EPOKA UNIVERSITY
FACULTY OF ECONOMICS AND ADMINISTRATIVE SCIENCES
DEPARTMENT OF BANKING AND FINANCE
COURSE SYLLABUS
COURSE INFORMATIONCourse Title: FUNDAMENTALS OF CORPORATE FINANCE |
| Code | Course Type | Regular Semester | Theory | Practice | Lab | Credits | ECTS |
|---|---|---|---|---|---|---|---|
| BAF 233 | B | 3 | 3 | 0 | 0 | 3 | 5 |
| Academic staff member responsible for the design of the course syllabus (name, surname, academic title/scientific degree, email address and signature) | NA |
| Lecturer (name, surname, academic title/scientific degree, email address and signature) and Office Hours: | Agim Kukeli , E-304 stop by or email for an appointment |
| Second Lecturer(s) (name, surname, academic title/scientific degree, email address and signature) and Office Hours: | NA |
| Teaching Assistant(s) and Office Hours: | NA |
| Language: | English |
| Compulsory/Elective: | Compulsory |
| Classroom and Meeting Time: | A/128: Thursday 11:30 - 14:15 |
| Course Description: | BAF 233 - Fundamentals of Corporate Finance: Finance function and role of financial manager, financial statements and analysis, cash flow concept, time value of money, risk versus return with a consideration of liquidity, financial forecasting, planning and control, working capital policy, current asset management, capital budgeting and related techniques. |
| Course Objectives: | The primary objective of this course is to familiarize the student with basic concepts of corporate finance which is the life blood of any business and its various decision variables in the areas of financing, investment and dividend decisions. This course will introduce you to the theories and techniques of managing capital resources and uses within the framework of shareholder wealth maximization. A substantial part of the course is devoted to the proper methods of computing cash flows and determining market values. In addition, we will examine the sources of capital available to businesses and learn how to allocate assets efficiently |
|
COURSE OUTLINE
|
| Week | Topics |
| 1 | Review of Syllabus: Introductory review of the course |
| 2 | Overview of Corporate Finance |
| 3 | Financial Statements, Taxes and Cash Flow |
| 4 | Working with Financial Statements |
| 5 | The Time Value of Money |
| 6 | Discounted Cash Flow Valuation |
| 7 | Interest Rate and Bond Valuation |
| 8 | Midterm Exam |
| 9 | Equity Markets and Stock Valuation |
| 10 | NPV and Other Investment Criteria |
| 11 | Making Capital Investment Decisions |
| 12 | Some Lesson from Capital Market History |
| 13 | Risk and Return |
| 14 | Cost of Capital |
| Prerequisite(s): | |
| Textbook: | Essentials of Corporate Finance, Stephan A. Ross, Randolph W. Westerfield and Bradford D. Jordan, McGraw-Hill 9th edition. |
| Other References: | Fundamentals of Corporate Finance, Brealey, Myers and Marcus (any edition) |
| Laboratory Work: | - |
| Computer Usage: | Yes |
| Others: | No |
|
COURSE LEARNING OUTCOMES
|
| 1 | Understand the fundamental principles of corporate finance |
| 2 | Understand financial statements, taxes, cash flows and how to work with financial statements |
| 3 | Understand the ideas behind the time value of money and be able to calculate the value of cash flows for different financial instruments |
| 4 | Learn how to apply some very important methods like NPV, IRR and payback period used in capital budgeting |
| 5 | Analyze a range of real-life financial situations using the concepts, frameworks and theories learned throughout the course |
|
COURSE CONTRIBUTION TO... PROGRAM COMPETENCIES
(Blank : no contribution, 1: least contribution ... 5: highest contribution) |
| No | Program Competencies | Cont. |
| Bachelor in Business Administration (3 years) Program | ||
| 1 | 1. Identify activities, tasks, and skills in management, marketing, accounting, finance, and economics. | 4 |
| 2 | 2. Apply key theories to practical problems within the global business context. | 4 |
| 3 | 3. Demonstrate ethical, social, and legal responsibilities in organizations. | 3 |
| 4 | 4. Develop an open minded-attitude through continuous learning and team-work. | 3 |
| 5 | 5. Use technology to enable business growth and sustainability. | 5 |
| 6 | 6. Analyze data to make effective decisions. | 5 |
|
COURSE EVALUATION METHOD
|
| Method | Quantity | Percentage |
| Midterm Exam(s) |
1
|
20
|
| Lab/Practical Exams(s) |
10
|
2
|
| Final Exam |
1
|
30
|
| Attendance |
10
|
|
| Other |
10
|
2
|
| Total Percent: | 100% |
|
ECTS (ALLOCATED BASED ON STUDENT WORKLOAD)
|
| Activities | Quantity | Duration(Hours) | Total Workload(Hours) |
| Course Duration (Including the exam week: 16x Total course hours) | 16 | 3 | 48 |
| Hours for off-the-classroom study (Pre-study, practice) | 16 | 3 | 48 |
| Mid-terms | 1 | 10 | 10 |
| Assignments | 0 | ||
| Final examination | 1 | 15 | 15 |
| Other | 4 | 1 | 4 |
|
Total Work Load:
|
125 | ||
|
Total Work Load/25(h):
|
5 | ||
|
ECTS Credit of the Course:
|
5 | ||