Course_Outline_Comm_308_2_BB_Fall_2010_J_Riley

Course_Outline_Comm_308_2_BB_Fall_2010_J_Riley - 

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Unformatted text preview:  IntroductiontoFinance Comm308/2SecBB Fall2010 Wednesdays5:45to8:15p.m.inMB ­S2 ­210 Instructor&Emailaddress:  JuneRiley (riley@jmsb.concordia.ca) OfficeHours:    Wednesdaysafterclassfrom8:15to9:15p.m.inourclassroom   RequriedText:BoothL.&ClearyS.W(2008).IntroductiontoCorporateFinance,secondedition,JohnWiley&Sons.  (DoNOTpurchaseWileyPlusaswedonotprovideanecessarycourseURLforittowork.) Coursepack:Thereisacoursepackwhichyouarerequiredtopurchasefromthebookstoreforthisspecificsectionofthe course.Itcontainsallthelecturenotespluspracticeproblems.Ithasbeencompletelyrevisedtomatchthenewcourse contentthisterm.Ifthebookstoreisoutofcopiesofthecoursepackyoumustspecificallyorderacopyfromthecashieras copiesarenotautomaticallyrestocked. Other:Afinancialcalculatorisrequiredforthiscourse.Ifyoudonotalreadyownonemakesureyoupurchaseamodel thathasan[NPV}and[IRR]button.YourtextgivesguidanceforproblemsexecutedwiththeBAIIPlusmodelfromTexas Instruments.ThisisalsothemodelusedforCFAexams.Howevertherearemanyothersuitablemodelsandmanufacturers .  Expectations:FromComm217 youareexpectedtounderstandtheconceptsin: Chapter3:FinancialStatements  3.1 AccountingPrinciples       3.2       3.3 PreparingAccountingStatements  CourseDescription: Prerequisite:COMM217;COMM220previouslyorconcurrently.Thiscourseintroducescoreconcepts centraltofinancialmanagementandfirmvaluemaximization.Youwilllearnthebasicmethodsofvaluing corporatesecurities,estimatingcashflows,andmakingcapitalbudgetingdecisions.Introductionsto  portfoliomanagementtheory,costofcapital,andoptionswillroundoutthecourse. LearningOutcomes: General: Understandconceptualframeworksunderlyingvaluation,assetpricing,risk/returntradeoffs,andinvestmentvs. financingdecisions.Inaddition,studentsareexpectedtousetheseframeworksto (i)identifyrelevantinformation(ii)definemajorfromminorissues,and(iii)applyconceptstoproblem  ­solveand makerecommendations. Specifics: Timevalueofmoney,terminologyandtechniquesthatvaluebonds,sharesandinvestmentprojects;identificationof relevantcashflows;mechanicsofdeterminingthefirmscostofcapital;recognizingpayoffsforcall &putoptions. Evaluation:   Best1outof2Quizzesworth10%each 20%Endofclasson:6Oct.and17Nov. Mid ­Term      30% Sunday17October9a.m.tonoonintheHallBuilding           ­roomswillbespecifiedbyemailbytheendofSeptember FinalExam*     50%SometimebetweenDec.8 ­22     Total  100% *Aminimummarkof40%onthefinalexamand50%onthecourseoverallisrequiredtopassthecourse. Studentsmaynotwriteafinalworth100%.Thefinalexamwillbecommontoallsectionsofthecourse. SupportMaterialonMoodle(WewillbeusingaregularMoodlewebsiteratherthanFirstClass) CalculatorManuals Notesforfirst2lectures SolutionstoendofchapterProblems PracticeExamswithSolutions 1  ScheduleThescheduleisapproximate&subjecttochange. Studentsshouldreadaheadinthenotes andbefamiliarwithcalculatorfunctionsinordertobenefitfullyfromlectures.  Lecture 8Sept.         Chapter   Topic 1.2 1.3 1.4 2.1 2.2 2.3 2.4 TheFinancialSystem FinancialInstruments&Markets TheGlobalFinancialCommunity TypesofBusinessOrganizations TheGoalsoftheCorporation TheRoleofManagementandAgencyIssues CorporateFinance 1:Introduction          2:CorporateFinance           15 ­22Sept.          29Sept.        6Oct.      13Oct.       5:TimeValueofMoney                             6:BondValuation &InterestRates               5.1 OpportunityCost 5.2 SimpleInterest 5.3 CompoundInterest 5.4 Annuities&Perpetuities 5.5 Nominalvs.EffectiveRates 5.6 LoanorMortgageArrangements 5.7 ComprehensiveExamples Appendix5A:GrowingAnnuities&Perpetuities 6.1 6.2 6.3 6.4 6.5 BasicStructureofBonds BondValuation BondYields(OmitYieldtoCallpage226totopof227) InterestRateDeterminants OtherTypesofBond/DebtInstruments  Quiz#1willcoverChapters1,2,5and6. 