Department of Banking & Finance
Faculty of Economics and Administrative Sciences
Yarmouk University
Course Credits: 3 Cr. Hrs.
Pre-Requisite(s): Acc 101 & Acc 102 & Eco101
Semester/Session: 1 st Semester 2014/2015
Class Section(s) Time & Location:
Section(10): Sun. Tues. Thur
Lecturer: Prof. Dr. Mohamad Ajlouni
E-mail address: majlouni@yu.edu.jo
2:00 – 3:00 B301
Office Hours: 12:00-1:00 Sundays
Office Location: Department of Banking & Finance.
This course provides students with key concepts about corporate finance. This course views corporate finance as collection of (6) unrelated topics that are largely unified because they are bound together in this course. This course shows how to use financial theory to solve problems and also explains the facts and institutional material that students of corporate finance must absorb. This course explains how financial markets operate and how security prices are determined within these markets that help students to see how various corporate decisions affect the value of the firm .
 Understanding the concept of finance, and the relationship between finance and other administration sciences.
 Identifying the main objective of corporations, and how it can be achieved.
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Understanding the role and types of financial markets.
 Understanding the importance of financial statements analysis to the users.
How to implement financial ratios in evaluating the financial situations of the firms.
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Knowing the concept of (risk & return) and the way they can be measured.
 Understanding the concept of time value of money in making financial decisions.
Using the time value of money to determine the value of financial assets (stocks & bonds).
Upon successful completion of this course, students will have the Knowledge and ability to:
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Recognize Reasons for studying managerial of finance.
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Understand the importance of finance in non-finance areas.
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Explain the alternative forms of business organizations.
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Explain different types of financial markets.
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Analyze the financial statements using financial ratios.
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Understand the role of financial markets.
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Understand the concepts of risk & return.
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Define and measure risk.
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Define the rate of return and the way it can be measured.
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Understand portfolio risk and return.
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Recognize the concept of time value of money
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Determine the future value and the present value for different stream of cash flows.
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Determine the market interest rates.
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Recognize the valuation concept
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Valuate the financial assets (bonds & stocks).
The course will be based on the following teaching and learning activities:
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Class lectures covering all of the course contents.
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Case studies
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Homework assignments
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Review questions
Students will be evaluated in this course using a combination of assessment methods.
Including:
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Computerized exams:
First exam
Second exam
Final exam
H.W, Quizzes & Class Participation
20%
20%
50%
10%
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th
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Electronic material placed on Yarmouk University site for this course:
Syllabus, exercises, assignments, case studies, announcements, and exam times.
Week 1-3
Ch (1): The Role and Environment of
: Page 2
1.1 - Finance and Business.
1.2 - The Managerial Finance Function.
1.3 - Goal of the Firm & Agency Problem.
1.4 - Financial Institutions and Markets.
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Week 4- 7
*** First Exam: day / /2014 ****
Week 8 - 10
Week 11 - 13
Ch (4): Time Value of Money: Page 158
4.1- The Role of Time Value in Finance.
4.2- Single Amount.
4.3 Annuity.
4.4Mixed Streams.
4.5- Special Applications of Time Value.
Ch (5): Risk and Return: Page 224
5.1 Risk and Return Fundamentals.
5.2 Risk of a Single Asset.
5.3 Risk of a Portfolio.
5.4- Risk and Return: the Capital Assets Pricing Model (CAPM).
*** Second Exam: Saturday 3/5/2008 ****
Week 14 &15
Ch (6): Interest Rates and Bond Valuation: Page 276
6.1- Interest Rates and Required Rate of Return.
6.3 Valuation Fundamentals.
6.4 Bonds Valuation.
Week 16
Ch (7): Stock Valuation: Page 324
7.1- Difference between Debt and Equity Capital.
7.3- Common Stock Valuation.
Ch (2): Financial Statements and Analysis: Page 44
2.1
- The Stockholders' Reports.
2.2
2.3
- Using Financial Ratios.
–Liquidity Ratios.
2.4
- Activity Ratios.
2.5
- Debt Ratios.
2.6
- Profitability Ratios.
2.7
- Market Ratios.
2.8
- Complete Ratio Analysis.
**** Final Exam: between 21/5/2008 - 3/6/2008 ***
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YU policy requires the faculty member to assign ZERO grade (35) if a student misses 15% of the classes that are not excused.
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You are responsible for all material covered in the class.
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If you miss class, it is your responsibility to find out about any announcements or assignments you may have missed.
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Cheating or copying from neighbor on exam, quiz, or homework is an illegal and unethical activity, standard YU policy will be applied.
 Homework’s are due at the beginning of class; late homework will not be accepted.
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Raise your hand if you have any question.
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Making any kind of disruption and (side talks) in the class will affect you negatively.
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Participation in, and contribution to class discussions will affect your final grade positively.
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The format for the computerized exams is Multiple-choice.
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