Corporate Finance Syllabus I. Curriculum Details Teacher Information Full Name: Maggie Foley Title: Assistant Professor of Finance Office: 301 Tel: Email Address: mfoley3@ju.edu Office Hours: Course Information Course Name (Chinese): 财务管理 Course Name (English): Corporate Finance Course Code: Class Hour: Credit: 3 Pre-requisites: Major: Economics Course Description This course is designed for a thorough review of corporation financial management. This course goes into more depth on topics covered in prior courses, introduces new concepts, uses cases to show how finance theory is used in practices, and explains how Excel is used to analyze financial problems. These topics include capital budgeting and structure, distributions to shareholders, financial restructuring, and working capital management. Course Goal To develop the student’s ability to approach and make fundamental financial decisions with emphasis on the tools of financial analysis and problem solving. Tentative Teaching Content and Schedule Chapter 1 a. Class hour: one hour b. Content and Emphasize This chapter introduces the concepts of each player in the financial market and emphasizes the roles of each one. c. Learning task After reading this chapter, students should be able to: Explain the role of finance and the different types of jobs in finance. Identify the advantages and disadvantages of different forms of business organization. Explain the links between stock price, intrinsic value, and executive compensation. Discuss the importance of business ethics and the consequences of unethical behavior. Identify the potential conflicts that arise within the firm between stockholders and managers and between stockholders and bondholders, and discuss the techniques that firms can use to mitigate these potential conflicts. d. Teaching Forms and Methods: Lecturing and Class Discussion e. Requirements for Extra-curricular Studying: n/a Homework: End of Chapter Questions 1, 12, 13. Chapter 2 a. Class hour: 1 hour b. Content and Emphasize: Chapter 2 presents an overview of financial markets and institutions. It explains the roles played by each player in the financial market. c. Learning task Identify the different types of financial markets and financial institutions, and explain how these markets and institutions enhance capital allocation. Explain how the stock market operates, and list the distinctions between the different types of stock markets. Explain how the stock market has performed in recent years. Discuss the importance of market efficiency, and explain why some markets are more efficient than others. d. Teaching Forms and Methods: Lecturing and Class Discussion e. Requirements for Extra-curricular Studying: n/a Homework: End of Chapter Questions 2, 9. Chapter 3 a. Class hour b. Content and Emphasize Chapter 3 provides a bridge between accounting, which students have just covered, and financial management. c. Learning task List each of the key financial statements and identify the kinds of information they provide to corporate managers and investors. Estimate a firm’s free cash flow and explain why free cash flow has such an important effect on firm value. Discuss the major features of the federal income tax system. d. Teaching Forms and Methods: Lecturing and Class Discussion e. Requirements for Extra-curricular Studying: n/a Homework: End of Chapter Questions 2, 3, 4, 8, 10, 11, 13, 15. Chapter 4 a. Class hour b. Content and Emphasize This chapter explains what ratio analysis is. c. Learning task List the 5 groups of ratios and identify, calculate, and interpret the key ratios in each group. Discuss each ratio’s relationship to the balance sheet and income statement. Discuss why ROE is the key ratio under management’s control, how the other ratios impact ROE, and explain how to use the DuPont equation for improving ROE. Compare a firm’s ratios with those of other firms (benchmarking) and analyze a given firm’s ratios over time (trend analysis). Discuss the tendency of ratios to fluctuate over time (which may or may not be problematic), explain how they can be influenced by accounting practices as well as other factors, and why they must be used with care. d. Teaching Forms and Methods: Lecturing and Class Discussion e. Requirements for Extra-curricular Studying: n/a Homework: End of Chapter Questions 2, 3,5,6,8, 10, 14, 21 Chapter 5 a. Class hour b. Content and Emphasize This chapter explains how the time value of money works and discuss why it is such an important concept in finance. c. Learning task Calculate the present value and future value of lump sums. Identify the different types of annuities, calculate the present value and future value of both an ordinary annuity and an annuity due, and calculate the relevant annuity payments. Calculate the present value and future value of an uneven cash flow stream. You will use this knowledge in later chapters that show how to value common stocks and corporate projects. Explain the difference between nominal, periodic, and effective interest rates. An understanding of these concepts is necessary when comparing rates of returns on alternative investments. Discuss the basics of loan amortization and develop a loan amortization schedule that you might use when considering an auto loan or home mortgage loan. d. Teaching Forms and Methods: Lecturing and Class Discussion e. Requirements for Extra-curricular Studying: n/a Homework: End of Chapter Questions 1, 2, 3,4, 5, 6, 7, 8, 11, 12, 19, 25, 26, 32, 33 Chapter 6 a. Class hour b. Content and Emphasize c. Learning task d. Teaching Forms and Methods: Lecturing and Class Discussion e. Requirements for Extra-curricular Studying: n/a Homework: End of Chapter Questions Chapter 7 a. Class hour b. Content and Emphasize c. Learning task d. Teaching Forms and Methods: Lecturing and Class Discussion e. Requirements for Extra-curricular Studying: n/a Homework: End of Chapter Questions . Chapter 8 a. b. c. d. e. Class hour Content and Emphasize Learning task Teaching Forms and Methods: Lecturing and Class Discussion Requirements for Extra-curricular Studying: n/a Homework: End of Chapter Questions Chapter 9 a. Class hour b. Content and Emphasize c. Learning task d. Teaching Forms and Methods: Lecturing and Class Discussion e. Requirements for Extra-curricular Studying: n/a Homework: End of Chapter Questions Chapter 10 f. Class hour g. Content and Emphasize h. Learning task i. Teaching Forms and Methods: Lecturing and Class Discussion j. Requirements for Extra-curricular Studying: n/a Homework: End of Chapter Questions Chapter 11 k. Class hour l. Content and Emphasize m. Learning task n. Teaching Forms and Methods: Lecturing and Class Discussion o. Requirements for Extra-curricular Studying: n/a Homework: End of Chapter Questions Chapter 14 p. Class hour q. Content and Emphasize r. Learning task s. Teaching Forms and Methods: Lecturing and Class Discussion t. Requirements for Extra-curricular Studying: n/a Homework: End of Chapter Questions Chapter 15 u. Class hour v. Content and Emphasize w. Learning task x. Teaching Forms and Methods: Lecturing and Class Discussion y. Requirements for Extra-curricular Studying: n/a Homework: End of Chapter Questions Course Requirements: The required text for this course is: Fundamentals of Financial Management, 13th edition by Brigham and Houston ISBN 13: 978-0538482127 ISBN 10: 0538482125 Final Exams % The final exam will be given by the end of the semester. Exams are closed book and closed note. The exam will include material from assigned readings and class discussions. Your attendance in class will help ensure that you do not miss any pertinent information. Homework % There will be several homework sets assigned during the semester. Homework due dates are specified during the course work. Homework is generally due at the beginning of class. The goal of homework is to help your understanding of the material. Two Case Studies % I will assign you two mini cases this semester. Working on mini cases can reinforce your understanding on the materials from the lectures and from the text book. Besides this, you can gain knowledge using EXCEL to resolve finance problems. Excel is used for most real work calculations and your proficiency with it can prepare you better for your future career. Grading: One Final Exams Homework Two Case Studies Course Resource: n/a Others: n/a % % %