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MBA Programme

Financial Decision Making


(Credit Hours 3)

COURSE INTRODUCTION
This course is designed to acquaint the participants with pivotal aspects and issues in
finance. This course starts with comprehensive introduction of financial world and leads to
participants to extremely analytical aspects in the perspective of domestic and global
financial environments. Emerging scenarios in finance are astonishingly innovative and
embarrassingly complex but excessively rewarding. Exhaustive debates on financial issues
will prepare students for intelligent decisions in the global dynamic marketplace.
COURSE OBJECTIVES
At the end of this course, students will be able to:

Assess the impact of interest rates on business decisions

Demonstrate an understanding of the concepts of portfolio theory and competence in


calculating portfolio returns and risk

Understand the applicability of the Capital Asset Pricing Model to share valuation

Determine whether shares are under/overvalued

Understand the advantages and disadvantages of the most commonly used methods
of investment evaluation

Differentiate between the various costs of capital and calculate these costs

Understand the importance of capital structure in decision making

Recognize the impact of dividend policy for companies

COURSE CONTENTS
MID TERM.

Theoretical and empirical Study of corporate financial policies and strategies


particularly those non financial firms defined in rational, economic terms

Theory in relation to financial decisions made by specific firms; and Real-World


Focus highlights numerous articles from the financial press, providing insights from
practitioners' points of view

Empirical Perspectives on the Financial Characteristics of Publicly Traded U.S. Non


financial Firms

Valuation and Financing Decisions in an Ideal Capital Market, Separation of


Ownership and Control, Principal Agent Conflicts and Financial Policies

Information Asymmetry and the Markets for Corporate Securities, the Roles of
Government, Securities Markets, Financial Institutions, Ownership Structure, Board
Oversight and Contract Devices
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The Leverage Decision, Analysis of the Firm, the Valuation of Equity and Debt.

Industry Analysis and Financial Policies and Strategies the Firm's Environment,
Governance, Strategy, Operations, and Financial Structure Market Efficiency, Event
Studies, Cost Of Equity Capital and Equity Valuation

FINAL TERM.

Private Equity and Venture Capital, Initial Public Offerings of Stock, Managing
Internal Equity and Seasoned Equity Offerings

Dividend Policy and Stock Repurchases

Corporate Liabilities: Strategic Selections of Lenders and Contract Terms

Mergers, Acquisitions, Takeovers, and Buyouts, Financial Distress and Restructuring,


Debt Restructuring, Being Acquired, Bankruptcy, Reorganization and Liquidation

Organizational Architecture, Risk Management and Security Design

Contemporary and emerging issues in the global financial markets, Global financial
risks, rewards and strategies, managing financial risk through hedging, swaps &
futures

International Financial Management, Types of exposures, currency market hedges &


structuring international trade transactions

ASSESSMENT
Mid Term Examination
Final Examination
Preparation and Presentation of Business Case
Class participation, Quizzes

30%
50%
20%

*Assessment will be according to the University policy.


COURSE POLICY
The Professor reserves the right to make any changes in the course contents
considering latest developments in the field.
Plagiarism, cheating or any other form of dishonesty will result in a course grade F
regardless of any other performance consideration.
Assignments must be submitted on the due date.
Recommended text book is a reference book. Additional topics based on research
work and international experience of the concerned Professor will also be discussed
in the class. The students are free to consult other books on Financial Decision
Making.
Please take notes of discussions in the class room.
Practicable creative and innovative ideas during the class room discussion and in the
quizzes and business case will be highly appreciated.
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CLASS DISCIPLINE
Please be attentive and listen carefully.
Do not talk to class mates when class is in session.
At the close of the class, be seated quietly and wait for the Professor to leave the class
first.
Cell phones must be either powered off or on silence mode. If there is an urgent call
to attend you may go out without disturbing others.
Students must come and leave on time
TEXT BOOK
Advanced Corporate Finance, Latest Edition by Joseph Ogden, Frank C. Jen, Philip F.
O'Connor
Reference Book:
Financial Management & Policy, Latest Edition by James C. Van Horne

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