Advanced Corporate Finance Case
[pic 1]Course Outline Batch: 2013-15 Term: IIICourse: Advanced Corporate Finance Credits: 3 Course Instructors: Dr Vipul Kumar Singh (2 credits)/ Dr Kulbir Singh (2 credits)/ /Prof S Shanbhag (1 credit) Objectives of the course: The prime thrust of this course is to show how financial theory can be applied to solve problems in practice, relate theory to practice. This course also builds familiarity with the analytical techniques helpful in decision making. The course has been designed to provide learners the right mix of theoretical and practical inputs to equip them with critical skills to stay ahead in their profession in the years to come. The Advance Corporate Finance course focuses at introducing the students about the various aspects of corporate finance which facilitates the decision making domain pertaining to financing, investment and dividend decisions.
Course OutlineModule I Working Capital ManagementInventory ManagementReceivables and Payables ManagementCash ManagementShort-term Funding and money market instrumentsModule IICorporate Governance and Ownership Structure (India and various other countries)Mergers and AcquisitionsFinancial DistressMultinational Finance ManagementModule IIILong Term Sources of FundingCapital Structure decisions and theoriesDividends and stock repurchaseDividends and firm value modelsLearning Outcomes (LOC) On successful completion of Corporate Finance II Course, the students will be able toEvaluate issues related to working capital of a firm and apply the tools of working capital management.Have comprehensive application of capital structure and dividend related issuesApply basic methods of arriving at capital structure and dividend distribution decisionsAssess a company’s value in terms of financial risk through various data sourcesInterpret the importance of distribution of dividend and retention of earnings at the interest of the share holdersDifferentiate the strategies of various firms to distribute dividend or retain earnings based on the nature of the firm, need for capital, existing capital structure and target capital structure.Diagnose the strategic issues related to internal and external factors of a firm for its survival and growth.Evaluate financial health of a company based on financial statementsAssess various alternatives for a distressed firmIdentify the potential threats and benefit for a company to become globalBasic Text – Smart e-BookCorporate Finance, Ross, Westerfield & Jaffe, Tenth Edition, Smart e-Book, McGraw Hill.Reference BooksFinancial Management- Theory and Practice, Brigham and Erhardt, Cengage.Brealy, R A, Myers, S.C, Allen, F, and Mohanty, P. (2007), Principles of Corporate Finance, Tata McGraw Hill, India.Brigham, E. F. and Houston, J. F. (2007), Fundamentals of Financial Management, Thomson, India.Chandra, P. (2008), Financial Management – Theory & Practice, Tata McGraw Hill, India.Damodaran, A. (2007), Corporate Finance, Wiley, India.Khan, M. Y. and Jain, P. K. (2011), Financial Management – Text, Problems and Cases, Tata McGraw Hill, India.Megginson, W. L., Smart, S. B. and Gitman, L. J. (2007) Principles of Corporate Finance, Cengage, India. Pandey, I. M. (2007), Financial Management, Vikas Publications, India.Parrino, P and Kidwell (2009), Fundamentals of Corporate Finance, Wiley, India.Ross, F., Westerfield, R. W., Jaffe, J. and Kakani, R. K. (2009), Corporate Finance, 8th Edition, Tata Mc Graw Hill, India. Van Horne, J. C. (2008), Financial Management and Policy, Pearson, IndiaVan Horne, J. C. and Wachowicz, J. M. (2009),Fundamental of Financial Management, PHIVan Horne, J. C. and Dhamija, S. (2012), Financial Management and Policy, Pearson, India.E-resources/databases:-Through IMT’s Library Portal on 10.40.0.25BloombergProwessCapital LineMoodleEbscoProquestHBRSession PlanSession NoTopicPedagogy Pre class preparation details for students(Chapters are from Smart Book, Notes & PPT’s will be provided by the concerned Faculty)Module I (Dr Vipul Kumar Singh)1Basics of Working Capital Management Case – Dell’s Working CapitalChapter 26, Notes & PPT’s2Tandon Committee – Maximum Permissible Bank FinanceNumericalFaulty Notes3Operating Working Capital Management- Cash Conversion CycleTheory & NumericalChapter 26 & 28, Notes & PPT’s4Basics of Inventory Management, Just in Time Inventory, The Economic Order Quantity ModelTheory & NumericalChapter 28, Notes & PPT’s5Receivables & Payables Management – Costs of Credit &The Cost of DiscountsTheory & NumericalChapter 26 & 28, Notes & PPT’s6Monitoring Accounts Receivable & Analyzing a Change in Credit and Collection PoliciesTheoryChapter 28, Faculty Notes & PPT’s7Basics of Cash Management – The Baumol Model & The Miller-Orr ModelTheory & NumericalChapter 27, Notes & PPT’s8Cash Management Practices in Companies, Short Term Funding and Money market instruments, Unsecured FinancingTheoryChapter 26 & 27, Notes & PPT’s9Costs of Short-Term Financing, Trade Credit & Cost of Trade CreditTheory & NumericalChapter 26, Notes & PPT’sModule II (Dr Kulbir Singh)10Corporate Governance and Ownership Structure (India and various other countries)Theory Faculty Notes & PPT’s11, 12&13Mergers & AcquisitionsTheory & Case discussionChapter 2914,15& 16Financial DistressTheory Chapter 3017&18Multinational Financial ManagementTheory & NumericalChapter 31Module III (Prof S Shanbhag)19Capital structure basics and theoriesTheoryChapter 1620&21Capital structure decisions and practices Theory & Case discussionChapter 17 & 1822Dividends and stock repurchaseTheory & NumericalChapter 1923Guest lecture 1 (Section A&B)24Guest lecture 2 (Section C&D)25Guest lecture 3 (Section E&A)26Guest lecture 4 (Section B&C)27Guest lecture 5 (Section D&E)*Session plan is indicative only; it may change depending on the learning speed of the class