1. Course Outline: INTERMEDIATE FINANCE
Dr Shahab Q Khokhar
© 2004 Dr S Q Khokhar

2. Aims & Objectives
The course aims to build upon your knowledge gained in Principles of Finance
The level of difficulty of the course material is medium to hard
The focus of the course is on valuation – both financial and real assets valuation
Anyone interested in becoming an investment banker, investment manager or a corporate financier should seriously benefit from this course
© 2004 Dr S Q Khokhar

3. Course Information Instructor: Dr Shahab Q Khokhar
Pre-requisite: Principles of Finance
Sessions: 20 Sessions of 100 minutes each
Class Timings: Mondays and Wednesdays, 11.45am to 1.25pm
Venue: TBC
Start Date: March 3, 2004
© 2004 Dr S Q Khokhar

4. Course Information The course is divided into three modules Grading
Financial Asset Valuation
Real Asset Valuation
Capital Structure and Corporate Control
Grading
Class Contribution (including attendance) 10% (5%)
Quizzes %
3 quizzes (announced)
Problem Solving Exercises 10%
3 problem solving exercises (in Microsoft Excel, where applicable)
Mid-term Examination (85 min) 25%
Final Examination (175 min) 45%
© 2004 Dr S Q Khokhar

5. Reading Material Textbook Other Books Financial Newspapers
Grinblatt, M. and S. Titman, Financial Markets and Corporate Strategy, Second Edition, McGraw-Hill Irwin. (G&T)
Other Books
Modern Portfolio Theory
Financial Newspapers
Business Recorder
Financial Times (FT.com)
The Wall Street Journal (WSJ.com)
Further supplementary material (such as, book chapters, newspaper / journal / magazine articles, etc.) may be assigned as additional readings during the period of the course
© 2004 Dr S Q Khokhar

6. Sessions
Session 1: Review of Financial Markets and Financial Instruments
Readings: G&T, Chapters 1 to 3
Session 2: Basics of Portfolio Analysis I
Readings: G&T, Chapter 4
Session 3: Basics of Portfolio Analysis II
Session 4 : Capital Asset Pricing Model I
Readings: G&T, Chapter 5
Session 5: Capital Asset Pricing Model II
© 2004 Dr S Q Khokhar

7. Sessions Session 6: Arbitrage Pricing Theory Session 7: Derivatives I
Readings: G&T, Chapter 6
Session 7: Derivatives I
Readings: G&T, Chapters 7 and 8
Session 8: Derivatives II
Session 9: Mid-Term Examination
Session 10: Review of Discounting and Valuation
Readings: G&T, Chapter 9
Session 11: Investing in Risk-Free Projects
Readings: G&T, Chapter 10
© 2004 Dr S Q Khokhar

8. Sessions Session 12: Investing in Risky Projects I
Readings: G&T, Chapter 11
Session 13: Investing in Risky Projects II
Session 14: Talk / Interactive Session by Someone from the Financial Markets
Session 15: Allocating Capital Among Competing Projects
Readings: G&T, Chapter 12
Session 16: Impact of Financing on Real Assets
Readings: G&T, Chapter 13
© 2004 Dr S Q Khokhar

9. Sessions Session 17: Capital Structure I
Readings: G&T, Chapters 14 to 17
Session 18: Capital Structure II
Session 19: Corporate Governance I
Readings: G&T, Chapters 18 to 20
Session 20: Corporate Governance II
© 2004 Dr S Q Khokhar