1. Basic Information Course Code and Title: FN5202 Advanced Corporate Finance

Transcription

1 Kazakhstan Institute of Management, Economics and Strategic Research Bang College of Business (BCB) Fall Semester 2013 Course Syllabus for: FN5202 Advanced Corporate Finance 1. Basic Information Course Code and Title: FN5202 Advanced Corporate Finance Course Meeting Time and Place: Section 1 Room 117 Valikhanov, 10:00 12:45 Saturday Course Credit: Three (3) credits Instructor Information: Dr. William Callahan, Ph.D. Office: Room #217 Dostyk (Administrative) Building Phone: Ext callahan@kimep.kz Prerequisite: FN 5201 Managerial Financial 2. Instructor Availability Office Hours: Tuesday & Thursday 2:00-2:30 ; 3:45-4:15 Monday 10:30-11:30 Saturday 12:45-13:45 (please inform me prior) or by appointment Location: Room #217 Dostyk (Administrative) Building Teaching Assistant Information: to be announced Office hours: will be provided in class 3. Instructional Resources Required Textbook Jonathan Berk & Peter Demarzo, Corporate Finance 3ed (Global Edition) 2014 Pearson Supplementary Materials: A business calculator is required to perform the calculations, especially the TVM related problems. Instructor uses TI BAII-Plus Research Insights (Compustat) (If we have time, library class will be scheduled) This is a new database which has been acquired by KIMEP and is available in the library. This contains numerous financial information (both accounting and market) concerning thousands of corporations in many different countries (global). We will devote some classes in the library computer room where I will teach the basic fundamentals of working with this electronic information and you are responsible for learning the details. This information will be very useful when you begin your MBA thesis. You will use this database to gather some of your information for your Project. 4. Course Description/Overview This is a comprehensive and in-depth financial management course, combining theory and applications. The course will cover some of the topics from FN5201 (Managerial Finance) in greater detail, and introduce more advanced topics from the area of Corporate Finance. The course examines in detail, investment and financing decisions, and their interrelatedness. The major topics include financial analysis and planning, valuation, capital budgeting (NPV, IRR), 1

2 capital structure policy, dividend policy, working capital management, mergers and acquisition, agency theory, and corporate governance., and risk and return analysis. Also, in order to improve your technological skills, use of financial calculator and spreadsheet models in solving financial problems will be emphasized. An added topic will entail a discussion on Business Ethics as related to Corporate Finance. We will look at some of the greatest failings in Corporate Governance in the past and examine how companies are attempting to place safeguards in their governance structure which will prevent past happenings from occurring again. 5. Learning objectives At the end of the course, students should be able to do the following: KNOWLEDGE: Students will have an understanding of The nature of the corporation, reason of its existence, and corporate governance codes INCLUDING Business Ethics Financial Statement analysis and long term financial planning. Capital Budgeting and Capital Structure and the maximization of firm value. Dividend policy. SKILLS: Students will learnt to Compute profits and costs, allocate resources, and forecast future trends. Do what-if-analysis. Develop simple mathematical models pertaining to various financial problems. Use various sources of financial data for solving financial problems. APPLICATION ABILITIES: Students will be able to Develop efficient and effective procedures and policies. Implement ethical decisions and incorporate strategies to achieve goals and objectives. Develop effective groups to solve corporate financial problems. VALUES AND ATTITUDES: Students practice KIMEP Core Values Academic honesty Respect for peers and instructors 6. Teaching Methodology The format of the course is basically lectures but also includes the following: Power point slides and electronic computer programs in problem solutions Homework assignments, case studies, and discussions Individual and group projects, oral and written presentations 7. Assessment Scheme Continuous Assessment 60% Class Participation 10% Business Ethics assignment 8% Tests (2) (two mid term exams 21% each) 42% Final Assessment 40% Final Exam 27% Group Project Report(includes Oral presentation) 13% (10%/3%) TOTAL 100% 2

