KOREA UNIVERSITY
College of Business Administration
BUSS207
Financial Management
Fall, 2022
Instructor
Office
Phone
E-mail
Joonghyuk Kim
LP516
02-3290-2607
j-kim@korea.ac.kr
Class Time and Location: Mondays and Wednesdays 2:00 PM to 3:15 PM at LG-POSCO 432.
Course Website:
Course Blackboard (https://kulms.korea.ac.kr)
Office Hours: Mondays and Wednesdays 3:30 PM to 4:30 PM (tentative) or by appointment
I will make any announcement on the course website and/or by emails. Please visit the course website as often as
possible. It is your responsibility to update the information provided to you via e-mail or course website.
Course Objective
The basic goals of this course are to familiarize the students with the tools and techniques used in financial
management. While the focus of the course is on the corporation and its financial decision-making, many basic
concepts and tools in Finance are introduced. These basic concepts and tools are useful in many areas of business
or personal life. They include the notion of present value, securities valuation, risk analysis, and other financial
analysis techniques. The techniques are in turn used to evaluate and make the decisions regarding the firm’s
investments (capital budgeting) and the cost of capital.
Prerequisites
This course presumes some background on your part in the areas of accounting, statistics and basic knowledge of
Excel. From your Accountancy class(es), you should be familiar with the structure of basic financial statements and
the meaning of the items listed in these statements.
All students should be familiar with Excel at a certain level. You may need to use Excel to complete some portions of
your assignments. The functions you need for those questions will be explained and demonstrated during classes.
Only English will be used in the classroom.
Required Materials
1.
Fundamentals of Corporate Finance, by Ross, Westerfield, and Jordon
2.
Lecture notes (available from the course website)
You are expected to finish all assigned readings before each class. I strongly recommend you to read a Korean
financial newspaper and one of the followings: the Wall Street Journal, Business Week, Economist, Forbes,
Financial Times, or Fortune to follow up on the current developments in financial market.
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Grading Policy
Your grade will be determined by your performance in the following areas according to the following weighting
Midterm
Final exam
4 Group Assignments
Contribution to the final grade
35 % (TBA)
45 % (TBA)
20 % (TBA)
Group Assignments
You will have four assignments. Each assignment will be graded, and the grade will be a partial determinant of your
course grade. No assignments will be accepted after the due dates. All assignments should be typed, and handwritten assignments are not acceptable.
These assignments will give you practice with the types of calculations and concepts that are important to a proper
understanding of the material of the course.
If you prefer to work with one or more other students in completing these assignments, you may do so. Groups are
limited to a maximum of 3 (tentative) students. However, once you form a group, you will have to keep the same
group members throughout the semester. If you work in a group, the group will turn in one solution to each assignment
and everyone in the group will receive the same score on the assignment. If more than one group works together and
turns in, substantially, the same work, this violates the rules of the course and the rules on academic integrity, and
penalties will be assessed.
By the due date and time, you are required to upload a soft copy of your answers to each assignment to the course
blackboard site (Assignments and Tests section). A hard copy of your answers will also be collected at the beginning
of the class on due dates.
Exams
You will have two in-class exams, a midterm and a final. Both exams MUST be taken and both exams will be offline in-class. There will be NO MAKE-UP EXAM.
The questions on the exams will parallel the questions and problems that are assigned with each class and those on
the assignments in terms of the concepts and the computation skill required. Working problems and polishing
your understanding of concepts with the practice questions will greatly enhance your understanding of the material
and your performance on exams.
All exams are closed book exams. For all the exams, you are responsible for all materials covered in the class, assigned
readings, and assignments. Final exam is NOT comprehensive.
Attendance Policy
Your attendance will be checked regularly, although your attendance does not have any weight to determine your final
grade. You are required to attend at least 70% of the classes, otherwise, you will receive a fail grade (F).
Group Management
Each member of a group is responsible for efforts to motivate other group members to do their part. If any member
of a group is shirking his or her duties and the problem cannot be solved within the group, please bring that to my
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attention as early as possible. I will try to work with the group to solve the problem. In the event that problems
persist and a group member (or members) is uncooperative or unduly difficult, the group may divorce that member,
provided that the problem was brought to my attention early enough and that real efforts were made to solve the
problem. This will cause the divorced group member to receive a zero on all group assignments.
Copyright Related Issue
Materials and lectures in this course are protected by Copyright Law. Materials are presented in an educational
context for personal use and study and should not be shared, distributed, or sold in print - or digitally - outside the
course without permission. Electronic video and/or audio recording is not permitted during class unless the student
obtains permission from the instructor. If permission is granted, any distribution of the recording is prohibited.
Anti-graft Law Related
Do not ask the instructor to change the grade unless there is a flaw in grading. Improper solicitation and graft for any
matters are strictly prohibited by Anti-graft Law.
Course Schedule
The following is the tentative course schedule, and subject to change.
Weeks
Week 1
Week 1-4
Week 5-6
Week 6-7
Week 7-8
Week 9-11
Week 12-14
Week 14-15
Week 16
Topic
Course Overview
Chapter 1: Introduction to Corporate Finance
Chapter 4 and 5: Time Value of Money
Assignment 1 Due
Chapter 6: Interest Rates
Chapter 6: Continued
Chapter 11: Risk and Rates of Return
Chapter 11: Risk and Rates of Return
Chapter 6: Bonds and Their Valuation
Assignment 2 Due
Midterm Exam
Chapter 6: Bonds and Their Valuation
Chapter 7: Stocks and Their Valuation
Chapter 12: Cost of Capital
Assignment 3 Due
Chapter 8, 9: The Basics of Capital Budgeting
Cash Flow Estimation and Risk Analysis
Assignment 4 Due
Final Exam
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