COURSE OUTLINE
SCHOOL:
School of Business
DEPARTMENT:
Accounting
PROGRAM:
COURSE TITLE:
Corporate Finance 1
COURSE CODE:
ACCT224
TOTAL COURSE HOURS:
60
PRE-REQUISITES/COREQUISITES:
ACCT112 and COMP121
COURSE ELIGIBILITY FOR PRIOR
LEARNING ASSESSMENT AND
RECOGNITION (PLAR):
Yes
ORIGINATED BY:
Brian Gordon
REVISED BY:
Basil Chen
DATE:
August, 2008
APPOVED BY: ___________________________________
Chair/Dean
Students should keep all course outlines for each course taken at Centennial College.
These may be used to apply for transfer of credit to other educational institutions. A fee
may be charged for additional or replacement copies.
Course Title: Corporate Finance 1
CENTENNIAL COLLEGE
Course Code: ACCT 224
COURSE DESCRIPTION:
Description: This is an introductory course in financial management. The student studies topics in
the financial management of profit-seeking organizations. A major objective is the development of
analytical and decision-making skills in finance through the use of theory questions and practical
problems. Many of the problems/assignments will require the application of an electronic spreadsheet
program such as Excel.
Primary target audience: Students pursuing a diploma or certificate in business specializing in
accounting and finance and students pursuing credit standing in the Certified General Accountants'
(CGA) program.
Recognition: The CGA recognizes the course content of ACCT224 - Corporate Finance 1 and
ACCT334 - Corporate Finance 2 in total as equivalent to their course Finance 1. A grade of “B” or
better is required in each of the Centennial College courses to obtain the transfer credit.
Topics: Topics include: Goals and functions of financial management; financial statements analysis;
financial forecasting; working capital management; time value of money and capital budgeting
decisions.
Further study: A subsequent course covering more advanced topics is available: ACCT334 Corporate Finance 2.
COURSE LEARNING OUTCOMES:
Upon successful completion of this course, the student will have demonstrated the ability to:
1.
2.
3.
4.
Explain the goals and functions of financial management.
Analyze financial statements and describe the economic health of a company.
Explain the benefits of financial forecasting and prepare proforma financial statements.
Decide the form and amount of short term financing that best suits a given corporate need, based
on historical and projected analysis.
5. Recommend techniques for managing working capital effectively.
6. Apply the concept of time value of money in making capital budgeting decisions.
7. Use an electronic worksheet such as EXCEL to solve homework problems and present
information.
ESSENTIAL EMPLOYABILITY SKILLS (EES);
This course supports the students’ ability to:
1. “Apply a wide variety of mathematical techniques with the degree of accuracy required to
solve problems and make decisions”
(This is achieved through solving the problems assigned throughout the course).
2. “Use a variety of computer software and other technological tools appropriate and
necessary to the performance of tasks”, and “Collect, analyze and organize relevant and
necessary information from a variety of sources”.
Issued & Revised by COLT: June 2007
THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar)
-2-
Course Title: Corporate Finance 1
CENTENNIAL COLLEGE
Course Code: ACCT 224
(Accomplished through: use of an electronic spreadsheet program such as Excel; use the Internet
to conduct research; use Blackboard to access course material and do assigned problems)
3. “Evaluate her or his own thinking throughout the steps and processes used in problem
solving and decision making”
(Accomplished by requiring students to attach to each major problem solved, the rationale for
procedures used and conclusions drawn)
4. “Manage the use of time and other resources to attain personal and/or project related
goals”
(Achieved by time limited assignments and quizzes)
6. “Take responsibility for his or her own actions and decisions”
(To be applied to all performance aspects the course, including punctuality, preparation for class,
respecting deadlines, etc)
PRIOR LEARNING ASSESSMENT & RECOGNITION PROCESS (ES):
This course is available for PLA challenge. The challenge process is as follows:
(a) An interview
(b) A comprehensive final exam.
