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
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:
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%
Introduction to Corporate Finance Chapter 1
Statement of Cash Flows Chapter 2
(Mini Case pages 42 & 43)
Discounted Cash Flow Chapter 4
Exam # 1
Financial Statement Analysis (Group Project) Chapter 3
Risk & Return, Capital Asset, & Pricing Model Chapters 10, 11, & 12
Stock Valuation, Financial Markets Chapter 9
(Mini Case pages 304 & 305)
Dividend Policy Chapter 19
Market Efficiency & Behavioral Finance Chapter 14
Exam # 2
Interest Rates & Bond Valuation Chapter 8
Cost of Capital & Valuation Chapter 13
Capital Structure Chapter 16
Capital Budgeting Chapter 5
International Corporate Finance Chapter 31
Exam # 3
GROUP RESEARCH PROJECT
The project should be an analysis of a corporation. The report should include the following:
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.
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