UNIVERSITY OF EDUCATION, WINNEBA

SCHOOL OF BUSINESS
DEPARTMENT OF APPLIED FINANCE AND POLICY MANAGEMENT
BBA- BANKING AND FINANCE OPTION
SECOND SEMESTER 2020/2021 ACADEMIC YEAR
COURSE OUTLINE

BAF 362: Introduction to Corporate Banking and Finance 3 Credit Hours

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Office Location: School of Business 4 Floor HOD Department of Accounting
Lecturer: Samuel Gameli Gadzo
Lecture Time: Tuesday 3:30 pm – 4:30 pm- GBLK 102 South Campus
Email: sggadzo@uew.edu.gh
Contact: 0242764154

COURSE DESCRIPTION

This course is aimed at developing student’s knowledge, skills and competence to be able to handle financial
management related issues in corporations. Core corporate finance topics shall be discussed with the view to
expose as well as deepen the understanding of students on finance and related business knowledge. This course
critically analyses and evaluates contemporary issues in corporate finance and develops implications of those
issues for managers, finance directors and policy makers. The focus throughout the course is on the finance
functions in an organization, investment functions and dividend decision areas of the organization.

COURSE OBJECTIVE

The objective of this course is to help students demonstrate an understanding of the nature and scope of
financial management and its environment; evaluate and recommend capital projects with the view to
achieving corporate objectives; aaccess the suitability of the various sources of finance and recommend
appropriate course of action; assess dividend policy proposals and/or decisions with a thorough understanding
of theoretical and practical implications; and Institute and run working capital policies of organization. It is
also aimed at describing the theoretical underpinnings and use of the Net Present Value (NVP) method to
value bonds, shares and investments, in terms of; the use of the market determined risk adjusted discount rate
and the determination of the relevant cash flows explain the weaknesses of the alternatives to the NPV method;
analyse capital structure theorems and their influence on value and apply the skills to determine the value of
a proposed investment.

COURSE CONTENT

Week 1: Introduction to corporate finance

• Meaning of corporate finance

• Forms of Business organisation
• The goal of financial management
• The agency problem and control of corporation
• Financial Markets and the corporation

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Week 2: Financial Planning and Raising of funds

• Meaning of financial planning

• Financial Planning Models
• Percentage of sales approach
• External finance and growth
• Caveats regarding financial planning models

Week 3: Working Capital Management I

• Overview of working capital

• Operating cycle
• Overtrading
• Inventory management

Week 4: Working Capital Management II

• Trade Receivable Management

• Trade payable management

Week 5: Capital Structure

• Traditionalist view of Capital structure

• Modigliani and Miller I and II
• Optimum Capital Structure
• Perking Order theory of Capital Structure

Week 6: Security valuation

• Interest rates and bond valuation

• Stock valuation
• Preference share valuation

Week 7: Cost of capital I

• Estimating cost of equity

• Estimating cost of debt
• Estimating cost of preference shares

Week 8: Cost of Capital II

• The weighted average cost of capital

• Divisional and project cost of capital
• Floatation and the weighted average cost of capital

Week 9: Mid – Semester Examination

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Week 10: Capital Budgeting/Investment appraisal I

• Meaning of capital budgeting

• Process of capital budgeting
• Understanding and application of the methods of capital budgeting

Week 11: Capital Budgeting/Investment appraisal II

• Application of the methods of capital budgeting

• Capital rationing
• Sensitivity analysis

Week 12: Dividend Policy Decision

• Relevant and Irrelevant Argument for Dividend Payment

• Dividend Payment process

TEACHING AND LEARNING METHODS

The focus of university education is on self-directed search for knowledge, and the teaching of this course is
designed with this in mind. The purpose of lectures is to introduce and explain concepts corporate finance and
its application. To maximise the benefits of attending lectures, students are encouraged to read relevant study
materials thoroughly before attending lectures. From time to time, reading and practical assignment will be
given for discussion among student groups and during lectures.

ASSESMENT

The course requirement for a grade is as follows:

Assessment Task Weighting Length Due Date
Mid-Semester Quiz 30% 1 hour Mon. 19th July -Fri. July 23,2021
Class Participation/Assignment 10% N/A N/A
Final Examination 60% 2 hours Mon. Aug 23 – Fri Sept. 10 2021
Total 100%

STUDENT RESPONSIBLILITY AND CONDUCT

Students should be settled at the lecture theater at least 15 minutes before lectures. Students are supposed to
adhere to University Policies in relation to class attendance and general conduct and behavior.

COURSE LEARNING RESOURCES

Brigham, E.F & Ehrhardt M.C, (2020), Financial Management: Theory and Practice (20th ed.). Ohio, South-
Western
Ross, S. A. et al. (2019) Corporate Finance 10th Edition, McGraw Hill.
Francis, J. C., and Roger, I. (2019) Investments: A Global Perspective. Upper Saddle River, NJ: Prentice Hall,
Reilly, F. K., and Keith C. B., (2018). Finance Analysis and Portfolio Management Mason, OH:
Thomson/South-Western.