FM II - P05

FM II - P05
Intructor: Prof. M. Venkatehwarlu

Course Outline

Prof. M.Venkateshwarlu
Email; venkat@ximb.ac.in
Office 245, Administrative Block, 2nd Floor (Extn: 247)
Course Text: Brealey and Myers “Principles of Corporate Finance” TATA Mc Graw Hill, 7th Edition, 2003, New Delhi
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Course Objectives:
This course has the following objectives:

•To introduce the concepts and theories of modern financial management
•To develop an appreciation for the usefulness of these theories for financial decision-making
•To develop the student's financial decision-making skills
•To provide an overview of current financial management theories and practices.
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Additional Readings: In addition to the course text the students are also advised to refer to the text books mentioned below;
1. Principles of Managerial Finance, Lawrance J Gitman, Pearson Education.
2. Financial Management Theory and Practice, Eugene F Brigham nad Micheal C Ehrhardt, Thomsom Southwestern.
3. Financial Management, Prasanna Chandra, Tata Mc GrawHill.
4. Financial Management, IM Pandey, Vikas Publishing House.

Course Pack: With a view to familiarize the students with the application of finance theories, the students will be provided with set of exercises and case studies on all the topics of the course. The case studies and exercises will be provided in a course pack which will be circulated to the students. The course pack contains the case studies on all the chapters of the course as detailed in the course schedule. In addition to the case studies, the course pack also contains the exercises on all the chapters.

Examinations: There will be two examinations, one mid term ( accounting for 25 % of the course grade) The End Examination (accounting for 60 percent of course grade) These are closed book examinations will typically have conceptual questions and numerical problems (short, medium and long). There will be no make up examination except in exceptional circumstances. In addition to the mid term and end examinations, the students are required to complete assignments. The details of assignments will be informed later. These assignments will account for 15 % f the course grade.

Class Participation: All the students are expected to take an active part in the class discussions. The attendance rules of the institute are strictly followed and your attendance will certainly reflect in your grades.

Home Assignments: The course pack contains 15 case studies on different topics of the course. The students are required to submit their solutions before the end examination. For the purpose of evaluation, in addition to the submission of the case analysis reports, (all the case studies ) the students are required to make presentations on the allotted case.

Course Outline and Indicative Schedule:

Session	Topics Covered	Text Pages	Title of the Case Study (Practice Assignment)
1-3	Financing Decisions & Market Efficiency	349-381	1.Capital structure decision-making and cost of capital evaluation for Bendigo 2. An analysis of relative capital structures of major companies in Australia 3.Evaluation of the share disposition facility introduced by Lend Lease Corporation Limited (Consumption, Investment and the Capital Market) 4.AMP Limited’s analyst briefings and disclosure policies (Capital Market Efficiency)
4-5	Corporate Financing & Capital Structure	382-404	5.Timberwork Limited’s issue of converting preference shares 6. The privatization of Telstra Corporation Limited
6-7	Dividend Policy and Capital Structure	437-470	7.Dividends and Taxation: A Case Study using the $2.50 Special Dividend Paid by Energy Resources 8.CSR Limited: an evaluation of dividend policy and capital reconstruction
8-12	Debt Financing and Policy	473 - 579	9.Publishing and Broadcasting Limited’s issue of Perpetual Adjusting Rate Securities 10.Cochlear Limited
13-14	Leasing	735-756	11.Qantas Airways Limited (Leasing and Equipment Finance)
15-16	Working Capital management	855-938	12.Comfort Wool Ltd 113.Liquidity management policies of Westpac Banking Corporation Limited (Liquidity Management)
17-18	Mergers, Acquisitions and Corporate Control	939-975	14. Wesfarmers Limited takeover of Howard Smith Limited (Analysis of Takeovers)
19-20	Managing Risk: Foreign Exchange Risk	793-817	115. Evaluation of the foreign currency management strategy of Pasminco Limited

Note: If you are following a different edition of Brealey and Myers, Page numbers may vary

Course Activities: I assume that, the student is familiar with accounting principles and financial management concepts. It is also assumed that, the student is interested in the applications of financial management rather than theory alone. There is a set of questions at the end of each chapter to help you measure your understanding of the concepts and techniques presented. Work problems yourself, and then compare your answers with the suggested answers. Suggested answers are also available on the course web.

The course requires external reading of periodic media such as business magazines, journals, or economic news papers. This activity will help you gain an understanding of and appreciation for the wide range of information resources available to modern business manager. Begin reading business magazines regularly. Develop a feel for which sources of information are most pertinent to your life and fit best with your approach to management. Use those sources to stay informed and to broaden your awareness of trends and opportunities in the business world.

The students are required to analyze cases that are provided in the course pack. The case analysis need to be submitted in both hard and soft copies. Please do not email them to me directly send them through your class representative.

Students Participation in the class room discussions is necessary. Before commencement of each class 15 minutes time is reserved for questions and answers. The students are advised to ask the questions on any current topic and also on any specific matter related to the subject.

Assessment: Attendance and class room participation will reflect in the grade. The breakup of student performance assessment is as detailed below:

Sl No	Method of Assessment	Percentage of Marks

1	Mid Term Examination	25 percent
3	Case Analysis (Group Assignment)	15 percent
4	End Examination (Essay Questions both theory and problems, including case studies)	60 percent

Note: All submissions are to be made in both hard and soft copies. Please do not email them to me directly, send them through your class representative.

Created By: Partha Sen on 02/10/2006 at 03:19 PM
Category: PGP-I Doctype: Document

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