Spring 2012
University of Lethbridge
Faculty of Management
MGT 3470 (Corporate Finance) – Section B
Instructor: Dr. Rossitsa Yalamova
Office: M4133; tel. 380 - 1899
rossitsa.yalamova@uleth.ca
Prerequisite: Management 3040.
Class M1060: TR 13:40-14:55
Office hours: TR 9:00–10:30
TEXTBOOK: Besley/Brigham, CFIN Second Edition, Second Edition 2012
CM-9781111738068-0000031
http://www.aplia.com/
http://classes.uleth.ca/201201/mgt3470b//
Course Objectives:
The course should provide students with a continuation of the techniques, theory and
methodology of corporate finance covered in Introductory Finance course. Elements of financial
theory will be presented, with a view towards understanding the implications of risk, cost of
capital, capital structure, and dividend policy, international aspect of corporate finance, mergers
and acquisitions as well as derivatives for hedging corporate risk. Students are encouraged to
further their knowledge of current events by reading financial magazines, newspapers, websites,
etc.
Learning Outcomes
Upon successful completion of the course students will be expected to:
Analyze major corporate finance issues
Demonstrate knowledge of the theory underpinning corporate valuation
Demonstrate knowledge of the basics of risk and return for cost of capital valuation
Recognize and understand the principles underlying risk management and options valuation
Understand dividend policy for increasing shareholder value
Value mergers and acquisitions
Mark Allocation:
Midterm Exams:
February 7, 2012
March 20, 2012
April 12, 2011
Final Exam
25%
25%
20%
30%
Total
100%
Students: You MUST be prepared to remain on campus until the last day of your
personal examination schedule.
Notes:
1. There is no make-up midterm exam. If you miss the midterm exam for a valid reason, mark
for the midterm will be added to the final exam. Make sure that you are available to write the
final exam during the scheduled examination sitting.
2. Midterm exam will cover assigned chapters. Students are allowed to bring calculator and one
crib sheet (8.5”x11”) both sides in the midterm examination.
3. This is a demanding course. There is a considerable amount of preliminary reading, which
should be done before each class. It would be difficult to do well if one falls behind in covering
this reading material. Assigned Homework problems should be attempted on line before class.
Class Schedule:
Date
January 10
January 12
Content
Course Introduction; (Review of 3040)
Homework Problems
LT Financial Planning (Ch. 17)
p. 315 pr. 17-1:17-3
January 17
January 19
LT Financial Planning (Ch. 17)
Risk and Return (Ch. 8)
p. 316 pr. 17-4:17-8
p. 143 pr. 8-1:8-7
January 24
January 26
Risk and Return (Ch. 8)
Project Cash Flow and Risk (Ch. 10)
p. 144 pr. 8-8:8-13
p. 183 pr. 10-1:10-3
January 31
February 2
Project Cash Flow and Risk (Ch. 10)
REVIEW
p. 184 pr. 10-4:10-7
February 7
February 9
Mid-term 1 (Chapters 17, 8, 10)
Cost of Capital (Chapter 11)
February 14
February 16
Cost of Capital (Chapter 11)
Capital Structure (Ch. 12)
February 21
February 23
no class
no class
February 28
March 1
Capital Structure (Ch. 12)
Dividend Policy (Ch. 13)
March 6
March 8
Dividend Policy (Ch. 13)
Managing Short-Term Liabilities ( 16)
March 13
March 15
Review
Guest speaker
March 20
March 22
Mid-term 2 (Ch. 11, 12, 13, 16)
The cost of Money (Chapter 5)
p. 205 pr. 11-1:11-5
p. 205 pr. 11-6:11-12
p.225 pr. 12-1:12-6
p. 240 pr. 13-1:13-5
p. 214 pr. 13-6:11
p. 294 pr. 16-1:16-11
p. 89 pr. 5-1:5-5
March 27
March 29
Interest Rates Term Structure (Chapter 5)
Fixed Income Securities (Chapter 6)
p. 89 pr. 5-6:5-11
p. 106 pr. 6-1:6-6
April 3
April 5
Equity Valuation (Ch. 7)
Equity Valuation (Ch. 7)
p. 123 pr. 7-1:7-6
April 10
April 12
REVIEW
Mid-term 3 (Ch 5, 6, 7)
p. 124 pr. 7-7:7-15
Physical or Learning Disabilities:
Please let me know if you have a physical condition or learning disability that may
impact your academic activities in this class.
You are allowed to prepare a formula sheet for the exams. “I had it wrong on the formula
sheet” is not an excuse. You can build up your formula sheet and use it for unexpected
fail/pass quizzes at the beginning of any class. You are expected to attempt the end of
chapter problems and seek instructor’s help in class or during office hours.
Academic honesty
You are expected to adhere to the highest professional and ethical standards. Please
become familiar with the University Policy on academic dishonesty. Those caught
cheating will be penalized to the maximum permitted by University policy, which
includes a final course grade of “F” and referral to the Dean for disciplinary action.
Grade Percentage
A+
95-100
A
90-94
A86-89
B+
B
B-
82-85
78-81
74-77
C+
C
C-
70-73
66-69
62-65
D+
D
F
58-61
50-57
00-49
The Final Exam for this class is scheduled on April 28th, 2012 from 2:00 to 5:00 p. m.