EVALUATION & GRADING SYSTEM:
Two criteria are used to determine whether a student has achieved a passing grade in this course:
(a)
(b)
An overall 50% success rate based on the grading scheme below AND
A 50% success rate in the test/exam component of the course (marked ***)
Grading Scheme
Assignments*
Lyryx Lab**
Mid Term Test***
Final Exam (Comprehensive)***
15%
10%
30%
45%
100%
*Consists of two (2) comprehensive assignments to be completed utilizing Excel
**Consists of seven (7) Lyryx labs
STUDENT ACCOMMODATION:
All students have the right to study in an environment that is free from discrimination and/or harassment. It is
College policy to provide accommodation based on grounds defined in the Ontario Human Rights Code.
Accommodation may include changes or modifications to standard practices.
Students with disabilities who require academic accommodations must register with the Centre for Student with
Disabilities. Please see the Centre for Students with Disabilities for details.
Issued & Revised by COLT: June 2007
THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar)
-3-
Course Title: Corporate Finance 1
CENTENNIAL COLLEGE
Course Code: ACCT 224
Students requiring accommodation based on human rights grounds should talk with their professors as early
as possible. Details are available on the Centennial College website (www.centennialcollege.ca )
If students are unable to write an examination due to a medical problem or unforeseen family problems, they
should immediately contact their professor or program Chair for advice. In exceptional and well-documented
circumstances (e.g. unexpected family problems, serious illness, or death of a close family member), students
should be able to write a make-up examination to replace an examination missed.
TEXT AND OTHER INSTRUCTIONAL/LEARNING MATERIALS:
Foundations of Financial Management 7th Canadian Edition, Block, Hirt, Short. Publisher: McGrawHill Ryerson
Text + Lyryx for Finance ISBN 0070782539
Lyrx for Finance (Standalone) ISBN 0070980551
References: Study Guide and Workbook for Use with Foundations of Financial Management. Fifth
Canadian Edition, Publisher: McGraw-Hill Ryerson
USE OF DICTIONARIES:
Students may use a paper English/Foreign language dictionary. Students may not use electronic
dictionaries, word or phrase translators or PDAs of any kind during tests and examinations.
Probationary Policy
Please contact your academic department for details.
Issued & Revised by COLT: June 2007
THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar)
-4-
Course Title: Corporate Finance 1
CENTENNIAL COLLEGE
Course Code: ACCT 224
POLICY STATEMENTS
College Policies
The following statements are selected from Centennial College policies approved by the Board of Governors.
Student Responsibilities
Students are expected to know the contents of the course outline and to discuss with the professor any areas
where clarification is required.
Students should keep all course outlines for each course taken at Centennial College. These may be used to
apply for transfer of credit to other educational institutions. A fee may be charged for additional or replacement
copies.
Other Policies
Students should familiarize themselves with all College Policies that cover students’ rights, responsibilities, and
the Academic Appeal process. For further information, consult the Academic Matters Section in the full-time
and continuing education calendars. The Academic Appeal Application form is available from any Enrolment
Services (Registrar) Office.
Proof of Student Status
Students are obliged to produce official photo identification at any time during the semester when requested to
do so by any professor. (The official piece is the Centennial Student Card.) Continuing Education students do
not have Centennial Student Cards, and so they may use other forms of photo identification, such as a driver’s
license, health card, or other government-issued photo identification.
Final Examinations
When writing a test or examination, students must put their official photo-ID cards in full view, for review by the
invigilator. Students who do not have official photo-ID will be permitted to write the examination with a
substitute photo-ID, but they will be required to produce photo-ID at the program or department office within 24
hours or the next business day following the examination, or else the examination results will be void.
Faculty Consultation
Professors are available to see students outside of class time. Students can contact professors via voice mail,
email, or through their program or department office. Information regarding how to contact teachers will be
provided at the beginning of the course and is also available in the program or department office.
