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RECOMMENDED TEXTBOOK(S)

Main Textbook: Ross, S., R. Westerfield and J. Jaffe (2010) Corporate Finance.9th Edition. McGraw Hill. All material used in this unit's classes are available in electronic form through CITY's E-Leaning Management System (Claroline) with enrollment password <GIVE ENROLLMENT PASSWORD>

LIST OF REFERENCES / ADDITIONAL RECOMMENDED READING Additional Textbooks: Brealey A. R., C.S. Myers and, F. Allen (2011) Principles of Corporate Finance. 10th edition. McGraw-Hill. Copeland, T.E. and J.F. Weston (1988) Financial theory and corporate strategy. London, Addison- Wesley. Damodaran, A. (2001) Corporate finance: Theory and Practice, New York, John Wiley and Sons. Dimson, E. and P. March (1997) Cases in corporate finance. New York, John Wiley and Sons. Gitman J. Lawrence (2005) Principles of Managerial Finance. 11th edition. London, Addison Wesley. Lumby S. and C. Jones (2003) Corporate Finance Theory and Practice. 7th edition. Stamford, Thomson Learning. Penman, S.H. (2007) Financial Statement Analysis and Security Valuation. Third Edition, McGraw-Hill. plus additional references and notes as seen at each WEEK OUTLINE WEEK #1 Introduction to managerial finance, its role and environment and basic quantitative aspects An introduction to the basic concepts of managerial finance identifying the managers key objectives, discussing the fundamentals of the agency issue, the role of ethics and the importance of corporate governance. Also, basic quantitative aspects required in the modern corporate financial environment will be discussed. Recommended Reading Main textbook: chapters 1-4, 15, 30. Relevant chapters from additional recommended reading. Further Reading Altman, E. (2000) Predicting Financial Distress of Companies: Revisiting the Z-score and ZETA models, Stern School of Business School, Working Paper, July. Brounen, D., A. DeJong, and K. Koedijk. (2004) Corporate Finance in Europe: Confronting theory with practice. Financial Management, 33 (4), p. 71-101. Demirg-Kunt, A. and V. Maksimovic (1998). Law, finance and firm growth. Journal of Finance, 53, 6, p. 2107-37. Graham, G.R., and Harvey, C.R. (2001) The theory and practice of corporate finance: Evidence from the field. Journal of Financial Economics, 60, 187-243. Shleifer, A., and R.W. Vishny, (1997) A survey on corporate governance. Journal of Finance, 52 (2), p. 737-783. WEEK #2 Capital budgeting and investment decisions Syllabus: Code EMBA

204 Unit Title : Corporate Financial Management 3 Introducing the capital budgeting techniques, discussing their pros and cons in making investment decisions, and analyzing the preference for the use of Net Present Value rule. Recommended Reading Main textbook: chapters 5, 6, 31. Relevant chapters from additional recommended reading. Further Reading Ross, A.S. (1995) Uses, abuses and alternatives to the Net-Present-Value rule. Financial Management, 24 (3), p. 96-102. Ryan, P.A., and P.G. Ryan. (2002) Capital budgeting practices of the Fortune 1000: How have things change?. Journal of Business & Management, 8 (4), p. 355-364. WEEK #3 Valuation principles of bonds and stocks Reviewing the theories and techniques behind bonds and common stock valuation. Recommended Reading Main textbook: chapters 8, 9. Relevant chapters from additional recommended reading. Further Reading Frankel, R. and C. M.C. Lee. (1998) Accounting valuation, market expectation, and crosssectional stock returns. Journal of Accounting and Economics, 25, 283-319. Gebhardt, R.W., C.M.C. Lee and B. Swaminathan. (2001) Towards and implied cost of capital. Journal of Accounting Research, 39 (1), p. 135-76. Leibowitz,, M.L., and S. Kogelman. (1990) Inside the P/E ratio: the Franchise Factor. Financial Analysts Journal, 46 (6), p. 17-35. WEEK #4 Fundamentals of corporate debt, capital structure and dividend policy Analysing the effect of leverage on a firms value and the determinants of capital structure. Reviewing the theories related to firms dividend policy decisions. Recommended Reading Main textbook: chapters 16, 17, 19. Relevant chapters from additional recommended reading. Further Reading Baker, H.K., Farrelly, G.E., Edelman, R.B. (1985) A survey of management views on dividend policy. Financial Management, 14 (3), p. 78-84. Benartzi, S., Michaely, R. and R. Thaler. (1997) Do changes in dividends signal the future or the past?. Journal of Finance, 52 (3), p. 1007-1034. Harris, M. and A. Raviv. (1991) The theory of capital structure. Journal of Finance, 46 (1), p. 297-355. Rajan R. G. and L. Zingales. (1995) What do we know about Capital Structure: Some Evidence from International Data. Journal of Finance, 50 (5), p. 1421-1460. WEEK #5 Case studies on capital structure Syllabus: Code EMBA 204

