Return
Review the two types of
risk and the derivation
and role of beta in
measuring the relevant
risk of both a security
and the portfolio.
Refs:
A – pg 228 to pg 262
Review and Concept Check:
 Risk defined
 Return defined
 Attitudes to risk
 Measures of Risk and Return
Quiz-3
Refs:
A – pg 228 to pg 262
Work out
37
4.
Mini Project- Risk and Return
Analysis
Explain the nuts & bolts
involved in this project
assignment by using
live examples from the
Tadawul website.
Refs:
A – pg 228 to pg 262
Divide the class into
group size of 2-3
students.
Deadline: One week
from the date
assigned.
38
5.
Debt and Equity Valuation
 Basic valuation model
Understand the key
inputs and basic models
used in the valuation
process.
PPT -5
Handout from the book -5
Refs:
A – pg 299 -311; 345-349
39
5. Debt and Equity Valuation
 Valuation of debt-methods
Apply the basic
valuation model to
bonds and describe the
impact of required
return and time to
maturity on bonds
Refs:
A – pg 299 -311; 345-349
40
5. Debt and Equity Valuation
 Valuation of equity-methods
Apply the basic
valuation model to
Stock. (to be continued)
Refs:
A – pg 299 -311; 345-349
41
5. Debt and Equity Valuation
 Valuation of equity-methods
Apply the basic
valuation model to
Stock.
Refs:
A – pg 299 -311; 345-349
42
Course Review
Review all the concepts
introduced in the
coursework.
Complete Course Syllabus
(Session 1-42)
End Semester Exam
Course Plan/– Finance Department, CBAH
Printed on 23/03/2016
Page 6 of 6
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