TOWSON UNIVERSITY
ADVANCED CORPORATE FINANCE
FIN 351
Fall 2013
Instructor:
Office:
Work Phone:
Class Hours:
Office Hours:
Email:
Course Home Page:
Dr. Yingying Shao, CFA
ST316F
410-704 -3839
Section 351-001 TuTh 11:00AM - 12:15PM
Section 351-002 TuTh 3:30PM - 4:45PM
TuTh 9:00AM-11AM, 1:00PM-3:00PM, or by appointment
yshao@towson.edu
Blackboard site
Prerequisites:
FIN 331, Junior/Senior and major standing.
Course Description:
This is the second in the sequence of two intermediate level corporate finance courses for
all finance majors. Applying financial modeling skills using Excel is an integral
component of this course. It serves the purpose to let students to use the modeling skills
acquired in FIN350 to apply to more sophisticated topics covered in this course. Students
will continue to develop in-depth understanding of many financial theories, analyses, and
comprehensive applications of financial tools. Equipped with basic finance knowledge
and modeling skills from FIN350, students are to apply concepts and technology for
supporting the decision making process to solve a wide variety of financial problems.
Students are also expected to read outside material to enhance the understanding of topics
presented in class. Topics include Capital Budgeting, Real Option, Capital Structure
Theory, Corporate Payout Policy, and Working Capital Management.
Course Objective:
This course is intended to introduce students to advanced finance concepts and build on
FIN 350 while simultaneously infusing financial modeling (spreadsheet) skills that allow
the students to develop complex financial concepts. The goal is to lay the foundation for
students to become proficient in the use of spreadsheets as they progress through the
finance curriculum.
General Learning Objectives:
 To conduct an in-depth study of corporate finance theory and practice.
 To provide students with an opportunity to apply financial and analytical tools for
problem solving and decision making purposes.
Specific Learning Objectives:
 Learn and apply Financial Modeling Skills in Excel.
 Analyze Capital Budgeting Decisions
 Understand and evaluate Real Options.
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

Understand and evaluate Capital Structure Decisions
Evaluate Corporate Payout Policies
Required Materials:
Textbook:
Intermediate Financial Management, Brigham & Daves, 11th Ed.
Calculator: Texas Instruments BA II Plus. Phone calculators or any other calculators
are not allowed.
Grading:
Exams
There will be two non-cumulative exams. Exams are based on class lecture, assigned
problems, group discussion, and supplementary readings.
Spreadsheet Quizzes
There will be three Excel-based quizzes examining students’ skills in applying Excel for
problem solving on an individual basis.
Note: I’ll not administrate make-up exams/quizzes unless you have to miss the exam/quiz
due to medical emergencies or other university approved reasons. You should inform me
in writing of your desire to take the make-up exam/quiz in advance or within one week of
missing an exam and support necessary documentation.
Homework assignments
Assignments will be graded on correctness as well as presentation. Due to the amount of
time given to complete the assignment, I expect high scores and will grade accordingly.
Late assignment will not be accepted unless you make prior arrangements with me at
least one class period before the due date and you have an extraordinarily good excuse.
Attendance and Participation
I expect you to attend class and to arrive on time. Students who have conflicts should
discuss them with me at the beginning of the semester to see what arrangements might be
made. Students who miss three classes or less during the semester will not lose any
points from final grade. However, students who miss more than three classes will lose 5
points for each additional class they miss. That is, you will lose 10 points in your final
grade if you miss 5 classes in the semester.
Breakdown of Grade:
Exam 1
Exam 2
Spreadsheet quizzes (10x3)
Assignments
In-class exercises
Total
Percentage
25
25
30
15
5
100
Final Exam date: FIN351-001 Dec 18, 2013: 10:15 AM-12:15 PM
FIN351-002 Dec 16, 2013: 12:30 PM- 2:30 PM
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Final Grade Distribution:
A
A-
B+
B
B-
C+
C
D+
D
F
92+
89-91.99
87-88.99
82-86.99
80-81.99
77-79.99
72-76.99
67-71/99
60-66.99
0-59.99
Please note, the above cutoffs are exact and no rounding up will occur.
