Course Specification
FIN 211
Principles of Corporate Finance
DEPARTMENT OF FINANCE
January 2013
COURSE SPECIFICATION
Institution :
College of Business Administration, Salman Bin Abdulaziz University
Department: Finance
A Course Identification and General Information
1. Course title and code: Principles of Corporate Finance / FIN 211 2. Credit hours: 3 (3+0+0)
3. Program(s) in which the course is offered: BSBA (Finance)
4. Name of faculty member responsible for the course: Dr. Mohammad Asif 5. Level/year at which this course is offered: Third Year - Fifth Semester 6. Pre-requisites for this course (if any) ACCT103
7. Location if not on main campus: College of Business Administration, Al
-Kharj B Objectives
1. Summary of the main learning outcomes for students enrolled in the course.
This course gives an introduction to managerial finance. In addition, different aspects of the investment decision will be covered. The first topic is how to value assets, the second is the link between risk and value, and the third is the management of the capital investment process. Therefore, the main topics covered in class include: (1) introduction to managerial finance; (2) discounting; (3) risk and return; (4) equity and debt valuation; (5) capital budgeting and its practices.
2. Briefly describe any plans for developing and improving the course that are being implemented. (eg increased use of IT or web based reference material, changes in content as a result of new research in the field)
The departmental research committee is underway to keenly pursue the research activity in the department. The research on application of tools and techniques not expand and enrich the class room environment but also leads to new model building approach to the evaluation of the projects. The all round research required environment would be built up to encourage teachers to pursue
research. The outcome is used for developing and improving the course content. Using software in teaching this course, the goal is to improve “concept building and learning” in students by combining a research-based approach to learning with research- grade computational software.
C. Course Description 1 Topics to be Covered Topic No of Weeks Contac t hours
Introduction to Managerial Finance: - Why study Managerial
Finance? Relationship to economics & Accounting, Primary
Activities of the Financial Manager, Goals of Firm. 3 9
Time Value of Money: - Why Money has Time value? Simple and
compound Interest, Discounting Vs Compounding 2 6
Capital budgeting and its practices:- Overview of Capital
Budgeting Techniques, Pay Back Period, Net present Value(NPV), Internal Rate of Return (IRR), Comparing NPV and IRR Techniques, Conflicting Ranking, Capital Budgeting practices in Saudi Arabia
4 12
Risk and Return Analysis:- Risk defined, Return defined, Measure
of Risk and Return 3 9
Debt and Equity Valuation:- Valuation of debt-methods,
Valuation of Equity-methods 2 6
Final Semester Exam Week 1 3
Total 15 45
2 Course components (total contact hours per semester):
Lecture: 42 Tutorial: Practical/Fieldwork /Internship:
Other: 3
3. Additional private study / learning hours expected for students per week. (This should be an average: for the semester not a specific requirement in each week) as per
4. Development of Learning Outcomes in Domains of Learning
a. Knowledge
(i) Description of the knowledge to be acquired
Understand the meaning of finance and its main principles
Goals of the firm, shareholders wealth maximisation, and value of the firm Appreciate the time value of money
Demonstrate the relationship between the risk and return Understand the various capital budgeting techniques Awareness about debt and equity valuation methods
(ii) Teaching strategies to be used to develop that knowledge
In class lecturing where the previous information is linked to the current
and future topics
Homework assignments without consideration of marks (iii) Methods of assessment of knowledge acquired
In class short MCQs quizzes
Two Mid Term and one Final Examination
b. Cognitive Skills
(i) Cognitive skills to be developed
Problem solving within the context of finance and investment. The ability to gather, synthesize and evaluate information. Independent critical analysis.
