BUS–342 - Fundamentals of Corporate Finance
Printable version
Professor: Cyrus Ramezani
Phone: (805) 756-1168
Email: cramezan@calpoly.edu
Course Call No. 1226
Office: Room 03-406 – Orfalea College of Business
Office Hrs: See weekly announcements, and by appointment
1. Course Description:
Corporate Finance deals with the choices that have financial implications for firms'
owners and stakeholders. This course will introduce you to the theories and
techniques of managing capital resources within the framework of shareholder wealth
maximization. A substantial part of this course is devoted to the proper methods of
computing cash flows and determining market values. In addition, we will examine
the sources of capital available to businesses and learn how firms are supposed to
allocate their assets efficiently. We will also touch upon topics that relate to corporate
social responsibility and ethics. Finally, we will make use of technology (online
calculators, video presentations, spreadsheets).
2. Course Learning Objectives:
Students will learn the following topics:
1. How firms allocate resources among alternative projects (investment decision)
2. How firms fund current operations and new projects (financing decision)
3. How firms select among risky projects in an efficient manner (risk management)
4. How firms allocate earnings to owners (dividend decision) and capital investments
(investment decision)
5. How firms structure contractual agreements (ethics, socially responsibility, and
compensation decision) 4. Text and References:
3. Prerequisites:
A grade of C or better in the following: STAT-252, BUS-214.
4. Course Information:
Text Book:
Fundamentals of Corporate Finance by Ivo Welch. The online version of the book is
free! The printed version can be purchased at little cost. Please buy parts I-III and IV-VI.
Calculator:
A financial calculator is recommend, for example the Texas Instruments BA II Plus
(including BA II Plus Professional) or the Hewlett Packard 12C (including the HP 12C
Platinum). We will also make use of Excel (spreadsheet program).
Exams:
There will be two midterms and a final exam. The exams may be any combination of
multiple choice, essay/short answer, and problems. While the exams are not
cumulative, the material in the later chapters builds on the material from earlier
chapters.
Weekly Quizzes:
Quizzes are assigned from the end-of-chapter problems in your textbook. These
problems are to be completed on your own and need not be turned in. These
problems will be very similar to those appearing on the exams and the final. The aim
is to help you understand the materials and to prepare you for the exams. I will
provide solutions to selected problems.
Grades:
Your grade will be determined by the following rules:
Two Midterms …..
25% each
Final …..
40%
Class participation …..
10%
Course Grading: Overall score and associated letter grade
Score Range
Letter Grade
100-90
A
89-87
B+
86-80
B
79-77
C+
76-70
C
69-60
D
Below 60
F
****Grades appearing in Blackboard are not representative of your final grade and
maybe subject to change.****
Additional Course Materials:
All pertinent information will be posted on Blackboard. Please be sure to have a valid
e-mail address and to read Blackboard announcements.
No make-up exams or “Incomplete” grade will be given:
If for unavoidable professional/personal emergency, a scheduled exam cannot be
taken, you will need to provide valid proof or obtain prior approval. In such cases, a
make up exam may be given or the weight of the remaining projects may be
increased appropriately. Students are encouraged to contact me early to work out
specific difficulties.
Teaching Philosophy:
My goal is to see you learn. Grades are carrots that encourage learning. There are
many shades of the grade and I will not hesitate to give poor grades when your
performance warrants it. I want you to do well and I use a straight scale so that many
students can get A's if the class as a whole is highly motivated. Thus, I will do my best
to help you understand the materials and to do well on exams. I realize that this is the
“summer” and that you may have a busy schedule (working and having fun); that you
may need this course to graduate; and that you may face other difficulties which
prevent you from studying. All of this makes it more important to get involved early in
the term. This will be a difficult course but we are going to have lots of fun learning
important concepts. The course will cover a lot of material and you will be
overwhelmed if you don't keep up with the readings. I expect you to work hard
because the material will help you do better in your career. Your dedication and hard
work will pay off in your first job. The ideas in the course are some of the most
important in business and require that you really work hard to understand the logical
basis of firm's decisions. There are some courses where common sense and a few
midnight cram sessions will get you a decent grade. This is not such a course.
Learning is for keeps.
5. ADMINISTRATIVE MATTERS:
This course will be entirely online. The primary method of communication will be
Blackboard and office hours (in person and online). I will post all information and
announcements on Blackboard. There will be no regularly scheduled class meetings.
There will be no in class lectures. There will be discussion groups and discussion areas
as well.
Important to keep in mind:
1) Must keep up with the reading,
2) Must take all exams and Final,
3) Must keep up with announcements (on Blackboard), and
4) Must make use of office hours if you are experiencing difficulty.
A student requiring any special assistance or accommodation to complete this course
must contact me before the course begins.
ETHICS AND ACADEMIC DISHONESTY:
Improper academic conduct shall be interpreted to mean the obtaining and using of
information during an examination by means other than those permitted by the
instructor, including supplying such information to other students. All forms of
academic dishonesty, including cheating, plagiarism, and falsification of academic
records are subject to disciplinary action.
Students with Special Needs:
If you have a disability for which you are or may be requesting an accommodation,
you are encouraged to promptly and proactively (before the course begins) contact
both the instructor and the Disability Resource Center (DRC), Building 124, Room 119,
(805) 756-1395 or email drc@calpoly.edu as early as possible.
Student Privacy:
If you have chosen to protect your Directory Information (which includes name and
email), it is important you communicate this to your instructor prior to or on the first
day of class, as this course uses Blackboard tools that may display students' names
and email address.
6. COURSE OUTLINE:
The tentative outline for the course follows. This may be modified and
additional material introduced, depending on the needs, interests, and
progress of the class.
Date
Week 1
Week 2
Week 3
Week 4
Week 5
Week 6
Week 7
Week 8
Readings
Intro & Chapters 1-2
Chapters 3-4
Chapter 5
EXAM 1
Chapter 6-7
Chapter 8-9
Chapter 10
EXAM 2
Chapter 11-12
Chapter 13
FINAL EXAM