FINE 4100, Advanced Financial Management
Fall 2020
Instructor: Ben Bennett
Office location: GWBC 359
Office hours: W 3:15PM – 5:15PM
Phone number: 504.314.7924
Email address: bbennett1@tulane.edu
Class Meeting Day/Time:
Section 01: MW 9:05 AM – 10:15 AM
Section 02: MW 12:25 PM – 1:35 PM
Section 03: MW 2:05 PM – 3:15 PM
Class Location
Section 01: GWBC 270
Section 02: GWBC 430
Section 03: GWBC 430
Catalog/Course description
This course is intended for students who wish to learn and analyze the concepts, theories, and applications of
modern corporate finance. The course builds on the topics of FINE 3010, and covers a wide range of topics related
to corporate finance. Specific topics include in-depth analyses of firms’ financing choices, cost of capital,
valuation, advanced capital budgeting, agency costs, dividend policy, stock splits and repurchases, institutional
and legal aspects of corporate restructuring, mergers and acquisitions, corporate risk-management basics, and
financial distress. The course will also cover stock option characteristics, valuation, and applications.
Course Prerequisites
Prerequisites: FINE 3010, MGSC 3010 (formerly INFO 3010)
Course Goals
This course is designed to teach students all the important elements of corporate finance including capital structure,
advanced capital budgeting, firm and equity valuation, mergers, acquisitions, and asset restructurings, dividend
policy, IPOs and general capital raising mechanics, basics of options and warrants, corporate risk management,
and issues related to corporate financial distress. This is an intermediate level course that forms the foundation
for all the other advanced courses in finance which follow. Problem solving skills are emphasized throughout the
course and in keeping with the Freeman School’s “learning by doing” mission, the course is structured to be an
applied course where students learn to value and assess finance-related decision making of actual companies.
Course Learning Objectives
As the result of this course students should be able to (i) assess the impact of a financing choice on the value of a
firm and the risk and value of equityholders, (ii) value equity, the overall firm value, and other assets using the
discounted cash flow and multiples methods, (iii) evaluate corporate projects on a holistic basis including the way
the firm and project are financed, externalities, synergies, etc., (iv) determine the appropriate dividend and share
repurchase policy for a company, (v) evaluate the risks faced by firms and determine the appropriate risk
management tools.
Required Student Resources
Textbook: Fundamentals of Corporate Finance, 3rd Edition, by Berk, DeMarzo, and Harford
Course Slides: I will be using slides posted on Canvas. The slides will follow the textbook and include problems
we will work in class.
Evaluation Procedures and Grading Criteria
Grade
Points
A
100
- 93
A92.99
- 90
B+
89.99
- 88
B
87.99
- 83
B82.99
- 80
C+
79.99
- 78
C
77.99
- 73
C72.99
- 70
D+
69.99
- 68
D
67.99
- 63
D62.99
- 60
F
59.99
-0
Final letter grades will be assigned according to the chart above using the total number of points a student has
earned during the semester. All calculations are rounded to the fourth decimal place. Thus, a student receiving
a 92.75% will receive an A-, not an A.
Quizzes
Midterm Exams
Wed Presentation
Final Exam
20%
20% each (40% total)
10%
30%
Wednesday Presentations: Students will form into groups of 3 by Monday Aug 24. Each group will present a
current event (from WSJ, NYT, Bloomberg News, The Economist, etc) and lead a discussion related to corporate
finance and what we are covering in class. Groups should summarize the event, give analysis, and provide a
recommendation. Students not presenting are encouraged to ask questions. The aim of these presentations is to
keep the class fresh, interesting, to give students practice working in teams and practice presenting their ideas.
Presentations will happen at the beginning of class some Wednesdays over the course of the semester. All
members of the group are expected to contribute to the discussion. I will post the order of the groups on Canvas
by Aug 26 so each group knows when they are presenting. Order will be chosen at random. Please send me your
powerpoint slides by 12:00 PM the day before your group’s presentation. Showing videos during your
presentations is not acceptable. If someone in your group cannot attend the presentation on the chosen date, please
let me know as soon as you know (ahead of time) so I can swap group dates in advance. I reserve the right
alter/tweak the groups.
