Dr.

Haroon ur Rashid Khan

Dr. Haroon is faculty at King Abdulaziz University Jeddah, KSA and IBA Karachi, besides being visiting
faculty at various schools around globe. He holds PhD in Strategic Finance from IAE, Aix en Provence,
France. His doctoral program was in joint collaboration with ESSEC, Paris, France (both being Top
ranking business schools in Europe/France). He also holds MS in Finance from same school. He will
bring his 12 years of experience in academia and corporate world both in Pakistan and Europe. After
doing his MBA in Finance & Investment, he worked for few years in Pakistan before moving to France
for higher studies. In France he has been adjunct faculty to top ranking business schools. He has taught
courses in the field of strategic Finance. He also has two start-up ventures in France on his credit along
with diverse experience in Financial consultancy, IT and sports industry in Europe particularly in France.
He has already published several articles in peer reviewed international journals of repute along with
number of international research conferences, symposiums and workshops. His research interests include
Corporate Restructuring, Venture Capital, Private Equity, Public-to-Private Transactions, going private
transactions, Leveraged Buyouts, Management Buyouts, CSR and Innovation in Buyouts, Herd Behavior
in Capital markets, and Business Ethics.

He will be offering Business Finance II course in Summer Semester.

Business Finance II
Course Content and Educational Objectives
This seven-part module offers an overview of finance from the perspective of the corporate
financial manager. Beginning with the premise that the goal of management is to increase the
value of the firm, we will walk through the key decisions - investment, financing and risk
management - that contribute to shareholder value. The investment side will include portfolio
selection and management decisions, capital budgeting under risk, and M&A. The financing side
comprises decisions about capital structure - how much debt, relative to equity, is optimal for a
particular firm - as well as decisions about what kind of debt, and what kind of equity, is right for
the firm. We will consider how companies can return value to shareholders via the dividend and
other "payback" strategies. Both investment and financing decisions are tied to financial risk
management, including the choice of hedging instruments, so the course will offer guidelines for
the measurement and management of interest rate and currency risk and their link to financing
choices. How and why companies undertake mergers, acquisitions and divestitures is covered in
the sixth lecture. The last section pulls together many of these principles by examining why,
when and how companies restructure their finances. Using real-world case studies, the course
will introduce the key principles of selecting real investments, financing them, extracting value
and managing financial risk.

Pedagogy
It will be a combination of lectures, discussion and problem solving. Students will be encouraged
to think, analyze, evaluate, and problem-solve, not memorize. The course employs cases and
problems as well as classroom lectures and discussions, and "live case studies" to offer a handson learning experience. We will make use of international as well as domestic examples. Each
student will be expected to prepare thoroughly and to participate actively in class discussion.
There will be a number of self-test assignments and quizzes.
Classroom lectures 25-30 %
Cases (individually and group) 8-10 cases approx
Project (group)

Course contents
Class Schedule and Preparation:
A large part of successful decision-making depends upon the entrepreneurs ability to recognize
patterns. For this reason, we will use cases in this class as an important learning tool. To be
effective, the cases must be prepared carefully.
There is no one way to effectively analyze a case. Below are some helpful hints, but you are free
to prepare as you see fit. However, you must be prepared to participate fully in class. This is the
only way to enhance the learning experience and exercise the entrepreneurial skills, tools and
frameworks that you will develop as a way to improve both thinking and decision making. In
short, you will not learn what to think, but rather how to think entrepreneurially.
Helpful Hints:

Read the case story through once without stopping to underline or take notes.
o Read the case a second time. This time underlining important facts and key
issues. Take notes and give careful thought to potential options and solutions.
o Categorize the issues and facts in the event that you are asked to open the case
for class discussion.
o Listen intently in class. Keep an open mind and allow yourself to be
influenced by well- articulated arguments.
o Participate in the discussion.
o Take notes and compare to your notes prior to class to see how your thinking has
evolved.

Detailed Outline of Topics

1. Corporate Finance and Investments
o The Decisions that Create Shareholder Value
o Investment, Financing, Payback and Risk Management
o The Risk-Return Tradeoff
o Financial Investments and Optimal Portfolio Management
o Capital Asset Pricing in a Shareholder-Diversified Context
2. Real Investment Decisions
o Time Value of Money
o Risk Value of Money
o Making Real Investment Decisions
o Capital Budgeting
o The International Dimension
3. Principles of Corporate Financing Decisions
o Corporate Financing Decisions in Theory and Practice
o Finding the Optimal Capital Structure: Debt, Equity or Mezzanine?
o Corporate Taxation and Capital Structure
o Financing and Corporate Volatility
4. Risk Management and Debt Design
o From "How Much Debt?" to "What Kind of Debt?"
o Defining and Measuring Financial Risk
o Managing Interest Rate and Foreign Exchange Exposure
o Long-Term vs Short Term
o Fixed vs Floating
o Currency of Denomination
o Using Hybrid Financing Techniques
5. Valuation
o How to Value an Investment
o Strengths and Weaknesses of Accounting Valuation
o Using Comparables
o Economic Value of Future Profits
o Building in Present and Future Values
o The Free Cash Flow Growth Model to Value a Company
o Adapting the Model to Different Situations and Companies
6. Mergers, Acquisitions and Divestitures

o Theory of the Firm: "Build vs Buy"

o How do Mergers Work?
o When do Mergers Work? Who Gains? Who Loses?
o Divestitures: Why and When?
o Valuation in the Context of an Acquisition
o Criteria for Value-Adding Acquisitions
7. Corporate Financial Restructuring
o Reconfiguring Assets, Debt, Equity and Control
o Financial Distress, Bankruptcy and Reorganization
o Defensive Anti-Takeover Restructuring
o Proactive Restructuring Including Share Buybacks and Divestitures
o Summary and Conclusions
All modules will include case studies and presentations

Required Materials:
Readings will be from

How to Read a Financial Report , John A. Tracy

Applied Corporate Finance, Aswath Damodaran, Wiley, 1999.
Fundamentals of Corporate Finance, Ross, any edition but after 7th are better, Mcgraw hill
Principles of Corporate Finance, 7/e, Brealey, Myers, McGraw hill
Financial Management: Theory & Practice, 13th Edition by Eugene & Ehrhardt
Additional readings will be made available
Optional Materials:

Book: Analysis for Financial Management Robert C. Higgins

Note: Relevant chapters and cases will be provided
Students should also try the following Web sites:
CNN Finance
The Financial Times
The Economist
Yahoo finance
Google finance
For further possible data resources please consult the data resources list and for financial
calculations, please dont hesitate to use the excel programmed sheets.

Grading
Following grading plan will be observed.
Project 30 %

Case studies 20 %
Final exam 20 %
Midterm 15 %
Class participation/ Quiz 15%
Projects and Case studies will be done in group.
The exhaustive project guideline will be provided.