Lovely Professional University,Punjab

Format For Instruction Plan [for Courses with Lectures and Tutorials Course No MGT564 Course Category Cours Title CORPORATE FINANCE-II Courses with numerical focus Course Planner 14761 :: Gurpreet Singh Lectures Tutorial Practical Credits 3 2 0 2

Text Book:

1 Khan M Y and P K Jain, Financial Management, Tata Mc Graw Hill, Fifth Edition.

Other Specific Book:

2 Chandra Prasanna, Financial Management: Theory & Practice, Tata Mc Graw Hill (edition 7) 3 Pandey I M, Financial Management, Theory & Practice, Vikas Publishing House, Ninth edition 4 Brealey, Myers, Principles of Corporate Finance, Tata Mc Graw Hill

Other Reading Sr No Jouranls atricles as compulsary readings (specific articles, Complete reference) 5 THE CAPITAL BUDGETING DECISIONS OF SMALL BUSINESSES :http://astro.temple.edu/~scottjon/documents/CapitalBudgetinginSmallFirms_June2006_final.pdf 6 Corporate risk management and investment decisions, Xun Li, Zhenyu Wu. The Journal of Risk Finance. London: 2009. Vol. 10, Iss. 2; pg. 155 http://proquest.umi.com/pqdweb?did=1882703051&sid=1&Fmt=2&cl 7 CAPITAL BUDGETING PROCESS: THEORETICAL ASPECTS.Full Text Available By: Keryt, Agn. Economics & Management, 2011, Vol. 16, p11301134, 5p 8 Promotion Tournaments and Capital Rationing.Full Text Available By: Han, Bing; Hirshleifer, David; Persons, John C.. Review of Financial Studies, Jan2009, Vol. 22 Issue 1, p219-255, 37p 9 The Determinants of Effective Working Capital Management Policy: A Case Study on Jordan, Ghassan AL Taleb et al.Interdisciplinary Journal of Contemporary Research In Business. Aug 2010. Vol.2, Iss.4 10 CAPE CHEMICAL: CASH MANAGEMENT David Kunz, Benjamin L Dow III. Journal of the International Academy for Case Studies. Cullowhee: 2008. Vol. 14, Iss. 7; pg. 79, 11 pgs http://proquest.umi.com/pqdweb? 11 RECEIVABLES MANAGEMENT: A CASE STUDY Nana Amoah, Arundhati Rao. Journal of the International Academy for Case Studies. Cullowhee: 2009. Vol. 15, Iss. 6; pg. 51, 8 pgs http://proquest.umi.com/pqdweb?

Approved for Spring Session 2011-12

12 The Determinants of Corporate Dividend Policy.Full Text Available By: Gupta, Amitabh; Banga, Charu. Decision (0304-0941), Aug2010, Vol. 37 Issue 2, p63-77, 15p 13 International Acquisitions: Strategic Considerations : H. Donald Hopkin,International Research Journal of Finance and Economics ISSN 1450-2887 Issue 15 (2008) http://www.eurojournals.com/irjfe%2015%20donald.pdf Relevant Websites Sr. No. (Web adress) (only if relevant to the courses) 14 http://www.teachmefinance.com/ 15 http://highered.mcgrawhill.com/sites/0072467665/student_view0/: 16 http://www.bloomberg.com/ 17 http://www.corporatefinancejournal.com/columns/magazine/ 18 http://www.financescholar.com/finance-tutorials.html 19 http://www.moneycontrol.com/ 20 http://www.nseindia.com/ Salient Features Provides information about various financial terms, capital budgeting, financial news & other related topics Students edition provided by Brealey & Myers includes chapter wise details, practice MCQs, news & articles related to Principles of Corporate Finance a premier site for updated business news and financial information which delivers international breaking news, stock market data and personal finance. Research articles & current news on international markets, financial world etc. Provides online tutorials on various topics of corporate finance It contains information on share prices & other financial details of the listed companies. Provide share prices of various companies with daily price movement alongwith other financial details.