Wednesday Quizzes: There will be 5 quizzes during the semester in Carmen. They will all be due on Wed PM.
I will open them up one week prior. Your best 4 scores will be applied towards your grade.
Quiz Due Dates:
Quiz 1: Sep 9 @ 2359
Quiz 2: Sep 23 @ 2359
Quiz 3: Oct 14 @ 2359
Quiz 4: Oct 28 @ 2359
Quiz 5: Nov 18 @ 2359
Wednesday Midterm Exams: Their will be 2 midterm exams. They will take place in class on Wed Sep 30 and
Wed Nov 4. Calculators will be allowed. I will provide an equation sheet for use during the exam. I will keep an
updated equation sheet on Canvas as well.
Exams cannot be made up. If a student misses an exam, the points associated with the exam will be rolled into
the final exam (which will then be worth 45% of the course grade). A student may only exercise this option once.
If the second exam is missed, the student will receive a zero for the subsequent missed exam.
Final Exam: The final exam will take place remotely according to the University schedule here:
https://registrar.tulane.edu/sites/registrar.tulane.edu/files/Fall%202020%20Exam%20Schedule.pdf.
Section 1’s final will take place on Dec 2 @ 0800. Section 2’s final will take place on Dec 5 @ 0800. Section 1’s
final take place on Dec 1 @ 1200. The final exam is cumulative.
Attendance Statement
Faculty and students must comply with University policies on COVID-19 testing and isolation, which are located
here https://tulane.edu/covid-19/health-strategies. Faculty and students must wear face coverings in all common
areas, including classrooms, and follow social distancing rules. Failure to comply is a violation of the Code of
Student Conduct, and students will be subject to University discipline, which can include suspension or permanent
dismissal.
If a student cannot attend a class for any reason, the student is responsible for communicating with their instructors
to make up any work they may miss. Faculty will provide online options for class participation, outlined in this
document, and unless a student is seriously ill, they are expected to use this option. The University Health Center
will provide documentation verifying a student is ill, as well as verification that a student may return to class.
With the approval of the Newcomb-Tulane College dean, an instructor may have a student who has excessive
absences involuntarily withdrawn from a course with a WF grade after written warning at any time during the
semester. If a student needs to miss class, he/she must first obtain notes from a friend before visiting Prof Bennett’s
office hours.
Statement about Academic Integrity
The Code of Academic Conduct applies to all undergraduate students, full-time and part-time, in Tulane
University. Tulane University expects and requires behavior compatible with its high standards of scholarship.
By accepting admission to the University, a student accepts its regulations (i.e., Code of Academic Conduct and
Code of Student Conduct) and acknowledges the right of the University to take disciplinary action, including
suspension or expulsion, for conduct judged unsatisfactory or disruptive.
Unless I indicate differently on instructions, all assignments and exams are to be completed individually and
without any study aid, including textbooks, class notes, or online sites. If you have any question about whether a
resource is acceptable, you must ask the instructor rather than assume.
Freeman Educational Norms and Expectations
This class is in full accordance with Freeman’s Educational Norms and Expectations.
Goldman Center for Student Accessibility and ADA/Accessibility Statement
Any students with disabilities or other needs, who need special accommodations in this course, are invited to
share these concerns or requests with the instructor and should contact Goldman Center for Student Accessibility:
http://accessibility.tulane.edu or 504.862.8433.
