UNIVERSITY OF MANITOBA I.H. ASPER SCHOOL OF BUSINESS

UNIVERSITY OF MANITOBA
I.H. ASPER SCHOOL OF BUSINESS
DEPARTMENT OF ACCOUNTING AND FINANCE
FIN 3480 A02 – CORPORATE FINANCE THEORY AND PRACTICE – Winter 2014
Instructor:
Jerrod Falk
Office:
368 Drake
Telephone:
474-6723
E-mail:
[email protected]
Office hours: Tuesdays and Wednesdays 3:45pm to 4:30pm or by email.
________________________________________________________________________
PREREQUISITES:
Required:
Recommended:
Corporate Finance FIN 2200 (C+)
Students are assumed to have a working knowledge of Microsoft Excel and the
creation of spreadsheets.
COURSE OBJECTIVE:
The purpose of this course is to give students a deeper understanding of finance techniques and the
relevant theories underlying them. Topics include capital budgeting, relevant cash flows, tax
considerations, cost of capital, implications of capital structure, and new capital budgeting techniques.
Student will also get opportunities to practice and improve their spreadsheet creation skills throughout
the course.
REQUIRED MATERIAL:
Berk, DeMarzo, and Stangeland Corporate Finance: Second Canadian Edition, Pearson Canada, 2012.
HP 10B II calculator or equivalent.
COURSE COMPONENTS:
Time value of money quiz, in class, February 5th, 2014 in class
Assignments – 2 assignments worth 7.5% each
Midterm examination, Tuesday March 4th, from 6:00pm to 8:30pm, Room 122
Final Examination, date and location TBA
10%
15%
30%
45%
COMMUNICATION:
If you want to email me, DO NOT EMAIL ME THROUGH THE D2L SYSTEM! There is a
problem with D2L email system in that it does not allow me to reply to you directly from my regular
email.
If you want to email me, email me directly at: [email protected]
Page 1 of 5 pages
Student email policy: Effective September 1, 2013, the U of M will only use your university email
account for official communications, including messages from your instructors, department or faculty,
academic advisors, and other administrative offices.
For details refer to: http://umanitoba.ca/registrar/e-mail_policy
ASSIGNMENTS:
There will be two assignments during the term (each worth 7.5% of your final grade). Assignments
will be made available during the term on D2L as the term progresses. The use of Microsoft Excel
spreadsheets and the Bloomberg terminals is encouraged/required in completion of assignments.
Assignments are due on the date and time specified below. Early submission of assignments may be
made with no penalty. Late assignments receive a mark of zero.
Assignments are to be done in groups of three (3) or four (4) students.
Tentative Assignment schedule:
Assignment 1 due March 21st, 2014 (Due at 4:00 p.m.)
Assignment 2 due April 9th, 2014 (Due at 4:00 p.m.)
Students are not allowed to miss a quiz, assignment, or examination unless a valid medical excuse is
provided. Students with valid medical excuses must complete and submit the “Medical Absenteeism
Form” attached at the end of this syllabus. Both the student and the attending physician must sign the
document otherwise the excuse will be deemed invalid.
There will be no make-up assignments or examinations. Students who miss a component and have a
valid medical excuse will have the weight of that component added to the final examination. Students
who miss a component without a valid medical excuse will receive a mark of 0% on that component.
Final grades are based on the student’s weighted mark and performance relative to other students in the
class.
PRACTICE QUESTIONS / MATERIAL:
A time value review handout and sample quiz will be made available on D2L early in the term. These
handouts will assist students in reviewing the time value prerequisites (FIN 2200) material that is
assumed knowledge for this course. Students should ensure that they are capable of completing the quiz
with 100% accuracy.
In addition, students are encouraged to read relevant sections of the text and attempt the “Questions and
Problems” at the end of these chapters. Answers to recommended textbook problems will be
provided on D2L throughout the term, as each topic is covered. Students are advised to work on
these questions and problems independently and to correct their own solutions with the textbook
solutions that will be available on D2L. Please come and see me for help or clarification as required.
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TENTATIVE COURSE OUTLINE (topics/dates may change throughout the term):
Although some of the readings overlap with those of FIN 2200, the material is covered in more depth.
Further readings and/or handouts may be assigned as the term progresses.
Dates
Description
Jan 6
Distribution of course outline, overview of the course
Jan 8
No class; class will be made up Tuesday evening, March 4th, 2014
Jan 13
Review of past concepts
Review your FIN2200 notes
Read Ch. 20 pp. 734-739
Jan 15
Inflation, real and nominal returns
Ch. 5 pp 145-154
Taxes and capital budgeting, financial statements and free cash
flows
Ch. 7, 7A
Jan 20 to 27
Relevant Reading
Jan 29
No class; class will be made up Tuesday evening, March 4th, 2014
Feb 3
Advanced capital structure: financial distress, managerial
incentives, and information
Review Ch. 14, Ch. 15
Read all of Ch. 16
Feb 5
Quiz: Time Value of Money – 10% of final grade
Review Ch. 4, Ch. 5 pp.137-145, Time
value of money review handout, and
practice quiz
Payout policy
Ch. 17
Feb 24 to
Mar 3
Capital budgeting and valuation with leverage: WACC, FTE,
and APV
Ch. 18, Ch. 18A
Mar 4
Tuesday
Midterm exam 6:00pm to 8:30pm, Room 122. Weight 30% of final grade. Coverage – all topics up
to this date.
