MBA 8622 ‑ CORPORATION FINANCECourse Syllabus Summer Semester 2003Instructors:R. Fendler, C. Hodges, M. ShrikhandePurpose of MBA 8622:Course Prerequisites:Course Coordinator:A. COURSE MATERIALRequired Text:Supplemental Workbook:Supplemental Computer Software:MBA 8622 Web Site:Financial Calculator:B. IMPORTANT COURSE INFORMATION AND POLICIESExams:Take Home Problem Set (THPS):Quizzes, Homework and/or Project:Instructor-specific component:Attendance Policy:Academic Honesty:Topics to be coveredAn Overview of Corporate Finance and the Financial EnvironmentFinancial Planning and ForecastingFinancial StatementsFinancial Statements, Cash Flows and TaxesAnalysis of Financial Statements (Self-study chapters, corresponding lecture seg-ments available on course website)Time Value of MoneyTime Value of MoneyRisk and ReturnRisk and ReturnTopics to be coveredMid Term ExamStocks and Their ValuationThe Cost of CapitalThe Basics of Capital BudgetingCash Flow Estimation and Risk AnalysisCash Flow Estimation and Risk AnalysisCapital Structure DecisionsMEMORANDUMFrom: Chairman - Department of FinanceSemester: Summer 2003Guidelines for requested varianceb) Attendance for Scheduled Examinations:c) Withdrawal:d) Examinations:Georgia State UniversityMBA 8622 - CORPORATION FINANCECourse SyllabusSummer Semester 2003Instructors:R. Fendler, C. Hodges, M. ShrikhandeNOTE: It is your responsibility to read, understand and abide by all of the courseinformation and policies listed below. Failure to do so could result in your failing of thiscourse or of your being administratively withdrawn from the course by your instructor, bythe Department of Finance, or by the Robinson College of Business. This course syllabusprovides a general plan for the course; deviations may be necessary.Purpose of MBA 8622:This course focuses on the practical and conceptual problems associated with the financialmanagement of the non-financial corporation. Topics covered include financial forecasting,domestic and international financial markets, the relationship between risk and return includingthe capital asset pricing model, time value of money, valuation of debt and equity, cost of capital,capital budgeting and project evaluation techniques, capital structure decisions. For each topic,consideration is given as to how each relates to shareholder value maximization. For purpose ofenhancing corporate decision-making skills, students will be exposed to both the theoreticalunderpinnings of each concept as well as their applications to realistic situations facing the firm.Course Prerequisites:MBA 8011 (or Math 1070); MBA 8121 (or ACCT 2101-2102 and FI 3300); MBA 8231 (or ECON2106); or their equivalents. All prerequisites must have been completed before taking MBA8622 (cannot be taken concurrently). It is your responsibility to be certain that you have theproper prerequisites for this course. If you do not have the prerequisites for this course, you willbe administratively withdrawn, resulting in lost fees. There will be no exceptions to this policy!Course Coordinator:E-mail messages concerning any course-related matter should be sent to the course coordinator,Dr. Alfred Mettler, at [email protected] State University - 2 - MBA 8622 Corporation Finance Summer 2003 Course Syllabus A. COURSE MATERIALRequired Text:Corporate Finance: A Focused Approach, by Michael C. Ehrhardt / Eugene F.Brigham, Thomson South-Western, 1st ed. 2003. Additional student resource materialcan be found on and downloaded from the textbook’s website (click on studentresources): http://www.swcollege.com/finance/ehrhardt/focused/focused.htmlSupplemental Workbook:Lectures in Corporate Finance, Jayant R. Kale and Richard J. Fendler, Simon & Schuster CustomPublishing (1998). This book (available at all GSU affiliated bookstores and priced around $45) issuggested for students with a weak accounting and/or time value of money (i.e. analytical) background. Thebook also explains in detail how to work the Texas Instruments BA II Plus financial calculator. Supplemental Computer Software:Essentials of Finance. A fully interactive CD-ROM which provides an introduction to financial topics byapplying the financial analysis process to distinctly different companies. It includes also an accountingreview. Approximate price: $25.MBA 8622 Web Site: An extensive web page has been developed for MBA 8622. This page includes, among otherthings, the course syllabus, e-mail addresses of all MBA 8622 instructors, lecture segments usingPowerPoint slides with audio and/or video, solutions to selected end-of-chapter textbookproblems, sample final exam questions and answers, sample take-home problem set questionsand answers, a list of financial links, etc. The current web site address is:www.gsu.edu/~wwwfnc/8622Alternatively, from the GSU Homepage (www.gsu.edu), click Colleges & Schools, thenRobinson College of Business, then College Units, then Finance, then Course Information,then select Summer Semester 2003, then scroll down and click on MBA 8622.Financial Calculator:It is necessary that you have a financial calculator to use throughout the course and that youbring it to class each Week. Many end-of-chapter problems require complex arithmeticoperations, and a financial calculator is necessary to solve these problems efficiently.Recommended financial calculators are the Texas Instruments BA II Plus, the Hewlett Packard10B or 12C, the Sharp EL 733, and similar models. Approximate price: $30.Georgia State University - 3 - MBA 8622 Corporation Finance Summer 2003 Course Syllabus B. IMPORTANT COURSE INFORMATION AND POLICIESGrade Weights: Final Exam 35%Mid-Term Exam 25%Take-Home Problem Set 15%Quizzes, Homework 10%Instructor-Specific Component 15%All course grades, once assigned, are final and cannot be changed except in the rare eventof a mathematical miscalculation by the instructor.Exams:All exams will be given on the days listed in the course outline. Read the memorandum on pages7-8 of this syllabus for the MBA 8622 policy concerning attendance for scheduled examinations.Take Home Problem Set (THPS):A take-home assignment will be due on the date assigned by your instructor.