7:EquityValuation              7.1 7.2 7.3 7.4 EquitySecurities PreferredShareValuation CommonShareValuation UsingMultiplestoValueShares 8.1 MeasuringReturns 8.2 MeasuringRisk 8.3 ExpectedReturn&RiskforPortfolios 8.4 TheEfficientFrontier 8.5 Diversification  SUNDAY17OCT.MID ­TERM9a.m.tonooninHallBuildingwillcoverchapters1,2,5,6,7and8.(RoomsTBAlater) 20Oct. 27Oct.       3Nov.   10Nov.      Noclassduetomid ­termbeingheldonaweekend. 9.1 9.2 9.3 10.1 10.2 10.3 10.4 12.1 12.2 12.3 TheNewEfficientFrontier TheCapitalAssetPricingModel(CAPM) TheCAPMandMarketRisk TheImportanceofMarketEfficiency DefiningMarketEfficiency TheEfficientMarketHypothesis Empiricalevidenceregardingmarketefficiency CallOptions PutOptions Put ­CallParity 8:Risk,Return   &PortfolioTheory   9:TheCAPM            10:MarketEfficiency             12:Options          13:CapitalBudgeting ­InvestmentCriteria      13.1 CapitalExpenditures     13.2 EvaluatingInvestmentAlternatives     13.3 Independent&InterdependentProjects         schedulecontinuesonnextpage 2  Lecture 17Nov.        24Nov.       1Dec. Chapter   Topic Quiz#2willcoverchapters9,10,12,and13. 14:CapitalBudgeting ­CashFlowEstimation      14.1 GeneralGuidelines     14.2 Estimating&DiscountingCashFlows(omiteffects      ofTerminalLoss&Recapture)     14.4 ReplacementDecisions 3:FinancialStatements     3.5   TheCanadianTaxSystem(omitdiscussionofcapitalgains, recaptureandterminallosses,page92 ­93in2ndedition) FinishcoverageofChapter14ifnecessary 20:CostofCapital  20.2 TheCostofCapital     20.3 EstimatingtheComponentCosts     20.5 GrowthModels&theCostofCommonEquity     20.6 Risk ­BasedModels&theCostofCommonEquity 21:CapitalStructure      21.1  FinancialLeverage(notesforthistopicarenotinyourcoursepack butwillbepostedonthecoursewebsitewellbeforethelecture) Finishremainingcoursematerial,ifany,andreviewbeforeFinalExam FinalexamweekisbetweenDec.8 ­22.Assoonasthescheduleisknownstudentswillbeadvisedinclass,onlineandby email. itytomakesuretheyareinformedastothetime,dateandroomlocationof thefinalexamandusuallythisisavailablethroughtheMyConcordiaPortalassoonasthescheduleisset.   TUTORIALS:ThesestartonFriday10Sept.Ifthereareanychangestothetutorialscheduleyouwillbenotified onlineandbyemail.StudentswillalsobeabletomessagetutorsthroughamessageboardonFirstClass.        Day  Mondays: Wednesdays: Thursdays: Fridays: Saturdays: Time   Room  6:00p.m. ­8:00p.m. MB ­1.301 10:00a.m. ­12:00p.m.MB ­3.285 10:00a.m. ­12:00p.m.MB ­1.301 2:00p.m. ­4:00p.m. MB ­1.301 2:00p.m. ­4:00p.m. MB ­1.301 Tutor  Nabil  Surage  Nada  Paul  Matthew LastTutorialon: Mon.6Dec. Wed.1Dec. Thurs.2Dec. Fri.3Dec. Sat.4Dec.  FORMULACRIBSHEETS: Formulacribsheetswillbeprovidedtoallstudentsbytheirinstructorforallquizzesandexams. Studentswillnotbe permittedtobringtheirown.Thecopyoftheformulasheetthatisinyourcoursepackismissingoneortwo equationsandisincompleteaboutwhichformulaswillbeleftoffthesheetsgivenoutformini  ­testsandexams. ThereforeIwillpostrevisedformulasheetsonthecoursewebsite.  GRADINGSYSTEMFORTHISCOURSE: A+ 90 ­100 A 85 ­89 A ­ 80 ­84 FNS49andbelow B+ 77 ­79  C+ 67 ­69  D+ 57 ­59 B 73 ­76  C 63 ­66  D 53 ­56     B ­ 70 ­72  C ­ 60 ­62  D ­ 50 ­52 R=gradeforstudentswhohavenotcompletedsufficientintra ­termworktobeevaluated.  Aboutfullyorpartiallymissedlectures:Studentsareresponsibleforobtainingallinformationabout  anymissedlecturematerialfromtheirfellowstudents. Allquestionsaboutquizormid termgrades willbehandledbythestudentattachingafully explanatorynotetothequizorexamandresubmittingitforcompletere ­marking.Suchissueswillbesettledin writingonly.Allsuchquestionsmustbesubmittedinatimelymanner,sothatawrittenresponsecanbemade beforetheendoflectures.Oncethelastlecturehasbeengiventherearenofurtherofficehoursorpersonal meetingswithyourinstructor.  