CORPORATE FINANCE THEORY AND PRACTICE Section A01 Mondays and Wednesdays 1:00pm to 2:15pm Section A02 Mondays and Wednesdays 2:30pm to 3:45pm

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1 UNIVERSITY OF MANITOBA I.H. ASPER SCHOOL OF BUSINESS DEPARTMENT OF ACCOUNTING AND FINANCE FIN 3480 Fall 2010 CORPORATE FINANCE THEORY AND PRACTICE Section A01 Mondays and Wednesdays 1:00pm to 2:15pm Section A02 Mondays and Wednesdays 2:30pm to 3:45pm Instructor: Jerrod Falk Office: 368 Drake Telephone: Office Hours: Mondays through Thursdays after 3:45pm. PREREQUISITES: Required: Recommended: Corporate Finance FIN 2200 (C+) Students are assumed to have a working knowledge of Microsoft Excel and the creation of spreadsheets. COURSE OBJECTIVE: The purpose of this course is to give students a deeper understanding of finance techniques and the relevant theories underlying them. Topics include capital budgeting, relevant cash flows, tax considerations, cost of capital, implications of capital structure, and new capital budgeting techniques. Student will also get opportunities to practice and improve their spreadsheet creation skills throughout the course. REQUIRED MATERIAL: Berk, DeMarzo, and Stangeland Corporate Finance: Canadian Edition, Pearson Canada, HP 10B II calculator or equivalent. GRADING AND EXAMINATIONS: Time value of money quiz 10% Assignments 15% Midterm examination 30% Final Examination 45% Page 1 of 6 pages

2 GRADING AND EXAMINATIONS: (continued) There will be three assignments during the term (each worth 5% of your final grade). Assignments will be made available during the term on the Angel Learning system approximately 10 days prior to the due date. The use of Microsoft Excel spreadsheets is encouraged (and often required) in completion of assignments. Assignments are due on the date and time specified below. Early submission of assignments may be made with no penalty. Late assignments receive a mark of zero. Assignments are to be done in groups of two. Tentative Assignment schedule: Assignment 1 due October 22, 2010 (Friday at 4pm) Assignment 2 due November 19, 2010 (Friday at 4pm) Assignment 3 due December 10, 2010 (Friday at 4pm) Students are not allowed to miss a quiz, assignment, or examination unless a valid medical excuse is provided. Students with valid medical excuses must complete and submit the Medical Absenteeism Form attached at the end of this syllabus. Both the student and the attending physician must sign the document otherwise the excuse will be deemed invalid. There will be no make-up assignments or examinations. Students who miss a component and have a valid medical excuse will have the weight of that component added to the final examination. Students who miss a component without a valid medical excuse will receive a mark of 0% on that component. Final grades are based on the student s weighted mark and performance relative to other students in the class. PRACTICE QUESTIONS / MATERIAL: A time value review handout and sample quiz will be made available on Angel early in the term. These handouts will assist students in reviewing the time value prerequisites (FIN 2200) material that is assumed knowledge for this course. Students should ensure that they are capable of completing the quiz with 100% accuracy. In addition, students are encouraged to read relevant sections of the text and attempt the Questions and Problems at the end of these chapters. Recommended problems will be provided throughout the term as each topic is covered. Students are advised to work on these questions and problems independently and to correct their own solutions with the textbook solutions that will be available on the course Angel site. Please come and see me for help or clarification as required. Page 2 of 6 pages

3 ANGEL LEARNING SYSTEM INSTRUCTIONS: Follow the instructions below to log on Angel: 1. On the University of Manitoba homepage ( click on current students. 2. On the current students page, click on Angel Learning & WebCT link. 3. Log into Angel using your UMNetID (formerly called your ccu account). You must have previously claimed your UMNetID in order to log into Angel. If you have not done so, claim your UMNetID account by clicking on the claimid website link. 4. If you are having problems logging into Angel Learning, visit the Accounts Office in 010 Dafoe Tunnel, contact the support desk by phone (204) or 5. Once logged into Angel click on the FIN 3480 A01-A02 link. Page 3 of 6 pages

4 TENTATIVE COURSE OUTLINE (topics/dates may change throughout the term): Although some of the readings overlap with those of FIN 2200, the material is covered in more depth. Further readings and/or handouts may be assigned as the term progresses. Day Dates Description Relevant Reading 0 Sep. 13 Distribution of course outline 1 Sep. 15 Overview Course, review of past concepts Ch. 1, Ch. 3 2, 3 Sep. 20, 22 Review of basic capital budgeting investment decision rules Ch. 6 4 Sep. 27 Inflation, real and nominal returns Ch. 5 pp Sep. 29 Quiz: Time Value of Money - 10% of final grade. 6, 7 Oct. 4, 6 Taxes and capital budgeting Review Ch. 4, Ch. 5 pp , Time value of money review handout, and practice quiz Ch. 7 pp , , Ch. 7 Appendix 8 Oct. 13 Financial statements and free cash flows 9, 10 Oct. 18, 20 Sensitivity, scenario, and break-even analysis, strategy and analysis in capital budgeting Ch. 2, Ch. 7 pp , Oct. 25 Advanced capital structure: financial distress, managerial incentives, and information Ch. 14, Ch. 15 Ch Oct. 27 Payout policy Ch , 14 Nov. 1, 3 Capital budgeting and valuation with leverage: WACC, FTE, and APV Ch. 18, Ch. 18 Appendix Nov. 8 Midterm exam 6:00pm to 8:30pm 30% of final grade 15 Nov. 10 Capital budgeting and valuation with leverage: WACC, FTE, and APV (cont d) Ch. 18, Ch. 18 Appendix 16, 17, 18, 19 Nov. 15, 17, 22, 24 Decision trees, binomial option pricing, equivalent annual benefit, investment timing Ch. 21 Ch 22 20, 21 Nov. 29 Dec. 1 Leasing Ch 25 22, 23 Dec. 6, 8 Mergers and acquisitions Ch 28 VW date: November 17 th, 2010 Page 4 of 6 pages

