Department of Finance, College of Commerce, NCCU
Yen, Simon H.
MBA Program
Department of Business Administration
National Chengchi University
Financial Management
Fall 2010
A. Instructor:
Office:
E-mail:
Phone/Fax:
Class Hours:
Office Hours:
Professor Yen, Simon H.
Research Room 261011, 10th Fl., College of Commerce Bldg.
syen@nccu.edu.tw
Office: 2939-3091 ext.81011 (Phone), 29393394 (Fax)
Monday
14:10 – 17:00
Monday
10:30 – 14:00
And by appointment
B. Books:
1. Textbook:
Brealey, Myers, and Allen (BMA), Principles of Corporate Finance, 9th ed.,
McGraw-Hill, 2008.
2. Recommended books:
Stern & Chew (SC), The Revolution in Corporate Finance, 4th ed., Blackwell,
2003.
Kester, Ruback & Tufano (KRT), Case Problems in Finance, 12th ed.,
McGraw-Hill, 2005
C. Course Objectives
This course is designed to make the MBA students learn the principles and techniques
about investment (or capital budgeting) decisions, financing decisions, and risk
management decisions. This course will be going through by class teaching, cases and
papers Presentation and discussion in groups.
D. Grading Policy
1. Mid-term Exam------------------------------------------------------------------2. Final exam -----------------------------------------------------------------------3. Cases presentation and discussion (in 5 groups)----------------------------4. Papers presentation and discussion (in 10 groups)--------------------------Total
35%
35%
15%
15%
100%
E. Important Notes and Policies
Syllabus-MBA-Financial Management-Yen, Simon H.
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Department of Finance, College of Commerce, NCCU
Yen, Simon H.
1. 15000-words case report will be submitted by hardcopy and CD in four weeks
after course finished.
2. Attendances records and class participation are available for grading bonus.
CLASS SCHEDULE
Week Date
Content
Text (BMA),
Reading (SC), Case (KRT)
1
9/13 Introduction
BMA Chaps 1 & 2
2
9/20 I. Value
BMA Chaps 1, 2 & 3
3
9/27 I. Value of Bonds & Common Stocks
BMA Chap 4
4
10/4 II. Investment decisions (capital budgeting)
BMA Chaps 5 & 6
5
10/11 II. Investment decisions (capital budgeting)
BMA Chaps 7 & 8
6
10/18 II. Investment decisions (capital budgeting)
BMA Chaps 9, 10 & 11
Finance Theory and Financial Strategy
7
10/25 II. Investment decisions and real options
The Promise of Real Options
8
11/1 III. Options
Convertible Bonds: Matching Financial and Real Bonds
9
11/8 IV. Financing decisions and market efficiency
SC II-5
BMA Chaps 12, 22 & 23
SC II-8
BMA Chaps 20 & 21
SC IV-19
BMA Chaps 13 & 14
The Theory of Stock Market Efficiency: Accomplishments SC I-2
and Limitations
10 11/15 IV. Financing decisions and market efficiency
BMA Chaps 14 & 15
Still Searching for Optimal Capital Structure
SC III-11
Raising Capital: Theory and Evidence
SC IV-16
11 11/22 Mid-term Exam
Syllabus-MBA-Financial Management-Yen, Simon H.
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Department of Finance, College of Commerce, NCCU
Week Date
Content
12 11/29 V. Dividend policy and capital structure
What Do We Know About Stock Repurchase?
13
12/6 V. Dividend policy and capital structure
Yen, Simon H.
Text (BMA),
Reading (SC), Case (KRT)
BMA Chaps 16 & 17
SC III-13
BMA Chaps 18 & 19
The Dividend Cut: “Heard Round the World”: The Case of SC III-14
FPL
Ford Motor Company’s Value Enhancement Plan (A)
14 12/13 VII. Risk management decisions
Rethinking Risk Management
15 12/20 VIII. M&As and Corporate Governance
KRT pp.243-259
BMA Chaps 27 & 28
SC V-24
BMA Chaps 32, 33 & 34
Measuring the Effectiveness of Different Corporate SC VII-39
Governance Systems: Toward a More Scientific
Approach
16 12/27 Cases studies
Netscape’s Initial Public Offering
KRT pp.601-610
Merck & Company: Evaluating a Drug Licensing KRT pp.371-376
Opportunity
17
18
1/3 Cases studies
Philip Morris Companies and Kraft, Inc.
KRT pp.619-635
Seagate Technology Buyout
KRT pp.755-770
1/10 Final Exam
Syllabus-MBA-Financial Management-Yen, Simon H.
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