Detailed Plan For Lectures

Week Number Lecture Number Lecture Topic Chapters/Sections of Pedagogical tool Textbook/other Demonstration/case reference study/images/anmatio n ctc. planned

Part 1
Week 1 Lecture 1 Capital Budgeting Decision: Concept, Significance, Rationale & its Kinds ->Reference :1,Chapter-9. Pg 9.39.6 ->Reference :5,Capital Budgeting Practices Ref.5:THE CAPITAL BUDGETING DECISIONS OF SMALL BUSINESSES

Lecture 2

Traditional Techniques of Capital Budgeting,

->Reference Mini Case: Aman :1,Chapter-9. Pg 9.22 - Limited, Ref-2, pg 303 9.28 ->Reference :2,Mini Case- Aman Limited pg 303

Approved for Spring Session 2011-12

Week 1

Lecture 3

Time adjusted/ Discounted Cash Flow Techniques of Capital Budgeting,

->Reference Ref.7: CAPITAL :1,Chapter-9. Pg 9.28 - BUDGETING 9.39 PROCESS ->Reference :7, ->Reference Case: Southern :1,Chapter-12. Pg 12.1 Airways, Ref-2, pg 364 -12.24 ->Reference :2,Chapter-13 ->Reference :3,Chapter-12 ->Reference :6, ->Reference Ref.8 :1,Chapter-10. Pg 10.11 ->Reference :8,Capital Rationing ->Reference :1,Part 4- Case: Bright paints Chapter-13. Pg 13.3 - Limited, Chap 30/ Ref-3/ 13.11 Page 656 ->Reference :9, ->Reference :1,Part 4- Case: Cooking LPG Chapter-13. Pg 13.12 - Limited, Ref-1/ Page 13.19 13.39 ->Reference :1,CaseCooking LPG Limited pg 13.39 ->Reference :1,Part 4- Mini Case on Cash Chapter-14. Pg 14.1 - Budget, Ref-2, pg 695 14.15 ->Reference :2,Mini Case on Cash Budget pg 695

Week 2

Lecture 4

Risk Analysis in Capital Budgeting

Lecture 5

Capital Rationing

Lecture 6

Working Capital Management: Concept and significance, determining Financing Mix & Need for working capital Factors affecting Working Capital Management & computation of working capital

Week 3

Lecture 7

Lecture 8

Approaches to Working Capital Management: Management of Cash- Cash Budget

Part 2
Week 3 Lecture 9 Cash Management: Basic Strategies & Techniques /Processes ->Reference :1,Part 4- Ref.10 Chapter-14. Pg 14.16 14.23 ->Reference :10,Cape Chemical

Approved for Spring Session 2011-12

Week 4

Lecture 10

Receivables Management: Objectives, Credit policies & Collection Policies

->Reference :1,Part 4- Ref.11 Chapter-15. Pg 15.1 15.14 ->Reference :11,Case Study ->Reference :1,Part 4- Case: Inventory process Chapter-16. Pg 16.1of BHEL, Chap 29/ Ref16.14 3/ Page 635 ->Reference :3,CaseInventory process of BHEL

Lecture 11

Inventory Management: Objectives & Techniques

Lecture 12

Working Capital Financing- Trade Credits, bank ->Reference :1,Part 4Credits, Commercial papers, Certificate of Deposits, Chapter-17. Pg 17.1 Factoring 17.20 Dividend Decision: Concept & significance, Theories ->Reference :1,Part 8- Case: A.C Company, of dividend decision- Irrelevance of Dividends (MM Chapter-30. Pg 30.1 - Chap18/ Ref-3/ Page hypothesis) 30.11 413 ->Reference :3,CaseA.C Company Pg 413 Theories of dividend decision: Relevance of Dividend ( Walter's Model & Gordon's Model) Determinants of Dividend policy- factors, Controversy over supremacy between dividend & retained earnings, Bonus Shares & stock splits, business valuation methods ->Reference :1,Part 8Chapter-30. Pg 30.12 30.18 ->Reference :1,Part 8- Mini Case- Kapil Sugars Chapter-31. Pg 31.1 - Limited, Ref-2, Pg 582 31.13 ->Reference :2,Mini Case- Kapil Sugars Limited Pg 582 ->Reference :12, ->Reference :1,Part 9- Case: Merger of RPL Chapter-33. Pg 33.1 - with RIL- Ref-1 33.5 ->Reference :1,Part 9- Case: Panda Systems, Chapter-33. Pg 33.5 - Ref-1 Pg 33.78 33.31 ->Reference :1,Part 9- Case: Bail out merger of Chapter-33. Pg 33.32 - ITC Classic Financial 33.54 Ltd with ICICI Ltd., Ref-1 ->Reference :13,

