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Course syllabus
School of Business
Clayton State University
Finance FINA 6100 (Spring 2013)
CRN: 26204 Section 01 Meeting Time: 08:00am-12:00noon U268
Meeting dates:
January 12, January 26, February 9, February 23, March 9, March 23, April 6, and April 20.
Faculty information:
Instructor : C.R. Narayanaswamy, Professor of Finance
Office : 271 School of Business Building
Phone : Voice: 678.466.4534 Fax: 678.466.4599
E-mail :
website : http://business.clayton.edu/cnarayan/
Office Hours : M: 2:35 pm – 3:35 pm, and 5:00 pm – 8:00 pm
S: 12:00 noon – 1:00 pm
Mission of the School of Business at Clayton State University
1. Prepare a diverse student body for business and professional careers by providing a quality education.
2. Provide a student centered environment, using technology to enhance student learning
3. Support faculty in applied and instructional research and service to the profession.
4. Serve primarily the metropolitan Atlanta area
Course Material:
Textbook
Required:
Corporate Finance: The Core (Second Edition, Prentice Hall Publishers, with myfinancelab), by Jonathan Berk and Peter DeMarzo and Wall Street Journal.
Calculators: Texas Instruments BAII Plus will be required. (There is a ‘professional” version of this model. You may use any of the two versions.) This calculator is available at several stores. CSU bookstore may also carry this calculator. Only this calculator will be allowed for use during the exams. Please make sure that you are getting the correct calculator.
Course Prerequisites: As per school guidelines.
Objectives: This course covers the important aspects of corporate finance.
Grading Procedure:
Midterm exams 25%@3 ………………………………..... 75%
Case studies …………………………………………….. 10%
In-class exercises and homework……………………….. 10%
Pop quizzes and class participation …….....……………. 5%
Grading Scale: 100-90 A, 80-89 B, 70-79 C, 60-69 D, 59-0 F
Testing procedure: You must take all the exams with the class you are registered in. Failure to take an exam will result in a zero for that exam. No makeup exams will be given.
Course changes: This course syllabus provides a general plan for the course. The instructor reserves the right to make periodic changes to the syllabus in order to accommodate the needs of the class as a whole and fulfill the course objectives. If changes are made, it will be announced in class.
ITP Choice: Each CCSU student is required to have ready access throughout the semester to a notebook computer that meets faculty-approved hardware and software requirements for the student’s academic program. See http://itpchoice.clayton.edu/ for full details of this policy.
Course Ground Rules: Class participation is required. You are expected to learn how to use the assigned websites, keep abreast of course announcements, and use the assigned university e-mail address as opposed to a personal e-mail address. The Academic Honor Code covers all assignments (projects) students must abide by policies in the University Catalog, and the Student handbook. No beepers, telephones or other electronic devices (except your laptop computer, when it is required) may be brought into the classroom. If you have these items with you, please turn these devices off during the class period. Students can use computer only when required as indicated by the instructor.
Class Structure
Each class will consist of lectures, quizzes, and/or in-class assignments. In-class assignments may be done individually or in small groups depending on the nature of the work. Exams will be closed book and closed notes.
Reading Assignments and Homework:
It is important that students regularly read the assigned material and work through the questions and problems assigned for homework.
FINA6100 Finance MBA Program Spring 2013
Textbook: Corporate Finance: The Core (Second Edition)
by Jonathan Berk and Peter DeMarzo
Tentative course schedule
Class 1 January 12th
1. Introduction Chapter 1
2. Introduction to Financial Statement Analysis Chapter 2
3. Arbitrage and Financial Decision Making Chapter 3
4. The Time Value of Money Chapter 4
5. Interest Rates Chapter 5
Class 2 January 26th
1. Review and discussion of Homework
2. Investment Decision Rules Chapter 6
3. Fundamentals of Capital Budgeting Chapter 7
Class 3 February 9th
1. Midterm Exam I
2. Capital Markets and Pricing Risk Chapter 10
Week 4 February 23rd
1. Optimal Portfolio Choice and the CAPM Chapter 11
2. Estimating Cost of Capital Chapter 12 (2.1, 12.2, 12.3)
Week 5 March 9th
1. Valuing Bonds Chapter 8
2. Valuing Stocks Chapter 9
Week 6 March 23rd
1. Midterm Exam II
2. The Debt Cost of Capital Chapter 12 (12.4)
3. Project’s Cost of Capital and Financing Chapter 12 (12.5, 12.6)
4. Final Thoughts on the CAPM Chapter 12 (12.7)
5. Practical Considerations when Forecasting Beta Chapter 12 (Appendix)
Week 7 April 6th
1. Capital Structure in Perfect Market Chapter 14
2. Debt and Taxes Chapter 15
3. Capital Budgeting and Valuation with Leverage Chapter 18
Week 8 April 20th
1. Midterm Exam III
2. Case Analysis
3. Conclusion