The University of Lethbridge
Faculty of Management
Management 3040 Y Finance
Course Outline
Spring 2007
Instructor: Terry D. Harbottle
Office Hours: after class or by appointment
Phone: 299-2751 (work)
e-mail: Terry.Harbottle@uleth.ca
Course Material: Fundamentals of Corporate Finance
Fifth Canadian Edition
By - Ross, Westerfield, Jordan and Roberts
Other assigned reading by the Instructor
Course Objective:
This course provides an introduction to the study of modern corporate finance (financial
decision making and analysis) and financial management. More specifically the
objective is to develop an understanding of financial statements and cash flow,
discounted cash flow and valuation, equity and fixed income securities, and capital
budgeting & investment. Understanding of the theory and its practical application in
financial analysis and management are the key learning objectives.
The development and deployment of critical thinking skills will be emphasized i.e. I
expect students to apply /utilize the higher level skills including analysis, synthesis and
evaluation.
Course Format:
Lecture format with class/small group discussion of examples, problems, assignments
and current finance topics/issues.
Course Requirements:
Evaluation:
2 exams covering 2 modules (noncumulative)
 Module 1 – 30 %
 Module 2 - 40 %
Assignment
70%
30%
Grade Conversion: The following conversion table is used to determine the letter grade.
A+ = 95-100%
C = 66-69%
A = 90-94%
A- = 86-89%
B+ = 82-85%
B = 78-81%
B- = 74-77%
C+ = 70-73%
C- = 62-65%
D+ =58-61%
D = 50-57%
F = Less than 50%
Other Expectations:
 Students should be familiar with the University of Lethbridge regulations, policies
and requirement. Refer to the University of Lethbridge Calendar.
 Exams:
 All exams are closed book with calculators and a one page (8 by 11) formulae
sheet allowed. Missed exams receive a mark of zero unless the student has a
legitimate reason. The instructor should be contacted beforehand for approval
and to make alternative arrangements.
 Two exams with a total weighting of 70%. The final exam will be noncumulative.
 Financial Calculators – Students need to acquire and become familiar with a business
calculator that is capable of handling discrete cash flows, Net Present Value(NPV)
and Internal Rate of Return (IRR)
 Class preparation – students are expected to read the assigned chapters and other
assigned readings before class. Students should have completed the assigned
concept/end of chapter questions and be prepared to discuss them in class. Students
are responsible for all material covered in class, the assigned chapters in the textbook
and any other assigned readings.
 The project assignment is a group assignment and is expected to be handed in on
time. Late assignments will receive zero marks:
 The assignment will involve a financial analysis of a publicly traded company.
Students will be expected to apply their class learning of finance concepts to
practical financial analysis. Full details will be provided in class.
Module 1
Chapter 1 – Introduction to Corporate Finance
Chapter 2 - Financial Statements, Taxes and Cash Flow
Chapter 3 – Working with Financial Statements
Chapter 4 – Long Term Financial Planning and Corporate Growth
Chapter 5 – Introduction to Valuation
Chapter 6 – Discounted Cash Flow Valuation
Module 1 Exam
Module 2
Chapter 7 – Interest Rates and Bond Valuation
Chapter 8 – Stock Valuation
Chapter 9 – Net Present Value and Other Investment Criteria
Chapter 10 – Making Capital Investment Decisions
Chapter 11 – Project Analysis and Evaluation
Chapter 14 – Cost of Capital
Module 2 & Final Exam –