Discuss the principles involved in selecting a financial structure for a firm.

Subject Title 
FIN603 - Finance II

Subject Description 
FIN 603 is a continuation of the study of corporate finance started in FIN 401 with emphasis on the raising of funds, their cost, and the allocation of these funds, particularly to long term capital assets. Analytical techniques relating to financial decision making are studied. Corporate mergers and the importance of foreign exchange in financial management are introduced in this subject.

Learning Outcomes FIN603 - Finance II
Upon successful completion of this subject the student will be able to:

1. Discuss the principles involved in selecting a financial structure for a firm.

2.Compute the weighted average cost of capital to the firm.

3. Determine and evaluate long-term investment decisions using various valuation methods.
4. Apply the concept of risk to capital budgeting decisions.

5. Illustrate the use of term loans and leases in financing; analyze the factors involved in the lease-purchase decision.

6. Explain the principles involved in corporate dividend policy and evaluate the effect of dividend policy on internal financing.

7. Discuss corporate restructuring through mergers/acquisitions/ divestitures.

8. Evaluate the importance of international factors in the role of financial manager.

9. Discuss the role of derivative securities in corporate finance including rights, warrants, convertibles, forwards, futures and options

FIN603 - Finance II