LESSON PLAN FIN544 ADVANCED CORPORATE FINANCE (20224)

UNIVERSITI TEKNOLOGI MARA

(KAMPUS PUNCAK ALAM)
FACULTY OF BUSINESS MANAGEMENT (FBM)

Lesson Plan
1. Course Code & FIN544
Course Title
2. Course Name ADVANCED CORPORATE FINANCE

3. Course The subject develops the “art and science” of corporate decision making by
Description applying corporate financial theory to cases of financial policy, financial
instruments and valuation. In particular, this subject considers corporate
investment decisions (project valuation, acquisition) and decisions that involve
financing investments (raising capital, payout policy), while focusing on related
theories of corporate finance. Greater emphasis is given on the determination
relevant cash flows from a project and the impact of financing these projects has
on its capital structure.

4. Course Level 6-Bachelor Degree

5. Year and October 2022-February 2023 (20224)

Trimester
6. Credit Hour 4 credit hours
7. Delivery Period 1 semester (14 weeks)
Duration
8. Lecturing and
Tutoring hours Group BA243 3G
BA2423G MONDAY 10:30 AM - 12:30 PM PFI2 - PFI 03 TEC1 - BILIK TUTORIAL ( Room )
BA2423G FRIDAY 10:30 AM - 12:30 PM FSK6 - FSK6 05 BK27 - BILIK KULIAH ( Room )

Group BA243 3H
BA2423H MONDAY 08:30 AM - 10:30 AM FSK6 - FSK6 05 BK34 - BILIK KULIAH ( Room )
BA2423H FRIDAY 08:30 AM - 10:30 AM FSK6 - FSK6 05 BK27 - BILIK KULIAH ( Room )

9. Name(s) of Lecturer:
Academic Staff: Dr. Siti Nurhidayah Mohd Roslen (Dr Hidayah)
Office : PF1, level 7, room 067
Email: sitihidayah@uitm.edu.my
Please email me in advance to book appointment slot during my consultation
hours.
Consultation hours:
i. Monday 2.00pm – 4.00pm

ii. Tuesday 10.30am-12.30pm

Prepared by: Dr. Siti Nurhidayah Mohd Roslen

LESSON PLAN FIN544 ADVANCED CORPORATE FINANCE (20224)

10. Student Learning 160 hours (Equivalent to 3 credits)

Time (SLT) Face to Face: 59 hours
Non Face to Face : 101 hours
Student Preparation Time: 0 hours

11. Course Delivery Discussion, Lectures, Problem Based Learning (PBL), Tutorials, and Web Based
Method(s) Learning.
12. Pre-requisite N/A
courses

13. Co-requisite N/A

courses
14. Equivalent N/A
courses
15. Course Learning On completion of this course, a student should be able to:
Outcomes:
CLO1: Illustrate the corporate behavior in capital markets and the relationship of
agent and principal in raising funds, allocating capital and distributing returns. (C4)
CLO2: Demonstrate information management and lifelong learning skill using
discussion on firm’s financing decision in the fundamental of corporate finance.
(A3)
CLO3: Demonstrate the managerial skill through the effects of information and
agency conflicts on corporate financial and investment decisions. (A3)

16. References: Main References:

1. Ross, S. A., Westerfield, R. W., Jordan, B. D., Lim, J., & Tan, R.(2022).
Fundamentals of Corporate Finance (13th ed.). McGraw Hill.

Important Note:
All students are required to subscribe to McGraw Hill Connect to gain
access to weekly tutorial questions, individual assignment questions, e-
book and other class activities content for this semester. Refer to U-Future
announcements for further details.

Additional References:
2. Brealey, R. A., Myers, S. C., & Allen, F.(2013). Principles of Corporate Finance
(10th ed.). Mcgraw-Hill.
3. Megginson, W. L., & Smart, S. B. (2009). Introduction to Corporate Finance
(2nd ed.). South-Western.

17. Assessment Assessment marks for this course will be coming from the following components
Methods: based on the given weight:

1. Continuous Assessment CLO Percentage (%)

i. Assignment 1
2,3 20%
Deadline: Week 7

Prepared by: Dr. Siti Nurhidayah Mohd Roslen

LESSON PLAN FIN544 ADVANCED CORPORATE FINANCE (20224)

ii. Assignment 2 (Group Work)

2,3 30%
Deadline: Week 11

iii. Test

Week 5
1 10%
(date, time and venue will be announced
by lecturer)

2. Final Exam CLO Percentage (%)

Final Exam 1 40%
Overall 100%

Continuous Assessment (60%)

a) Assignment 1 (20%)

Assignment 1 consist of a case study that covers topic 7 and 8. This assignment is
an individual assignment.

b) Assignment 2 (30%)

Assignment 2 consists of a video presentation of a case study on selected topics.

c) Test (10%)

The test will be conducted in Week 5 (date and time to be informed by lecturer).
The test will be a written test that covers Topic 1 until 5. Attendance for the test is
compulsory.

Late Submission Penalty Clause

Deadline for submission of assessment item(s) is to be strictly adhered to. No
extension of time will be allowed except in extenuating circumstances, e.g.
medical reasons. Students who wish to apply for extension of time for submission
of assessment item(s) after the due date shall put in writing the request together
with validated documentary evidence to support the application to his/her class
tutor. Any assessment item required by the Coursework Assessment which is
submitted after the due date, without an approved extension, will be penalized. A
penalty of 10% (from awarded marks) for each calendar day of delay from the
specified deadline will apply. No assignment submitted FIVE (5) calendar days
after the due date will be accepted and hence the assignment will be awarded
ZERO (0) mark.

