NUS Business School
Advanced Corporate Finance: BMA 5312
Spring Semester 2010
Instructor: Dr. Jumana Zahalka
Office: TBA
Phone: TBA
E-mail: TBA
Office Hours: TBA
COURSE DESCRIPTION
The objective of this course is to enhance students' ability to apply corporate finance theory to
corporations' real-life investment and financing decisions. This is done through the use of both lectures
and case discussions. Topics covered include valuation, capital budgeting, cost of capital, mergers and
acquisitions, capital structure policy, restructuring and options, warrants and convertibles. Students will
gain an appreciation for the role of judgment and subjectivity in the application of finance theory to
practice.
COURSE MATERIALS
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Course Cases and Additional Non-Text Book Readings (Course pack)
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R. Brealey, S. Myers, and F. Allen, Principles of Corporate Finance, 7th or 8th edition, McGraw-Hill
(the Ross, Westerfield, Jaffe Corporate Finance text book can also be used).
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Further materials which will be posted on the course website and/or distributed in class. Students will
be expected to check the course website regularly for both course material and course
announcements.
GRADE COMPONENTS
Final grades will be based on the following:
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WRITTEN GROUP CASE ANALYSIS: (35%)
The class will be organized into study groups, with up to four people per group. Each group will
write detailed reports on five selected cases. Note that we will discuss many cases over the course of
the semester - you are only required to submit group write-ups on five of the cases indicated. Cases
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not written-up, must nonetheless be carefully read and considered for class discussion (e.g., see class
participation mark component).
Each written case report should include 2-4 pages of analysis (typed and double-spaced) with
references to an unlimited number of tables, figures, and notes attached as appendices. The report
should address the suggested questions for the case, but should not be written in the form of answers
to these questions – rather the report should be a complete review of the case considered and address
all points believed to be important for the analysis.
Each group must give an in-depth class presentation of their analysis of at least one case over the
course of the semester. Assignment of groups and their respective case presentations will be made
early in the semester. Non-presenting groups may be asked to present their views of certain points
raised by the case or its discussion.
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CLASS PARTICIPATION: (20%)
This class heavily depends upon class participation. Thus this component of your mark will be based
both on your everyday in-class participation as well as your individual performance during your
group’s class presentation of a case analysis.
•
EXAM: (45%)
There will be one time-limited exam at the end of the semester. You will be tested on both the
concepts and the methods studied in this course.
TENTATIVE CLASS SCHEDULE (Subject to Change Over the Course of the Semester)
Class Meeting #1
Lecture: Introduction
Cost of Capital & Valuation
Class Meeting #2
Lecture: Cost of Capital & Valuation Continued
Estimating Cash Flows and Investment Decision
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Financial Modeling Using Excel
Class Meeting #3
Case: “The Super Project” (HBS #112-034)
Lecture: Capital Structure Theory
Class Meeting #4
Case: “Marriott Corporation: The Cost of Capital” (HBS # 289-047)
Lecture: Capital Structure Theory and Dividend Policy
Class Meeting #5
Case: “American Home Products Corporation” (HBS # 283-065)
Case: “Dividend Policy at Linear Technology” (HBS # 204-066)
Class Meeting #6
Lectures: Leveraged Transactions, Mergers and Acquisitions
Class Meeting #7
Case: “Congoleum Corporation” (HBS # 287-029)
Case: TBA
Class Meeting #8
Case: “The Acquisition of Consolidated Rail Corporation” A and B (HBS # 298-006 and
HBS # 298-095)
Class Meeting #9
Lecture: Corporate Restructuring
3
Class Meeting #10
Case: TBA
Class Meeting #11
Lecture: Options, Warrants and Convertibles
Class Meeting #12
Case: “Corning Inc.” (UVA-F-1339 v. 2.6)
Case: “Arundel Partners: The Sequel Project” (HBS # 292-140)
Class Meeting #13
Lecture: Venture Capital Issues
Class Meeting #14
Review
Final Exam
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