Seeimportantrulesregardingtheadministrationofthiscourseonthenextpage. 3  ABOUTMISSEDQUIZZES: Itisbeyondtheadministrativescopeofthecoursetoprovidemake ­upmini tests.However,wewillbecountingonlythebestoneoutoftwoofthese.  ABOUTMISSEDMID TERMEXAM Ifastudenthaspersonalormedicalproblemsthataregoingto preventsuccessfulcompletionofthecourse,thecorrectcourseofactionisforthestudenttodropthecourseand seekhelpfromapersonaloracademiccounsellororaphysician,asappropriate.Usuallyastudentknowsthisbythe timethemid ­termisgiven.ThedeadlinefordroppingwithDNEisMon.20Sept,andforDISCisSun.Oct.31. Astudentwhomissesthemid ­termexamwillautomaticallyreceiveagradeofzeroonthatexamunlessallofthe followingconditionsaremet: 1. Thestudentcontactstheinstructornolaterthanthedayoftheexamattheemailaddressgivenonthis  courseoutline. 2. Thereasonisverifiable,willbedocumented,andisacceptabletotheinstructor.  3. Thestudentsubmitswrittendocumentationtotheteacherimmediatelyuponreturningtoclassestosuppo rt theabsence.Nodocumentationwillbeacceptedafterthelastlecturehasbeengiven. 4. Thedocumentationprovestobevalid.Documentation,evenofamedicalnature,doesnotimplyautomatic acceptanceofanexcuse. 5. Ifalltheaboverulesaremettheweightofstudent'sfinalexamwillbeincreasedto80%.   Astudentwhomissesbothquizzesandthemid termmustbegivenagradeof"R".  ABOUTMISSEDFINALS: Rulesabouteligibilitytowriteadeferredfinalexamcanbefoundat http://registrar.concordia.ca/exam/faqdef.html.IMPORTANT:Thereisnoguaranteethatadeferredexamwillbe writtenbythesameinstructor(s)whowereteachinginthetermwhenyoufirsttookthecourse. Thecoursecontent canalsovarysomewhatfromtermtoterm.Thereforestudentswritingdeferredexamsareadvisedtomonitorthe courseagaintomakesuretheyareprepared.  OTHERCONSIDERATIONS: Yourrighttoremaininclassisconditionalonmaintainingaprofessionalandconsideratedemeanour.Thisincludes politeness,arrivingontime,notspeakingoutofturnandremainingseatedduringtheentirelecture.Studentswho leavethelectureoutsideofthebreakperiodwouldbewisetotakealltheirbelongingswiththemastheftsdooccur andalsopermissionmayberequiredtore ­entertheclassifthelectureisstillinprogress.Laptopsandother internetorcommunicationdevicesarenotpermittedduringlectures,quizzesorexams.   AcademicIntegrity: Cheating of any sort will be dealt with as sternly as t he University allows. thedegrees,diplomasandcertificatestheUniversityconfersisdependentuponthehonestyandsoundnessofthe instructor ­studentlearningrelationshipand,inparticular,thatoftheevaluationprocess.Assuch,allstudentsare Calendar,section16.3.14orGraduateCalendar,CodeofConduct(Academic).]  AllstudentsenrolledatConcordiaareexpectedtofamiliarizethemselveswiththecontentsofthisCode.You arestronglyencouragedtovisitthefollowingwebaddress: http//johnmolson.Concordia.ca/ugrad/codeofconduct.pdf,whichprovidesusefulinformationaboutproper academicconduct.  StudentAdvocateProgramhasproducedashortvideopresentationonacademicmisconductaswellas pamphletsinfourlanguages:English,French,ChineseandArabic.Theseareavailabletostudentsat: http://supportservices.concordia.ca/studentadvocateprogr Disclaimer: Theprofessorreservestherighttochangeorupdatethisoutline,andanyothercourserelatedmaterials,atany time.Thestudentwillbeinformedinatimelymannerthroughthecoursewebsiteandannouncements inclass. 4 ...
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This note was uploaded on 05/17/2011 for the course COMM 308 taught by Professor Ravimateti during the Spring '10 term at Concordia Canada.

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