KING FAHD UNIVERSITY OF PETROLEUM & MINERALS CIM-Department of Finance & Economics FIRST SEMESTER 2008/2009 (081) Dr.

Bassam, Hamdan * Office: 24-285 * Phone: 860-4476, bahamdan@kfupm.edu.sa Office Hrs: 2:30-3:20 PM SM 4:40-6:30 PM SM Course Syllabus FIN 510 Managerial Finance TIME & LOCATION : SM 8:00 ---9:15 PM, 24 / 129
Required Textbook: Corporate Finance by Brealey, Myers & Allen 8e, 2006. You should read each chapter before class meetings. Additional recommended readings (1) Brigham & Ehrhard, Financial Management: Theory & Practice, 10 Ed. 2002 and (2) James C. Van Horne - Financial Management Policy, 12th Ed., 2001; Major business periodicals: Wall Street Journal, Business Week, Fortune, Forbes, Dunns & Bradstreet for current developments in the financial markets and the Internet for financial managers' challenging tasks. Important & resourceful website for course materials, lecture notes, exams etc.: www.ocw.mit.edu, www.mhhe.com/bm7e, http//finance.swcollege.com

Course Description: This integrative course examines the major aspects of corporate financial policy. It covers advanced topics in modern Managerial finance: valuation of corporate securities, capital structure decisions, dividend theory, lease financing, financial planning and forecasting, corporate reorganization, Mergers and corporate control, and Corporate Distress and Structuring. The Instructor conducts the course using a balanced mix of lectures, analysis of cases and class presentations. Pre-Requisites: Fin 301/501 and Acct 510 Course Objectives: The objective of this course is to develop an understanding of the modern Managerial Finance theory and practice so that the student will have the conceptual and practical foundations for making intellectual financial decisions. The course builds on the material covered in Fin 501 that introduced students to a variety of real-world problems faced by financial managers and their understanding of managerial finance concepts and theories. To help the student to learn how to identify and analyse problems, consider alternatives and make financial decisions. AACSB Perspectives: The AACSB expects business curricula to incorporate contemporary such as ethical, global and technological, legal, regulatory and environmental issues. These issues are integral part of the assigned readings and problems at the end of each chapter throughout the course. Computer Usage: Course assignments and term projects requires the use of Computer, internet and Excel spreadsheet. A specific problem at the end of each chapter refer students to a web site where they should use the internet to locate, solve, discus and present the assigned problem.

Communication Skills: Student oral communication skills are developed through class participation, discussions and presentations. Students are strongly encouraged to use local and international financial publications to keep abreast of developments in the financial markets. Attendance & Participation: Class attendance is required for all the scheduled classes. Coming late is unacceptable. There is strictly enforced rule for more than three unexcused absences automatically that result in lower grade or DN! Exams, Quizzes and Term Project: Three major exams: Two Mid-term and a comprehensive final. NO makeup exam and absence from any exam results in zero score . Grade Distribution: First Midterm exam = 20%; Second Midterm exam = 20%, Final exam = 30%. Individual Term Project = 20%, Quizzes,Attendance and Participation = 10% for a total of 100 points

COURSE OUTLINE
Oct.11(S) 18 (M) Oct.18(S) 20 (M) 25 (S) Oct.27(M) Nov.1(S) 3(M) Nov. 8(S) 10(M) 15(S) 17(M) Nov.22(S) 24(M) 29(S) Dec.1(M) Chapter 1: Finance and the Financial Manager Chapter 6: Making Investment Decisions with NPV Rule Chapter 9: Capital Budgeting and Risk Chapter 11: Strategy & the Capital Investment Decision Chapter 13: Corporate Financing and Six Lessons of Market Efficiency

November,24 (Monday)
Dec.15(M) 20(S) 22 (M) 27(S) Dec.29(M) Jan.3 (S) 5(M) 10(S) Jan. 12(M) 17 (S)

First Mid-Term Exam

Id Al-Adha Vacation December,3-13, 2008

Chapter 17: Does Debt Policy Matter? Chapter 19: Financing & Evaluation Chapter 32: Mergers

Second Mid-Term Exam January, 17(Saturday), 2009

Jan.19 (M) 24(S) Jan.26(M) 31(S) Chapter 33: Corporate Restructuring Chapter 35: Conclusion: What We Do and Do Not Know about Finance

Final Examinations February,1-11, 2009)

Note: The instructor reserves the right to alter the assignment schedule, the weights associated with exams and other assignments. Any changes made will be announced in class. Students are responsible for acquiring this information if they miss class when the announcement is made.