BA 440 – Advanced Financial Management

Section 1

MW 8 – 9:50

Power Point Slides Assignments and Solutions Other Documents

INSTRUCTOR: Prem Mathew

Bexell 424

737-6030, prem.mathew@bus.oregonstate.edu

OFFICE HOURS : MTW 10:00 – 11:00 a.m.

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., 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 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

Term Project: 15%

Final Exam: 40%

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 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

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

Apr 2 Course Introduction

Introduction to Corporate Finance 1

Objective in Corporate Finance 2

Apr 9 Hurdle Rates for Firms 7

Apr 16 Hurdle Rates for Firms (contd.)

Apr 23 Hurdle Rates for Projects 8

Project Earnings and Cash Flows 9

Apr 30 Investment Decision Rules 10

Project Interactions, Side Benefits, and Side Costs 12

May 7 Financing Choices 16

May 9 MIDTERM EXAM

May 14 Financing Process 17

Financing Mix 18

Optimal Financing Mix 19

May 21 Dividend Policy 21

Analyzing Cash Returned to Stockholders 22

May 28 Valuation: Principles and Practice 24

May 28^th Memorial Day Holiday

Jun 4 Valuation: Principles and Practice (contd.)

Jun 12 Final Exam 9:30 – 11:30

________________________________________________________________