Corporate Finance (BA 540)

College of Business

Oregon State University

Winter 2007

Instructor: Jimmy Yang

Office: Bexell 418C

Phone: 541-737-6005

E-mail: jimmy.yang@bus.oregonstate.edu

Office hours: Monday 9:00-10:00, Tuesday 9:30-10:30 and Thursday 10:00-11:00

And by appointment

Course credits: 3 credit hours, course meets 3 hours per week on Thursdays

Prerequisite: BA340 (Finance)

Blackboard: Please login with your ONID username and password to your Blackboard account through the following website. https://my.oregonstate.edu/webapps/login My announcements and class materials will be posted on the Blackboard. You are all encouraged to utilize this system to post your questions, discuss class-related issues, or communicate with your group, the whole class or me.

Learning Resources:

1. Required textbook: Ross, Westerfield, and Jaffe, Corporate Finance (8^th edition), McGraw-Hill Irwin, 2008.
2. Required tool: Financial Calculator (Texas Instruments BA II Plus or an equivalent)

Course Objectives: Given the increasing complexities in the real world of finance, this course is designed to stimulate discussion and develop analytical skills by allowing students to test the current financial theory against actual world financial problems and to observe possible conflicts between theory and practice.

Measurable Student Learning Outcomes: Upon completion of this course, students should be able to:

· Understand the goal of financial management

· Value bonds, stocks, and options as well as calculate and interpret a weighted average cost of capital

· Make capital budgeting decisions under various conditions

· Understand the theories of capital structure and how firms establish capital structure in practice

· Explain why and why not dividends and other payouts matter

· Address how firms raise capital

· Determine the short-term financing needs and describe the sources available

· Identify various reasons for different types of mergers and acquisitions and value target firms

Assignments: Textbook practice problems and some other assignments, perhaps covering materials not covered in the text, will be given in class or posted on the Blackboard. Assignments will NOT be collected. Answers will be available on the Blackboard one week after assignments are posted. You are encouraged to collaborate when doing the assignments.

Evaluation of Student Performance:

• Group Projects: Two group projects will be given. Each will have a due date to which you must conform. Detailed description of each project will be posted when the related topic is covered.
• Exams: Two exams, one midterm and one final, will be given. If you miss any exam without prior permission, a grade of zero will be given for that exam. It is your responsibility to schedule a make-up exam within one week after the scheduled exam. There is no make-up exam for final.
• Grade Determination:

First group project 15%

Second group project 15%

Midterm exam 35%

Final exam 35%

Statement Regarding 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.

Link to Statement of Expectations for Student Conduct: i.e., cheating policies http://oregonstate.edu/admin/stucon/achon.htm

Tentative Schedule:

Date	Topic	Chapter(s)
Jan 11	Introduction and Financial Planning	1 and 3
Jan 18	Valuation	5 and 22
Jan 25	Risk and Return	9, 10, and 12
Feb 1	Capital Budgeting	6, 7, and 8
Feb 8	Midterm Exam
Feb 15	Capital Structure	15, 16, and 17
Feb 22	Raising Capital	19 and 20
Mar 1	M&A Guest speaker: Brian Oliver (Aequitas)	29
Mar 8	Dividend Policy	18
Mar 15	Working Capital Management	26 and 27
Mar 22	Final Exam