UNIVERSITI TEKNOLOGI MARA

LESSON PLAN

FACULTY OF BUSINESS MANAGEMENT

Course Introduction to Corporate Finance

Code FIN 430

Program Bachelor of Business Administration (Hons) Finance

Course Status Core

Credit Hours 4

Contact Hours 4

Pre-requisite -

Assessment Test 1 (Chapter 1 to 5) 20%

Individual Assignment 1 (Chapter 6 & 7) 20%
Group Assignment (Ratio analysis) 30%
Test 2 (Chapter 8 to 11) 30%
……………
Total 100%
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Lecturer Dr. Mohd Hafiz bin Bakar

hafizbakar@uitm.edu.my
H/P:01135674390

Semester 02
 UNIVERSITI TEKNOLOGI MARA

At the end of the course, students should be able to:

Course Outcomes  Comprehend principles and fundamentals of corporate finance.
 Interpret concepts and theories in corporate financial analysis.
 Demonstrate lifelong learning skills in corporate financial
analysis.

Course Synopsis The course is designed to provide students with a strong foundation in
the principles of and approaches to corporate finance as well as an
opportunity to apply relevant principles to practical and managerial
decisions.
Method of Instruction  Lecture
 Case Study
 Discussion
 Presentation
 Active Learning
SYLLABUS CONTENT / TOPICS NOTE

1. Introduction To Corporate Finance

 Corporate Finance and The role of the financial manager
 The Goals of financial management
 The Agency Problems and control of the corporation
 Financial markets and corporation
2. Understanding Financial Statements
 Balance sheet
 Income statement
 Sources and Uses of Fund
ENTRANCE SURVEY
3. Financial Ratios and Analysis
 Types of Financial ratios
 Trend Analysis and peer group analysis
 Limitations of financial ratios
4. Financial Forecasting and Planning
 Pro-forma Financial Statement
 Methods of forecasting-% sales method
 Cash budget
5. Risk and Return
 Risk
 Return
 Security Market Line
6. Mathematics of Finance
 Time value of Money
Present Value and Future value
7. Working Capital Management
 Definition
 Policies of Working capital management
 Approaches to Working capital management
8. Short Term Financing
 Types and sources of short term financing
 Cost of Financing
 9. Long Term Financing
 Types-Equity (preferred shares and common shares-Dividend
growth model and SML approach) and Bonds (Valuation
approach)
 Characteristic of the bonds, preferred shares and stock.
 Cost of Financing
10. Introduction to Capital Structure
 Weighted average cost of capital (WACC) and Weighted
average flotation cost (WAFC)
 NPV without flotation cost and NPV with flotation cost.
 Practical Approach-Pure play approach, Subjective approach
11. Capital Budgeting Techniques
 Definition and importance of capital budgeting
 Types of Capital Investment
 Capital Budgeting Techniques
 Non-Discounted Cash Flow Techniques:
-Payback Period
-Average Accounting Return
 Discounted Cash Flow Techniques:
-NPV
-IRR (Crossover rate)
-Profitability Index
 -Discounted Payback Period
References
Stephen A. Ross,Randolph W. Westerfield,Bradford D. Jordan,Joseph
Lim,Ruth Tan, Fundamentals of Corporate Finance, 13th , Mcgraw-Hill.,
2016, ISBN: 9789814595049

Arthur J. Keown,John D. Martin,J. William Petty, Foundations of

Finance, 9th, Prentice Hall, 2017, ISBN: 9780134083285

William R. Lasher, Practical Financial Management, 8th, Cengage

Learning, 2017, ISBN: 97813056375422.

Eugene F. Brigham,Michael C. Ehrhardt, Financial Management, 14th,

South Western Educational Publishing, 2014, ISBN: 9781111972219

Paul Asquith,Lawrence A. Weiss, Lessons in Corporate Finance, 10th,

John Wiley & Sons, 2016, ISBN: 9781119207412

Franklin Allen,Stewart Myers,Richard Brealey, Principles of Corporate

Finance, 11, McGraw-Hill Education, 2014, ISBN: 9780078034763
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