PowerPoint Slides Other Materials

___________________________________________________________________________________

BA 440 – Corporate Finance

Section 1

Instructor: Prem Mathew                                                                                                               Fall 2005

Office: Bexell 422B                                                                                                          TTh 8:00-9:50 a.m.

Phone: 737-6066                                                            Bexell 321

Email : prem.mathew@bus.oregonstate.edu

Office Hours :   Tuesday  10:00 – 11:00

                        Wednesday 3:00 – 4:00,

                        Thursday 10:00 – 11:00, or by appointment.    

COURSE DESCRIPTION:

This course provides students with an in-depth examination of the decisions that a financial manager must make.

Using capital market theory, capital budgeting, capital raising and dividend policy decisions are analyzed. Students

are also introduced to firm valuation.

PREREQUISITE: 

BA 340

REQUIRED TEXT AND MATERIALS:

Damodaran, A., 2001, Corporate Finance: Theory and Practice, 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 either through Blackboard or through the COB course materials

website at http://classes.bus.oregonstate.edu/ba440.

TEXT WEBSITE:

http://wiley.com/college/damodaran

EXAMINATIONS AND GRADING:

Your final grade will be will be determined by the following weights. 

Two Midterm Exams: 20% each

Three Assignments: 5% each

Term Project: 15%

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 at a later date.

Midterm and Final Exams:  Students that cannot make an exam must notify me prior to the day of the exam. 

Mid-term exams will be non-cumulative. The final exam will be cumulative.

ACADEMIC DISHONESTY RULES:

Please review Academic Regulation number 15 in your schedule of classes.

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

Sep 26                          Course Introduction

                                    Introduction to Corporate Finance                                       1

                                    Objective in Corporate Finance                                          2                             

Oct 3                            Hurdle Rates for Firms                                                      7     

Oct 10                          Hurdle Rates for Projects                                                  8

Project Earnings and Cash Flows                                       9

Oct 17                          Investment Decision Rules                                               10

Oct 24                          Financing Choices                                                           16

Oct 27 EXAM 1

Oct 31                          Financing Process                                                           17

                                    Financing Mix                                                                 18

Nov 7                           Optimal Financing Mix                                                     19

Nov 14                         Dividend Policy                                                               21

Nov 17                        EXAM 2

Nov 21                         Analyzing Cash Returned to Stockholders                         22

Nov 28                         Valuation: Principles and Practice                                     24

Dec 8                           Final Exam 12:00 – 1:50