Feb 10 to 12
Mar 5
Mar 10 to 24
Mar 19
Mar 26 to 31
Apr 2 to 7
Apr 9
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Valuation and Financial Modelling
Ch. 19
Option valuation, Real options
Review Ch. 20
Read Ch. 21 (sections 21.1 and 21.3)
Read Ch. 22
Last day to VW
Leasing
Ch 25
Mergers and Acquisitions
Ch 28
Catch up, course evaluations
Ch 30
ACADEMIC INTEGRITY
It is critical to the reputation of the I. H. Asper School of Business and of our degrees that everyone
associated with our faculty behaves with the highest academic integrity. As the faculty that helps create
business and government leaders, we have a special obligation to ensure that our ethical standards are
beyond reproach. Any dishonesty in our academic transactions violates this trust. Page 29, of the
University of Manitoba General Calendar addresses the issue of academic dishonesty under the heading
"Plagiarism and Cheating". Specifically, acts of academic dishonesty include, but are not limited to:
-
using the exact words of a published or unpublished author without quotation marks and without
referencing the source of these words
-
duplicating a table, graph or diagram, in whole or in part, without referencing the source
-
paraphrasing the conceptual framework, research design, interpretation, or any other ideas of another
person, whether written or verbal (e.g., personal communications, ideas from a verbal presentation)
without referencing the source
-
copying the answers of another student in any test, examination, or take-home assignment
-
providing answers to another student in any test, examination, or take-home assignment
-
taking any unauthorized materials into an examination or term test (crib notes)
-
impersonating another student or allowing another person to impersonate oneself for the purpose of
submitting academic work or writing any test or examination
-
stealing or mutilating library materials
-
accessing tests prior to the time and date of the sitting
-
changing name or answer(s) on a test after that test has been graded and returned
-
submitting the same paper or portions thereof for more than one assignment, without discussions
with the instructors involved.
Group Projects and Group Work
Many courses in the I. H. Asper School of Business require group projects. Students should be aware that
group projects are subject to the same rules regarding academic dishonesty. Because of the unique nature
of group projects, all group members should exercise special care to insure that the group project does not
violate the policy on Academic Integrity. Should a violation occur, group members are jointly
accountable unless the violation can be attributed to a specific individual(s).
Some courses, while not requiring group projects, encourage students to work together in groups (or at
least do not prohibit it) before submitting individual assignments. Students are encouraged to discuss this
issue as it relates to academic integrity with their instructor to avoid violating this policy.
In the I. H. Asper School of Business all suspected cases of academic dishonesty are passed to the Dean's
office in order to ensure consistency of treatment.
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UNIVERSITY OF MANITOBA
Faculty of Management
Medical Absenteeism Form
Student Identification: (please print clearly)
______________________________
Last Name
___________________ ___________
______________
First Name
Middle Initial Student Id Number
I hereby authorize ________________________________ to verify with the attending physician or his/her
(Name of Instructor/Administrator)
staff or colleagues that the contents of this form are true.
________________________________________
____________________________
Student’s Signature
Date
To be completed by the attending physician: (after the above section is completed)
_______________________________________
Physician’s Last Name (please print clearly)
___________________________________
Street Address
_______________________ _____________
Physician’s First Name
Middle Initial
________________________________
City, Province
___________________________________________
Telephone Number
___________
Postal Code
_________________________________
Fax Number
To the attention of the physician: Your evaluation of the student’s condition is being used for the purpose of
determining whether or not the student has a valid reason to miss an important exam or assignment. Your
professional evaluation is necessary to ensure that only valid cases are excused.
I certify that the nature of the student’s condition is severe enough to prevent the student from taking an exam or
completing an assignment. If requested, my associates or I will verify for the above-named
instructor/administrator that this information is accurate.
The student’s condition will likely span the following dates:
(indicate end date)
_______________________________
Physician’s Signature
____________________________
(indicate start date)
until_____________________________
_________________________________
Date
Notes to physician: Please make a note in the student/patient’s file indicating that the student has given the
above-named instructor/administrator permission to verify with you, your staff, or your colleagues, that the
information contained on this form is correct. Thank you for your professional evaluation of this student’s
condition.
•
PLEASE ATTACH THIS FORM TO YOUR REGULAR OFFICE STATIONERY THAT
INDICATES THE STUDENT VISITED YOUR OFFICE.
Note to student: The use of this form is at the option of the student. However, in order to obtain an excused
absence for an assignment or exam, the student must obtain a doctor’s certification that the student’s condition is
severe enough to prevent the student from taking the exam or completing the assignment. It is NOT
SUFFICIENT to provide a note that only indicates the student visited the doctor’s office.
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