NORTH SOUTH UNIVERSITY

Center of Excellence in higher Education

The first private university in Bangladesh
School of Business
Department of Accounting & Finance

BASIC INFORMATION
Course Name: Corporate Finance
Course Code
FIN440.Section: 7
& Section No:
Semester: Summer 2016

INSTRUCTOR & DEPARTMENT INFORMATION

1. Instructor Name: Ahmed Ameya Prapan
2. Office Room: NAC 757
Sunday / Tuesday : 11:10 am – 1:10 pm
3. Office Hours:
Monday / Wednesday: 11:10am- 12:10 pm
4. Office Phone: +880255668200
5. Email Address: ahmed.prapan@northsouth.edu
6. Department: Department of Finance & Accounting
Website : ppnnsu.weebly.com
7. Links:
Facebook Group : Ppn Nsu (Student Group)

COURSE INFORMATION
Class Time & MW 9:40am -11.10 am
Location NAC 993
Course FIN254, ACT201 ,BUS172. Students are strongly suggested to revise FIN254 materials
Prerequisite(s) thoroughly.
Course Credit Hours 3.0

Course Description This course examines in details investment and financing, and their interrelatedness. The
overall goal is to obtain a comprehensive and in-depth perspective of the area of
Corporate Finance. Major topics include financial analysis and planning, valuation, capital
budgeting, capital structure, dividend policy, working capital management, mergers and
acquisition, hybrid financing, bankruptcy, multinational financial management, and risk
management. Special emphasis is given on integration of the concepts of financial
management into a total systems approach to business decision-making.
Course This course is designed to provide students with a deeper understanding of how firms
Objectives finance, invest and manage themselves in the `real world'. In FIN254, we typically assume
that financial markets are perfect. In practice, firms face a variety of market
imperfections. For example: flotation costs for equity is considerably higher than for
debt; firms sometimes face significant costs in raising capital; shareholders cannot
constantly supervise managers; certain expenses can be claimed as tax deductions
whereas others cannot etc. After completing this course, you will better understand how
shareholders try to maximize the value of their stake in the firm given such market
imperfections. In this course we will mainly be discussing analysis of financial statements
including financial planning, capital budgeting, valuation, capital structure, and payout
policy.
Student Learning Upon the successful completion of this course, a student will be able to:
Outcomes (1) Analyze financial statements using vertical, horizontal, and standard financial ratios to
 determine a firm’s strengths and weaknesses, and be able to use the analysis to improve
performance. Apply techniques to project financial statements for forecasting long-term
financial needs.
(2) Demonstrate proficiency in valuation techniques. Apply future value and present
value concepts to single sums, mixed streams, annuities, and perpetuities. Describe what
determines the value of a firm’s securities and how management can influence these
values.
(3) Apply the concept of risk, its measurement for single assets and portfolios, various
types of risk, the source and use of betas, and the CAPM and SML. Apply techniques for
estimating the cost of each component of the cost of capital and understand how to
assemble this information into a cost of capital.
(4) Use Financial Statements to obtain Free Cash Flows for the firm and equity holders.
Identify relevant cash flows, discuss various methods for evaluating capital budgeting
projects, how to apply them, and what to do if there are conflicting recommendations.
(5) Understand how a firm influences its leverage, and how leverage affects a firm. Apply
measures of cost of capital and financial leverage to form long-term financial policies for
business. Describe the common factors influencing dividend policy.

REQUIRED TEXT BOOK

Author Title Edition & Year Publisher ISBN
Stephen A. Ross, Fundamentals of
9th Ed. – 2012-13
Randolph Westerfield Corporate Finance McGraw Hill 978-0-07-018334-6
Bradford D. Jordan (Alternate Edition)

REFERENCE TEXT BOOK

Author Title Edition & Year Publisher ISBN
Arthur J. Keown Financial
John H. Martin Management: Pearson
10th Ed. – 2005 0131450654
John W. Petty Principles and Prentice Hall
David F. Scott Applications

TEACHING STRATEGY
The class will be conducted through various activities including presentation of concepts and situations,
discussion and exchanges of ideas, student initiative and active involvement, cases reflecting real world context,
and project. Students are expected to actively involve and to take initiative for their own learning experience.

ASSESSMENT STRATEGY AND GRADING SCHEME

Grading tool/assessments Points/Percentages
First Midterm 20%
Second Midterm 20%
Final Exam (Comprehensive) 25%
Course Project (Group) 20%
Quizzes (5 Quizzes) 10%
Attendance and Class Participation 5%
Total 100%

NSU Grading Policy will strictly be followed!

CLASSROOM RULES OF CONDUCT

1. You may use your laptops in the class for class related work. Do not use your laptop for non-class related
 work or in any manner that will be distracting to other students or the instructor.

