Goizueta Business School
Emory University
Bus 320 (Corporate Finance)
Fall 2004
Mon/Wed 10:00-11:15, 11:30-12:45
Professor Tarun Chordia
GBS 508, (404)727-1620
Office hours: Mon 1:30-2:30
or by appt.
Overview of the Course
This course provides an introduction to finance. It addresses the theory and practice of financial
management  the generation and allocation of financial resources. It has three major objectives:
1. To provide you with a foundation in the basic concepts of finance, including the time value
of money, the role of financial markets, asset valuation, portfolio theory, asset pricing, and
the risk-return tradeoff.
2. To develop your skills in financial analysis, planning, and decision-making.
3. To expand your awareness of institutions and practices in business and finance.
Readings
The required readings for this course are:
1. Fundamentals of Corporate Finance, Ross, Westerfield, Jordan, Sixth Edition, Irwin/
McGraw-Hill Publishing.
2. Articles and notes handed out in class.
The following items are optional but highly recommended.
1. You will find that regular reading of the WSJ will substantially increase your understanding,
not only of financial markets but also of the business world in general. WSJ articles will
often form the basis of class discussions.
2. A financial calculator. You will find that a financial calculator will serve you well not only in
this course, but also others. Several good calculators are available. If you choose to get a
financial calculator, you are responsible for learning how to use it.
Grading
Students will be graded on the business school grading curve and will be evaluated based on the
following scheme:
Quiz 1
Quiz 2
Quiz 3
Final Exam
22%
22%
22%
34%
The final exam will be comprehensive. There will be no makeup tests. If you miss a quiz and
have a university-accepted excuse, the weight of that quiz will be added on to the final. If you
want any exam to be regarded, please submit, within one week of taking the exam, a written
explanation for why you believe you deserve extra points. You will be allowed one 8.5x11
single-sided formula sheet for each quiz. For the final four such sheets will be allowed.
I do not enforce an attendance policy. However, you are responsible for all material assigned and
covered in class. The course involves subtle arguments and some fairly complicated problems. It
is normally difficult to do well in the class without attending the lectures and problem sessions.
TA Problem Sessions
There are several TAs for the course. There will be two one-hour sessions each week to go over
problems and / or answer your questions.
Class Behavior
Food is not permitted in the classroom (drinks are allowed). Remember to turn off your cell
phones during class!
The Daily Schedule
The schedule below is intended as a guide. It may be modified depending on the speed and
comfort level of the class.
Session
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Topic
Introduction to Finance
Financial Statements
Ratio Analysis and applications
Pro Forma Statements
Pro Forma Statements
Pro Forma Statements
Quiz 1
Time Value of Money
Time Value of Money
Time Value of Money
Time Value of Money
Security Valuation: Bonds
Quiz 2
Security Valuation: Stocks
Security Valuation: Stocks
Portfolio Theory & Applications
Portfolio Theory & Applications
Portfolio Theory & Applications
Market Efficiency & History
Market Efficiency & History
Quiz 3
Capital Budgeting
Capital Budgeting
Capital Budgeting
The Cost of Capital
The Cost of Capital
Leverage and Capital Structure
Book
Chap 1
Chap 2
Chap 3
Chap 4
Chap 5
Chap 6
Chap 7
Chap 8
Chap 13
Chap 12
Chap 9
Chap 10
Chap 11
Chap 15
Chap 17