Syllabus FIN 3322 Corporate Finance I Spring 2016 Finance major core course in corporate finance. Instructor: Drew Winters W301 Rawls College of Business Email: [email protected] Webpage: http://drewwinters.ba.ttu.edu Office Hours: 9am to 12 noon Monday or by appointment Prerequisites: 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: 1. 2. 3. 4. 5. 6. 7. 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: Textbook: Corporate Finance 1: FIN 3322 ISBN 13: 9781308701349 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 (UVA-C-2000) 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 (UVA-F-1735) Chapter 9: Risk and the Cost of Capital H. J. Heinz: Estimating the Cost of Capital in Uncertain Times (UVA-F-1634) 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) Grading: Mid-term exam 20% Final exam 20% Cases 40% Class Participation 20% (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. Other: 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 suspension.” 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 plagiarism. 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.