University of Jordan Jordan University Business School (JUBS)

Transcription

1 1. Department Name: Finance 2. Program Name: BA Finance 3. Program Code Course Code and Title: Corporate Finance 5. Course credits: 3 6. Pre-requisites: Principles of Finance 7. Course Instructor/ Coordinator Name and Dr. Tariq Alzoubi t.alzoubi@ju.edu.jo 8. Course web-page: 9. Academic year: 2016/ Semester: First Second 1 st Summer 2 nd Summer 11. Textbook: Principles of Corporate Finance, Custom Edition; by Ross, Westerfield, Jordan and Bley, McGraw Hill. 12. References: Principles of Corporate Finance, Custom Edition; by Ross, Westerfield, Jordan and Bley, McGraw Hill. Fundamentals of Corporate Finance, 1 st edition (Middle East Edition); by Ross, Westerfield, Jordan and Bley, McGraw Hill. Fundamentals of Corporate Finance, 9 th edition; by Ross, Westerfield, and Jordan, McGraw Hill. 13. Other resources used (e.g. periodicals, software, elearning, site visits, etc.): Notes and example available at Course description This course completes, in-depth, the topics discussed in the introductory courses: principles of financial management and investments management. In addition, this course deals with many other financial subjects such as: the agency problem, leverage, the trade-off between risk and return, and working capital management. Some other important financing and investment decisions such as when to replace an asset, lease or buy, and the cost of capital, are explained. 15. Course Intended Learning Outcomes: Mapping to PILOs CILOs Demonstrate good understanding of investing and financing decision taken by financial managers. 2. Understand how companies decide on their capital structure and dividend policy. 3. Analyze the impact of different decisions taken by the 1 JUBS-March 2017

2 company on its value. 4. Be able to determine the appropriate return required by shareholders and company s cost of capital. 5. Be able to determine the appropriate mixture of debt and equity for a particular company. 6. Analytical skills related to different aspects of company s activities. 16. Course evaluation: Assessment Details/ Explanation of Assessment in Number Weight Date(s) Type relation to CILOs Midterms Midterm Exam, CILOs 1, 3 and % 22/3/2017 Second Exam Second Exam, CILO % 24/4/2017 Class discussion and answering end-ofchapter 10% questions, All CILOs. Final Final Exam, All CILOs 50% To be declared later by the Registration Unit Total 100% 17. Description of Topics Covered Topic Title Chapter 5: Introduction to Valuation: the Time Value of Money Chapter 6: Discounted Cash Flow Valuation Chapter 9: Net Present Value and other Investment Criteria Chapter 10: Making Capital Investment Decisions Chapter 11: Description After working through each chapter we expect student to determine the future value of an investment made today. determine the present value of cash to be received at a future date. find the return on an investment. understand how long it takes for an investment to reach a desired value. determine the future and present value of investments with multiple cash flows. understand the reasons why the net present value criterion is the best way to evaluate proposed investments. understand the payback rule and some of its shortcomings. understand the discounted payback rule and some of its shortcomings. accounting rates of return and some of the problems with them. understand the internal rate of return criterion and its strengths and weaknesses. understand the modified internal rate of return. understand the profitability index and its relation to net present value. understand how to determine the relevant cash flows for a proposed project. understand how to determine if a project is acceptable. understand how to set a bid price for a project. understand how to evaluate the equivalent annual cost of a project. understand how to perform and interpret a sensitivity analysis for a proposed investment. understand how to perform and interpret a scenario analysis for a proposed investment. 2 JUBS-March 2017

3 Project Analysis and Evaluation Chapter 14: Cost of Capital Chapter 16: Financial Leverage and Capital Structure Policy Chapter 17: Dividends and Payout Policy understand how to determine and interpret cash, accounting, and financial break-even points. understand how the degree of operating leverage can affect the cash flows of a project. understand how capital rationing affects the ability of a company to accept projects. understand how to determine a firm s cost of equity capital. understand how to determine a firm s cost of debt. understand how to determine a firm s overall cost of capital. understand how to correctly include flotation costs in capital budgeting projects. understand the pitfalls associated with a firm s overall cost of capital and what to do about them. understand the effect of financial leverage. understand the impact of taxes and bankruptcy on capital structure choice. understand the essentials of the bankruptcy process. understand dividend types and how dividends are paid. understand the issues surrounding dividend policy decisions. understand the difference between cash and stock dividends. understand why share repurchases are an alternative to dividends. 18. Course Weekly Breakdown: Week Date Topics covered CILOs Teaching Method 1 29 Jan Introduction Chapter 5 Chapter 6 1 Discussions, 2 5 Feb Chapter 9 3 Discussions, 3 12 Feb Chapter 9 3 Discussions, 4 19 Feb Chapter 10 6 Discussions, 5 26 Feb Chapter 10 6 Discussions, 6 5 Mar Chapter 11 6 Discussions, 7 12 Mar Chapter 11 6 Discussions, Assessment 3 JUBS-March 2017

4 8 19 Mar Chapter 14 4 Discussions, 9 26 Mar Chapter 14 4 Discussions, 10 2 Apr Chapter 16 1, 2, 5 Discussions, 11 9 Apr Chapter 16 1, 2, 5 Discussions, Apr Chapter 17 2 Discussions, Apr Chapter 17 2 Discussions, Apr Review All Discussions, 15 7 May Final Exam Period May Final Exam Period 19. Others: Attendance policies: Absences from exams and handing in assignments on Description Students are not allowed to miss more than 15% of the classes during the semester. Failing to meet this requirement will be dealt with according to the university disciplinary rules. No make-up exam could be held. 4 JUBS-March 2017

5 time: Health and safety procedures: Based on the University disciplinary rules. Honesty policy regarding cheating, plagiarism, misbehavior: Based on the University disciplinary rules. Course Coordinator: Dr. Tariq Alzoubi Add your Signature Head of Department: Type the Name Add your Signature Head of curriculum committee/ School Type the Name Add your Signature Level: Dean: Type the Name Add your Signature Approved by the Program Coordinator/ Head of the Department on: Type the date: DAY/MONTH/YEAR Copy to: Head of Department Assistant dean for Development and Quality Assurance Course Portfolio 5 JUBS-March 2017