INFORMATION AND COMMUNICATIONS UNIVERSITY

SCHOOL OF BUSINESS

Tel: +260-211-845754/221662 P.O Box 30226, Lusaka 10101, Zambia

Cell:+260-979303567/0979 718215 Email: admin@icuzambia.net
academic@icuzambia.net

COURSE NAME: CORPORATE FINANCE

COURSE CODE:

COURSE RATIONALE

COURSE OBJECTIVE

On completion of the course, you should be able to:  explain the nature and concept of corporate
finance  define financial market and the corporation  identify the problems of corporations and
how to control them  analyse financial statement and financial ratios  discuss financial
planning and control  explain working capital management  describe how capital structure
decision can be made  explain cost of capital and risk associated with cost of capital  mention
different types of securities  discuss mergers and acquisitions.

COURSE DESCRIPTION:

Corporate Finance aims to acquaint students with the policies and procedures as well as
problems encountered in the course of acquisition and utilisation of funds in corporate
organisations. COURSE OBJECTIVES

OVERALL LEARNING OUTCOMES

 INFORMATION AND COMMUNICATIONS UNIVERSITY

SCHOOL OF BUSINESS

Tel: +260-211-845754/221662 P.O Box 30226, Lusaka 10101, Zambia

Cell:+260-979303567/0979 718215 Email: admin@icuzambia.net
academic@icuzambia.net

COURSE OUTLINE

1: Overview of Corporate Finance o Introduction to Corporate Finance o Objective Function in

Corporate Finance o Forms of Business o Agency Problems and Control of Corporations o
Financial Market and the Corporation UNIT 2: Understanding Financial Statement o Principal
Financial Statement o Financial Ratios o Analysis of Financial Ratios 2 o Financial Planning and
Growth o Preparation of Estimated Income Statement and Balance Sheet UNIT 3: Investment
and Financing Decisions o Working Capital Management o Capital Structure Decision o Cost of
Capital Approach o Risk Associated with Cost of Capital o Capital Budgeting UNIT 4: Dividend
Decision, Corporate Strategy and Firm Value o Type of Securities o Dividend Policy o Corporate
Growth o Mergers and Re-Organisations o International Finance

COURSE MATERIALS AND READINGS

Damodaram, A. (1997). Corporate Finance: Theory and Practice. USA: John Wiley and Sons Inc.
Ross, S.A. et al. (2006). Fundamentals of Corporate Finance. USA: McGraw – Hill Inc.
RECOMMENDED READINGS John Maxwell. Developing the Leaders around You. 3 Lipton,
M. (2003).Guiding Growth: How Vision Keeps Companies on Course. Harvard Business School
Press. Philip B. Crosby. The Eternally Successful Organisation. Roberts, J. (2004). The Modern
Firm: Organisational Design for Performance and Growth. Oxford University Press.

EVALUATION

Assignments: There will be assignments designed both to consolidate the technical material
covered and to encourage research. The assignments will be evaluated by the course
lecturer/tutor.

Course Research Project: There will be projects to be assigned to either a group or individual as
need may be. The projects will consist of carrying out a research on a real situation. This will
involve: gathering information from sources and a report shall be prepared and submitted to be
evaluated.
Final Examination: There will be exams which shall be the main assessment. This means for one
to clear the course one has to pass the final exams first. This implies one has to get at least not
less than 24 Mark out of 60 marks of the exam or 40% of 60% then assignment and project will
be considered. It also implies if a student gets less than 40% from exams, if though you have
 INFORMATION AND COMMUNICATIONS UNIVERSITY

SCHOOL OF BUSINESS

Tel: +260-211-845754/221662 P.O Box 30226, Lusaka 10101, Zambia

Cell:+260-979303567/0979 718215 Email: admin@icuzambia.net
academic@icuzambia.net

38% from both assignment and research project one will not be considered to have cleared the
exams.

Components and Weights

Assignments (individual) 20%
Assignment (Individual or group) 20%
Final
60%
Examination
Total 100%

ACADEMIC DISHONESTY

Please note that students involved in academic dishonesty will receive a ‘D’ grade on the
particular component in which the infraction occurred and a notation of academic dishonesty in
the Dean’s office. Students may also receive a ‘D’ grade on the course, a notation of academic
dishonesty on their transcripts (i.e., Notation reads: “Grade of F assigned for academic
dishonesty”), and/or suspension or expulsion from the university. The University Senate
Resolutions on Academic Dishonesty is contained in the Examination Policy on Exam
Malpractice

It is the student’s responsibility to understand what constitutes academic dishonesty. Please be

careful when handing in assignments, reports, essays and/or cases that are based on individual
work. In instances when work is suspected to be copied and/or plagiarized, all students involved
will be notified and the case will be reviewed first by the instructor and then by the Office of
Academic Integrity.