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2. Student Learning Outcomes : At the end of the course the students should

· Be able to : apply time value of money concepts to complex cash flow scenarios
· Be able to : Apply time value of money concepts to value basic securities like bonds and stocks .
· Be able to understand risk return trade off and use the Capital Asset Pricing Model to quantify the risk-return tradeoff
· Be able to evaluate alternative techniques for analyzing project opportunities and budgeting capital
· Be able to determine a firm’s weighted average cost of capital
· Be able to apply the net present value criterion to complex capital budgeting problems using different approaches.

3. Required Materials :

a) Text :

Fundamentals of Corporate Finance by Stephen A Ross, R W Westerfield and B. D Jordan –8th Edition, ( Subcontinent edition) published by Tata Mcgraw Hill
b) Reference Book:
- Financial Management: Theory and Practice –11th Edition by Brigham and Ehrhardt, Thomson India edition
- Principles of Corporate Finance - 8th Edition, by Brealey, Myers, Allen and Mohanty, Special Indian Edition, Tata Mcgraw Hill,
c) Reading Materials as and when made available in the class.
d) Calculator : You will typically need a calculator that can handle exponents (i.e., that has a “yx”-type key).

4.) Tentative Session Plan:



Session	Topics Covered
1,2	Building blocks : · Introduction, · Time Value of money
3,4	Application of time value of money concepts to value basic securities like bonds and stocks · Bond Pricing · Bond Features · Equity pricing Models
5-6	Risk, Return and Capital Markets · Concepts of risk and return in isolation · Concept of risk and return in a portfolio context · CAPM · Market Efficiency
7-9	Building Blocks of capital budgeting : · Introduction, · Competing Criteria for making a capital budgeting decision
10	Cost of Capital · Determination of Component Costs · Determination of WACC · Issues in using WACC.
11-14	Cash Flow determination in Capital Budgeting · Deriving the Cash Flows from accounting numbers · Issues in valuing a project.

5. Evaluation components : The evaluation process is divided into three components.

i) Quiz: 15-30%: These quizzes will be typically unannounced. Faculty reserves the right to give any number of unannounced “pop” quizzes during the term. The number of pop quizzes will be negatively related to the class’s level of preparation and participation.
ii) Midterm : 20-30%
iii) Class participation: 10-15% This could be comprised of attendance, response and overall positive demeanor in class. Your active participation in class is necessary, both for you and for your classmates. Your participation score will reflect the faculty’s assessment of your attendance, your contributions to class discussions, and your overall positive demeanor during class.
iv) End term : 30-40% : This will be typically on the entire course ( pre and post midterm coverage)
GRADING :
An important note about grading:
You will be generally graded relative to your peers and the grade distribution is expected to be approximating a normal distribution. This is designed to help you. However the faculty has the right to pre specify a certain cut off score in the course failing which may invite and F grade in the course. 30% is the cut-off for passing.

6. Academic Integrity and Additional issues:

i) Students involved in academic dishonesty will receive a ZERO grade on the particular component in which the violation occurred. Academic dishonesty consists of misrepresentation by deception or by other fraudulent means such as copying or use of unauthorized aids in tests, talking during in-class examinations; aiding another student’s dishonesty; and giving false information for the purpose of gaining credits.

ii) COMPUTERS and MOBILES IN THE CLASSROOM: …are NOT allowed. No electronic devices that allow your access to the internet are allowed in the classroom.