Corporate Finance

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1. INTRODUCTION                                                                                                     3 hours

Corporate Objectives, Wealth Maximization - profit maximization, social welfare and corporate growth, Impediments to Wealth Maximization, Financial Market - Money Market and capital market

2. FINANCIAL STATEMENT ANALYSIS                                                                        7 hours

Common size statement and comparative statement, ratio analysis and financial forecasting.

3.CAPITAL BUDGETING                                                                                              7 hours

Overview of Capital Budgeting, Techiques of Evaluation Investments - Return on Investment, Income Based method - Accounting rate of return method, Nominal cash flow based method - Payback period, Discounted cash flow methods - Discounted payback period, NPV, IRR, Benefit cost ratio, Modified IRR, Risk capital budgeting - Sensitivity analysis, Capital Budgeting and Corporate Strategy

4. PROJECT FINANCING                                                                                              5 hours

Introduction, Sharing of risk, Agency cost of debt, Free cash flow, Types of project contracts, Financial agreements, Public- Private partnerships (PPP), Funding aspects, Project feasibility studies

5. MERGERS AND ACQUISITIONS                                                                               3 hours

Types of mergers, rationale of mergers, gains from mergers, Target valuation, Valuation by Parts, Seller's perspective, Critical factors for success of merger.  

6. VALUATION OF CORPORATE BONDS                                                                    4 hours                      

Basics of Debt instruments, Valuation of bonds - Price, coupon and yield relationships, yield to Maturity, bond pricing theorems, Valuation of stocks - Dividend discount model - Constant growth model and Two- stage Growth model, P/E Valuation Model

7. ECONOMIC VALUE ADDED AND CORPORATE PERFORMANCE                           4 hours

Concept, Competitors of EVA, Functional Departments of a Co. as EVA centres, EVA and MVA, EVA and NPV, EVA and TQM and Shareholders wealth, Improving EVA.