Week 5

Lecture 13

Lecture 14

Lecture 15

Week 6

Lecture 16

Mergers & acquisitions: Significance of Mergers & Acquisitions, Types of Mergers & reasons for mergers Financial, Tax & legal aspects in Mergers

Lecture 17

Lecture 18

Acquisition/ Takeovers- Types, Regulatory framework & Financial consideration

Approved for Spring Session 2011-12

Spill Over
Week 7 Lecture 19 Foreign Exchange Markets ->Reference :1,Part 10 - Chapter-34. Pg 34.3 34.16 ->Reference :1,Part 11 - Chapter-37. Pg 37.3 37.18

Lecture 20

Corporate Governance

Details of homework and case studies

Homework No. Objective Topic of the Homework Nature of homework (group/individuals/field work Individual Evaluation Mode Allottment / submission Week 2/3

Homework 1

To develop analytical skills as well as to make students understand how to use various techinque of capital budgeting.

Numerical Problems on the Capital Budgeting Decisions: Each student will be given numerical problems on Techniques of Capital Budgeting and required to submit the HW containing solution of each problem. The Evaluation of homework will be:- 5 marks for HW and 5 marks for the class test based on the numerical problems given in the HW.

The Evaluation of homework will be:- 5 marks for HW and 5 marks for the class test based on the numerical problems given in the HW. Evaluation has to be done on continuous basis and marks out of 5 is to be given in the 6 week Quiz should be of 30 marks which will scale down to 10 marks

Class participation 1

To increase the Student will be evaluated on the basis of class involvement and class interaction of interaction the students

Individual

1/6

Quiz 1

To test the clarity A quiz has to be conducted in the 4th week and it include the Individual of concepts of the syllabus which is covered till that time.Quiz should be of 30 marks students which will scale down to 10 marks

4/5

Approved for Spring Session 2011-12

Case study 1

To develop analytical as well as the communication skills

Different cases will be assigned to students in a group of three Group students. They will be required to present the case analytically. Role of each student will be defined by the instructor on the spot. They will be evaluated on the basis of four perameters. 1. Presentation of case 2. Question handling 3. Write up 4. Number of logical questions asked from other groups. Though it is a group activity but except write up mars will be assigned to each individual for his own performance.

Evaluation will be an ongoing process starting from second week of teaching and ending on 6th week.1. Presentation of case -10 2. Question handling -04 3. Write up-04 4. Number of logical questions asked from other groups.-02

2/6

Scheme for CA:out of 100*

Component Homework Class participation Case study Quiz Frequency 1 1 1 1 Total :Out Of Each Marks Total Marks 10 5 15 10 40 10 5 15 10 40

* In ENG courses wherever the total exceeds 100, consider x best out of y components of CA, as explained in teacher's guide available on the UMS

Plan for Tutorial: (Please do not use these time slots for syllabus coverage)
Tutorial No. Lecture Topic Type of pedagogical tool(s) planned (case analysis,problem solving test,role play,business game etc)

Tutorial 1 Tutorial 2 Tutorial 3

Traditional Techniques of capital budgeting Techniques of capital budgeting: Time adjusted/ Discounted Cash Flow Techniques Risk Analysis in Capital Budgeting

Problem solving Problem solving Case analysis

Approved for Spring Session 2011-12

Tutorial 4 Tutorial 5 Tutorial 6 Tutorial 7 Tutorial 8 Tutorial 9

Working Capital Management Test Based on HW-1 ( Numerical Problems on Capital Budgeting Decisions) Cash Management- Preparation of Cash Budget Receivables Management Inventory Management

Discussion Test Problem solving Problem solving Problem solving

Dividend Decision:- Case Study: ICI India LimitedCase analysis Buyback of Shares (Srivastava, Financial Management, 2009, p511) Vivas based on Case Study Case analysis Mergers & Acquisitions:- Case Study: Hindalco's Case analysis acquisition of Indal (Srivastava, Financial Management, 2009 p393) Revision of the whole syllabus Revision

Tutorial 10 Tutorial 11

Tutorial 12

Approved for Spring Session 2011-12