2. Use of cell phones in class is not permitted.

3. Students are advised to frequently refer to the Student Handbook of North South University on the
following link:

4. Academic Integrity Policy:

School of Business does not tolerate academic dishonesty by its students. At minimum, students must not be
involved in cheating, copyright infringement, submitting the same work in multiple courses, significant
collaboration with other individuals outside of sanctioned group activities, and fabrications.

Students are advised that violations of the Student Integrity Code will be treated seriously, with special
attention given to repeated offences.

LATE ASSIGNMENT POLICY

Promptness is a highly valued attribute in the workplace. Assignments or class work are designed to help
students prepare for exam. Assignment and class work must be submitted in time. No provision for Late
submission.

QUIZ POLICY
You are expected to attend all quizzes. There will be at least four quizzes of which best three will be counted for
the grading. There is no provision for makeup quizzes.

GROUP PROJECT POLICY

Each group (between 2-5 students) will submit a final report consisting of 3000 words (hard copy and electronic
copy). More details about the structure, components, time and criteria for assessment of the project will be
announced during the semester.

EXAMS & MAKE UP POLICY

In order to complete the course, students must sit for the exams. There will be three examinations.
Make-up exams are not given unless there is a major circumstance preventing the student from sitting in the
exam (official material evidence is required). If granted by the instructor, the students will be allowed to sit for a
comprehensive exam during his/her final exam. Remember the comprehensive exams will be significantly harder
than the regular exams.
Cell phones are prohibited in exam sessions.

ATTENDANCE POLICY
Students are required and expected to attend all classes and participate in class discussions. North South
University mandates to fail students who are absent 25% or more from their classes, even if such absences are
excusable.

COMMUNICATION POLICY
All communications should take place using the instructor’s email. Announcements in the Whiteboard will
override any statement made here or in any other handouts. It is the student’s responsibility to be aware of any
announcements made via Whiteboard.

APPROPRIATE USE POLICY

All members of the North South University community must use electronic communications in a responsible
 manner. The University may restrict the use of its computers and network systems for electronic
communications subject to violations of university policies/codes or local laws or national laws. Also, the
university reserves the right to limit access to its networks through university-owned or other computers, and to
remove or limit access to material posted on university-owned computers.

STUDENTS SUPPORT AND LEARNING RESOURCES

A. SOB-Learning Center:
B. The University Student Learning Support Center (SLSC): These centers provide academic support services to
students at NSU. The SLSC is a supportive environment where students can seek assistance with academic
coursework, writing assignments, transitioning to college academic life, and other academic issues. SLSC
programs include: Peer Tutoring, the Writing Lab, Writing Workshops, and Academic Success Workshops.
Students may also seek confidential academic counseling from the professional staff at the Center.

STUDENTS COMPLAINTS POLICY

Students at North South University have the right to pursue complaints related to faculty, staff, and other
students. The nature of the complaints may be either academic or non-academic. For more information about
the policy and processes related to this policy, you may refer to the students’ handbook.

STUDENTS WITH SPECIAL NEEDS

North South University will provide educational opportunities that ensure fair, appropriate and reasonable
accommodation to students who have disabilities/special needs that may affect their ability to participate in
course activities or meet course requirements. Students with disabilities are encouraged to contact their
instructors to ensure that their needs are met. The University through its Special Need section will exert all
efforts to accommodate special needs.

CLASS SCHEDULE

Week 1 Day 1 Class Introduction, Overview of the Course Syllabus and Chapter 1: Introduction to Corporate
 Finance
Brief review of the contents of FIN 254 and Chapter 2: Financial Statements, Taxes and Cash
Day 2 Flow

Day 1 Chapter 3: Working with Financial Statements

Week 2 Day 2 Chapter 3: Working with Financial Statements

Day 1 Chapter 4: Long Term Financial Planning and Growth

Week 3 Day 2 Chapter 4: Long Term Financial Planning and Growth

Day 1 Chapter 5 & 6: Time Value of Money and Discounted Cash Flow Valuation
Week 4 Day 2 Chapter 6: Discounted Cash Flow Valuation

Day 1 Chapter 9: NPV and other investment Criteria

Week 5 Day 2 Chapter 10: Making Capital Investment Decisions

Day 1 Chapter 10: Making Capital Investment Decisions

Week 6 Day 2 Chapter 13: Return, Risk and SML

Day 1 Chapter 13: Return, Risk and SML

Week 7 Day 2 Chapter 15: Cost of Capital (Include Bond Fisher Effect)

Day 1 Chapter 15: Cost of Capital (Include Bond Fisher Effect)

Week 8 Day 2 LAB CLASS 1: Demonstrating how use excel to solve basic financial functions

Day 1 LAB CLASS 2: Demonstrating how to use excel to run financial models
Week 9 Day 2 Chapter 17: Financial Leverage and Capital Structure

Week Day 1 Chapter 17: Financial Leverage and Capital Structure

10 Day 2 Chapter 18: Dividends and Dividend Policy

Week Day 1 Chapter 26: Mergers and Acquisitions

11: Day 2 Chapter 26: Mergers and Acquisitions