Curriculum Guideline

Corporate Finance

Effective Date:
Course
Course Code
FINC 2340
Descriptive
Corporate Finance
Department
Finance
Faculty
Commerce & Business Administration
Credits
3.00
Start Date
End Term
Not Specified
Discontinued
No
Is Active
No
PLAR
No
Semester Length
15 Weeks X 4 Hours per Week = 60 Hours
Max Class Size
35
Contact Hours
Lecture: 3 hours Seminar: 1 hour
Method Of Instruction
Lecture
Seminar
Methods Of Instruction

Material will be presented within a lecture/discussion environment.

Course Description
This course provides an introduction to the principles and tools required in financial decision making. Quantitative analysis involving time-value of money, risk return trade-off, capital budgeting, cost of capital, and corporate financing decisions will be covered.
Course Content

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.

Learning Outcomes

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.

Means of Assessment
Term Tests (2-4)         40-50%
Final Examination   30-40%
Assignments (2-8)   10-15%
Projects   0-10%
Total   100%
Textbook Materials

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.

Prerequisites

(ACCT 1210 or ACCT 1235 or approved substitute) and (FINC 1231 or FINC 1230 or MATH 1125 or approved substitute, or MATH 1120 with permission of instructor) or currently active in PDD Financial Planning or PDD Financial Analysis or PBD Accounting.  CSIS 1190 is highly recommended.

Corequisites

Nil

Equivalencies
Which Prerequisite