UNIVERSITY OF MANITOBA I.H. ASPER SCHOOL OF BUSINESS DEPARTMENT OF ACCOUNTING AND FINANCE FIN 2200 - CORPORATION FINANCE (3 credit hours) Winter 2014: Tuesdays & Thursdays A01 10:00am 122 Drake, A03 1:00pm 343 Drake, A04 2:30pm 343 Drake, A05 8:30am 122 Drake Instructor: Jerrod Falk Office: 368 Drake Centre E-mail: jerrod.falk@umanitoba.ca Phone: (204) 474-6723 Office Hours: Tuesdays & Wednesdays 3:45pm to 4:30pm PREREQUISITES & COREQUISITES: Required Prerequisites: [ACC 1100 (or 009.110) (D)] and [MATH 1500 or MATH 1520 (C)] and [STAT 1000 or STAT 1001 (C)] and [ECON 1010 (C) and ECON 1020 (C) or the former ECON 1200 (or 018.120) (C)]. Note: All students are required to have completed Calculus and Linear Algebra before entering the Bachelor of Commerce program through track 1; track 2 students are to have completed these courses immediately upon entry into the Bachelor of Commerce program. Knowledge of Calculus and Linear Algebra is assumed and required for FIN 2200. Non-Commerce students who do not have this background are encouraged to consult with the professor as needed when concepts from these subjects are used in class. COURSE OBJECTIVE: This course introduces students to the fundamentals of finance and presents theories and tools to be used in addressing corporate finance problems and issues. REQUIRED MATERIALS: 1. J. Berk, P. DeMarzo, and D. Stangeland, Corporate Finance, Second Canadian Edition, Pearson Canada, 2011 2. HP 10bII Financial Calculator (I will use this calculator for examples in class) or Texas Instruments BAII Plus financial calculator. MYFINANCELAB MyFinanceLab software allows students to practice course material without limit. The software will also help you to identify topics you still need to work on and will create a personalized study plan. We require that you complete a series of online homework assignments in MyFinanceLab. You will need a code to access MyFinanceLab assignments. There are two ways to acquire an access code: 1
1. A code is included with the purchase of a new textbook. New textbooks may be purchased from the Book Store. 2. Students not wishing to use a new hardcopy of the textbook may instead purchase a MyFinanceLab code separately on the internet from MyFinanceLab web page (see below). Course Name FIN 2200 A01 J2014 FIN 2200 A03 J2014 FIN 2200 A04 J2014 FIN 2200 A05 J2014 MyFinanceLab Course ID XL1E-L1MY-001Z-3DW2 XL1E-L1N4-001Z-9DW2 XL1E-L1N7-101Z-2DW2 XL1E-L1N8-101Z-3DW2 How to Register and Enroll in Your MyFinanceLab Course To join your instructor's course, please complete the following steps: Steps to Register: 1. Go to http://www.myfinancelab.com and click the Student button, in the Register section. 2. Enter the course ID, XL1E-L1 (see table above for your Course ID), and click Next. 3. Choose to register an access code (came with your new textbook) or purchase access if you don t have an access kit/code. 4. Click the button to proceed to registration. 5. Follow the instructions to create your account. 6. Click the link to login. You ll be directed to http://www.myfinancelab.com, where you can enter the user name and password you just created. Click the login button. 7. The first time you enter the site you ll be asked to enter your course ID. Enter your course ID XL1E-L1 (see table above for your Course ID). To log into MyFinanceLab: 1. Go to http://www.myfinancelab.com 2. Enter the user name and password you just created, and click Log In (or hit the enter key). If you purchased access, visit the Textbook Resources inside your Instructor's Course for additional purchase options. Need Help? For assistance, please visit http://www.myfinancelab.com/support or see your instructor for help. Important Note: If you want to email me, DO NOT EMAIL ME THROUGH THE D2L SYSTEM! There is a problem with D2L email system in that it does not allow me to reply to you directly from my regular email. If you want to email me, email me directly at: jerrod.falk@umanitoba.ca Student email policy: Effective September 1, 2013, the U of M will only use your university email account for official communications, including messages from your instructors, department or faculty, academic advisors, and other administrative offices. Refer to this link for details: http://umanitoba.ca/registrar/e-mail_policy 2
