Course Syllabus

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COURSE DESCRIPTION

The goal of this course is to develop the analytical skills for making corporate investment with regards to financial decisions and risk analysis.  This course will examine various theories including the concept of present value, the opportunity cost of capital, discounted cash flow analysis, a consortium of valuation techniques, issues between short & long term financial management, risk and return, capital asset pricing model, capital budgeting, corporate capital structure and financing decisions, dividend policy, investment and financial decisions in the international context, including exchange rate/interest rate risk analysis, and issues of corporate governance and control.  In essence, we will explore the very patterns of corporate finance that has shaped the familiar yet complex terrain of today’s global economy.

An equally important component of this course is its emphasis on developing your critical auditory and erudite writing skills to a level that is commensurate with university standards.  The course teaching methodologies will be composed of lectures, homework assignments and a group project.

Prerequisites:  Introductory level accounting and economics will be helpful.

 

MGMT E-2700 CORPORATE FINANCE

FALL TERM, 2015

Dr. Mahboubul Hassan       

(603) 625-1628                                                                Thursday 7:40 – 9:40 PM

 

Required Texts:

Corporate Finance, by Stephen A. Ross, Randolph W. Westerfield and Jeffrey Jaffe (RWJ), 10th edition, McGraw-Hill 2013.

A short review of the text offers the reader a balance between theory and real world examples.  All books are available for purchase at the Harvard Coop or at a number of online retailers.

Regular reading of the Wall Street Journal is strongly recommended and will be highlighted throughout the course.

 

 

 

General Administrative Matters:

  1. To pass this course, you must satisfy all course requirements; i.e., you must take all exams, turn in all written assignments to the Instructor, and you are to attend as well as participate in the classroom discussion. Material not contained in the course textbook, assigned readings, or problems also may be presented and discussed. You are responsible for all material covered in class during the semester.
  2. For University closings and class cancellations, check Harvard Business School’s homepage (www.fas.harvard.edu).

 

Grading:

A student’s final grade will be based on the following measurements:

Exam 1                                  25%

Exam 2                                  25%

Exam 3                                  25%

Group Project                       15%

Homework (Mini cases)       10%

 

COURSE OUTLINE

 

Introduction to Corporate Finance                                                                                  Chapter 1

                                                                                                                                                Handout

Statement of Cash Flows                                                                                                   Chapter 2

                                                                                                                                                (Mini Case pages 42 & 43)

                                                                                                                                                Handout

Discounted Cash Flow                                                                                                         Chapter 4

                                                                                                                                                Handout

 

Exam # 1

 

 

Financial Statement Analysis (Group Project)                                                                Chapter 3

                                                                                                                                                Handout

Risk & Return, Capital Asset, & Pricing Model                                                               Chapters 10, 11, & 12

                                                                                                                                                Handout

Stock Valuation, Financial Markets                                                                                   Chapter 9

                                                                                                                                                (Mini Case pages 304 & 305)

                                                                                                                                                Handout

Dividend Policy                                                                                                                     Chapter 19

Market Efficiency & Behavioral Finance                                                                          Chapter 14

 

Exam # 2

 

Interest Rates & Bond Valuation                                                                                     Chapter 8

                                                                                                                                                Handout

Cost of Capital & Valuation                                                                                                Chapter 13

                                                                                                                                                Handout

Capital Structure                                                                                                                 Chapter 16

Capital Budgeting                                                                                                                Chapter 5

                                                                                                                                                Handout

International Corporate Finance                                                                                      Chapter 31

                                                                                                                                                Handout

 

Exam # 3

 

 

 

GROUP RESEARCH PROJECT

 

The project should be an analysis of a corporation. The report should include the following:

  1. Select a company (it should be approved by the Instructor).
  2. Introduction of the company (half page).
  3. Calculation of Financial Ratios (the Instructor will go over it in the class) of the company for two years (i.e. 2012, 2013).
  4. Financial Analysis of the corporation.
  5. Conclusion: A list of strengths & weaknesses relevant to the organization.

The report should be typed and double-spaced.  It should not exceed ten pages.  The report should be submitted on the last day of the class.

 

Course Summary:

Date Details Due