Fall  2004

Class times:
Tuesday and Thursday 10:00 and 11:30 (I think)

 Office hours: (Tentative, will announce officially in first class)

 And BY APPOINTMENT

Office   Jim Mahar 231 Murphy 375-2359

Prequisites

You have taken and passed Finance 301 plus any other prerequisites that are listed by the registrar

Text: 
Principles of Corporate Finance by Brealey and Myers.

The text has a very useful web site for students.  It has chapter summaries, power point notes, online quizzes, and even videos! 

And of course my own web site: http://www.financeprofessor.com
 as well as the web site for this class http://www.financeprofessor.com/Fin401/Fin401mainpagefall04.html

 We will also be using a a class blog http://financeclass.blogspot.com/ for class announcements etc.  Links to it are available off of the class web site. It will be the main channel of communication: grades will be posted, assignments made, and tips given through the site.

If used correctly, the web usage will dramatically improve the learning process and will eliminate many of the time-consuming trips across campus as well as cut down on lost assignments, reduce paper use, and make the class more fun.

Additional requirements: 

1. In addition to the text you will need a "clicker" and license.  You will have to purchase it through the bookstore and/or http:www.einstruction.com. 
2. FinanceProfessor.com newsletter.  Roughly every other week.
3. FinanceProfessor.com Blog 

Highly recommended but not required:

 Wall Street Journal.  Possibly the best education you can get while at school.  Read it, enjoy it.  Widely used in the business world and we will be tying in stories for many topics to it.  Additionally it will help in interviews!

Course Objective:  This class will show you how corporate finance fits into the business world.  We will examine models that increase our understanding as well as help us to predict the behavior of individuals and firms.  Advanced Corporate Finance has always been one of my favorite classes as it encompasses a bit from all areas of finance.  is my favorite class and I hope you like it as well!  The class allows us to implement much of what has been learned in other classes as well as to achieve a greater understanding of 
how and why the financial world "is how it is," or in more academic-speak, why the financial world has evolved as it has.

Upon completion of the course, you should be able to

• Describe the model of the financial system
• Explain the nexus of contracts model and discuss its importance through the eyes of various stakeholders (and be able to identify the incentives of various stakeholders)
• Describe what is meant by the term "holistic" finance
  
• Apply Time Value of Money techniques in both personal and corporate decisions
• Correctly use various valuation techniques and be able to express the techniques strengths and weaknesses
• Identify opportunities to use finance theory
• Explain the implications of the Market Efficiency Hypothesis
• Discuss intelligently differing capital structure theories
• Discuss the advantages of alternative capital structures
• Discuss the recent corporate governance crises and be able to identify good and bad practices in the field
• Discuss common trends in the finance
• Identify benefits that accrue to multinational corporations within the large discussion of globalization—Example why would firms issue internationally?
• Utilize finance theory and concepts to solve real world problems

 
Grading: 

Grades will be based on three main areas:

                            1. Your homework     10%  (this will be almost entirely a class project/Term paper)
                            2. Class participation  25%  (40% in class Quizzes, 40% traditional class participation, 20% attendance)
                            3. Tests
                                        Test 1 ............15%
                                        Test 2 ........... 20%
                                        Final ..............30%  

Tests are cumulative (both by necessity and design).

I generally “curve” at the end of the semester.  However, to prevent people from “blowing off” the final, I also require that for an A grade in the class, the student must get at least a 75% (before any curve) on the Final.  To pass the class, the student must get at least a 45% (before any curve) on the Final.

I will warn you in advance my tests have the reputation of being rather difficult.  I am a big believer in "raising the bar" and only through challenges do we bring out the best in ourselves.  Thus I do not apologize for the hard tests, but do sympathize with you.  Remember I do curve at the end of the semester, and with only a few exceptions most people do pass my class.  So there is some solace. :-)
 

Administrative stuff that must be covered: 

1. Cheating will not be tolerated in any way shape or form!  Cheaters will be treated as harshly as possible.  Consider this your warning.
2. If you have any documented handicap I will work with you.  Please avail yourself to the teaching learning center as soon as you can.  Alternative format tests (for site impaired), audio of class lectures, and separate rooms for tests are some of the things that may be able to be done for you. 

Now that the administrative trivia is complete, I do want to say that I truly hope this is a fun class. I want it to be a learning experience but learning need not always be painful.  I think if you speak with any of my past students they will tell you that my classes are difficult, but fun.  Demanding yet rewarding.  And many will agree with my assessment that it really is "my favorite class." :-)

 
I do not want to (nor do I want you to) dread the class. It should be fun. Thus the class will be quite informal but also rigorous. I am sure that you will learn a great deal and have fun doing it!