Corporate Finance

By Prof. Abhijeet Chandra | IIT Kharagpur

Learners enrolled: 6633

The aim of this course is to equip the learners to understand, appreciate, and employ the corporate finance concepts and applications in the context of managerial decision making. The course participants should be, at the end of the course, able to understand the decisions related to capital budgeting, capital structure, management of working capital, and dividend policy, by way of learning tools and techniques to solve advanced numerical problems of real business situations efficiently. The course shall have four distinct modules, namely investment decisions, financing decisions, working capital management decisions, and payout decisions. Investment decisions aim to help understand the valuation of financial securities, and the role of risk-return relationship in making the capital budgeting decisions. Financing decisions help in determining the right source of capital while keeping shareholders’ interests a priority. Working capital management decisions focus on optimal management of inventory, debtors and receivables, and payables. Finally, payout decisions are related to the issues pertaining to paying dividends or keeping the profits within the business. We shall also consider some other relevant issues as part of our discussion with respect to financial decision making process.

INTENDED AUDIENCE : Undergraduate and postgraduate-level students with interest in business management and/or finance in terms of academic specialization (e.g., minor/major in finance/financial engineering/management) or career choices (e.g., BFSI industry, stock market investments, FinTech, etc.)

PREREQUISITES : UG-level courses in Economics (Microeconomics and Macroeconomics) and Basic Statistics Financial Accounting and Financial Institutions and Markets

INDUSTRY SUPPORT : Banking and Financial Services Industry (banks, financial analysis and advisory firms, equity and investment research companies)

Summary

Course Status :	Ongoing
Course Type :	Elective
Duration :	8 weeks
Start Date :	26 Jul 2021
End Date :	17 Sep 2021
Exam Date :	26 Sep 2021 IST
Enrollment Ends :	09 Aug 2021
Category :	Management Studies Economics & Finance
Credit Points :	2
Level :	Undergraduate/Postgraduate

Course layout

Week-1 : Introduction to Corporate Finance and Related Concepts (Sources of finance andrisk and return)
Week-2 : Time value of money and long-term investment decisions
Week-3 : Investing Decisions:Project appraisal and capital budgeting decisions

Week-4 : Financing Decisions: Cost of capitaland its impact on firm valuation

Week-5 : Financing Decisions: Capital structure theories and applications, concepts of leverage

Week-6 : Working Capital Management: Profitability and liquidity, operating and cash conversion cycles
Week-7 : Working Capital Management: Debtors, inventory, andpayables

Week-8 : Payout Decisions: Dividend theories, models, and applications

Books and references

(1) Fundamentals of CORPORATE FINANCE, S. A. Ross, R. W. Westerfield, and B. D. Jordan (11th ed.), McGraw Hill (2018.

(2) Financial Management, M Y Khan and P K Jain (8th ed.) McGraw Hill, 2018

(3) Principles of Corporate Finance, R. A. Brealey, S. C. Myers, F. Allen, and P. Mohanty (12th ed.), McGraw Hill, 2019.

Instructor bio

Prof. Abhijeet Chandra

IIT Kharagpur

As assistant professor at VGSoM, IIT KGP., I offer courses in Corporate Finance, Investment Management, and Management Accounting to UG, PG, and Doctoral level student. I have done BCom. (H), MCom, and PhD in Accounting and Finance area. I also have completed post-doctoral research in behavioral finance and asset pricing. My major research interests are in financial economics (behavioral finance, asset pricing, and economics of derivatives) and individual decision making under risk and uncertainty (prospect theory, risk preferences, irrationality). I do both theoretical and empirical work and am currently also involved in experimental work. The core issues that I have been working on are the study of behavioral dimension of investment decision-making, from both individual and institutional perspectives, and how it affects the asset prices and market mechanism. My research interests are based on the behaviouralized inquiries related to the emerging research area of behavioral finance which draws its ideas from various disciplines including economics, finance, psychology, sociology and so on.

Course certificate

The course is free to enroll and learn from. But if you want a certificate, you have to register and write the proctored exam conducted by us in person at any of the designated exam centres.
The exam is optional for a fee of Rs 1000/- (Rupees one thousand only).
Date and Time of Exams: 26 September 2021 Morning session 9am to 12 noon; Afternoon Session 2pm to 5pm.
Registration url: Announcements will be made when the registration form is open for registrations.
The online registration form has to be filled and the certification exam fee needs to be paid. More details will be made available when the exam registration form is published. If there are any changes, it will be mentioned then.
Please check the form for more details on the cities where the exams will be held, the conditions you agree to when you fill the form etc.

CRITERIA TO GET A CERTIFICATE

Average assignment score = 25% of average of best 6 assignments out of the total 8 assignments given in the course.
Exam score = 75% of the proctored certification exam score out of 100

Final score = Average assignment score + Exam score

YOU WILL BE ELIGIBLE FOR A CERTIFICATE ONLY IF AVERAGE ASSIGNMENT SCORE >=10/25 AND EXAM SCORE >= 30/75. If one of the 2 criteria is not met, you will not get the certificate even if the Final score >= 40/100.

Certificate will have your name, photograph and the score in the final exam with the breakup.It will have the logos of NPTEL and IIT Kharagpur .It will be e-verifiable at nptel.ac.in/noc.

Only the e-certificate will be made available. Hard copies will not be dispatched.

Once again, thanks for your interest in our online courses and certification. Happy learning.

- NPTEL team

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