GC University Faisalabad

Course Planner
Subject Corporate Finance Class Bs Commerce Semester 7th
Lecturer Gohar Mahmood Semester Starting Date
Recommended Book (1)
Author Volume No.
Recommended Book (2)
Author Volume No.
Recommended Book (3)
Author Volume No.
Objectives of the course:

Assignment/Quiz/
Week No. Topics Reference Remarks
Presentation (1)
1 1. Introduction to Corporate Finance
Financial decision making in
corporations Types of finances,
Financial instruments and markets,
Short and long term financing
2.
2  1. Valuation principles, Required
Rates of Return and risk, Internal
& external financing
Spontaneous financing, Short
term financing tools.

2.
3 1. Financial statements and cash flows
The cash flow statement
 2. The income statement and
statement of retained earnings
The balance sheet, Relationship
between book value and market
value

4 1. Understanding the Interest Rates:

General level of interest rates,
 2. Foreign Borrowing and
lending, Purchasing power
parity, Structure of interest rate
5 1. Valuing Debt and Equity: Value debt
and preferred stock, Pure-discount
instruments,
2. Coupon bonds, zero coupon,
perpetual & reserve bonds, Amortized
instruments, Preferred stock, their types
and valuation.
6 1. Valuing equity, A single period
common stock, A multi-period common
stock,
7  1. The constant growth dividend
& growth in stages. Implications
for managers.

 2. The constant growth dividend

& growth in stages. Implications
for managers.

8
Mid Term Exams.

9  1. Lease and loan financing,

Introduction to financing
decisions Description of
financial instruments Private
Sources of financing
Commercial banks and other
financial intermediaries,
Ventures capitalists Issuing
securities to the public.

2.
10  Private Sources of financing
Commercial banks and other
financial intermediaries,
Ventures capitalists Issuing
securities to the public.

2.
11 1. Long-term financial policy:
Dividends Policy: How companies
distribute value to the owners, Cash
dividends, Share repurchases, Stock
dividends and stock splits,
2.
12 1. When dividend policy is irrelevant,
The effect of financial market
imperfections, The effect of asymmetric
imperfections, Establishing a dividend
 payout-earnings retention policy.
2.
13  1. Capital structure theory:
Operating & Financial leverage,
Cost of Capital

 2. Capital structure theory:

Operating & Financial leverage,
Cost of Capital

14  1. Restructuring: Restructuring
company’s assets and claims,

2.
15 1. Mergers,
2. Acquisitions, divestitures and buyouts
16
Final Term Exams.

(1): Detail of Assignment/Quiz/Presentation:

Sr. No. Event Detail

Course Coordinator Principal