INSTITUTE OF MANAGEMENT SCIENCES

HAYATABAD, PESHAWAR

Master of Business Administration

COURSE OUTLINE: STRATEGIC FINANCIAL MANAGEMENT

COURSE INSTRUCTOR: Dr. Romana Bangash

Contact details: romana.bangash@imsciences.edu.pk

COURSE DESCRIPTION:

This course will enhance students understanding of how financial decisions create value for a
firm. Students are introduced to the areas of business valuations, mergers and acquisitions,
leverage buyouts, and corporate financing and capital structure. The course will enable students
to build an understanding of how strategic financial decisions are taken and how the outcomes
are quantified. Additionally the course aims at enabling students to assess and manage
corporate risks.

Contents:

1. What is finance? What is Strategic Financial Management? Value Creation, an

introduction …..
2. The Corporate Capital Structure: Theories and Value Creation ……
3. The MVA, EVA and CVA
4. Cashflow Estimation
5. The Corporate Distribution Policy; Value Created or Destroyed ……..
6. The Corporate Capital Budgeting and Value Creation ……..
7. Business Valuation (DCF)
8. Relative Valuation Models
9. Mergers & Acquisitions: Mechanics, the APV Method
10. Bankruptcy, Reorganization and Liquidation
11. Leverage Buyouts
12. Real Options
13. Financial Risk Management

Textbook:
1. “Strategic Corporate Finance Application in Valuation and Capital Structure” by
Justin Pettit, John Wiley and Sons Co. (2007)
2. “Fundamentals of Corporate Finance” Latest Edition, by Ross, Westerfield and
Jordon, McGraw-Hill Co.
3. “Corporate Finance Theory and Practice” by Pascal Quiry, Maurizio Dallocchio, Yann
Le Fur and Antonio Salvi, John Wiley and Sons Co. (2005)
4. “Investment Valuation: Tools and Techniques for Determining the Value of Any
Asset” Second Edition, Aswath Damodaran, John Wiley & Sons Co. (2002).
5. “Quantitative Corporate Finance” by Guerard Jr. and Schwartz, Springer (2007)
6. “Financial Management and Analysis” 2nd Edition by Frank Fabozzi & Peterson, John
Wiley and Sons Co. (2003)