GOODMAN SCHOOL OF BUSINESS Department of Finance, Operations, and Information Systems FNCE 3P93 D1 S1, Corporate Finance II, Spring 2023 Instructor: Osman Ulas Aktas Class and time: GSB 407 - Tue & Thu 11:00 am-1:00 pm (May 2nd) E-mail: oaktas@brocku.ca Office hour: Mon 1:30 pm - 2:30 pm Course Description: This course is designed to build upon the foundation of the theory of corporate finance and cover the following topics; cost of capital, capital structure and dividend policy, long and short term financing decisions. Options & futures and mergers & acquisitions will also be addressed. Prerequisites: Students should ensure they have the necessary FNCE 2P91 prerequisite to take this course. Students not possessing the prerequisite will automatically be deregistered. Textbook: Ross, S., Westerfield, R., Jordan, B., Roberts, G., Pandes and Hollaway (2022). Fundamentals of Corporate Finance (11th Canadian ed.). McGraw-Hill Ryerson Ltd. The online learning platform for this course is McGraw-Hill Connect. ISBN 9781265076344 9781265074739 Print Version x E-book version McGraw-Hill Access Code Price $159.95 $99.00 These ISBNs (9781265076344 and 9781265074739) provide access to McGraw-Hill Connect and e-book for two years and are only available from the Brock University Campus Store. The McGraw-Hill website offers the same purchase options but with different ISBNs that provide access for only one year. Those of you who have used Connect in the previous semesters, do not need to purchase again. Course Objectives: The concepts and logic developed in Finance 2P91 will be built upon to introduce the basic theory of raising capital, capital structure, dividend policy, short-term financial management, leasing, mergers, and options. Students will develop the interrelationships between these concepts into a conceptual framework for decision-making, which will become a problem-solving tool for a large number of numerical problems that are an important part of the course. Students will go beyond memorizing specific formats to solve problems and develop a deeper understanding of issues related to Finance. Attendance: Students are expected to attend all lectures. A scientific calculator will be useful for the course. Academic Integrity: Academic misconduct is a serious offence. The principle of academic integrity, particularly of doing one’s own work, documenting properly (including use of quotation marks, appropriate paraphrasing and referencing/citation), collaborating appropriately, and avoiding misrepresentation, is a core principle in university study. Students should consult Section VII, “Academic Misconduct”, in the “Academic Regulations and University Polices” entry in the Undergraduate Calendar, available at http://brocku.ca/webcal to view a fuller description of prohibited actions, and the procedures and penalties. Academic Accommodation Statement: As part of Brock University's commitment to a respectful work and learning environment, the University will make every reasonable effort to accommodate all members of the university community with disabilities. If you require academic accommodations related to a documented disability to participate in this course, you are encouraged to contact Services for Students with Disabilities in the Student Development Centre (4th floor Schmon Tower, ex. 3240). You are also encouraged to discuss any accommodations with the instructor well in advance of scheduled assessments. Academic Accommodation Due to Religious Obligations: Brock University acknowledges the pluralistic nature of the undergraduate and graduate communities such that accommodations will be made for students who, by reason of religious obligation, must miss a quiz or examination. Students requesting academic accommodation on the basis of religious obligation should make a formal, written request to their instructor for alternative dates. Medical Exemption Policy: The University requires that a student be medically examined in Health Services, or by an off-campus physician prior to an absence due to medical reasons from a quiz or exam. Students should also supply a signed medical certificate. Medical notes must be submitted within seven days of the time of the exam. The Medical Certificate can be found at http://www.brocku.ca/healthservices/policies/exemption Evaluation Structure Weekly Assignments Date and Time June 30. No extentions Quizzes Quiz Dates Chapters Each chapter Weight 15% in total, 1.5% each 50% in total Quiz 1 May 27 @ 7:00 pm on Connect 15 and 16 20% Quiz 2 June 9 @ 7:00 pm on Connect 17, 18, 19 15% Quiz 3 June 24 @ 2:00 pm on Connect 20 and 22 15% Participation Final Examination 10% TBA Cumulative Total 25% 100% Each Quiz will last 90 minutes. The final exam will last 3 hours which will be cumulative. You will be responsible for all topics covered in the course for the final exam. If you miss a quiz for a valid and documented reason, that quiz’s weight will be added to the following one. You must provide the necessary documentation (i.e. Doctor’s note) as soon as possible. (Nobody wants to get/give zero). Missing two consecutive quizzes leads to losing all marks assigned to those quizzes. All exams will take place on Connect, publisher’s online platform. Changing the weightings of the evaluation structure or completing an extra assignment for additional marks to make up for a poor performance on one or more of the above components is not an option. June 16 is the last date for withdrawal without academic penalty and last day to change from credit to audit status. Week (Monday) Week 1 (May 2nd) Week 2 (May 9th) Week 3 (May 16th) Week 4 (May 23rd) Week 5 (May 30th) Week 6 (June 6th) Week 7 (June 13th) Week 8 (June 20th) Week 9 (June 27th) Tentative Course Outline Topic Raising Capital Fin. Leverage & Capital Structure Policy (include App. A) Dividends and Dividend Policy Short-term Finance and Planning (exclude 18.4-18.5) Cash and Liquidity Management (exclude 19.3) Credit and Inventory Management Leasing Mergers and Acquisitions Enterprise Risk Management Options and Corporate Securities Readings Ch. 15 Ch. 16 Ch. 17 Ch. 18 Ch. 19 Ch. 20 Ch. 22 Ch. 23 Ch. 24 Ch. 25 In addition to textbook readings, class notes, suggested problems from the textbook (Ross et al.), problem sets on certain chapters will be posted on Sakai. Disclaimer: The instructor reserves the right to change or update this outline, and any other course related materials, at any time. The student will be informed in a timely manner through Sakai and announcements during class.
