Syllabus
FIN3701B
National University of Singapore
Last Update: 7 Sept. 2022
1
Format
• Face to face lectures
• Exception: Weeks 1 and 2
– Syllabus and Q&A via Zoom
– Substantive lectures recorded
– Available on Luminus from Wednesday to
next Tuesday night
• Week 3 onwards: Face to face (not recorded)
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General
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Corporate Finance FIN3701B
Instructor: Nick Orlic
Email: n.orlic@nus.edu.sg
Office: BIZ2 #03-05
Consultation hours: after class or by
appointment
• Two sections:
– Wednesdays, 12:00-3:00 pm, BIZ1 03-02
– Wednesdays, 3:00-6:00 pm, BIZ1 03-02
3
Polleverywhere
• We will be using Polleverywhere
• When I initiate a poll, just go to
PollEv.com/nickorlic to respond (you
will see the address again for each
poll)
• Participation in Polleverywhere counts
toward your class participation grade
– Use your registered student name
4
Course Objective
• This course aims to introduce fundamental concepts
and analytical knowledge of Corporate Finance.
• By the end of the module, students should be able to:
– appraise investments and conduct project analysis;
– apply the valuation methods (DCF, DDM, and
Relative Valuation) to evaluate real-life companies
for capital raising and possible acquisition;
– analyze the impact of capital structure on the cost
of capital and project value;
– understand capital structure decisions and payout
policies.
5
Textbook and Reference
• I will be using slides for presentation.
• Copies of the slides will be available on
LumiNUS prior to the lecture
• No textbook is required; however, we will use
the following textbook as a reference
Main Textbook: (RWJJ)
Corporate Finance
International Student Edition, 2019 (12th
Edition)
Ross, Westerfield, Jaffe, and Jordan
McGraw-Hill Education
6
Assessment Methods
Assessment Method
Percent
class participation
10%
one case study (group basis)
20%
two critiques (group basis)
10%
one mid-term test
20%
final exam
40%
total
100%
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Mid-term Test and Final Exam
• We will have two tests
– Mid-term Test: Saturday, 8 October 2022,
9:00 am – 12:00 pm
– Final Exam: Wednesday, 23 November
2022, 1:00 pm – 3:00 pm
• Please note the dates for the tests – there
will be no makeups.
• Students not participating in the mid-term
test or final exam will receive a zero mark
unless granted exceptions according to NUS
policies.
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Case
• We will cover three cases.
• The cases will have advance write up due by
the primary and non-primary groups.
• Primary groups need to submit presentation
slides in addition to a report.
• Non-primary groups need to submit a
critique.
• The class will be randomly divided into nine
groups.
• Thus, three groups (the primary groups) will
work on a report and presentation, and the
rest (the non-primary groups) will work on a
critique, for each case.
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Case Assignment
• Each class will be divided up to
Case Number
1
1
1
2
2
2
3
3
3
Presenting (Primary) Group
1A
1B
1C
2A
2B
2C
3A
3B
3C
Critique (Non-Primary) Group
2A, 3A
2B, 3B
2C, 3C
1A, 3A
1B, 3B
1C, 3C
1A, 2A
1B, 2B
1C, 2C
• Primary
groups
will
each
submit
a
report NOT exceeding an overall total of 12
pages,
including
texts,
tables,
and
appendices (excluding the reference page and
cover).
• The report must be typewritten on A4 size
paper with double-spacing and font size 11. 10
Case Assignment
• During the case presentation session, the
primary groups will be given 25 minutes
each to present their analysis, with another
15 minutes for Q&A
• Non-primary groups are each required to
submit a short critique of one of the reports.
• The critique is limited to one page (A4 sized,
font 11, double spacing).
• All students are expected to participate in
the case discussions actively. This will be
part of the class participation grade.
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Groups
• As mentioned, groups will be randomly
allocated by the instructor
• Students can assign peer grades at the end of
the semester but don’t need to. Please do so
by 6:00 pm Friday, November 11th, 2022.
(Files>miscellaneous>peer review (optional)>
sb *)
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Slack
• We will use Slack as a discussion
forum (optional)
• You can join at this link:
• https://join.slack.com/t/slacki4w6020/shared_invite/zt-1d4dgd82uhXv1955ZB0rkfbvlmiQHlw
• Feel free to add channels, etc. Use
Slack however it is helpful
• Have you used Slack for a course
before? Poll
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Participation Grade Components
• Q&A in classes
• Polleverywhere
• Questions during the case
presentations
• Participating in class activities
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A few remarks
• Please, check LumiNUS for the most
updated announcements.
• The preferred way to communicate
with me is by email.
• To arrange consultation, send me an
email.
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Schedule
Week
Topic and Readings
Week 1:
Topic 1a: Introduction
Aug. 10
•
Week 2:
Topic 1b: Risk and Return
Aug. 17
•
Week 3:
Topic 2: Capital Budgeting
Aug. 24
•
Week 4:
Topic 2: Capital Budgeting (cont’d)
Aug. 31
•
Week 5:
Topic 3: Capital Structure I
Sep. 7
•
Readings: RWJJ Chapter 1
Readings: RWJJ Chapter 10, 11, 13
Readings: RWJJ Chapter 6, 7
Readings: RWJJ Chapter 6, 7
Readings: RWJJ Chapters 15, 20
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Schedule
Week
Week 5:
Sep. 7
Topic and Readings
Topic 3: Capital Structure I
•
Readings: RWJJ Chapters 15, 20
Case 1 will be available by Thursday, September 8, 6 pm
Week 6:
Sep. 14
Topic 4: Capital Structure II
•
Readings: RWJJ Chapter 16
Recess Week Case 1 submission (Groups 1A, 1B, and 1C) due by 6 pm Tuesday
September 20.
Case presenters to also submit their presentation slides by 6 pm
Monday September 26.
One-page critique for Case 1 due by 6 pm Monday September 26.
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Schedule
Week
Week 7:
Topic and Readings
Case 1 discussion and presentations
Sep. 28
Week 8:
Oct. 5
Consultation (Zoom)
Test date: Saturday, October 8 (9:00 am - 12:00pm)
Case 2 will be available by Thursday, October 6, 6 pm
Week 9:
Oct 12
Topic 5: Capital Structure III
•
Readings: RWJJ Chapter 17
Case 3 will be available by Thursday, October 13, 6 pm
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Schedule
Week
Week 10:
Oct 19
Topic and Readings
Discussion of Test
Topic 6: Dividend Policy
• Readings: RWJJ Chapter 19
Case 2 report submission (Groups 2A, 2B, and 2C) due by 6 pm
Tuesday Oct. 18.
Case presenters to also submit their presentation slides by 6 pm
Monday Oct. 24.
One-page critique for Case 2 due by 6 pm Monday Oct. 24.
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Schedule
Week
Week 11:
Oct. 26
Topic and Readings
Case 2 discussion and presentations
Case 3 report submission (Groups 3A, 3B, and 3C) due by 6 pm
Tuesday Oct. 25.
Case presenters to also submit their presentation slides by 6 pm
Monday Oct. 31.
One-page critique for Case 3 due by 6 pm Monday Oct. 31.
Week 12:
Case 3 discussion and presentation
Nov. 2
Week 13:
Nov. 9
Topic 7: Mergers and Acquisitions
•
Readings: RWJJ Chapter 29
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