GRADING AND EXAMINATIONS: Final grades are based on the student s weighted mark and performance relative to other students. Assignments Available on MyFinance Lab 10% (homework) (http://myfinancelab.mathxl.com/login_finance.htm) Midterm Exam Saturday, Mar. 8, 2014, 9am 11:30 am, Location TBA 40% Final Exam Location and time TBA 50% COURSE MATERIALS Most supplemental material to the course (lecture notes, text book solutions, old exams, etc.) will be available on the course s Desire2Learn (D2L) site. Students are responsible for checking D2L and downloading the relevant material before each class. Follow the instructions below to log on to D2L: 1. Go to https://universityofmanitoba.desire2learn.com/ 2. Log into D2L using your UMnetID (formerly called your ccu account) account. You must have previously claimed your UMnetID account in order to log into D2L. If you have not done so, claim your UMnetID account by clicking on the ClaimID link under Current Students on the University of Manitoba homepage (www.umanitoba.ca). If you are having problems logging into your course visit the Accounts Office in 010 Dafoe Tunnel, contact the support desk by phone (204) 474-8600 or email support@umanitoba.ca. 3. Once logged on to your D2L page, click on the FIN 2200 course title. For more information on how to use D2L read Student D2L Help Files when you are logged into D2L. Homework Assignments (these are graded!) Assignments will be provided regularly throughout the course using the MyFinanceLab software. These assignments are meant to prepare students for examinations. Students must pay attention to the assignments start and due dates and times. Late assignments will not be accepted. Check for course announcements on D2L regularly. Students experiencing difficulties with assignments are further encouraged, after thoroughly reading the text and reviewing class notes, to contact their instructors for assistance (see office hours). Tentative due dates are as follows: Assignment Date Available Date Due Material Covered 8:00 am 7:00 pm 1 Jan. 7 Jan. 20 Chapters 1, 2, 3 2 Jan. 7 Jan. 27 Chapters 4,5 3 Jan. 7 Feb. 3 Chapters 4, 5 4 Jan. 7 Feb. 24 Chapters 8, 9 5 Jan. 7 Mar. 3 Chapters 6, 7 6 Jan. 7 Mar. 24 Chapter 10, 11 7 Jan. 7 Mar. 31 Chapters 12 8 Jan. 7 Apr. 9 Chapter 14, 15 3
Extra Practice on D2L (these are optional but highly recommended): For your added benefit, you will have access to eight extra practice assignments and eight extra practice quizzes based on these assignments on D2L in Extra Practice and Quizzes folders, respectively. Neither these assignments nor quizzes are graded. You will have unlimited attempts at the quizzes. Once a practice set or a quiz shows up on D2L, it will stay there for the rest of the course (for your unlimited use). Even though quiz attempts are unlimited, there will be a time limit for each attempt. You will be able to see all this information (number of questions, time limit, etc.) when you click on a quiz and before you press Begin button to start taking it. Below is the availability of the optional quizzes and practice sets: Labs: Optional Practice Sets and Quizzes Date Available 12:00 am Material Covered 1 Jan. 7 Chapter 1,2,3 2 Jan. 7 Chapter 4 3 Jan. 7 Chapters 4, 5 4 Jan. 7 Chapters 8, 8A, 9 5 Jan. 7 Chapters 6, 7 6 Jan. 7 Chapters 10, 11 7 Jan. 7 Chapter 12 8 Jan. 7 Chapters 14, 15 Corporate Finance Labs will be held on Fridays. Labs begin on Friday, January 10th. Each lab corresponds to a course section. Students are to show up for the lab that corresponds to the course section they are registered for. The structure of a typical lab will be solving one to six or so problems (depending on the size of the problems). Note that since most of the problems discussed at the labs are more advanced than and do not overlap with those on the assignments, you miss those labs at your own peril. Lab instructors may reserve, at their discretion, 10-20 min at the end of labs to answer student questions. Labs are there to help students to prepare for tests in a less formal environment than lectures themselves. It is essential for students to prepare for labs by working through extra practice problem sets and quizzes (see above) in advance and to show up for labs regularly. Tentative lab schedule is given below: Lab Date Material Tested Lab #1 Jan. 10 Chapter 3 Lab #2 Jan. 17 Chapter 4, 5 Lab #3 Jan. 24 Chapter 4, 5 Lab #4 Jan. 31 Chapter 8, 8A, 9 Lab #5 Feb. 7 Chapters 8, 8A, 9 Lab #6 Feb. 14 Chapter 6, 7 Lab #7 Feb. 28 Chapter 6, 7, Midterm Review Lab #8 Mar. 7 Chapter 10, 11 Lab #9 Mar. 14 Chapter 10, 11 Lab #10 Mar. 21 Chapter 10, 11 Lab #11 Mar. 28 Chapter 12 Lab #12 Apr. 4 Chapter 14, 15 4
Exams: Formula sheets will not be provided for the examinations. Instead, students are permitted to bring in one 8.5 by 11 inch sheet of paper on which they can write anything on both sides. For the final examination, each student may bring in an additional sheet of paper (8.5 x 11 inches) on which he/she can write anything. (Thus for the final, you may bring in a total of two sheets of paper.) You should begin preparing your formula sheet immediately. Formula sheets must be hand written (both sides permitted). NO word-processed or photocopied material is allowed on your formula sheet. Improper formula sheets will be confiscated; offending students will be allowed to complete the exam without any formula sheet. After the exam, offending students will be referred to the Dean s office on a violation of academic integrity. If you disagree with your midterm exam marking or believe that there was