Bus 320 (Corporate Finance)
Tue/Thur 11:30-12:45 (Room 208)
Tue/Thur 1:00-2:15 (Room 208)
Tue/Thur 2:30-3:45 (Room 208)
Spring 2013
Professor T. Clifton Green
GBS Room 503
Phone: 404-727-5167
Email: clifton.green@emory.edu
Overview of the Course
This course provides an introduction to finance. It addresses the theory and practice of financial
management  the generation and allocation of financial resources. It has three major objectives:
1. To provide you with a foundation in the basic concepts of finance, including the time value
of money, the role of financial markets, asset valuation, portfolio theory, asset pricing, and
the risk-return tradeoff.
2. To develop your skills in financial analysis, planning, and decision-making.
3. To expand your awareness of institutions and practices in business and finance.
Readings
The required readings for this course are:
1. Fundamentals of Corporate Finance, Ross, Westerfield, Jordan, 10th (Standard) Edition,
Irwin/ McGraw-Hill Publishing. ISBN: 0078034639
2. Articles and notes handed out in class.
The following items are optional but highly recommended.
1. A subscription to the Wall Street Journal. Regular reading of the WSJ will increase your
understanding of financial markets and the business world in general. WSJ articles will often
form the basis of class discussions.
You can obtain a student discount and subscribe at: www.WSJ.com/studentoffer
2. A financial calculator. Most finance electives will require you to have one. Several good
calculators by Hewlett-Packard and Texas Instruments are available. If you choose to get a
financial calculator, you are responsible for learning how to use it.
Office Hours
Wednesday 2:00 - 4:00
You don’t need an appointment during office hours. If this time conflicts with your schedule,
send me an email and suggest a couple of potential meeting times. You should have a 320
conference on your First Class email account. I post important messages, including lecture slides,
to this conference. You can email questions to me or to the conference.
Grading
Students will be evaluated based on the following scheme:
Quiz 1
Quiz 2
Quiz 3
Company Analysis
Final Exam
20%
20%
20%
10%
30%
The final exam will be comprehensive. There will be no makeup tests. If you miss a quiz and
have a university accepted excuse (you must discuss your situation with the Assistant Dean of
the BBA Program), the weight of that quiz will be added on to the cumulative final.
Company Analysis
Each student will be assigned a company (from a pre-screened list) and perform a number of
different analyses over the course of the semester. The objective is to provide practical
applications for the concepts we cover in class, give exposure to spreadsheet software, and
provide an opportunity to learn about a company (which may be helpful with interviews, etc.).
TA Problem Sessions
There will be finance labs each week (except for Spring Break):
Fridays
Sundays
2-4 pm
4-6pm
Room 334
Room 334
(except Feb 22nd in room 204)
The TAs are BBAs that took the class last year and performed well. They will work problems
and answer questions during the problem sessions.
Attendance Policy
I do not enforce an attendance policy. However, you are responsible for all material assigned
and/or covered in class. The course involves subtle arguments and some fairly complicated
problems. Thus, it is difficult to do well in the class without attending the lectures and problem
sessions.
Class Behavior
Remember to silence your cell phones! And please no smelly or noisy food.
The Daily Schedule
The schedule below is intended as a guide. It may be modified depending on the speed and
comfort level of the class.
Session
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
Date
1/15
1/17
1/22
1/24
1/28
1/29
1/31
2/5
2/7
2/11
2/12
2/14
2/18
2/19
2/21
2/26
2/28
3/4
3/5
3/7
3/12
3/14
3/19
3/21
3/25
3/26
3/28
4/2
4/4
4/9
4/11
4/16
4/18
4/27
4/23
4/25
Day
Tu
Thur
Tu
Thur
Mon
Tu
Thur
Tu
Thur
Mon
Tu
Thur
Mon
Tu
Thur
Tu
Thur
Mon
Tu
Thur
Tu
Thur
Tu
Thur
Mon
Tu
Thur
Tu
Thur
Tu
Thur
Tu
Thur
Mon
Tu
Thur
Topic
Introduction to Finance
Financial Statements
Ratio Analysis and applications
Pro Forma Statements
Company Analysis: Company Information Due
Pro Forma Statements
Pro Forma Statements
Quiz 1
Time Value of Money
Company Analysis: Ratio Analysis Due
Time Value of Money
Time Value of Money
Company Analysis: Pro Forma Due
Time Value of Money
Security Valuation: Bonds
Quiz 2
Security Valuation: Stocks
Company Analysis: Dividend Discount Model Due
Security Valuation: Stocks
Portfolio Theory & Applications
Spring Break
Spring Break
Portfolio Theory & Applications
Portfolio Theory & Applications
Company Analysis: Beta and CAPM Due
Market Efficiency & History
Market Efficiency & History
Quiz 3
Capital Budgeting
Capital Budgeting
Capital Budgeting
Cost of Capital
Cost of Capital
Company Analysis: WACC and Valuation Due
Leverage and Capital Structure
Leverage and Capital Structure
Book
Chap 1
Chap 2
Chap 3
Chap 4
Chap 5
Chap 6
Chap 7
Chap 8
Chap 13
Chap 12
Chap 9
Chap 10
Chap 11
Chap 14
Chap 16