Student Evaluations
Student evaluations of this course play a crucial role in my delivery. This semester, all
course evaluations will be administered online during the last two weeks of the
course. You will receive an email with a link to the website with directions on how to
access the survey. It is vitally important that you complete the survey as I use the results
to modify the course and assess my teaching and the University uses the results to
address technology and facility needs. You can be assured that your responses will be
confidential as the results will be transmitted to me after the grading period and they will
not include any identifying information.
Course Withdrawal
Please note that the last day to drop the class is noted in the online Academic Calendar
(http://www.towson.edu/registrar/calendars/). Students dropping on or before this date
will receive a “W” on their official transcript. Withdrawal after that date will require an
assignment of a letter grade for the course.
Repeated Courses
According to the University policy, all students may repeat any course once. If repeating,
you are advised to speak with your instructor. For a third attempt, the student must obtain
prior approval from the Academic Standards Committee along with the approval from the
Chair of the Department. If students enroll for a third attempt without permission, they do
so at their own risk.
Conduct of the Course:
You are responsible for all assigned readings, handouts, class presentations, group
discussion, and homework. I strongly recommend you to attempt those problems at the
end of the chapters and those that I assign during the semester. You must read outside
sources, such as The Wall Street Journal, Business Week, Fortune, Forbes, and other
business magazines, that help to contribute to the class discussion and understanding of
the lecture. Also, the excitement and desire to keep up with current events in the field is
an important part of the student becoming a professional. If you miss a class meeting, it
is your responsibility to obtain any notes or assignments from your fellow classmates.
My notes are not available for copying.
Academic Integrity:
Student Academic Integrity Policy
(https://inside.towson.edu/generalcampus/tupolicies/categorylist.cfm?thecategory=Acade
mic%20Affairs ):
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“The acquisition, sharing, communication and evaluation of knowledge is at the core of a
university’s mission. To realize this part of its mission, a university must be a
community of trust. Because integrity is essential to the purpose of an academic
community, the responsibility for maintaining standards of integrity is shared by all
members of that academic community.”
The Student Academic Integrity Policy as it pertains to this class: There is no tolerance
of academic dishonesty in this class. Any violations are sanctioned by the professor.
Students with Disabilities
In accordance with university policy, if you have documented disability and require
accommodations to obtain equal access in this course, please contact the instructor at the
beginning of the semester and when given an assignment for which an accommodation is
required. Students with disabilities must verify their eligibility through the Office of
Disability Support Services (AD232).
Tentative Class Schedule
Notes: Although it is the intention of the instructor to cover all topics presented in the
text, it is likely that the tentative schedule cannot be met due to unexpected events.
However, in order to keep the appropriate progress in the semester, exam dates are
identified and will not be changed under any circumstances.
Week
Chapters
1
8/29/13 Introduction
12. Capital Budgeting: Decision
2
9/3/13 Criteria
9/5/13 13. Capital Budgeting
3
9/10/13
9/12/13
4
9/17/13
9/19/13
5
9/24/13 Excel Quiz1
9/26/13 14. Real options
6
10/1/13
10/3/13
7
10/8/13 15 Capital Structure Decisions
10/10/13
8
10/15/13 Excel Quiz 2
10/17/13 Review
9
10/22/13 Exam1
10/24/13 26. LBO
10
10/29/13
10/31/13
11
11/5/13 17. Payout policy
4
12
13
14
15
16
11/7/13
11/12/13
11/14/13
11/19/13
11/21/13
11/26/13
11/28/13
12/3/13
12/5/13
12/10/13
21 working capital management
Excel quiz3
Thanks giving break
22. obtaining credit
Review
Exam2 (Final):
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