This course introduces concepts and analytical techniques that financial managers should use when making investment and financing decisions with the ultimate goal of maximizing the wealth of shareholders. It covers the concepts of time value of money, asset valuation, risk and return paradigm, capital budgeting, financing, and payout decisions. These topics lay the foundation for more advanced finance courses.

After completing this course, the student will be able to:

1. Explain the goals governing a firm’s financial decisions.
2. Perform time-value calculations by using financial mathematics.
3. Apply various valuation models to value long-term debt, preference shares and ordinary shares.
4. Explain the importance, role and techniques of capital budgeting in a firm.
5. Measure risk and return.
6. Distinguish between diversifiable and non-diversifiable risk.
7. Use the Capital Asset Pricing Model (CAPM) and apply skills in estimating cost of equity.
8. Describe the concept of market efficiency and distinguish between different categories of market efficiency.
9. Explain the effects of financial advantage, and the factors underlying the selection of target capital structures.
10. Discuss theories and issues related to dividend policy.

1. Introduction to managerial finance
2. Discounted cash flow valuation
3. Firm financial decision
4. Time value of money
5. Bond and stock valuation
6. Risk analysis and measurement
7. Cost of equity
8. Measure of return
9. Market efficiency
10. Financial leverage
11. Capital structure
12. Dividend policy

Ross, S.A., Westerfield, R.W., Jaffe, J., (2019). Corporate Finance, 10^th Edition. McGraw-Hill Irwin, New York .

Brealey, R. A., & Myers, S. C. (2010). Principles of corporate finance (global ed. of 10^th rev. ed.). New York, NY: McGraw Hill Higher Education‏