Human Rights Statement
It is the policy of the College that all programs will strive for a learning, teaching, and working environment that
promotes inclusion, understanding and respect for all students and employees, consistent with the Ontario
Human Rights Code and the Centennial College's Statement of Diversity.
Issued & Revised by COLT: June 2007
THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar)
-5-
Course Title: Corporate Finance 1
CENTENNIAL COLLEGE
Course Title: Corporate Finance 1
WEEK
1A
Course Code: ACCT 224
Centennial College
TOPIC/CONTENT
READINGS
Chapter 1
The Goals and
Functions of
Financial
Management.
Internet
LEARNING OUTCOMES
1. Identify how finance builds on accounting and
economics
2. Explain the role of interest rates as a key
factor in financial management
3. Outline the activities of financial managers.
4. Identify some domestic and international
conditions that influence work of financial
managers.
Course Code: ACCT 224
INSTRUCTIONAL
STRATEGIES USED
COURSE
EVALUATION
S (TESTS &
ASSIGNMENT
S USED)
Lecture & discussion.
For the entire duration of
the course Lyryx will be
utilized to enhance
learning.
Questions:
2,3,4,8,10,12,13,15
Problems: 1,3,4
1B/2A
Review of
Accounting: Income
Statement, Balance
Sheet and Cash
Flow Statement.
Chapter 2
1. Review and reinforce accounting concepts of
particular relevance to this course.
2. Emphasize the importance of cash flow in
finance.
3. Introduce the concept of free cash flow.
Lecture & discussion.
Questions:
2,3,4,6,7,8,9,10
Problems:
2,8,11,13,21,35
Utilize Excel to solve
problems 11,13
2B/3/4A
Financial Analysis
Issued & Revised by COLT: June 2007
Chapter 3
1. Evaluate the firm’s performance using financial
ratios.
2. Calculate all 13 financial ratios and analyze
the financial health of the company within the
THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar)
Lecture & discussion
Questions: 1,3,7,8,9,10
-6-
Lab #1 (Lyryx)
Due: Week-2B
Course Title: Corporate Finance 1
WEEK
2B/3/4A
4B/5/6A
CENTENNIAL COLLEGE
TOPIC/CONTENT
Financial Analysis
Chapter 3
Chapter 4
.
Financial
Forecasting
6B
MID-TERM TEST
7/8A
Working Capital and
the financing
decision
Issued & Revised by COLT: June 2007
READINGS
Chapter 6
Course Code: ACCT 224
LEARNING OUTCOMES
categories of profitability, asset utilization,
liquidity, and debt utilization.
3. Assess profitability using the Dupont system of
analysis.
4. Use trend analysis to assess performance.
5. Identify different accounting treatments that
could distort reported income and produce
misleading ratios.
1. Explain the benefits of forecasting to the future
health of a business.
2. Perform the percentage of sales method of
forecasting.
3. Determine if additional funds are required to
finance sales growth.
4. Prepare a cash budget in spreadsheet format
suitable for submission to a professional user
1. Define working capital
2. Describe the nature of asset growth and
identify assets that are more permanent in
nature
3. Explain the financing of assets in terms of
hedging
4. Explain the term structure of interest rates and
the theories that suggest its shape
THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar)
INSTRUCTIONAL
STRATEGIES USED
Problems:
1,5,10,13,17,25,27,32
COURSE
EVALUATION
S (TESTS &
ASSIGNMENT
S USED)
Lab #2 (Lyryx)
Due: Week-4A
Utilize Excel to solve
problems 1, 17, 25.
Lecture & discussion
Questions: 1,2,3,4,6
Excel
Assignment #1
Due: Week -5B
Problems:
1,4,8,10,14,18,20,22,25
Utilize Excel to solve
problems 20,22,25.
