Page 20 - Graduate Studies Bulletin

GRADUATE STUDIES BULLETIN

investment decision-making process. Topics to be covered in this course
include bond valuation, equity valuation, portfolio diversification, market
efficiency and its implications, and the capital asset pricing model (CAPM).

FIN 552 Corporate Finance

Credits: 3(3-0-0) Prerequisite: FIN550

This course explores the challenges facing financial managers in the modern

corporate environment. More specifically, it deals with the role financial

decisions play in optimizing capital structure in order to minimize the cost

of capital. Besides optimizing the financial structure of corporation, it also

deals with how to make the best use of corporate capital in suitable projects

in order to add additional value for shareholders. Other topics covered are

strategic acquisition, structuring of financial contracts, and evaluation of

merger candidates, leveraged buyouts, Competitive bidding, corporate

restructuring and other methods of shareholder value enhancement as

well as dividend policy and leasing.

FIN 553 Financial Markets and Institutions

Credits: 3(3-0-0) Prerequisite: FIN550

The course introduces the students to theory and practice of financial

markets and institutions from the perspective of risk management. The

topics covered in the course include financial intermediation and financial

intermediaries, risk of financial intermediation, interest rate risk, market risk,

credit risk, foreign exchange risk, liquidity risk, liability management, capital

adequacy, hedging with financial derivatives, and asset securitization.

FIN 554 Financial Derivatives (3 credits)

Credits: 3(3-0-0) Prerequisite: FIN550

The course focuses on derivative securities such as options, futures, and

swaps. Topics included in this course are: an introduction to various types of

derivative securities, an understanding of the markets in which derivative

securities are traded, different pricing models of options and futures, and

the use of derivative securities in managing portfolio risks.

FIN 555 Insurance and Risk Management

Credits: 3(3-0-0) Prerequisite: FIN550

Every year billions of dollars exchange hands between insurance companies

and the people they insure. But what is the reason for insurance, and how

19PRINCE SULTAN UNIVERSITY