SYLLABUS
MFIN 301
CORPORATE FINANCE
Fall 2007
Textbook:
Brealey, Myers, Allen, Corporate Finance, 8th Edition, McGrawHill, 2006
Prerequisite: Introduction to Managerial Finance (MFIN 202) or equivalent
Course Objective: This course is designed to provide students with the capacity to
understand the theory of corporate finance and to apply, in real world situations, the
techniques that have been developed in the field. The objective is to evaluate the most
important corporate finance decisions and problems faced by the Chief Financial Officer of
a company.
Course Evaluation : Students are expected to attend classes and participate in discussions.
Text-book cases will be assigned and students are expected to present and discuss their
work in class. There will be two mid-term exams and a final exam.
Grading will be done on the following basis:
Assignments and participation: 25%,
Midterm
30%
Final
45%.
Course Content
Week
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Date
Sep 18
Sep 20
Sep 25
Sep 27
Oct 2
Oct 4
Oct 9
Oct 11
Oct 16
Oct 18
Oct 23
Oct 25
Oct 30
Nov 1
Nov 6
Nov 8
Nov 13
Nov 15
Nov 20
Nov 22
Nov 27
Nov 29
Dec 4
Dec 6
Dec 11
Dec 13
Dec 18
Dec 20
Dec 25
Dec 27
Topics
Introduction and Overview
Review: PV, Value of Bonds and Stock
NPV and Making Investment Decisions
Valuing a Business by Discounted Cash Flow
Risk,Return &Opportunity Cost ofCapital
Case I : Stock Valuation
Risk & Return: Portfolio Theory
Risk & Return: Portfolio Theory
Capital Budgeting & Risk
A Project is not a Black Box
Strategy and the Capital Investment Decision
Case II: Project Valuation
Overview of Corporate Financing
Payout Policy
Case III: Capital Budgeting
Does Debt Policy Matter?
Midterm
How Much Should a Firm Borrow?
Financing & Valuation
Credit Risk
Leasing
Managing Risk
Managing International Risks
Managing International Risks
Case IV : Risk Management
Mergers
Corporate Restructuring
Holiday
Governance and Corporate Control
Course Review
BM
Ch.1
Ch.2,3,4
Ch.5 &6
Ch.4.5
Ch.7
Ch.4 : Reeby Sports
Ch.8
Ch.8
Ch.9
Ch. 10
Ch. 11
Ch.10: Waldo County
Ch. 14
Ch.16
Ch.11 : Ecsy Cola
Ch.17
Ch.18
Ch.19
Ch.24
Ch. 26
Ch.27
Ch.28
Ch.28
Ch.28, Exacta S.A.
Ch.32
Ch.33
Ch.34
Ch.34