5 ACADEMIC INTEGRITY It is critical to the reputation of the I. H. Asper School of Business and of our degrees that everyone associated with our faculty behaves with the highest academic integrity. As the faculty that helps create business and government leaders, we have a special obligation to ensure that our ethical standards are beyond reproach. Any dishonesty in our academic transactions violates this trust. Page 27, of the University of Manitoba General Calendar addresses the issue of academic dishonesty under the heading "Plagiarism and Cheating". Specifically, acts of academic dishonesty include, but are not limited to: - using the exact words of a published or unpublished author without quotation marks and without referencing the source of these words - duplicating a table, graph or diagram, in whole or in part, without referencing the source - paraphrasing the conceptual framework, research design, interpretation, or any other ideas of another person, whether written or verbal (e.g., personal communications, ideas from a verbal presentation) without referencing the source - copying the answers of another student in any test, examination, or take-home assignment - providing answers to another student in any test, examination, or take-home assignment - taking any unauthorized materials into an examination or term test (crib notes) - impersonating another student or allowing another person to impersonate oneself for the purpose of submitting academic work or writing any test or examination - stealing or mutilating library materials - accessing tests prior to the time and date of the sitting - changing name or answer(s) on a test after that test has been graded and returned - submitting the same paper or portions thereof for more than one assignment, without discussions with the instructors involved. Group Projects and Group Work Many courses in the I. H. Asper School of Business require group projects. Students should be aware that group projects are subject to the same rules regarding academic dishonesty. Because of the unique nature of group projects, all group members should exercise special care to insure that the group project does not violate the policy on Academic Integrity. Should a violation occur, group members are jointly accountable unless the violation can be attributed to a specific individual(s). Some courses, while not requiring group projects, encourage students to work together in groups (or at least do not prohibit it) before submitting individual assignments. Students are encouraged to discuss this issue as it relates to academic integrity with their instructor to avoid violating this policy. In the I. H. Asper School of Business all suspected cases of academic dishonesty are passed to the Dean's office in order to ensure consistency of treatment. Page 5 of 6 pages

6 Student Identification: (please print clearly) UNIVERSITY OF MANITOBA Faculty of Management Medical Absenteeism Form Last Name First Name Middle Initial Student Id Number I hereby authorize to verify with the attending physician or his/her (Name of Instructor/Administrator) staff or colleagues that the contents of this form are true. Student s Signature Date To be completed by the attending physician: (after the above section is completed) Physician s Last Name (please print clearly) Physician s First Name Middle Initial Street Address City, Province Postal Code Telephone Number Fax Number To the attention of the physician: Your evaluation of the student s condition is being used for the purpose of determining whether or not the student has a valid reason to miss an important exam or assignment. Your professional evaluation is necessary to ensure that only valid cases are excused. I certify that the nature of the student s condition is severe enough to prevent the student from taking an exam or completing an assignment. If requested, my associates or I will verify for the above-named instructor/administrator that this information is accurate. The student s condition will likely span the following dates: (indicate start date) until (indicate end date) Physician s Signature Date Notes to physician: Please make a note in the student/patient s file indicating that the student has given the above-named instructor/administrator permission to verify with you, your staff, or your colleagues, that the information contained on this form is correct. Thank you for your professional evaluation of this student s condition. PLEASE ATTACH THIS FORM TO YOUR REGULAR OFFICE STATIONERY THAT INDICATES THE STUDENT VISITED YOUR OFFICE. Note to student: The use of this form is at the option of the student. However, in order to obtain an excused absence for an assignment or exam, the student must obtain a doctor s certification that the student s condition is severe enough to prevent the student from taking the exam or completing the assignment. It is NOT SUFFICIENT to provide a note that only indicates the student visited the doctor s office. Page 6 of 6 pages

Office Hours: Day Time Location TR 12:00pm - 2:00pm Main Campus Carl DeSantis Building 5136

Office Hours: Day Time Location TR 12:00pm - 2:00pm Main Campus Carl DeSantis Building 5136 FIN 3110 - Financial Management I. Course Information Course: FIN 3110 - Financial Management Semester Credit Hours: 3.0 Course CRN and Section: 20812 - NW1 Semester and Year: Fall 2017 Course Start and