FIN 4414 Corporate Finance

FIN 4414 Corporate Finance

Common Syllabus

FIN 4414 Corporate Finance

My Professor

Dr. Robin Wilber

727-341-3203

Course Description

This is an advanced course in financial analysis and decision-making from a corporate management perspective. Topics include capital budgeting, leverage and capital structure, payout policy, working capital, derivative and mergers and other special topics in finance. 47 contact hours.

Course Objectives

1. The student will evaluate the key elements of the capital budgeting process.

2. The student will explain leverage and capital structure.

3. The student will evaluate payout policy.

4. The student will prepare working capital and current assets management plans.

5. The student will explain derivative securities.

6. The student will evaluate mergers and leveraged buyouts.

My Textbook

Fundamentals of Corporate Finance 3rd edition by Berk, DeMarzo, and Harford.

ISBN:Without the lab: 9780133507911

With the lab as a package: 9780133576863

Course Requirements

Background Knowledge: A working knowledge of College Algebra is absolutely required. In addition, a working knowledge of Statistics is strongly encouraged. Topics in this course will frequently incorporate concepts from Statistics. Students with a working knowledge of statistics concepts tend to have an easier time understanding theseconcepts.

Computer Requirements:

Students should have regular access to a computer that is connected to the Internet.It is strongly recommended that students havea broadband (high-speed) internet connection such asDSL or a cable modem. When viewing online videos or taking online exams, students should have an internet connection that is stable and will not drop their connection.Studentswithout a stable high-speed internet connection should consider making arrangements to view videos with alternative means (i.e.at one of the St. Petersburg College libraries, learning centers, or a similar facility) where a stablehigh-speed internet connection is available. See MyCourses System Requirements on the main MyCourses page for computer requirements for this learning management system.

A standard file format has been devised to apply to all classes in the College of Business to support file compatibility, sharing, and commenting needs. Studentsare required to submit all assignments in Microsoft Office formats (Word, Excel and other Microsoft formats). Students can get access to MS Office (FREE) through MySPC (see).No other formats (such as .RTF, .WPS, .PDF, etc) will be accepted.

The College further provides full function student licenses of other Microsoft software too in MySPC. For example students can get Visio which could be beneficial to students in this course and Mac students can get Windows too.Details regarding obtaining Microsoft software licenses (FREE) are provided in MySPC under the Resources tab (go to Microsoft download area).

Students also have theirLive@edu email accounts which offers MS Office (without needing MS Office on your computer), SkyDrive, and other resources (see) that may be helpful in classes.

Corporate Finance isaadvanced “quant” course, meaning it will involve a considerable amount of computation. Excel is required for this course. Because of its built-in “pre-programming” many of the more complex and time-consuming computations may be simplified Time Commitment This is a 3-credit course conducted over 8 weeks. In order to meet accreditation standards, on average, students should expect to spend between 12 to 15 hours per week on course activities and assignments. Spending less time would be insufficient for success in this course.

Course Prerequisites

Managerial Finance (FIN 3403) and admission to Business Administration BS, Banking BAS, or International Business BAS.

