Advanced Business Finance - IIEI-301

Course Description: This six-week course builds on the fundamentals of finance learned in Business Finance (IIEI-300) as it explores the role and usage of external financing mechanisms for the firm, including debt, leasing, stock and more. Central to this course is understanding investment banks’ possible value contributions and the firm’s other financing alternatives, including various public funding possibilities.

Prerequisite: Business Finance (IIEI-300)

Course Credit: 3 Credit Hours

Major Course Topics & Course Outcomes

As a result of the group and individual activities included in this course, the student will acquire the following knowledge and skills that can be applied to the workplace:  

Capital Markets Sem 1 Chap 14

• To demonstrate a thorough understanding of shareholder value principles using common and preferred stock as a financing mechanism.
• To know how to set the stock dividend policy based on the principle of marginal rate of retained equity.

Investment Banking Sem 2  Chap 15

• To know the role of investment banks
• To understand how investment bankers take the risk in distributing corporate securities
• To know the mechanics of investment banks as intermediaries

Long Term Debt and Leasing Sem 2 Chap 16

• To analyze the long-term debt requirements of the firm
• To assess the firm’s need for debt

Common and Preferred Stock  Sem 3 Chap 17

• To differentiate the types of corporate shares and their usage
• To understand the rights of shareholders
• To determine how to structure stock issuance to protect the firm

Dividend Policy and Retained Earnings Sem 4 Chap18

• To determine a dividend policy and strategy
• To assess the factors that influence a dividend policy
• To comprehend why a firm might repurchase shares

Convertibles, Warrants and Derivatives  Sem 5 Chap19

• To understand why convertible shares should be offered
• To demonstrate the mechanics of stock warrants and their value
• To determine how stock derivatives offer value  

 

Growth through Mergers Sem 5 Chap 20

• To demonstrate an understanding of  the motives for firms to engage in mergers
• To assess the potential impact of mergers on earnings

International Financial Management Sem 6 Chap 21

• To determine how the international environment offers financial advantages and disadvantages to the firm

 

Course Materials:

There is one textbook for this course.

Foundations of Financial Management. 12th Edition. Block, S.B. and Hirt, G.A.. Irwin/ McGraw-Hill, Boston, MA  (2006) ISBN 0-07-325743-3