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Department
of Accounting, Finance, & Law Finance
325: Corporate Finance, Section 820 (CRN: 10692) Spring
2006 Instructor and
Contact Information
Office Hours: Tuesdays: 4:00 PM – 6:00 PM Wednesdays: 11:00 AM – 2:00 PM Thursdays: 10:00 AM – 10:30 AM and by appointment Students
having trouble keeping up with course progress should not hesitate to seek help
from tutors or the instructor. Nor
should they be shy to express their concerns with issues that might adversely
affect their academic performance. Remember,
there will be no remedy, once the semester is concluded. Course Information and Requirements
Course Philosophy This is a relatively demanding course designed to give students an introduction to the fundamental corporate financial issues and commanding considerable work on the student’s part. The course covers a lot of materials and is relatively quantitative. Even very bright students will find it necessary to go over lecture notes and chapters carefully at least several times. Students must keep up with the class discussions and the assigned readings in the text. Regular class attendance is essential if students intend to perform well in the course. To facilitate effective learning and incorporate available technologies, most course materials will be posted on-line for students’ convenience. NEVERTHELESS, THIS COURSE IS NOT A DISTANCE LEARNING CLASS JUST BECAUSE MOST COURSE MATERIALS ARE AVAILABLE ON-LINE. Course
Learning Objectives This course will provide an
understanding of the fundamentals of corporate financial management.
For the purpose of presenting these fundamentals, the goal of financial
management is normally regarded as to maximize the value of the firm for its
owners, the stockholders. Therefore,
the focus of this course is on the value-creating activities of corporate
management. What are these value-creating activities? After a brief overview of financial management, this course will begin with discussions on the fundamental financial concepts:
With these discussions as a
foundation, we are equipped with enough financial knowledge to study the major
areas of corporate finance:
Emphasis
will be on the achievement of a set of cognitive skills as a basis for
understanding financial management, on the one hand, and the application of
these skills to the management of a firm, on the other hand. Throughout the course, readings and lectures will cover critical issues
that form the context for business and corporate finance. Coverage will include
ethics and social responsibility, the political, legal and regulatory influences
on finance, international financial issues, and the financial issues relating to
new technology, the environment, and cultural diversity. Ultimately, the
lectures, class discussions, worksheets, in-class exercises, homework
assignments, and examinations will provide students with opportunities to
develop and demonstrate many important business skills.
Specific skills that will be addressed in this course include critical
thinking, quantitative skills, decision-making, applied research techniques and
the synthesis of knowledge from various sources, teamwork and interpersonal
skills, written and oral communication, and the use of information technology. Assignments
Examinations To
prepare for the two examinations, a midterm and a final, students are
responsible for understanding the materials covered in the class discussions and
the related textbook chapters or sections. Should
a student miss any of the exams, a makeup exam will be given for valid
medical reasons with a physician’s note.
Nonetheless, the student (or a friend or relative of the student) should
inform the instructor via email or phone before the exam begins.
Permission of a rescheduled midterm or final exam for other non-medical
reasons, limited to only serious legal matters or family emergencies, should be
requested well ahead of time with documented evidence.
Reasons (not limited to) such as taking a non-refundable vacation, family
reunion, military training (any conflict should be resolved before registering
this course), attending a wedding (except for your own), business trip (unless
not doing so seriously compromises her/his job security (legitimate proof
required)), or attending a game (except for representing the university in a
tournament (a coach’s note required)), are not acceptable.
Students missing any
examination without permission will automatically receive a zero on that exam. Quizzes A number of half-hour long quizzes will be given during the
semester. These quizzes will be
announced in advance. There will
also be a number of unannounced 10-minute pop quizzes at the end of some
classes. Missing a quiz due to an
unexcused absence will result in a zero grade on that quiz.
A student will be excused from a quiz only when there is a valid
pre-approved reason or documented illness with a notification, such as an email
or a voice message, to the instructor prior to the quiz. Class Participation In
evaluating class participation, the instructor will look for comments that are
thoughtful and lead the discussion forward.
