Corporate Finance
Course No.: 02833430
Credit: 3
Prerequisite: N/A
Program: Undergraduate
Instructor: Jiangmin Xu
Semester: 2014 Fall
Contact Information:
Office: New Guanghua Building #337
Email: jiangminxu@gsm.pku.edu.cn
Office Hour: By appointment
Program Learning Goals and Objectives
Learning Goal 1: Graduates will possess a solid understanding of business and management and
will be able to translate this knowledge into practice.
1.1 Objective 1 Our students will have a good command of fundamental theories and
knowledge.
1.2 Objective 2 Our students will have a good command of analytical methods and
decision-making tools.
1.3 Objective 3 Our students will be able to apply theories and methodologies in key
business functions.
Learning Goal 2: Our students will be able to think critically.
2.1 Objective 1 Our students will be able to identify and summarize problems
2.2 Objective 2 Our students will be able to collect data and analyze problems in a critical
manner
2.3 Objective 3 Our students will be able to put forward effective solutions to business
problems
Learning Goal 3: Our students will have a sense of social responsibility.
3.1 Objective 1 Our students will be aware of the importance of ethics.
3.2 Objective 2 Our students will be able to provide solutions that take account of
contrasting ethical standpoints.
Learning Goal 4: Our students will be effective communicators.
4.1 Objective 1 Our students will be proficient in oral and written communication.
4.2 Objective 2 Our students will possess good interpersonal skills.
4.3 Objective 3 Our students will be able to adapt to diverse learning environments.
Learning Goal 5: Our students will have global perspectives.
5.1 Objective 1 Our students will be aware of social and cultural differences.
5.2 Objective 2 Our students will be aware of the impact of globalization on business
operations, opportunities, and challenges.
5.3 Objective 3 Our students will be proficient in English.
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Course Overview
This course aims to cover the basic corporate finance principles, apply the analytical frameworks
to examine important financial decisions faced by financial managers, and analyze how
well-crafted decisions can generate lasting value impact.
Course Objectives
This course emphasizes the applied side of corporate finance, and is structured around the most
important financial decisions made by a firm in an uncertain environment. The topics we will
cover include valuation, investment decisions, and financing decisions.
Detailed Course Plan
Topic 1: Overview of corporate finance
Topic 2: NPV and capital budgeting
Topic 3: Stocks and bonds pricing
Topic 4: CAMP model
Topic 5: Efficient market hypothesis
Topic 6: Cost of capital
Topic 7: Financing decisions
Topic 8: Capital structure
Topic 9: Dividends decisions
Topic 10: Recent financial crisis and its implications for corporate finance
*The outline provides a general plan for the course. Changes may be necessary. Students are
responsible for knowledge of any administrative announcement (e.g. test information, schedule
and/or assignment changes etc.) made at any time during scheduled class periods.
Final Exam：
TBD
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Teaching Methods
This course is designed to be an interactive and challenging one. It will follow a combination of
lectures, case analysis, and presentations. Class attendance and participation in discussions are
expected for all students. We will cover a significant amount of material each week. It is important
that you keep up-to-date with the material.
Textbooks, References & Readings

Recommended textbooks:
Corporate Finance (2nd or 3rd edition)
Authors: Jonathan Berk and Peter DeMarzo
Publisher: Prentice Hall

Lecture notes/materials will be distributed before or after each class.
Rules students must follow
Submitted assignments for grading should be your own or your team’s own work only. You cannot
use old notes, handouts, or solutions to the cases from previous or other sections of this course or
similar courses elsewhere for your written reports and class discussions. Academic dishonesty in
any form will not be tolerated. Failure to observe this rule may result in an automatic failing grade
for the course.
Course Assessment
Class participation
Presentations & homework
Midterm
Final
Total:
5%
25 %
25%
45 %
100 %
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