Introduction to Corporate Finance

Curriculum Guideline

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Course
FINC 2345
Discontinued
No
Course Code
FINC 2345
Descriptive
Introduction to Corporate Finance
Department
Finance
Faculty
Commerce & Business Administration
Credits
3.00
Start Date
End Term
201920
PLAR
No
Semester Length
15 Weeks X 4 Hours per Week = 60 Hours
Max Class Size
35
Contact Hours
Lecture: 4 Hours Total: 4 Hours
Method(s) Of Instruction
Lecture
Seminar
Learning Activities

Material will be presented within a lecture format.

Course Description
This course provides an introduction to corporate finance. It is designed to provide students with a framework to analyze problems that may arise when making corporate investment and financing decisions. The major topics include time value of money, the types of securities generally used, an introduction to capital markets, capital budgeting, capital asset valuations, and various types of corporate financing decisions.
Course Content
  1. Financial analysis and planning
    • review of accounting
    • financial analysis and financial forecasting
    • operating and financial leverage
  2. Working capital management
  3. Valuation and rates of return
    • cost of capital – marginal or weighted average
  4. Long-term financing
    • capital markets
    • investment underwriting
    • long-term debt and lease financing
    • common and preferred stock financing
    • dividend and dividend reinvestment policies
    • convertibles, warrants and options
    • stock splits
  5. External growth, corporate takeovers and mergers
    • the multinational corporations
    • corporate takeovers and controls
  6. Capital budgeting process
Learning Outcomes

At the end of the course, the successful student should be able to:

  • develop a basic understanding of corporate finance theories and the application of such theory into simulated or historical financial management cases.
Means of Assessment

Minimum of 3 evaluations, none of which will exceed 40%, for a total of 100%.

Textbook Materials

Textbooks and Materials to be Purchased by Students

  • Block, S.B. and Hirt, G.A., and Short, J.D.  Foundations of Financial Management, latest ed.  Toronto: Irwin Publishing.  (required)
  • Brown, R.L. and P. Zima.  Mathematics of Finance, latest ed.  Toronto: Irwin Publishing.  (optional)
  • All students are required to have a financial business calculator.
Prerequisites

ACCT 1235 or equivalent