3 ASSESSMENT IN DETAIL A student s learning outcomes and final grades will be assessed according to his/her performance in the following areas: (1) Mid-term examinations for 42% points (21% eachl), which may include problem solving and multiple-choice questions. No make-up exam will be administered except for conflicts with official university business or extreme emergencies. In case of the former, please notify me (at least) one week in advance of the exam. Under both situations, you are expected to provide appropriate written documentation. You will be notified of the exact date of each exam at least one week in advance. (2) Business Ethics, the topic will be announced later. 8% and will be submitted by group (3) Class Participation (10%) will consist of Groups presenting homework assignments or Cases periodically throughout the semester. 3 people will be maximum number in a Group. (5) Final Project (13%) Group will choose 2 firms within one Industry Segment (as identified through Research Insights) and prepare an analysis which should cover the chapters using techniques covered during this semester. This will be a five-year comparison of how the corporation has changed over the years. These will be presented near end of the semester (dates will be finalized later). All members of a group are to contribute and to share the presentation in order to receive credit. Further information will be presented later in the semester. (6) The final examination will be for 27% points: The final examination may contain a few chapters from the previous Mid-terms (to be determined by professor later in semester) and will be conducted during the final examination week. Government REQUIREMENT in the grading results any student who has less than 50% after Assessment 1 will be automatically dropped from the class and less than 50% as a total grade after Assessment 2 will not be allowed to sit for the Final Exam (thus dropped from the class) 8. Grading Scale Letter grades for the course will follow the same standards as specified in the Catalog. See the following table for grading scale: Letter grade Numerical scale or percentile A A A B B B C C C D D D F Below 50 3

4 9. Course Policies and Instructor s expectations of students Attendance of lectures, tutorials, and exams is up to student. There will be attendance record but it will not be part of the grade. However, all students are expected to attend class, and to arrive in the classroom before the class begins. Students who show up late for lectures, tutorials, or exams may not be allowed to enter the classroom. Students are expected to strive for excellence in acquiring knowledge. MBA students may have work responsibilities which require that they miss some classes. However, missing mid-terms, quizzes, class presentations must be pre-arranged with instructor concerning how to make it up. If the absences get to be excessive (excessive is at discretion of instructor), it may be advised that student drop the course and make a decision of what is most importance for their career. Student responsibility for course work does not get reduced because they have taken an overload of courses and work full-time. One should only register for a number of courses that can be handled along with other student responsibilities. There will be no Incompletes given unless there is an extreme circumstance. (approved by Professor) Academic honesty: We have a zero tolerance policy for academic dishonesty. Check the catalog for details. Cell phones: should be turned off at the beginning of the class, or put it on vibrate or silent mode (in case of emergency). Information dissemination: Information regarding this course and assignments will be given by the instructor during the class or can be found on the L-drive. No checking s or surfing the Internet during the class. Students are also expected to check their Umails. Enrollment in the course constitutes an agreement with the terms and requirements in this syllabus. 10. Period-by-period Schedule (Tentative) Week Chapter Estimated time 1 / Sept 7 Chapter 8 / Fundamentals of Capital Budgeting 3 2 / Sept 14 Chapters 10&11 CAPM and Risk --- Chapter 12 Estimating the Cost of Capital 3 3 / Sept 21 Chapter 25 / Leasing 3 4 / Sept 28 Chapter 13 Investor Behavior and Capital Market Efficiency 3 5 / Oct 5 Mid Term / Oct 12 Chapter 14 & 15 / Capital Structure in Perfect Market & Debt and Taxes 5 7 / Oct 19 Chapter 16 / Financial Distress, Managerial Incentives, and Information 3 8 / Oct 26 Chapter 20 / Financial Options & Chapter 22 / Real Options 3 9 / Nov 2 Chapter 17 / Payout Policy 3 10 / Nov 9 Chapter 29 / Corporate Governance ; Business Ethics 3 11 / Nov 16 Mid Term 2 12 / Nov 23 Chapter 19 Valuation and Financial Modeling 3 13 / Nov 30 Chapter 26 / Working Capital Management 3 14 / Dec 7 Chapter 30 /Risk Management 3 15 / Dec 14 Project Presentations 5 FINAL EXAM 4

5 11. Course objectives and their assessment COURSE OBJECTIVES AND THEIR ASSESSMENT Learning Outcomes How they will be taught How to assess Corporate Governance & Business Ethics Slides and articles Exam and final project Financial Statements and LT planning Slides & examples Exams and HW Capital Budgeting Slides & calculator solutions Exams and presentations Capital Structure Slides & examples Exams and final project Dividend policy Slides & examples Exams and final project Risk & Return & Efficient Markets Slides & articles & discussions Exams and final project S/T financing Slides & examples Exams and final project 5