Syllabus - Drew Winters

FIN 3322
Corporate Finance I
Spring 2016
Finance major core course in corporate finance.
Drew Winters
Rawls College of Business
Office Hours: 9am to 12 noon Monday or by appointment
FIN 3320
Course Objective: To provide an in depth understanding of the basics of corporate finance.
In other words, we focus on business finance decisions. FIN 3322 focuses on business decisions
related to assets. FIN 4330 (Corporate Finance II) will focus on liabilities and equity.
Learning Outcomes:
Understanding of financial statement analysis.
Develop financial forecasts and cash budgets.
Ability of manage working capital.
Enhanced understanding of time value of money.
Bond and Stock valuation.
Risk and return, portfolios and CAPM.
Understand the process of business investment decision.
Required Materials:
Corporate Finance 1: FIN 3322
ISBN 13:
McGraw-Hill Create Brealey, Myers and Allen
Course Outline:
Chapter 1:
Introduction to Corporate Finance
Chapter 13:
Financial Analysis
Padgett Blank Book
Chapter 15:
Financial Planning
Horniman Horticulture (UVA-F-1512)
Chapter 14:
Working Capital Management
Kota Fibres (UVA-F-1359)
Chapter 2:
How to Calculate Present Value
How Much Is Enough: Assessing Personal Financial Planning Needs
Chapter 3:
Valuing Bonds
Roche Holdings AG (UVA-F-1645)
Chapter 4:
The Value of Common Stock
Braintree Momentum Equity Fund (UVA-F-1619)
Chapter 5:
Net Present Value and Other Investment Criteria
Iskall Arno, Inc. (UVA-F-0814)
Chapter 6:
Making Investment Decisions with the Net Present Value Rule
Diamond Chemical PLC (A): The Merseyside Project (UVA-F-1351)
Chapter 7:
Introduction to Risk and Return
Performance Measurement with Factor Models (UVA-F-1673)
Chapter 8
Portfolio Theory and the Capital Asset Pricing Model
CalPERS Absolute Return Strategies: Hedge Fund Risk and Return
Chapter 9:
Risk and the Cost of Capital
H. J. Heinz: Estimating the Cost of Capital in Uncertain Times
Chapter 10:
Project Analysis
Compass Records (UVA-F-1488)
Chapter 11:
Investment, Strategy, and Economic Rents
Smith & Wesson: A Big Shot at Security? (UVA-F-1665)
Chapter 12:
Agency Problems, Compensation, and Performance Measurement
Madison Fiber Corporation (UVA-M-0425)
Mid-term exam
Final exam
Class Participation
(4 cases: 10% each)
Make-up Exams:
Make-up exams are provided for excused absences. Excused absences
are: documented university business, documented illness or documented family emergency.
Academic Misconduct
“It is the aim of the faculty of Texas Tech University to foster a spirit of complete honesty
and a high standard of integrity. The attempt of students to present as their own any work
that they have not honestly performed is regarded by the faculty and administration as a
serious offense and renders the offenders liable to serious consequences, possibly
Cheating: Dishonesty on examinations and quizzes or on written assignments, illegal
possession of examinations, the use of unauthorized notes during an examination or quiz,
obtaining information during an examination from the examination paper or otherwise from
another student, assisting others to cheat, alteration of grade records, illegal entry to or
unauthorized presence in an office are instances of cheating.
Plagiarism: Offering the work of another as one’s own, without proper acknowledgment, is
plagiarism; therefore any student who fails to give credit for quotations or an essentially
identical expression of material taken from books, encyclopedias, magazines, and other
reference works, or from the themes, reports, or other writings of a fellow student, is guilty of
Civility in the Classroom
Professional behavior is expected at all times in the classroom.
Students with Disabilities
Any student who because of a disability may require special arrangements in order to meet
course requirements should contact the instructor as soon as possible to make any necessary
accommodations. Student must present appropriate verification from AccessTECH. No
requirement exists that accommodations be made prior to completion of this approved
university procedure.