Week / Class Topics / Assignments
1 / A Review of / PowerPoint
Time Value of Money / Readings
Bonds / Text Ch. 3,4,6,7
Stock Valuations / Written
MyFinanceLab
Quizzes Ch. 3,4,6,7
Homework Ch. 3,4,6,7
Media Homework Ch. 3,4,6,7
D2L Team Discussion
Integrative Case Text pps 218-219
2 / Investment Decision Rules / PowerPoint
NPV, IRR, payback / Readings
Equivalent annual annuity / Text Ch. 8,9,10
Capital Budgeting / Written
Incremental Cash Flows / MyFinanceLab
Analyzing the project / Quizzes Ch. 8,9,10
Break-even analysis / Homework Ch. 8,9,10
Real options / Media Homework Ch. 8,9,10
Stock Valuation
Comparable firms and other methods
Test #1 Ch. 3,4,6,7,8,9,10 / Test #1
3 / Risk and Return / PowerPoint
Historical / Readings
Tradeoff between risk and return / Text Ch. 11,12,13
Diversification / Written
Systematic Risk and Equity Risk / MyFinanceLab
CAPM / Quizzes Ch. 11,12,13
Cost of Capital / Homework Ch. 11,12,13
WACC / Media Homework Ch. 11,12,13
Use to evaluate project decision / D2L Team Discussion
Integrative Case Text pps 320-321
4 / Raising Equity Capital / PowerPoint
IPO / Readings
SEO / Text Ch. 14,15
Debt Financing / Written
Corporate Debt / MyFinanceLab
Bond Covenants / Quizzes Ch. 14,15
Repayment provisions / Homework Ch. 14,15
Media Homework Ch. 14,15
Test #2 Ch. 11,12,13,14,15 / Test #2
5 / Capital Structure / PowerPoint
Choices / Readings
Perfect Capital Markets / Text Ch. 16,17
Debt and taxes / Written
Costs of bankruptcy / MyFinanceLab
Optimal Capital Structure / Quizzes Ch. 16,17
Payout Policy / Homework Ch. 16,17
Dividends vs. Share Repurchases / Media Homework Ch. 16,17
Dividends tax disadvantage / D2L Team Discussion
Signaling / Integrative Case Text pps 476-478
Stock dividends, splits and spin offs
6 / Financial Modeling and Pro Forma / PowerPoint
Goals / Readings
Percent of Sales Method / Text Ch. 21,22
Growth and Firm Value / Written
Short-Term Financial Planning / MyFinanceLab
Forecasting / Quzizes Ch. 21,22
Creating a plan / Homework Ch. 21,22
Media Homework Ch. 21,22
Test #3 Ch. 16,17,21,22 / Test #3
7 / Option Application / PowerPoint
Option payoffs / Readings
Factors affecting Options / Web 1,3
Mergers and Acquisitions / Written
Reasons to acquire / MyFinanceLab
Takeover process and defense / Quizzes Ch. Web 1,3
Who gets the value / Homework Ch. Web 1,3
8 / Test #4 Final Exam All Chapters / Test #4

Attendance Policy

Attendance Policy Participation in the course is essential in order to avoid being withdrawn for non-attendance. Participation is defined as reading and preparing for weekly lessons (especially prior blended class meetings). As well as completing and submittingALLassignments on time, plus taking part in all other course communications in a timely manner. The Assignments and Due Dates inMy Scheduleaboveprovides an overview of all assignments and due dates for this course which are required for active participation in this course.

Students should review the college-wide attendance and financial aid policies included in the syllabus addendum linked below in theStudent Supportsection below. Additionally students need to review the student expectations regarding silencing or turning off all electronic devices during blended class meetings. Online students will be held to the same practices of courtesy and respect as outlined further on the guidelines posted in the syllabus addendum.

Excused absences, of course, will not count against you. However students must contact the professor to make appropriate arrangements, along with provide them with supporting documentation accordingly. Advance notice should be given to the instructorwhenever possible to arrange for alternatives.

Lack of attendance can result in students being administratively withdrawn. Students are given a W in a course if two issues occur in Week 1 or 2, or are given a WF if issues occur at the 60% point (see last date to withdraw in the academic calendar to avoid this issue as it can result in serious financial aid and GPA consequences). If you are in your third attempt at completing a course, you will be given a WF grade at any point in the term if you fail to meet attendance requirements. Please see the student handbook and SPC policies further if needed.

Academic Integrity

Academic honesty and plagiarism falls under the Academic Honesty Policy of the college. The College of Technology and Management has always had a “0” tolerance policy for academic dishonesty and if the student is in violation, an “F” in the course can be applied.

**Understand that not properly giving credit to the sources used in your work, even when paraphrasing, is considered plagiarism and can result in not only a "0" for that assignment, but an "F" in the course**.

Student Support

Tutoring

24/7 tutoring is available at

Advising

For academic advising support please go to

Disability Policy

If you wish to receive special accommodations as a student with a documented disability, please make an appointment with the Learning Specialist on the Clearwater, Tarpon Springs, or St. Petersburg sites. If you have a documented hearing loss, please contact the Program for the Deaf at 791-2628 (V/TDD). For more information, contact the SPC Office of Services for Students with Disabilities and review further information at:

Miscellaneous

Please click here to access the most up-to-date SPC policies and syllabus addendum:

For Campus Security and Emergency Information, see

For an escort to your car or to report an issue on any campus, call 727-791-2560.

Students may also want to review Career Development Services (online) at: