BA 440 – Corporate Finance
Section 2
TTh 10:00 – 11:50 a.m.
INSTRUCTOR: Raymond M Brooks
Bexell 418B
737-3687, brooksr@bus.oregonstate.edu
OFFICE HOURS : Monday 3 :00 – 4 :00 p.m. and Th 2 :00 to 3 :00 p.m., others by appointment
DESCRIPTION: This course provides students with an in-depth examination of the decisions that a financial manager must make. Students will be introduced to the theoretical and practical underpinnings of the capital budgeting, capital raising and dividend policy decisions. Students are also introduced to firm valuation.
PREREQUISITE: BA 340
MATERIALS: Text: Damodaran, A., 2006, Applied Corporate Finance Second Edition, John Wiley & Sons.
Additional materials, such as articles, websites, etc. will be provided in class as they become relevant. All course documents can be accessed through the COB course materials website at http://classes.bus.oregonstate.edu/ba440.
TEXT WEBSITE: http://wiley.com/college/damodaran
GRADING: Your final grade will be will be determined by the following weights.
Midterm Exam: 25%
Four Assignments: 5% each, 20% total
Final Exam: 30%
Assignments and Exercises: Assignments will be provided prior to exams to prepare students for the midterm and final exams. Details of the comprehensive term project will be provided separately. There will also regularly be in-class exercises that provide additional preparation for the exams.
Midterm and Final Exam: Students that cannot make an exam must notify me prior to the day of the exam.
ACADEMIC HONESTY: For information about academic integrity and the University's policies and procedures in this area, please refer to the Student Conduct web site at: http://www.orst.edu/admin/stucon/achon.htm and the section on Academic Regulations in the OSU Schedule of Classes.
STUDENTS WITH
DISABILITIES: Accommodations are collaborative efforts between students, faculty and Services for Students with Disabilities (SSD). Students with accommodations approved through SSD are responsible for contacting the faculty member in charge of the course prior to or during the first week of the term to discuss accommodations. Students who believe they are eligible for accommodations but who have not yet obtained approval through SSD should contact SSD immediately at 737-4098.
COURSE OUTLINE: The following serves as a tentative outline for the course. All chapters listed will be covered to some extent, time permitting. Please make note of the midterm exam dates. Students will only be responsible for sections of chapters covered in class.
Week of Topic Chapter
Mar 31 Course Introduction
Introduction to Corporate Finance 1
Objective in Corporate Finance 2
Apr 7 The Basics of Risk Solutions 3
Apr 14 Risk measurements and Hurdle Rates Solutions 4
Apr 21 Measuring Return on Investments Solutions 5
Apr 28 Project Interactions, Side Benefits, and Side Costs 6
May 1 MIDTERM EXAM
May 5 Capital Structure 7
May 12 Capital Structure: Optimal Financing Mix 8
May 19 Capital Structure: The Financing Details 9
May 26 Dividend Policy 10
Analyzing Cash Returned to Stockholders 11
Jun 2 Valuation: Principles and Practice 12
Jun 6 Project Due – 3 p.m.
Jun 11 FINAL
EXAM Noon – 1:50 pm
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