BA 440 – Corporate Finance

Section 1: MW 10 – 11:50

Section 2: TTh 10 – 11:50

Section 3: MW 8 – 9:50

Power Point Slides Assignments, Exercises and Solutions Term Project Other Documents

INSTRUCTOR: Prem Mathew

Bexell 424

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

OFFICE HOURS : Tuesday 9:00 – 10:00

Wednesday 12:00 – 1:00,

Thursday 9:00 – 10:00, or 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., 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.

Two Midterm Exams: 20% each

Four Assignments (of which the top three scores will be counted towards your final grade): 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 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

Jan 8 Course Introduction

Introduction to Corporate Finance 1

Objective in Corporate Finance 2

Jan 15 Hurdle Rates for Firms 7

Jan 15 Martin Luther King, Jr Day Observance (sec. 1 and 3)

Jan 22 Hurdle Rates for Firms (contd.)

Jan 29 Hurdle Rates for Projects 8

Project Earnings and Cash Flows 9

Feb 5 Investment Decision Rules 10

Project Interactions, Side Benefits, and Side Costs 12

Feb 7 (sec. 1 and 3) MIDTERM EXAM 1

Feb 8 (sec. 2)

Feb 12 Financing Choices 16

Financing Process 17

Feb 19 Financing Mix 18

Optimal Financing Mix 19

Feb 26 Dividend Policy 21

Analyzing Cash Returned to Stockholders 22

Feb 28 (sec. 1 and 3) MIDTERM EXAM 2

Mar 1 (sec. 2)

Mar 5 Valuation: Principles and Practice 24

Mar 12 Valuation: Principles and Practice (contd.)

FINAL EXAM

Mar 22 (sec. 1) 12:00 – 1:50 p.m.

Mar 19 (sec. 2) 6:00 – 7:50 p.m.

Mar 22 (sec. 3) 6:00 – 7:50 p.m.

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