Lecture & discussion
Questions: 15,7,8,9,11,12
Problems:
1,5,11,12,16,19,21
-7-
Lab #3 (Lyryx)
Due: Week-6A
MID-TERM
TEST
Lab #4 (Lyryx)
Due: Week-8A
Course Title: Corporate Finance 1
WEEK
CENTENNIAL COLLEGE
TOPIC/CONTENT
READINGS
Course Code: ACCT 224
LEARNING OUTCOMES
INSTRUCTIONAL
STRATEGIES USED
COURSE
EVALUATION
S (TESTS &
ASSIGNMENT
S USED)
5. Identify the role of risk and profitability in
determining the financing plan for current
assets.
8B/9
10/11A
Current Asset
Management
Sources of Short
Term Financing
Issued & Revised by COLT: June 2007
Chapter 7
Chapter 8
1. Define accounts receivable, inventory etc. as
investments in current assets.
2. Discuss cash management as the control of
receipts and disbursements to minimize non
earning cash balances
3. Describe techniques to make cash
management more efficient
4. Calculate the yield on various marketable
securities
5. Outline the credit criteria - the 4Cs of credit
6. Evaluate the cost/benefits of a proposal to
alter credit standards
7. Apply techniques to reduce investment in
inventory
8. Explain why liquidity and profitability have an
inverse relationship
Lecture & discussion
1. Describe trade credit as an important form of
short term financing
2. Calculate cost of trade credit
3. Describe salient features of short term bank
loans
4. Calculate cost of short term bank loans
5. Describe commercial paper
6. Describe borrowing in foreign markets as a cost
Lecture & discussion
THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar)
Lab #5 (Lyryx)
Due: Week-9B
Questions: 14,6,8,10,12,14,16
Problems: 1,5,914,17,20,21,22,29,34
Questions: 1-11
Problems:
1,6,8,10,12,13,16,18,21,
22,29
-8-
Lab #6 (Lyryx)
Due: Week11A
Course Title: Corporate Finance 1
WEEK
CENTENNIAL COLLEGE
TOPIC/CONTENT
READINGS
Course Code: ACCT 224
LEARNING OUTCOMES
INSTRUCTIONAL
STRATEGIES USED
10/11A
Sources of Short
Term Financing
Chapter 8
effective alternative for firms
7. Demonstrate interest rate hedging to reduce
borrowing risk
11B/12A
The Time Value of
Money
Chapter 9
Review the time value of money:
1. Compute future value of single sum
2. Compute present value of single sum
3. Compute future value of an annuity
4. Compute present value of an annuity
Lecture & discussion
1. Define capital budgeting decisions as a longterm investment decisions
2. Explain and emphasize that cash flows rather
than accounting earnings are evaluated in
capital budgeting decision
3. Discuss the use of the cost of capital as
discount rate in capital budgeting analysis
4. Evaluate investments by:
a. Average accounting return
b. Payback period
c. Internal rate of return (IRR)
d. Net present value (NPV)
e. Profitability index
Perform NPV analysis to assist in the decisionmaking concern of long-run investments
Lecture & discussion
12B/13/14A
The Capital
Budgeting Decision
Issued & Revised by COLT: June 2007
Chapter 12
THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar)
COURSE
EVALUATION
S (TESTS &
ASSIGNMENT
S USED)
Problems:
1,2,3,11,13,38,
Questions: 1-12
Problems:
1,2,3,8,9,13,18,25,38
-9-
Lab #7 (Lyryx)
Due: Week13B
Excel
Assignment #2
Due: Week13B
Course Title: Corporate Finance 1
WEEK
CENTENNIAL COLLEGE
TOPIC/CONTENT
14B
Review
15
EXAM WEEK
Final Exam
Issued & Revised by COLT: June 2007
READINGS
Course Code: ACCT 224
LEARNING OUTCOMES
INSTRUCTIONAL
STRATEGIES USED
COURSE
EVALUATION
S (TESTS &
ASSIGNMENT
S USED)
FINAL EXAM
THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar)
- 10 -