a miscalculation of the score, you have until Friday, March 21, to ask your instructor to review your concerns and make necessary corrections if any. After March 21 we will no longer make any corrections to your midterm mark. General Academic Regulations on Missed Exams If you miss a mid-term examination or any other graded component of the course for personal or medical reasons, you must report to your instructor as soon as possible and provide written proof supporting your absence from that component or mid-term examination. Missing an examination is serious. Students who miss a component and have a valid medical excuse will have the weight of that component added to the final examination (for the definition of a valid medical excuse see policy, in bold, for final exams below). Students who miss a component without a valid medical excuse will receive a mark of 0% for this component of the course. If you miss a final examination for medical or compassionate reasons, you may be granted a deferred examination. Travel plans are not an acceptable reason to miss examinations. University 1 or your home faculty/school, as appropriate, can arrange a deferred examination for you. To make this arrangement, you must report to University 1 or your home faculty or school, normally, no later than seven working days after the end of the examination series in which the examination was scheduled, and provide written proof (such as a medical certificate) supporting your reason for the missed examination. The dates of your illness or affliction must correspond to the dates of the examination. Students with valid medical excuse must complete and submit the Medical Absenteeism Form attached at the end of this syllabus. Both the student and the attending physician must sign this document, otherwise the excuse will be deemed invalid. If your request is approved, you will, in most cases, be offered the opportunity to write another examination within 30 working days from the end of the examination series from which the examination was deferred. More information about this may be found in the General Academic Regulations and Requirements of the Calendar. PROFESSIONAL CONDUCT Students are expected to demonstrate professional conduct for the duration of the course. Some aspects of this include the following: attending each class and arriving on time, restricting discussions in class to the current course material, keeping mobile phones in the off or silent modes, and not placing or answering calls, text messages, or emails during class time. Unprofessional conduct is disruptive to the learning environment and makes mastering the course material more difficult for all students. 5
TENTATIVE COURSE SCHEDULE: You will find that the course progresses quickly and the material covered builds on earlier material. It is important to stay current in your studies otherwise you will not understand the new material as it is presented. If you read the text in advance of the relevant classes, you will have a much better chance of keeping pace with the material. It is the student s responsibility to read the assigned material prior to the relevant class. Lecture Topic Chapter Course outline (read it thoroughly!). 1,2 (self-study) Chapter 1 is a self-study. To refresh the material from the prerequisite accounting course, ACC 1100, study Chapter 2 on your own. The knowledge of material from chapters 1 and 2 will be assumed; it will not be covered in class. Jan. 7-9 (2 Arbitrage and Financial Decision Making Chapter 3, 3A (omit pp. 88 to 90 Arbitrage with Transaction Costs ) Jan. 14-28 (5 Time Value of Money, Interest Rates 4 (omit 4.6), 5 Jan. 30- Feb.11 (4 Valuation of Bonds and Stocks 8 (omit pp. 246 to 249 Time and Bond Prices ), 8A, 9 (omit pp. 280 to 283 Dividends versus Investment Feb. 13-27 (3 Capital Budgeting and Growth and 9.3-9.4) 6, 7 (omit references to capital gains on pp. 213 to 214, omit remainder of the chapter from pp. 216 to the end including 7A) Mar. 4 Mar.18 (5 Risk, Return, and Portfolio Theory 10 (omit pp. 328 to 330 Standard Error ),11 (omit pp. 381 to 383) Saturday, Mar. 8 Midterm: 9:00am to 11:30am, location TBA 1, 2, 3, 4, 5, 6, 7, 8, 8A, 9 Mar. 19 Mar. 20-25 (2 Last date for voluntary withdrawal Capital Asset Pricing Model (CAPM) 12 (omit 12.5 and 12.6, only read pp. 430 Weighted Average Cost of Capital in 12.7) Mar. 27- Apr. 1 (2 Capital Structure 14 (omit 14.4 and14.5), 15 (omit 15.5) Apr. 3-8 (2 Derivatives 20 (omit pp.722 to 723 topics Straddle and Butterfly Spread, 20.5 and 20.6) TBA Final Exam: 3 hours Cumulative 6
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. 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 (e.g., crib notes) using any unauthorized materials in an examination or term test (e.g., 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. 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. 7
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