In addition, the instructor may ask students questions to ensure that students understand the critical issues of the
topic and involve in class activities. Attendance According to College Catalog (similar message can also be found in Student Handbook): “Regular class attendance is
obligatory. An instructor may recommend that a student be dropped from a course
for poor achievement due to excessive absence. A student who is dropped after
the deadline for dropping courses may be assigned a grade of E. Students who
have two unexcused absences during the first two class meetings of the semester
may be dropped from the course at the discretion of the instructor. The
instructor or the department offering the course will notify the Registrar of
this action. However, students should not assume that they have been dropped
from a class just because the first two classes were missed. It is ultimately
the responsibility of students to drop a course that they are not planning to
attend by the deadline published.” In addition, faculty MUST maintain records of attendance for Financial Aid purposes. Therefore, the instructor will keep an attendance record by circulating a roll sheet in class. Students should remember to have it signed every time. No late signing is allowed once a class is concluded. Absence without a valid reason (documentation required in all cases) and prior approval (except for illness which requires only a notification via email or phone before class) will result in one-point deduction from a student’s attendance grade until it reaches zero. After that, two more unexcused absences, coupled with poor performance, will warrant a recommendation to the Registrar’s office for the student to be dropped from the course due to excessive absence. Missing a quarter of classes or more is considered excessive. The above attendance policy will be strictly enforced. Nevertheless, each student will be given a one-time exception for undocumented absence or forgetting signing the attendance sheet. Teamwork Teamwork often facilitates a more effective learning process through collaboration and also mirrors the practice in most workplaces. Students will be benefited from forming study groups for mutual assistance in their studies and completing assignments. Although, you are allowed to work together, assignments should still be completed individually. Working together does not mean that one can simply copy answers from the other. Any violation discovered will lead to zero point and offenders are subject to academic penalty and/or disciplinary action under the University policy. Grading
Tutoring Students
may find it beneficial to obtain assistance from tutors and meet with one of
them on a regular basis throughout the semester.
Tutors are available for this course through the Office of Learning
Services (OLS) at 200 Swetman Hall and (315) 312-3094.
In addition, if available, you may also contact Beta Alpha Psi (VP of
Tutoring) for tutoring in Corporate Finance.
However, tutoring should not be exploited solely as a shortcut to
complete homework assignments. Academic Integrity Students
are advised to strictly follow the “College Policy on Cheating/Plagiarism”,
which can be found at http://www.oswego.edu/administration/registrar/acad_policies.html
or the Student Handbook. Any violation will result in academic penalty
and/or disciplinary action under the Code of Student Rights, Responsibilities
and Conduct (refer to the Student Handbook, particularly sections 42A and 43A). Add/Drop, Withdraw, and Incomplete Policies Students
are responsible to be aware of the current add, drop and withdraw policies
stipulated in the university “Academic Policies”, which can be found on the
university website: http://www.oswego.edu/administration/registrar/acad_policies.html
or various university publications. Incomplete
grade “I” will be given only in situations beyond a student’s control,
such as serious illness, legal issue, and family emergency for an extended
period of time. Legitimate proof is
required. “I” will not be
granted because of a student’s poor performance.
(Final day to drop: Wednesday, February 15; Final day to withdraw: Friday, March 31) Classroom Behaviors During a class, students should refrain themselves from any disturbing behaviors interfering with the learning of their fellow classmates. In particular, cellular phones and beepers should be turned off. Except for participating in class discussions and asking the instructor questions, private conversations between students are prohibited. Unless directed, students are NOT allowed to access websites, check emails, watch videos, play games, and engage in activities on their laptop computers other than taking notes, accessing course materials, and others permitted by the instructor. Any violation of these kinds is deemed improper. Repeated offenders will be at least asked to leave the class. Disabilities Students
who have a disabling condition, which might interfere with their ability to
successfully complete this course, are encouraged to speak, confidentially, to
the instructor, or contact the Office of Disability Services (phone 312-3358). Course
Outline: Subject to Change Week
Topic
Chapter 1
The Scope of Corporate Finance
1 2
Financial Statement and Cash Flow Analysis
2
3
Time Value of Money
3 4
Time Value of Money, Valuing Bonds
3, 4
5
Valuing Bonds
4 6
Valuing Stocks
5 7
Midterm Examination: (Tuesday, March 7 and Thursday,
March 9)
(Monday-Friday, March 13-17: Spring Recess: No Classes) 8
The Trade-off between Risk and Return
6 9
Risk, Return, and the Capital Asset Pricing Model
7 10
Capital Budgeting Process and Techniques
8
11
Cash Flow, Risk, and Capital
Budgeting
9*, 10*
(Thursday, April 13: Good Friday & Spring Break Day: No Classes) 12
Raising Long-Term Financing
11 13
Capital Structure
12 14
Dividend Policy
13 15
Working Capital Management:
Managing Current Assets
19*
* If time permits. 16
Final Examination: 2:00 PM – 4:00PM (Tuesday, May 16) |