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MASTER OF BUSINESS ADMINISTRATION (MBA) PROGRAMME

Faculty of Commerce and Management Studies
University of Kelaniya

Corporate Finance - MBA 52093

Batch 16 - Group A and B (2023)

Overall Learning Outcomes: By the end of this course unit students should be able to:
1. Define and explain basic financial management functions pertaining to a public company
2. Illustrate basic financial management decisions with numeric examples
3. Apply financial management concepts to real-word situations in companies
4. Illustrate financial management concepts using an Excel spreadsheet

Method of Teaching and Learning: Lectures, Interactive contacts, and article reviews

Assessment: Assignments, Quiz and End-semester Examination (see the details towards the end
of this document)
Continues Assessments 50%
Group Assignment 30% (20% for assignment 10% for presentations)
Online test 20%
Final Exam 50%

Course Facilitators:

Group A : Course Leader : Prof. C.Pathirawasam (CP)

Prof. D.Y.K.Abeywardena (DYK)
Dr. Chatura Liyanage (CL)

Group B : Course Leader : Prof. PMC Thilakarathne (PMC)

Dr. Ruwani Fernando (RF)
Mr. Senaka Kakiriwaragodage (SK)

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Recommended Readings:
1. Ross, S. A., Wester field, R. W., Jaffe, J. and Jordan, B. (2019). “Corporate Finance”, Tata
McGraw-Hill Publishing Company Limited.

2. By Brigham, E.F., Gapenski, L.C. and Ehrhardt, M.C. (2016). “Financial Management Theory
and Practice”, Fourteenth Edition, Harcourt Asia Pvt Ltd.

3. Van Horne, James C. (2008). “Financial Management & Policy", Twelfth Edition, Pearson
Education Inc.,

Study Schedule

Lecturer Lecturer
Week Module (Topic) Assessment
(Group A) (Group B)

11/03/2023 1. Overview of CP PMC Quiz, End Semester

corporate Finance
Examination

12/03/2023 2. Time Value of Money CP PMC Quiz, End semester

examination

26/03/2023 3. Security Valuation DKY RF Quiz, End semester

examination

08/04//2023 4. Risk and Return CP PMC Quiz, End semester

& examination
09/04/2023
30/04/2023 5. Cost of Capital CP PMC Assignment, End semester
examination
07/05/2023 6. Capital Structure DKY RF Assignment and End
& semester examination
13/05/2023
14/05/2023 7. Dividend policy CL SK Assignment, End semester
examination

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 20/05/2023 8. Capital Budgeting DKY RF Assignment and End
& 21/05/2023 semester examination

04/06/2023 9. Working Capital CL RF Assignment, End semester

management examination
10/06/2023 10. Mergers, Acquisitions, CL SK End semester examination
Leverage Buy-Outs and (Assignment submission)
the Market for Corporate
Control
11/06/2023 11. Derivatives and risk CL SK End semester
management
examination
18/07/2023 12. Contemporary Research CL RF End semester examination
issues in Finance and
Revision

1. Assignment 1: (Individual-Online Test ) Total marks 20

All students are required to attempt an online quiz. You get one attempt for the quiz and one hour to complete it.
The Quiz will be automatically marked on-line and results can be seen on completion of the quiz. The test will be
covered the topic 01 to 4.

Due date of the test will be on 6th week

2. Assignment 2: (Group Assignment and Presentation) Total marks 30

Finance concepts in practice

Related topics: Cost of capital, Time value of money, Capital structure, Valuation, capital
budgeting, working capital management.

Suppose that you are a Finance Manager of one of the listed companies in the Colombo Stock
Exchange (CSE). Research & Development Department of the company came up with a proposal
of introducing a new product to the local market. To finance the identified project, Board of
Directors passed the resolution at their one of board meetings to issue equity to meet 30% of the
capital requirements and corporate bonds to meet 20% of the capital requirement of the project
and 50% of the project is going to finance through a bank loan. In addition to above information,
this project requires initial working capital and during the mid- period of the project additional
capital to be infused. Life span of the project is 8 years.

You are required to develop a business proposal, in particular the financial forecasting to be
submitted to your bank to obtain the bank loan. Your financial forecasting must encompass.
a. preparing pro-forma financial statements (Income statement and balance sheet)
b. calculation of operating and project cash flows
c. calculation of cost of capital
d. application of decision criteria to choose the project to be implemented.
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Further you are required to justify the impact of project financing decisions to shareholders of the
company.

Guidelines
Students are required to submit the report at the 11th week and presentation will be taken (10
minutes presentationfollowed by 5 minutes discussion). The project report should be uploaded to
the drop box that appeared on the LMS page. Assignment guidelines are available in the LMS.

Written Report format:

• Report should not exceed 15 pages including appendices
• Font: Times New Roman
• Font Size: 12
• Line Spacing: 1.5 pt
• References: APA style

Additional Information:

Students are having the liberty to make their own assumptions and also usingreal cases while
developing the report.

Report submission date : 19th June

Presentations dates : 09th of July

Weightage of the assignment: 30% (Group report 20% and presentation 10%)

Late Submission Policy:

If your assessment is submitted after the due date/time without an approved extension, the following
penalties will be applied:
• Up to 24 hours after the due date/time: 10% (out of 100%) is deducted
• Up to 48 hours after the due date/time: 20% (out of 100%) is deducted
• Up to 72 hours after the due date/time: 30% (out of 100%) is deducted
• Assignments submitted after this will receive zero marks