Course Description

This course aims to introduce students to the tools and techniques of financial management and their use in managerial decision-making. The course emphasizes the understanding of finance theory and working knowledge of the financial environment, in which the firm operates to develop appropriate financial strategies. Hence, it covers a range of finance concepts such as cost of capital, capital structure, dividend policy, and merger and acquisitions.

Course Objectives

1.      Showing how to combine the various costs for a target financing mix that reflects the firm's desired capital structure proportion.

2.      Review the return and risk of alternative capital structures and their linkage to market value.

3.      Describe the basic types of capital and capital structure theory.

4.      Address the different theories about the effect of dividend policy on firm value.

5.      Describe the merger fundamentals.