Finance 620Advanced Financial ManagementFall 2001/2002Michael Gombola Office: 55-207 Office Hours: Phone: 895-1743 3:00 – 5:00 PM Wednesday Dept. phone: 895-1741 Email: [email protected]:Required: Brealey and Myers, Principles of Corporate Finance 6th edition, McGraw-Hill 1999. Answers to end-of-chapter problems are available in Study Guide to text. Suggested: Brigham, Essentials of Managerial Finance, Dryden Press, or any other introductory Finance text, and old FIN 620 exams on reserve in Library.Objective:To gain an in-depth understanding of the principles of corporate financial decision making. The focus is on decision making and attendant necessary skills, not memorizing formulae and plugging numbers. Upon completion, students should be prepared to take FIN 628 (Capital Budgeting) and to analyze the cases examined in FIN 790 (Finance Seminar). The course is designed to overlap only minimally with courses in the areas of securities analysis and risk management. Policies and Means to ObjectivesThe objective of the course will be met by intensive study of financial decisions. Students must have taken an introductory course in Managerial Finance and remain familiar with the time value ofmoney and statistical techniques. The student is responsible for all material covered in class whether or not it is covered in the text. All examination topics will be obtained from the class material.There will be no make-up exam for the mid-term examination. If the student must miss the mid-term exam, the weighting on the final exam will be the sum of the weights of the mid-term and the final. This policy applies whether you miss or fare poorly on the mid-term. The final exam will only be held as scheduled by OSIR. All make-ups for the final will be scheduled during the second week of the following term. The final exam is comprehensive.Grading: Grading will be based upon the following system:Mid - Term Examination 40 percent or 0 percentFinal Examination 60 percent or 100 percentTotal 100 percentCOURSE OUTLINEQuiz (Q), Practice Questions, (PC) and Date Topic Chapters Challenge Questions (CQ) Sept. 26 The Financial Manager 1,2,3 1: Q-1,2 2: PQ-3, CQ- 2,3 3: Q-1-10, Oct. 3 Martin Luther King Day – University ClosedJan. 22 The Financial Mgr (Cont'd) 2 3: CQ-1 Stock and Bond Valuation 4 4: Q- 3,4,6 PQ –9,14 CQ- 3,4 Jan. 29 Corporate Financing and 13 13: Q-3,5 PQ-1,2,3 8,9 CQ-1, Issuing Securities (14&15) 14: Q-3,6 PQ-4,10,13 15: PQ-4 CQ-3 Feb. 5 Dividend Policy and 16 16: Q-1,2 4 PQ-4,9 CQ-2 Practice Feb. 12 Debt Policy and the 17 17: Q-1,3 PQ-1,4,5,6 Borrowing Decision 18 18: Q-14 PQ 13,14 Feb. 19 President’s Day – University Closed Do Take-Home Midterm Take-Home Midterm Due at 6 PMFeb. 26 Net Present Value and IRR 5 5: PQ-7,8, 12, Cash Flow Estimation 6March 5 Investment/Financing 19 19: PQ-1,2,3,8,10 Interaction Mar. 12 FINAL EXAMINATION 6PM to