FIN 1301(#48783) Corporate Finance Spring 1997 R. NELSON OFFICE: 235 SWARTS (362-7637) Text and Course Material: . Essentials of Managerial Finance, 11th Edition Weston, Besley and Brigham; 1996; Dryden Press . Additional Readings (On Reserve in Library) Prerequisites: . ACCT 0201 (Financial Accounting) . College Algebra or Pre-calculus Grade Criteria: . 3 Examinations: 90% . Excel/LOTUS 1-2-3 Spreadsheet Assignment (and attendance and participation): 10% . Sample grading scale: 80 - 82.4 = B- 82.5 - 87.4 = B 87.5 - 89.9 = B+ Course Objective: The primary objective of this course is the examination of (1) the finance function within the firm and (2) the financial environment in which the firm operates. A core focus within these areas of inquiry is the role of the financial manager in "maximizing the value" of the firm. We use a combination of lectures, text problems and additional readings. Examinations will cover assigned text material, problems covered in class, additional readings , as well as specific information (not necessarily in the text or readings) presented in class lectures. Approximately 40% of the course material will be quantitative. NOTE: Makeup exams may differ in format and substance from regularly scheduled exams. OVERVIEW OF COURSE CONTENT: I. The Economic and Financial Environment of the Firm. Analysis of Financial Statements. Risk, Return & Time Value of Money. Introduction to Valuation of Securities. II. Financial Forecasting, Planning and Control. Working Capital Management. Capital Budgeting Techniques and Project Analysis. III. The Cost of Capital. Financial Leverage. Common Stock Financing and the Investment Banking Process. CLASS SCHEDULE Week Of Text Material Jan 9 Introduction Jan 14 Chpt 2: Financial Environment Jan 21 Chpt 3: Financial Statement Analysis Chpt 5: Risk and Return Jan 28 Risk and Return (Continued) Chpt 6: Time Value of Money Feb 4 Chpt 7: Valuation of Securities Feb 11 Exam I Chpt 4: Financial Planning & Control Feb 18 Chpt 8: Working Capital Policy Examples of Working Capital Mgt: (Selected Portions of Chpt 9-11) Feb 25 Chpt: Short-term Financing Chpt 13: Introduction to Cap. Budgeting Mar 4 Chpt 14: Project Analysis Mar 11 Exam II Mar 18 (Mar 17 - Mar 21) Spring Break! Mar 25 Chpt 15: Cost of Capital Apr 1 Chpt 16: Capital Structure & Leverage Apr 8 Chpt 18: Common Stock Financing Introduction to Options Apr 15 Corporate Restructuring & Combinations Apr 22 Issues in Multinational Finance Tuesday Apr 29 (9 - 11 a.m.) Exam III