Unit Title : Corporate Financial Management 4 Discussing cases on the determination of optimal capital structure in a real world setting. Recommended Reading Case: Evaluating Tampas capital structure. Case: The Pizza case. Main textbook: chapters 13, 16, 17. Relevant chapters from additional recommended reading. WEEK #6 Corporate finance and fundamentals of risk management Discusses the fundamentals of managing and hedging risk in the modern corporate environment. Recommended Reading Main textbook: chapters 22-25, 31. Case: Dodge goes internationally. Case: The Baker case. Relevant chapters from additional recommended reading. Further Reading Finnerty, D.J. (1988) Financial Engineering in Corporate Finance: An overview. Financial Management, 17 (4), p.14-33. Smithson, C., and Simkins, B.J. (2005) Does risk management add value? A survey of the evidence. Journal of Applied Corporate Finance, 17 (3), p. 8-17. WEEK #7 Efficient markets, behavioral finance and security issuance Introducing students to the efficient markets issues, linking it to behavioral finance. Also, a discussion on how companies issue securities will be offered. Recommended Reading Main textbook: chapters 14, 20. Relevant chapters from additional recommended reading. Further Reading DeBondt, W. and R. Thaler.(1985) Does the Stock Market Overreact?, Journal of Finance 40, p. 793805. Espenlaub, S., Goergen, M. and A. Khurshed (2001) IPO Lock-in Agreements in the UK, Journal of Business Finance and Accounting, 28 (9&10), p. 12351278. Hirshleifer, D. (2001) Investor Psychology and Asset Pricing, Journal of Finance 56 (4), p.1533-1597. WEEK #8 Reflection and Consolidation Topic of discussion: What we know and what we dont know about finance. WEEK #9 Mergers-Acquisitions (M&A) and Corporate restructuring Syllabus: Code EMBA 204 Unit Title : Corporate Financial Management 5 Understanding merger fundamentals and terminology, analysing the types of mergers and the motivation behind them. Also, issues on corporate restructuring will be discussed. Recommended Reading

Main textbook: chapter 29. Relevant chapters from additional recommended reading. Further Reading Agrawal, A. and Jaffe, J.F. (2003) Do takeover targets underperfom? Evidence from operating and stock returns. Journal of Financial and Quantitative Analysis, 38 (4), p. 721-746. Smith, J.S. (2005) How to make a decision about mergers and acquisitions. Journal of Business Forecasting, 24 (2), p. 11-16. WEEK #10 Case studies on M&A Discussing cases on the mechanics behind the valuation of a target and the structuring of a deal. Recommended Reading Case: The Birdie golf-Hybrid golf merger. Case: The Timken case. Main textbook: chapters 4, 5, 9, 29. WEEK #11 Capital budgeting decisions under uncertainty Introducing the concept of risk in capital budgeting decisions and discussing its practical problems. Recommended Reading Main textbook: chapters 7, 11, 13. Relevant chapters from additional recommended reading. Further Reading Bailes, J.C., and Nielsen, J.F. (2001) Using decision trees to manage capital budgeting risk. Management Accounting Quarterly, 2 (2), p. 14-17. Chadell-Hatfield, P., Goitein, B., Horvath, and Webster, A. (1996) Financial criteria, capital budgeting techniques and risk analysis of manufacturing firms. Journal of Applied Business Research, 13 (1), p. 95-104. Jaganathan, R., and I. Meier. (2002) Do we need CAPM for capital budgeting?. Financial Management, 31 (4), p. 55-77. Vintil, N. (2007) Real Options in Capital Budgeting. Pricing the Option to Delay and the Option to Abandon a Project. Theoretical and Applied Economics, 7(7), p. 47-58. WEEK #12 Case studies on capital budgeting and valuation and unit overview The case studies aim to provide the tools used by corporate managers to implement business forecasting and decision making in a real world setting. Case: Mars mining company. Case: Aurora textile.