Corporate Finance
Curriculum guideline
Lecture: 2 hours/week
Seminar: 2 hours/week
Material will be presented within a lecture/discussion environment and may include online work.
1. Introduction to corporate finance, financial statement analysis, valuation of cash flows.
2. Security valuation for stocks and bonds including time-value of money, discounting, expected risk/return, Capital Asset Pricing Model (CAPM) and diversification.
3. Cost of capital for project decision making, including working capital and discounted cash flow analysis.
4. Financing decisions including; capital structure; debt and dividend policy decisions; mergers and acquisitions.
At the end of the course, the successful student should be able to:
1. Describe the financial environment within which the financial manager must operate;
2. Analyse financial statements to determine a company's performance relative to its industry or competitors;
3. Apply time value of money concepts, cash flow valuation, and risk premiums in making financing and capital budgeting decisions;
4. Apply cost of capital (before and after tax) and net working capital analysis (before and after tax), as well as debt versus equity financing considerations (including projected interest and foreign exchange rates) in financial management decisions;
5. Demonstrate a broad understanding of the theory of capital structure and its impact on management decision-making including corporate restructuring activities; and
6. Assess valuations of stocks and bonds.
| Term Tests (Minimum 2) | 40-50% |
| Final Examination | 30-40% |
| Assignments (Minimum 2) | 10-15% |
| Projects | 0-10% |
| Total | 100% |
Assessment will be based on course objectives and will be carried out in accordance with the Douglas College Evaluation Policy.
No single assessment will be worth more than 40%.
Students must achieve a minimum grade of 50% on the combined invigilated components to pass the course.
Students may conduct research as part of their coursework in this class. Instructors for the course are responsible for ensuring that student research projects comply with College policies on ethical conduct for research involving humans, which can require obtaining Informed Consent from participants and getting the approval of the Douglas College Research Ethics Board prior to conducting the research.
Textbooks and materials to be purchased by students
1. Ross, S.; Westerfield, R.W. et al, Fundamentals of Corporate Finance, latest Canadian Edition, McGraw Hill
or Berk, J; DeMarzo, P.: et al. Fundamentals of Corporate Finance, latest Canadian Edition, Pearson
or alternate textbook determined by the department.
2. Calculator: Texas Instruments BA II Plus or as approved by Department.
AND
[FINC 1231 or FINC 1230 or MATH 1125, or with permission of the instructor, MATH 1120 or other substitute]
PDD Financial Planning
PDD Financial Analysis
PDD Accounting
PBD Accounting
PBD Accounting and Finance
CSIS 1190 is highly recommended.