FIN363 : Advanced corporate finance

Department

Department of Financing and Banking

Academic Program

Bachelor in Finance and banking

Type

Compulsory

Credits

03

Prerequisite

FIN360

Overview

The study of the course aims to introduce the student to the concepts of corporate finance structure, financial theories and literature about the corporate finance structure, as well as teaching the student the importance of making financing structure decisions in practice and the analytical tools for making these decisions, clarifying and knowing how to calculate the required return “financing cost” and studying the approaches to determining the value of Enterprise.

Intended learning outcomes

A. Knowledge and understanding:

  • Introducing the student to the basic concepts about the structure of corporate financing and the comparison between the balanced financing structure, the disordered financing structure, and the balanced financing structure.
  • To make students understand the importance of studying and analyzing theories of financing structure and their development.
  • Introducing students to how financing structure decisions are made in practice and measuring the required rate of return (financing cost).
  • Introducing the student to the relationship of financing cost to the financing structure and calculating the weighted average cost.

B. Mental skills:

  • Develop the student's ability to test and analyze the concepts of corporate financing structure, debt and equity mix ratios, and the optimal ratios for each organization.
  • That the student compares the theories of the structure of corporate finance, which dealt with the existence of an optimal structure, in order to conclude the most important observations about these theories.
  • The student analyzes how to make decisions related to the financing structure in practice and studies the required rate of return "financing cost" and its relationship to the financing structure.
  • Develop the student's ability to determine the value of the institution in practice.

C. Scientific skills:

  • The student should determine the indebtedness ratios and equity ratios and the impact of these ratios on the financing cost, the organization's liquidity and its ability to pay.
  • That the student understands the theories of the structure of corporate financing with the extent to which there is an optimal financing structure and its impact on the cost, the value of the organization, and the return, in addition to the development of financial literature on the subject.
  • That the student diagnoses the relationship between operating profit and return per share and analyzes the ability of cash flows to service debt while studying and measuring the financing cost for ordinary shares, preferred shares, retained earnings and debts.
  • That the student uses mathematical and statistical methods in analyzing the relationship of the cost of financing with the financing structure, determining the volume of investment in light of the cost of funds, and analyzing the approaches to determining the value of the institution.

D. General skills:

  • Encouraging dialogue and discussion.
  • Developing the student's ability to use the computer in various applications.
  • Developing the student's problem-solving skills and enabling him to keep up to date with what is new in this subject
  • Connecting the student with relevant institutions.

Teaching and learning methods

  1. Study lectures.
  2. Case studies and practical applications.
  3. Various exercises on the contents of the course.
  4. Diversity in questions and activating panel discussions to develop comprehension.

Methods of assessments

  1. Midterm exam 20%.
  2. Oral exam 10%.
  3. Practical exam 10%.
  4. Final exam 60%.

Course content

Number of hours

scientific subject

Week

6

Basic concepts of corporate finance structure

1-2

9

Funding Structure Theories

3-4-5

6

Making financing structure decisions in practice and the factors affecting financing cost

6-7

9

Estimating the required return on investment (financing cost)

8-9-10

9

The relationship of the financing cost to the financing structure

11-12-13

3

Entrances to determine the value of the enterprise.

14

Portfolio theory (FIN361)
Audit and control of banks (FIN465)
Various insurance (FIN464)
Re Insurance (FIN463)
Finance and real estate investment (FIN462)
Contemporary financial issues (FIN460)
Quantitative methods in finance (FIN369)
Takaful insurance (FIN368)
Financial indicators and investment funds (FIN367)
International investment (FIN366)
Financial derivatives (FIN365)
Securities and currencies analysis (FIN364)
Advanced corporate finance (FIN363)
Investment evaluation (FIN362)
Corporate finance (FIN360)
Financial analysis and forecasting (FIN269)
Financial institutions (FIN268)
Banking operations and policies (FIN267)
Financial markets (FIN266)
Islamic financing and investment formulas (FIN265)
Fundamentals of Islamic banking (FIN264)
Insurance basics (FIN263)
Financial policies (FIN466)
International Finance (FIN467)
Financial management (FIN260)
Strategic financial analysis (FIN468)
Banking marketing (FIN469)
Planing peincipals (PLA170)
Financing Principles (FIN160)
Accounting Principles I (ACC 130)
Principles of Accounting II (ACC131)
Investing basics (FIN262)
Banking basics (FIN261)