Think creatively in dynamic, unpredictable business situations Apply mathematical and statistical analysis to business tasks
Reflect on own learning, and apply skills to actively manage studies
(ii) Teaching strategies to be used to develop these cognitive skills
Cognitive skills are developed through lectures supported by other class-based sessions and independent learning
(iii) Methods of assessment of students cognitive skills
Assessment of cognitive skills occurs in the range of assessment methods employed i.e. examination and coursework.
c. Interpersonal Skills and Responsibility
Ability to relate to, and collaborate effectively with peer groups. Self-management to meet deadlines
Cultural sensitivity Ethical relationship
(i) Description of the interpersonal skills and capacity to carry responsibility to be developed
Ability to work with group Ability to work independently Ability to discuss with group
(ii) Teaching strategies to be used to develop these skills and abilities Solving problems in groups
Writing group reports
(iii) Methods of assessment of students interpersonal skills and capacity to carry responsibility
Evaluation of individual work Grading homework assignments
d. Communication, Information Technology and Numerical Skills
(i) Description of the skills to be developed in this domain. Using the computer to research about courses topics Using computational tool
(ii) Teaching strategies to be used to develop these skills
Incorporating and utilization of computer in the course requirements through MS Excel
(iii) Methods of assessment of students numerical and communication skills
Evaluation the homework problems
5. Schedule of Assessment Tasks for Students During the Semester Assess
ment Assessment task (eg. essay, test, group project, examination etc.) Week due Proportion of Final Assessment
1 Mid Term Examination I & II 6th & 9th 30% (Both)
3 Quizzes/Class Tests 3rd , 8th & 12th 10%
4 Mini Project 12th 10%
5 Assignments At the end of each chapter 10%
6 Final Examination 15th 40%
D. Student Support
1. Arrangements for availability of faculty for individual student consultations and academic advice. (include amount of time faculty are available each week)
E Learning Resources
1. Required Text(s)
Lawerence J. Gitman. (2009). Principles of Managerial Finance: Pearson Education. (12th edition).
2. Essential References:
1. Ross, Westerfield. (2007). Fundamentals of Corporate Finance: McGraw-Hill. (8th edition).
2. Ross, Stephen. (2008). Corporate Finance: Pearson Education. (7th edition).
3. Peter Howells, Keith Bain. (2007). Fundamentals of Corporate Finance: Pearson Education. (8th edition).
4. Khan & Jain. (2007). Financial Management: Tate McGraw-Hill. (5th Edition).
3- Recommended Books and Reference Material (Journals, Reports, etc)
Peter Howells, Keith Bain. (2007). Fundamentals of Corporate Finance: Pearson Education. (8th edition).
Various issues of Journal of Finance published by American Finance
Association, USA
4-.Electronic Materials, Web Sites etc
Online student resources found on the Text website: Lawerence J. Gitman. (2009).
Principles of Managerial Finance: Pearson Education. (12th edition).
In addition Investopedia, yahoo finance and tadawul websites.
5- Other learning material such as computer-based programs/CD, professional standards/regulations
F. Facilities Required
Indicate requirements for the course including size of classrooms and laboratories (ie number of seats in classrooms and laboratories, extent of computer access etc.)
1. Accommodation (Lecture rooms, laboratories, etc.)
Lecture room with capacity at least 25 seat
2. Computing resources
Computer with internet connection and unique data sets for each students depending on the class size.
3. Other resources (specify –eg. If specific laboratory equipment is required, list requirements or attach list)
G Course Evaluation and Improvement Processes
1 Strategies for Obtaining Student Feedback on Effectiveness of Teaching Course evaluation and review
Student-faculty meeting
2 Other Strategies for Evaluation of Teaching by the Instructor or by the Department
Peer consultation on teaching Department council discussion
Discussions within the group of faculty teaching the course 3 Processes for Improvement of Teaching
Conducting workshops given by experts on the teaching and learning
methodologies
Periodical departmental revisions of the methods of teaching Monitoring of teaching activities by senior faculty members
4. Processes for Verifying Standards of Student Achievement (eg. check marking by an independent faculty member of a sample of student work, periodic exchange and remarking of a sample of assignments with a faculty member in another institution)
Providing samples of all kind of assessment in the departmental course
portfolio of each course
Assigning group of faculty members teaching the same course to grade
same question for various students
5. Describe the planning arrangements for periodically reviewing course effectiveness and planning for improvement.
The course material and learning outcomes are periodically reviewed and
the changes to be taken are approved in the departmental and higher councils.
The head of department and faculty take the responsibility of
