COMSATS Institute of Information Technology, Department of Management Sciences

Course Title: Course Code Advanced Financial Management MGT 532

Credit Hours:

3 Hours

Instructor Class Day & Timings Office Hours Phone No Email

Advanced Financial Management: Policy & Practice

Course objective: The objective of this course is to show that how a rich body of financial theory can be applied to corporate decisions and policy making, whether it be strategic, analytical or simply the routine decision making of financial managers in day to day operations. Advanced Financial Management theory encompasses almost all the major policy making issues of the corporate finance, public sector finance and to some extent personal finance matters.

Text book: James C. Van Horne (2002) Financial Management & Policy, Twelfth Edition, Prentice Hall, New Jersey USA

Essential Readings: 1. Van Horne & Wachowicz, JR (Latest Edition) Fundamentals of Financial Management, Prentice Hall New Jersey USA 2. Eugene Brigham (Latest Edition) Fundamentals of Financial Management, Prentice Hall New Jersey USA 3. Lawrence Gitman, (Latest Edition) Principles of Managerial Finance, Harper Collins, New York USA 4. Arther Keown & J. William Petty Basic Financial Management, New Jersey USA Reference Books: 1. Dr. Hazel Johnson, (latest edition) Determining Cost of Capital, Financial Times, Prentice Hall UK 2. Douglas R. Emery & John D. Finnerty, Corporate Financial Management, Available edition, Prentice Hall New Jersey USA 3. Cheng Lee & Joseph Finnerty, Corporate Finance: Theory, Methods and Applications, International edition, Harcourt Brace Jovanovich Publishers, New York, USA 4. Emery, Douglas R., Corporate Financial Management, Prentice Hall New Jersey USA

5. Zvi Bodie & Robert C. Merton, Finance, Prentice Hall New Jersey USA 6. S. Kerry Cooper & Donald Fraser, The Financial Market Place, Addison Wesley Company, New York, USA 7. David Eiteman & Arthur Stonehill, Multinational Business Finance, Addison Wesley Company, New York, USA Important Notes: 1. Most of the books are available in the COMSATS library and Instructors office. Students are not restricted to these books only. Students are advised to start with the books that are most familiar to them specially their Masters level books. 2. Students will have to search for the articles from research journals on each topic and discuss and present in the class. These articles will be highly weighted. Methodology: 1. 2. 3. 4. Lectures Research Articles, Discussions & Presentations Assignments Exams

Scheme of Topics to be Covered

Topic 1: Goals and Functions of Finance (Chapter 1 from Van Horne-Advance; Chapter 1-2 from Van Horne-Fundamentals; Chapter 1-2 from Gitman; Chapter 1-2 from Cheng Lee) Concepts in Valuation (Chapter 2 from Van Horne-Advance; Chapter 3 from Van Horne-Fundamentals; Chapter 5-7 from Gitman; Chapter 3-4 from Cheng Lee Chapter 4 from Keown) Market Risk and Returns (Chapter 3 from Van Horne-Advance; Chapter 6-7 from Douglas Emery Chapter 5 from Van Horne-Fundamentals; Chapter 6 from Gitman; Chapter 6 from Keown & Scott Chapter 10, 11, 12, 13 from Zvi Bodie)

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Option Valuation (Chapter 5 from Van Horne-Advance; Chapter 14, 15, 16 from Zvi Bodie Chapter 8, 9, 26 from Douglas Emery Chapter 14 from Gitman) Principles of Capital Investments (Supplementary - Topic) (Chapter 5 from Van Horne-Advance) Risk and Real Options in Capital Budgeting (Chapter 7 from Van Horne-Advance; Capital Budgeting chapters from reference books listed above) Creating Value through Required Return (Chapter 8 from Van Horne-Advance; Chapter 5-7 from Gitman Chapter 3-5, 15 from Van Horne-Fundamentals Chapter 1-5 from Johnson Chapter 14, 15, 16 from Zvi Bodie) Theory of Capital Structure (Supplementary - Topic) (Chapter 5 from Van Horne-Advance) Making Capital Structure Decisions (Chapter 10 from Van Horne-Advance; Chapter 15-18 from Douglas Emery Chapter 17-19 from Zvi Bodie Chapter 15-18 from Van Horne-Fundamentals Chapter 10-11 from Gitman) Dividends and Share Purchases: Theory and Practice (Chapter 11 from Van Horne-Advance; Chapter 15-18 from Van Horne-Fundamentals Chapter 14-18 from Douglas Emery Chapter 7-10 from Zvi Bodie Chapter 12-14 from Gitman) Financial Ratio Analysis (Supplementary - Topic) (Chapter 12 from Van Horne-Advance) Liquidity and Working Capital Management (Supplementary Topic) (Chapter 14-16 from Van Horne-Advance)

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Foundations of Longer Term Financing (Chapter 17 from Van Horne-Advance; Chapter 12-14 from Gitman Chapter 17-19 from Zvi Bodie Chapter 19-21 from Van Horne-Fundamentals Chapter 23-26 from Douglas Emery) Issuing Securities (Chapter 19 from Van Horne-Advance; Chapter 7-15 from Zvi Bodie Chapter 6-8 from Keown Chapter 19-21 from Van Horne-Fundamentals Chapter 23-26 from Douglas Emery) Fixed Income Financing and Pension Liability (Chapter 20 from Van Horne-Advance; Chapter 21-22 from Douglas Emery Chapter 18-19 from Zvi Bodie) Managing Financial Risk (Chapter 22 from Van Horne-Advance; Chapter 10-13 from Zvi Bodie Chapter 23-26 from Douglas Emery) Merger and Market for Corporate Control (Chapter 23 from Van Horne-Advance; Chapter 19 from Gitman Chapter 17 from Zvi Bodie Chapter 28 from Douglas Emery Chapter 21 from Keown) Corporate and Distress Restructuring (Optional) (Chapter 24 from Van Horne-Advance; Chapter 21 from Keown Chapter 19 from Gitman Chapter 17-19 from Zvi Bodie Chapter 27-29 from Douglas Emery)

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