Aggregate Marks
Students must achieve at least 50 marks out of the aggregate marks for
coursework and final examination in order to Pass this course with a grade C.
Failure to achieve this will result in repeat for this course in future trimester.

Prepared by: Dr. Siti Nurhidayah Mohd Roslen

LESSON PLAN FIN544 ADVANCED CORPORATE FINANCE (20224)

18. Remarks: ACADEMIC REGULATIONS

Plagiarism
Plagiarism is defined as the submission or presentation of work, in any form,
which is not one's own, without acknowledgment of the sources. If a student
obtains information or ideas from an outside source, that source must be
acknowledged. Another rule to follow is that any direct quotation must be placed in
quotation marks and the source immediately cited.

Plagiarism is also defined as copy of all or part of the work of another student(s) of
current or previous batch of this University or another higher learning institution.
The University's degree and other academic awards are given in recognition of the
candidate's personal achievement. Plagiarism is therefore considered as an act of
academic fraudulence and as an offence against University discipline.

Intellectual Property
Copyright must be seriously protected. The University takes a strong stand against
any illegal photocopying of textbooks and any other materials by students.
Students are forewarned of the consequences and the penalty that may be meted
out if they are "caught in the act".

Mode of Referencing
Students are advised to incorporate proper academic modes of referencing. The
normally acceptable mode of academic referencing is the American Psychological
Association (APA) system.

Prepared by: Dr. Siti Nurhidayah Mohd Roslen

 LESSON PLAN FIN544 ADVANCED CORPORATE FINANCE (20224)

Teaching Plan
Week Lecture Topic Note Reference chapter
in main text book
1 Topic 1: Goals and Governance of the Firm Chapter 1
11/10/2022- Students to form group
16/10/2022  Corporate investment and financing decisions assignment and register the
 The role of the financial manager and the opportunity cost of capital group in the Google Link
 Goals of the corporation provided.
 Agency problems and corporate governance.

2 Topic 2: Raising Capital Students to form and register Chapter 15

17/10/2022- group assignment.
23/10/2022  Venture capital
 The initial public offering
 Security sales by public companies
 Private placements and public issues

3 Topic 3: Capital Structure (Excluding Bankruptcy) Final week to register for group Chapter 16
24/10/2022- assignment.
30/10/2022  Capital structure decision
 Determining optimal capital structure
 Factors in capital structure decision
 Value of unlevered and levered firms

4 Topic 4: Capital Structure: Limits to the Use of Debt Chapter 16

31/10/2022-6/11/2022
 Cost of financial distress
 Description of costs
 Integration of tax effects and financial distress costs
 Agency Cost of Equity
 Pecking Order Theory
 Signaling Hypothesis
 Factors affecting capital structure

5 Topic 5: Cash Flow Determination I Test week Chapter 10

7/11/2022-13/11/2022
 Depreciation (Straight-line method) Attendance is compulsory
 Taxation (Tax liability and tax shield techniques): top-down
approach, bottom-up approach.
 Tax-shield approach
 Operating cash flows (OCF)/Cash flows after tax (CFAT): Net initial
cash flows (NICF), Net annual cash flows (NACF), Terminal cash
Prepared by: Dr. Siti Nurhidayah Mohd Roslen
 LESSON PLAN FIN544 ADVANCED CORPORATE FINANCE (20224)

Week Lecture Topic Note Reference chapter

in main text book
flows (TCF)
6 Topic 6: Cash Flow Determination II Chapter 10
14/11/2022-
20/11/2022  Decision making: evaluating cost-cutting proposal
 Setting bid price
 Projects with different lives (unequal lives)

Semester break No class

21/11/2022-
27/11/2022

7 Topic 7: Project Analysis and Evaluation I Chapter 11

28/11/2022-4/12/2022 Due date of individual
 Evaluating NPV estimates: forecasting risk assignment
 What-if analysis (Scenario analysis, Sensitivity analysis)

8 Topic 8: Project Analysis and Evaluation II Chapter 11

5/12/2022-11/12/2022
 Break-even analysis (Accounting break-even, cash break-even,
financial break-even)
 Operating leverage: Degree of leverage (DOL), degree of financial
leverage (DFL), degree of total leverage (DTL)
 Definition of managerial options
 Definitions of capital rationing

9 Topic 9: Efficient Markets and Behavioral Finance Public holiday on 12/12/2022 Chapter 12
12/12/2022- Chapter 22
18/12/2022  What is an efficient market?
 The evidence against market efficiency
 Behavioral finance
 The five lessons of market efficiency

Prepared by: Dr. Siti Nurhidayah Mohd Roslen

 LESSON PLAN FIN544 ADVANCED CORPORATE FINANCE (20224)

Week Lecture Topic Note Reference chapter

in main text book
10 Topic 10: Payout Policy Chapter 17
19/12/2022-
25/12/2022  How firms pay dividends and repurchase stock
 How do firms decide on payouts
 The payout controversy
 Stock dividend and stock splits

Special Break No class

26/12/2022-1/1/2023

11 Topic 11: Mergers and Acquisitions I Chapter 26

2/1/2023-8/1/2023 Due date of group assignment
 Forms of takeovers
 Means of acquisition
 Types of acquisitions
 Accounting treatment of merger and acquisition

12 Topic 12: Mergers and Acquisitions II Chapter 26

9/1/2023-15/1/2023
 NPV of a merger-cash or shares
 Defensive tactics

13 Revision class
16/1/2023-22/1/2023

14 Revision class Public holiday 23/1/2023

23/1/2023-29/1/2023 Release 40% of assessment
marks to students
Notes: The information provided in this Course Plan is subject to change by the Lecturers.

Prepared by: Dr. Siti Nurhidayah Mohd Roslen