Dr. Zhi Li Fall 2015, BF 4211: Corporate Finance (Section 4491, 4492, 4493, 4494) Phone: 614-688-7525 Email: email@example.com Office Hours: 10:20-11:30 a.m. MW; and by appointment, Rm. 838 FH Course Description: The course introduces students to key concepts in financial management, including financial securities, capital budgeting process, risk and returns, cost of capital, capital structure decisions, and mergers & acquisitions. The course covers both financial economics theory and empirical and survey evidence on corporate financial policies and applications. It is intended for students aspiring to careers in finance. Course Goals After taking this course the students should understand the fundamental financial decisions undertaken by corporate management, various financial securities, the investment criteria used by corporations and the trade-off between risk and return. The course also establishes a systematic framework to analyze financial problems, as well as introduces students to sets of quantitative tools and models. Special Note: this course is very quantitative and covers a lot of materials at a fast pace. The best way to prepare for class and exams is to thoroughly read the lecture notes and work the assigned problems. I highly encourage you to come to my office hours whenever you encounter difficulties in either understanding the concepts in the chapter or in the assigned problems. Course Material Required: Berk, DeMarzo and Harford, Fundamentals of Corporate Finance, 3rd Edition, Pearson Prentice Hall Financial calculator. For assignments and exams, I will still require that you show all the formula/inputs that lead to the results that you show. MyFinanceLab: Course Access Code: TBD (I will update once Pearson sends the code) Course Lecture Notes, available on Carmen website (https://carmen.osu.edu/). Please check the Carmen website before coming to each class, print out lecture notes and bring them to class. I will not bring copies of the lecture notes to class. If you do not have access to or cannot download the lecture notes, please see me so I can help you. Reading materials: I will distribute academic and survey papers and other reading materials throughout the semester via e-mail or Carmen. E-mail Communication: I will send e-mails between class sessions for necessary communications and updates. I will assume that you check your e-mail at least once a day during week days. Grading: The assessment policy for this course is specified in the following paragraphs. Please read it carefully, as in the interest of fairness to all students, no exceptions will be made. Performance will be measured by both group works and individual works. Total Points: 2 Quizzes: 1 Midterm: 1 Final Exam: MyFinance Lab Practices: Group Presentation Project: 2 Group Assignments: Class Participation: Total Points: - 60 total 50 100 10 30 20 10 280 Points Two quizzes (30 points each). There will be 2 in-class quizzes. The quizzes will be multiple choice questions and related to practice questions and materials covered in class. There will be NO MAKE-UP quizzes. - Midterm exam (50 points). There will be one in-class midterm exam. - Cumulative final exam: (100 points). The final will be 100 minutes cumulative exam. The date of the final is listed on the website of the registrar’s office: https://registrar.osu.edu/scheduling/SchedulingContent/AU15Finals.pdf - MyFinance Lab Practices (10 points total). Typically, there will be a set of practice questions when we cover a new topic. You need to complete each practice assignment by its deadline to receive the grade. No late homework will be accepted. Please check MyFinanceLab during the semester for due dates. - Two group assignments (10 points each). I will post separate practice questions on Carmen and in Slides throughout the semester. It is important to work through ALL practice questions because the exam questions will be related to the practice questions. I will collect TWO sets of practice questions as assignment in the weeks before Midterm and Final Exam, and grade a random set of questions. The specific due dates will be posted at least a week ahead. Please work in groups of up to four students maximum (two member groups and three member groups are ok); each group should hand in one assignment. It is the responsibility of the individual student to ensure that his/her name is on the assignment when it is handed in. The group can be different from your presentation group, and students can switch groups for each assignment. A hard copy of the assignments are due at the BEGINNING of the class and no late assignment will be accepted. Please keep a copy of your homework for your own reference before you turn it in, as we will review the answers to some of the problems in class. Poorly formatted assignments will receive a 10% penalty. - Group Presentation Project (30 points total): o Rules of presentation group work: Students will work in eight groups, with minimum 5 students, and maximum 6 students per group for the presentation project. I reserve the right to assign one extra student to a group if necessary. There will be one grade per group, no matter how the work load is distributed among the group members. All group work will be self-policed. The last day to submit your group member list via e-mail is Sept 12, 5pm. o Presentation: (20 points). I will assign reading materials on related finance topics for each group. Please prepare a 20 minutes presentation on the subject and answer related questions from me and your classmates. Please e-mail me the final version of the Powerpoint slides before 8am of the presentation day. The specific due dates will be posted at least two week ahead of the presentation day. o - Group member evaluation (10 points) Each student will evaluate other group members based on the group member’s input and contribution to group work. Class participation (10 points) I highly recommend you attend all classes and actively participate class discussions. Tentative Class Schedule I reserve the right to change the date for quizzes and exams. Time Value of Money Review: Time Value of Money Bonds Stocks Investment Rules Investment Decision Rules and Valuation Capital Budgeting Quiz 1 Capital Budgeting Risk and Returns Risk and Return Cost of Capital Mid-term Cost of Capital Corporate Financing Decisions (IPO, External SEO, and debt) Financing Chapter 3 & 4 Chapter 6 Chapter 7 Chapter 8 Chapter 9 Sept 18, 2015 Chapter 9 Chapter 11 & 12 Chapter 13 Oct 14, 2015 Chapter 13 Chapter 14 & 15 Capital Structure Special Topic Capital Structure Quiz 2 Payout Policy Merger and Acquisition Market Efficiency Final Exam Chapter 16 Nov 13, 2015 Chapter 17 Chapter 22 Chapter 10 Academic Misconduct: The University's Code of Academic Integrity is designed to ensure that the principles of academic honesty and integrity are upheld. http://studentaffairs.osu.edu/resource_csc.asp. All students are expected to adhere to this Code. In accordance with University Faculty Rule 3333-5487, all instances of alleged academic misconduct will be reported to the Committee on Academic Misconduct, which recommends appropriate sanctions to the Office of Academic Affairs. There will be no exception to this rule. Case reports must be the own original work of your group. You may not use solutions prepared by current or former students. If you use information from outside sources in your case report, you must properly cite those sources. Office of Disability Services (ODS): Any student who feels s/he may need an accommodation based on the impact of a disability should contact me privately to discuss your specific needs. Please contact the Office for Disability Services at 614-292-3307 in room 150 Pomerene Hall to coordinate reasonable accommodations for students with documented disabilities.