Marshall School of Business Fall 2015

Marshall School of Business – Fall 2015

BUAD 215: Corporate Finance

Professor: Dr. Bemis

Email:

Office hours:Wednesdays by Appointment, Bridge 307 J

*E-mail is a dependable and efficient way to communicate with me

______

Course Description:

Corporate Finance is the bedrock of any successful organization. The objective of this course is to develop decision-making ability based on Corporate Finance theory. It will explain the procedures, practices and policies by which managers contribute to the financial viability performance of an organization. This course will form the foundation for all subsequent courses such as fixed income securities, investments and corporate valuations. Upon completion of this course, students should have a deep realization of the usefulness of Corporate Finance.

The course reviews the theory and evidence related to the investment and financing policies of the firm and attempts to develop decision-making ability in these areas. The course will cover the theory and practice of business budgeting, choice of capital structure, optimization problems, and the wider economic and social implications of financial management decisions.

Areas that will be covered in depth and more rigorously are Time Value of Money, discounted cash flow techniques and valuation using alternative valuation techniques such as price multiples. Emphasis is on developing the required information for valuation from financial statements using financial ratios, the Dupont Identity and other information sources. Investment decision making under uncertainty, cost of capital, capital structure, pricing of selected financial instruments and corporate liabilities will be included.

Required Course Materials:

Text:Corporate Finance by Ross, Westerfield, Jaffe

ISBN 978-0-07-803475-6

Required: Calculator with financial functions:

I recommend the Hewlett Packard 12c

You should bring your calculator to all classes and exams.

Absolutely No graphing calculators allowed.

The success of this course is dependent on adequate preparation for classes. The most effective and efficient use of classroom time aims at reinforcing or clarifying what YOU tried to learn on an individual (or group) basis prior to coming to class.

You are responsible on exams for all material covered in the lectures. There is significant lecture material not in the book and significant book material not in the lectures, but the exams come from the lectures.

This is a course that requires your daily hands-on participation. You are required to attend all class meetings, read the assigned materials, contribute to class discussions by asking questions or presenting possible solutions to the questions of others, and to complete the assigned problems.

Students bring experience, observation, and reflection to the course. This class will encourage students to think about the relationships between practice and theory, and to find ways to draw from and build for their future endeavors. At the same time, this course encourages participants to deepen their knowledge and understanding of literatures and theoretical perspectives relevant to the study of Corporate Finance. Successful students develop a sense of their goals and are motivated by questions to which they seek answers through their study, professional practice, interactions with peers and faculty, and on –going habits of inquiry.

Course Activities/Organization

Active Participation is essential to successful completion of the course. The preparation for such participation and the quality of participation each week will constitute a major portion of the final grade assessment for each class member.

Course content will focus primarily on contemporary issues representing a broad spectrum of areas in Corporate Finance. However, some allowance may be made for accommodating additional issues raised during the course of the semester by current events and the unique background of the class member interests.

Grading Criteria:

Page 1

Marshall School of Business – Fall 2015

Participation 10%

Midterm 25%

QUIZZAMS (2) 25%

Group Project, Harvard Case Study, In Class Assignment, HW 15%

Final Exam 25%

Total 100%

Readings:

You are responsible for preparation for class participation and examinations.

Reading the assigned topics as outlined in the lecture schedule and from chapters in the required textbook is necessary to succeed in this course.

Your final grade will be based on:

Group Project:

The class will be divided into several groups which will write detailed reports on their chosen publicly traded companies. Each report should include 10 pages of analysis with references to tables, figures, and notes attached as appendices. The report should address the suggested substantive issues for the study case and address all points believed to be important.

Class Participation:

This class thrives on class participation. It is critical that you attend every class as so much learning in this course occurs in the classroom. Your comments should help advance everyone’s learning and reflect an understanding of the concepts.

Midterms & Final Examinations:

Exam questions will include both qualitative and quantitative questions from material covered in class, and presented in the readings including current events relevant to this class. Questions may be in short answer and numerical-problem format. No Make Up Exams are allowed.

Please bring a financial calculator and three sharpened #2 pencils to each exam.

Exams

The exams will be closed-book, closed-notes, and closed neighbors. You may use a financial calculator during the exams but not be allowed to store any course-related material on your calculator. No other electronic device is permitted during an exam.

Availability: I care about each of my students and will make myself available as needed to ensure student understanding of the course materials. You may also email me 24 hours a day. I will be happy to meet with you during office hours or after class, by appointment.

Class Rules: Conducting yourself in a professional manner is essential to being successful in any environment. This classroom is a safe platform to practice behaving in a professional manner. Professional decorum is based on respect for your colleagues and peers. Professional decorum demands that your behavior show respect for the value of their time and yours, respect for their time and yours, respect for their expertise, and respect for earned positions.

Laptop and Internet usage is not permitted during academic or professional sessions unless otherwise stated. Use of personal communication devices, such as cell phone, PDAs, I-Phones, Blackberries, I-pods are considered unprofessional and are not permitted during academic sessions. No student may record any lecture, class discussion or meeting without prior express written permission.

Respect: Active participation in class requires a safe and trusting environment. It is important for us to respect the views and comments made by others, even if we disagree with such comments. I encourage critical discussion, yet it must be respectful, polite and professional.

Student Disability:

Any student requesting academic accommodations based on a disability is required to register with Disability Services and Programs (DSP) each semester. A letter of verification for approved accommodations can be obtained from DSP and must be presented to me as soon as possible in the beginning of the semester. DSP is located in STU 301 and can be reached at (213) 740-0776.

Code of Ethics & Academic Integrity:

All students at the University of Southern California have an inherent responsibility to uphold the principles of academic integrity and to support each other and the faculty in maintaining a classroom atmosphere that is conducive to orderly and honest conduct. Students must understand and uphold the rules printed in the Student Conduct Code in the USC SCampus handbook, regarding examination behavior, fabrication, plagiarism, and other types of academic dishonesty.

Course Outline and Readings

Page 1