FINA 395
Theory of Finance II
Winter 2025
Sections E
Instructor
Dr. Saif Ullah
Office
MB 12-225
E-mail
saif.ullah@concordia.ca
Office Hours
Friday 13:45-14:30
Class Time:
Section E Friday
14:45-17:30
Introduction:
Learning corporate finance is about constructing a conceptual framework and changing your views to build
an understanding of financial theory and real-life applications. This course builds on knowledge acquired
by you in COMM 308 and FINA 385.
A variety of learning materials and opportunities to practice basic concepts underlie the design of this
course. You are encouraged to discover, collaborate, and regulate learning at your own pace from multiple
sources of information provided.
Learning Outcomes:
At the end of this course, you should be able to develop a basic understanding of the corporate decisionmaking process. You should have a sound knowledge of capital budgeting, capital structure theory and
practice, financial and real options, valuation of financial securities, dividend policy, and financial distress.
Required Text: Ross, Stephen A, R. W. Westerfield, J. J. Jaffe and G. S. Roberts, Hamdi Driss, Corporate
Finance (9th Canadian Edition) McGraw-Hill, Ryerson Limited, 2022.
Office Hours: Office hours are as stated above. I am also available by appointment. I am also available
by e-mail. Under normal circumstances, e-mail questions will be answered within two working days.
Answers to e-mail questions will be either posted to the Message Board section of Moodle or a direct
response to the sender. Be sure that you check the Message Board before you e-mail your questions. The
information you are after could very well be there. Please send an email message from your university
account.
Grading: Course grades will be determined by combining points on one mid-term examination,
assignment, and final examination. If you miss the midterm examination, please inform the university by
filling in the form:
https://www.concordia.ca/students/absence-form.html
If you have official documentation, the weight of the midterm exam will be shifted to the final exam. You
will receive a zero on the exam if you do not have official documentation. Once assigned, the final grade
in the class will not be changed except in the case of a recording error. If you feel that your grade is
incorrect, you must notify me in writing during the one week following the return of the midterm. After
that, the problem will not be researched. Please note that a request to have a question on your midterm
re-graded entails a request to have the entire exam re-graded. Deferred final examinations will be allowed
for students following University procedures for obtaining deferrals.
Refer to
http://registrar.concordia.ca/exam/faqdef.html for more information.
The weights given to exams are:
Scheme 1
Scheme 2
Mid Term
35%
30%
Assignment
15%
15%
Final
50%
55%
Your final grade will be based on the scheme that BEST suits you. As per department policy, grades are
posted in Moodle. I will not communicate grades individually. You are required to achieve at least
40% in the final exam to pass this course.
Calculator Policy: For examinations, a financial calculator is required. The list of approved calculators is
as follows:
1.
Texas Instruments BA II Plus (including BA II Plus Professional)
2.
Hewlett Packard 12C (including the HP 12C Platinum)
3.
Sharp Financial EL733A
4.
Casio FX-300MS (basic scientific calculator)
5.
Sharp EL-531 (scientific calculator)
6.
Staples BD-6205CP (Bureau en Gros, basic scientific calculator)
You will not be allowed to use any other calculator during the exam.
Exam procedures: You should bring a picture ID with you to all examinations in addition to your
calculator and writing implements. Be sure to bring your own calculator and ensure the batteries have
sufficient power. For the midterm and the final examination, students will be allowed to bring in one 8½ ×
11-inch "formula sheet" and can use both sides of the sheet. You can only write formulae on this sheet.
Writing anything else (except name and ID) will be considered a breach of the university code of conduct.
Grading
Range
Less than 50%
50% to 52%
53% to 56%
57% to 59%
60% to 62%
63% to 66%
67% to 69%
70% to 72%
73% to 76%
77% to 79%
80% to 84%
85% to 89%
90% to 100%
Letter
Grade
FNS
DD
D+
CC
C+
BB
B+
AA
A+
Class Etiquette:
All individuals participating in courses are expected to be professional and constructive throughout the
course, including in their communications.
Academic Integrity: I expect honesty and integrity from my students. Cheating of any sort will be dealt
with as sternly as University policy allows.
The Code of Conduct (Academic) at Concordia University states that the “integrity of University academic
life and of the degrees, diplomas and certificates the University confers is dependent upon the honesty and
soundness of the instructor-student learning relationship and, in particular, that of the evaluation process.
As such, all students are expected to be honest in all of their academic endeavours and relationships with
the University.” [Undergraduate Calendar, section 16.3.14 or Graduate Calendar, Code of Conduct
(Academic).]
•
•
All students enrolled at Concordia are expected to familiarize themselves with the contents of this
Code. You are strongly encouraged to visit the following web address:
http//johnmolson.Concordia.ca/ugrad/codeofconduct.pdf, which provides useful information about
proper academic conduct.
The Student Advocate Program has produced a short video presentation on academic misconduct
as well as pamphlets in four languages: English, French, Chinese, and Arabic. These are available
to students at: http://supportservices.concordia.ca/studentadvocateprogram
Please note that private tutorial companies, some of whom aggressively promote their services on
and off campus, are not authorized by Concordia University to distribute flyers on University
premises and may not use Concordia University facilities to promote or provide their services on
some flyers. Concordia University and its academic departments do not have any affiliation with
these companies even though names such as JMSB, Concordia, or references to specific
departments often appear in a visible way. If you are interested in the University’s approved
tutoring services, you must ask your professor or consult the services listed in your course outline.
Plagiarism:
The most common offense under the Academic Code of Conduct is plagiarism, defined as “the presentation
of the work of another person as one’s own or without proper acknowledgment.” This includes material
copied word for word from books, journals, Internet sites, professor’s course notes, etc. It refers to material
that is paraphrased but closely resembles the original source. It also includes for example the work of a
fellow student, an answer on a quiz, data for a lab report, a paper or assignment completed by another
student. It might be a paper purchased from any source. Plagiarism does not refer to words alone –it can
refer to copying images, graphs, tables and ideas. “Presentation” is not limited to written work. It includes
oral presentations, computer assignments and artistic works. Finally, if you translate the work of another
person into any other language and do not cite the source, this is also plagiarism.
Intellectual Property Rights:
Content belonging to instructors shared in online courses, including, but not limited to, online lectures,
course notes, and video recordings of classes remain the faculty member's intellectual property. It may not
be distributed, published, or broadcast, in whole or in part, without the express permission of the faculty
member. Students are also forbidden to use their own means of recording any elements of an online class
or lecture without the express permission of the instructor. Any unauthorized sharing of course content may
constitute a breach of the Academic Code of Conduct and/or the Code of Rights and Responsibilities.
In the event of extraordinary circumstances and pursuant to the Academic Regulations, the University may
modify the delivery, content, structure, forum, location and/or evaluation scheme. In the event of such
extraordinary circumstances, students will be informed of the changes.
Selected Services and Information for Students
Academic Integrity: https://www.concordia.ca/conduct/academic-integrity.html
Access Centre for Students with Disabilities: https://www.concordia.ca/students/accessibility.html
Accessibility Hub: https://www.concordia.ca/accessibility.html
Black Perspectives Office: https://www.concordia.ca/provost/about/areas/black-perspectives-office.html
Career Management Services: https://www.concordia.ca/jmsb/career.html
Code
of
Rights
and
Responsibilities:
https://www.concordia.ca/content/dam/common/docs/policies/official-policies/BD-3.pdf
Concordia Library Citation and Style Guides: https://library.concordia.ca/help/citing/
Counseling and Psychological Services: https://www.concordia.ca/health/mental-health/counselling.html
Dean of Students Office: http://www.concordia.ca/offices/dean-students.html
Equity,
Diversity
and
Inclusion
Working
Group
Final
https://www.concordia.ca/provost/initiatives/working-toward-equity-diversity-inclusion.html
Report:
Equity Office: https://www.concordia.ca/equity.html
Health Services Clinic: https://www.concordia.ca/health/medical/clinic.html
Indigenous Decolonization Hub: https://www.concordia.ca/ctl/decolonization.html
Indigenous Directions Office: https://www.concordia.ca/indigenous.html
Indigenous Directions Action Plan: https://www.concordia.ca/indigenous/action-plan.html
International Students Office: https://www.concordia.ca/students/international.html
Mindful campus initiative: https://www.concordia.ca/finearts/student-life/mindful-campus.html
NouLa Black Student Center: https://www.concordia.ca/students/noula.html
Office of Community Engagement: https://www.concordia.ca/about/community/office.html
Ombuds Office: https://www.concordia.ca/offices/ombuds.html
Otsenhákta Student Centre: https://www.concordia.ca/students/otsenhakta.html
Policy
On
Accessibility
And
Accommodation
For
Students
And
Employees:
https://www.concordia.ca/content/dam/common/docs/policies/official-policies/PRVPA-14.pdf
President’s
Task
Force
on
Anti-Black
Racism
https://www.concordia.ca/provost/initiatives/task-force-anti-black-racism.html
Final
Student Advocacy Office: https://www.concordia.ca/students/success/advocacy.html
Sexual Assault Resource Centre: https://www.concordia.ca/conduct/sexual-assault.html
SHIFT Centre: https://www.concordia.ca/about/shift/contact.html
Student Housing: https://www.concordia.ca/students/housing.html
Student Hub: concordia.ca/students
Student Success Centre: https://www.concordia.ca/students/success.html
Tuition and Financial Aid: https://www.concordia.ca/students/financial.html
Report:
Tentative Course Outline:
Please note that this schedule is tentative, i.e. we will sometimes go faster or slower. To ensure that you are
well prepared for each class, I recommend that you always read one chapter ahead and bring the slides not
only for the current class listed but also for the following class.
Date
Chapter (Textbook)
Topic
17th Jan.
Chapters 5, 6
Introduction, Time Value
mechanics, Valuation of Bonds
and Stocks
Chapter 9
Capital Budgeting and Real
Options
31st Jan.
Chapter 13
Risk, Return and Capital
Budgeting
7th Feb.
Chapter 14
Corporate Financing Decision
and Efficient Capital Markets,
14th Feb.
Chapter 15
Long-Term Financing
24th Jan.
21st Feb.
Midterm Exam
28th Feb.
No Class because of Reading Week
7th Mar
Chapter 16
Capital Structure
14th Mar.
Chapter 17
Limits to the Use of Debt
Chapter 18
Valuation & Capital Budgeting
for the Levered Firm
28th Mar
Chapter 19
Dividends & Other Payouts
4th Apr.
Chapter 20
Issuing Equity Securities to the
Public
11th Apr.
Chapter 31
Financial Distress
21st Mar.