Course Schedule/Outline/Calendar
Date
8/19/2020
8/24/2020
8/26/2020
8/31/2020
9/2/2020
9/7/2020
9/9/2020
9/14/2020
9/16/2020
9/21/2020
9/23/2020
9/28/2020
9/30/2020
10/5/2020
10/7/2020
10/12/2020
10/14/2020
10/19/2020
10/21/2020
10/26/2020
10/28/2020
11/2/2020
11/4/2020
11/9/2020
11/11/2020
11/16/2020
11/18/2020
11/23/2020
Topic
Review
Stock Valuation
Investment Decision Rules
Investment Decision Rules
Capital Budgeting
Holiday - No class
Stock Valuation II
Stock Valuation II
Risk and Return
CAPM
Capital Structure
Capital Structure
Exam 1
Cost of Capital
Cost of Capital
Debt and Taxes
Capital Structure II
Capital Structure II
Equity and Debt Issuance
Payout Policy
Payout Policy
Review
Exam 2
Options
Options
Mergers & Acquisition
Mergers & Acquisition
Review/TBD
Hurricane Evacuation Makeup Dates:
Oct 10
Oct 11
Oct 24
Oct 25
Material
BDH 2, 3, 4, 5
BDH 7
BDH 8
BDH 8
BDH 9
Graded Work
BDH 10
BDH 10
BDH 11
BDH 12
BDH 16.1, 16.2
BDH 16.1, 16.2
Group 2 + Quiz 1
BDH 13
BDH 13
BDH 16.3
BDH 16.4, 16.5
BDH 16.4, 16.5
BDH 14, 15
BDH 17
BDH 17
BDH 21
BDH 21
BDH 22
BDH 22
Group 1
Group 3
Group 4 + Quiz 2
Group 5
Group 6 + Quiz 3
Group 7
Group 8 + Quiz 4
Group 9
Group 10 + Quiz 5
Recordings of class sessions
Recording class sessions: Classes will be recorded, and the recordings will be posted to Canvas. Students may
not post a class recording elsewhere, either wholly or in part.
Zoom Protocol
If attending class remotely, via Zoom, students are to have their video turned on and their audio turned off (muted).
Students should only turn their audio on if they are asking a question.
Religious accommodation policy
Per Tulane’s religious accommodation policy, I will make every reasonable effort to ensure that students can
observe religious holidays without jeopardizing their ability to fulfill their academic obligations. Excused
absences do not relieve the student from the responsibility for any course work required during the period of
absence. Students should notify me within the first two weeks of the semester about their intent to observe any
holidays that fall on a class day or on the day of the final exam.
Title IX:
Tulane University recognizes the inherent dignity of all individuals and promotes respect for all people. As such,
Tulane is committed to providing an environment free of all forms of discrimination including sexual and genderbased discrimination, harassment, and violence like sexual assault, intimate partner violence, and stalking. If you
(or someone you know) has experienced or is experiencing these types of behaviors, know that you are not alone.
Resources and support are available: you can learn more at http://allin.tulane.edu. Any and all of your
communications on these matters will be treated as either “Confidential” or “Private” as explained in the chart
below. Please know that if you choose to confide in me I am mandated by the university to report to the Title IX
Coordinator, as Tulane and I want to be sure you are connected with all the support the university can offer. You
do not need to respond to outreach from the university if you do not want. You can also make a report yourself,
including an anonymous report, through the form at tulane.edu/concerns.
Confidential
Private
Except in extreme circumstances, involving imminent
danger to one’s self or others, nothing will be shared
without your explicit permission.
Conversations are kept as confidential as possible, but
information is shared with key staff members so the
University can offer resources and accommodations and take
action if necessary for safety reasons.
Counseling & Psychological Services (CAPS) |
(504) 314-2277 or
The Line (24/7) | (504) 264-6074
Case Management & Victim Support Services | (504) 3142160 or srss@tulane.edu
Student Health Center | (504) 865-5255
Tulane University Police (TUPD) | Uptown - (504) 8655911. Downtown – (504) 988-5531
Sexual Aggression Peer Hotline and Education
(SAPHE) | (504) 654-9543
Title IX Coordinator | (504) 314-2160
or msmith76@tulane.edu
Emergency Preparedness & Response: