Course Name: Advance  FCF and its calculation
Corporate Finance  WACC and the value of the firm
Concept of corporation
Week-1&2
 Formation
 Administration
 Share capital and its types
 Authorized capital
 Subscribed capital
 Paid up capital
 Components of capital
 Equity
 Debt
Common stocks and its management
Week-3 &4
 Features of common stock
 Issuance
 IPO’s and seasonal offering
 Issuance at par, premium and
discount
 Types of common stocks
 Rights of common stock holders
 Repurchasing common stocks
 Advantages and disadvantages of
common stocks
Preferred stock and Bonds
management
Week-5
 Features of preferred stock
 Rights of preferred stock holders
 Bonds and its features
 Types of bonds and debentures
Cost of capital
Week 6&7
 Concept of WACC
 Cost of equity and its calculation
 Cost of debts and its calculation
 Cost of preferred stock
 Corporate taxes
 Concept of WACC
 Numerical treatment of WACC
Capital Structure Decisions
 Effect of debt financing on
WACC
 Effect of debt financing on FCF
 Optimal capital structure
 Numerical treatment
Capital structures theories
Week 10&11
 MM theory
 Zero taxes
 Corporate taxes
 Corporate and personal taxes
 Trade-off theory
 Signaling theory
Risk and its impact
 Week 12
 Systematic versus unsystematic
risk
 Business versus financial risk
 Operating versus financial
leverage
 Effect of operating leverage on
business risk
 Effect of financial leverage on
return
Dividend policies and theories
Week 13
 Dividend policies
 Dividend irrelevance theory
 Bird in hand theory
 Tax preference theory
 Clientele effect
 Corporate valuation and
governance
 Week 14
 Concept of corporate valuation
 Value of operations
 Value of equity
 Concept of MVA& EVA
 Numerical treatment
Discussion on Researches and
presentation Week 15&16
Suggested books.
Fundamental of financial management
by Eugene F. Brigham and Joel F.
Houston 11th edition
Fundamentals of Corporate Finance by
Stephen A. Ross, Randolph W.
Westerfield and Bradford D. Jordan.
Updated edition
Principal of managerial finance by
Lawrence.J Gitmat