Introduction to Corporate Finance

Curriculum guideline

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Course
FINC 2345
Discontinued
No
Course code
FINC 2345
Descriptive
Introduction to Corporate Finance
Department
Finance
Faculty
Commerce & Business Administration
Credits
3.00
Start date
End term
202030
PLAR
No
Semester length
15 Weeks X 4 Hours per Week = 60 Hours
Max class size
35
Contact hours
Lecture: 4 Hours Total: 4 Hours
Method(s) of instruction
Lecture
Seminar
Learning activities

Material will be presented within a lecture format.

Course description
This course aims to provide a market-oriented framework for analyzing the major types of financial management decisions as they apply to the profit-oriented business organization. Major areas covered are discounted cash flow techniques, the trade-off between risk and return, financial asset valuation, capital investment decisions, cost of capital, capital structure and financing decisions.

Note: FINC 2345 does not meet CPA requirements. Students should take the equivalent course FINC 2340 in order to meet CPA requirements
Course content
  1. Introduction to financial management, financial statement analysis and ratios
  2. Time value of money and discounted cash flow analysis
  3. Fundamental properties and valuation of bonds and stocks
  4. Capital budgeting decisions
  5. Risk and return in capital markets, equity risk premium and CAPM
  6. Long-term financing decisions: the cost of capital, capital structure decision and dividend policy
Learning outcomes

At the end of the course, the successful student should be able to:

  • describe the financial environment within which the financial manager must operate;
  • analyze information contained in financial statements and understand how it is used to make financial decisions;
  • apply time value of money methodology to cash flow applications including valuing bonds and stocks;
  • use capital budgeting techniques to support decisions regarding capital investments for a firm; and
  • make decisions regarding long term financing for a firm, in particular, the use of equity and debt to finance the firm’s operations.
Means of assessment

Term Examinations (2-3)  40 - 50%

Final Examination   30 - 40%

Quizzes and/or Assignments (2-8) 10 - 20%

Total: 100%

 

To pass the course, students must achieve a cumulative grade of 50% in all non-group assessments as well as 50% overall in the course. In other words, students must have achieved at least 50% on their cumulative individual assessments in order to be eligible to earn marks from group work.

Textbook materials

Textbooks and Materials to be Purchased by Students

  • Berk, J; DeMarzo, P.: et al. Fundamentals of Corporate Finance, latest Canadian Edition, Pearson

    or Ross, S.; Westerfield, R.W. et al, Fundamentals of Corporate Finance, latest Canadian Edition, McGraw Hill

    or alternate textbook determined by the department.

  •  Calculator: Texas Instruments BA II Plus OR as approved by Department
Prerequisites

ACCT 1235 or equivalent

Equivalencies

FINC 2340