Material will be presented within a lecture/discussion environment.
1. Introduction to corporate finance, financial statement analysis, valuation of cash flows.
2. Security valuation for stocks and bonds including time-value of money, discounting, expected risk/return, Capital Asset Pricing Model (CAPM) and diversification.
3. Cost of capital for project decision making, including working capital and discounted cash flow analysis.
4. Financing decisions including; capital structure; debt and dividend policy decisions; mergers and acquisitions.
At the end of the course, the successful student should be able to:
1. describe the financial environment within which the financial manager must operate;
2. analyse financial statements to determine a company's performance relative to its industry or competitors;
3. apply time value of money concepts, cash flow valuation, and risk premiums in making financing and capital budgeting decisions;
4. apply cost of capital (before and after tax) and net working capital analysis (before and after tax), as well as debt versus equity financing considerations (including projected interest and foreign exchange rates) in financial management decisions;
5. demonstrate a broad understanding of the theory of capital structure and its impact on management decision-making including corporate restructuring activities; and
6. assess valuations of stocks and bonds.
|Term Tests (2-4)||40-50%|
Textbooks and materials to be purchased by students
1. Ross, S.; Westerfield, R.W. et al, Fundamentals of Corporate Finance, latest Canadian Edition, McGraw Hill
or Berk, J; DeMarzo, P.: et al. Fundamentals of Corporate Finance, latest Canadian Edition, Pearson
or alternate textbook determined by the department.
2. Calculator: Texas Instruments BA II Plus OR as approved by Department.