MBA 8230 Applications in Corporate Finance: Course Syllabus Spring Semester 2005
MBA 8230 Applications in Corporate Finance: Course Syllabus Spring Semester 2005
MBA 8230 Applications in Corporate Finance: Course Syllabus Spring Semester 2005
MBA 8230
Applications in Corporate Finance
Course Syllabus Spring Semester 2005
Instructors:
Richard Fendler, Charles Hodges, Alfred Mettler, Lalitha Naveen
NOTE: It is your responsibility to read, understand and abide by all of the course information
and policies listed below. Failure to do so could result in your failing this course or being
administratively withdrawn from the course by your instructor, by the Department of Finance,
or by the Robinson College of Business. This course syllabus provides a general plan for the
course; deviations may be necessary.
A.
COURSE MATERIAL
Required Text:
Corporate Finance: A Focused Approach, by Michael C. Ehrhardt / Eugene F.
Brigham, Thomson South-Western, 1st ed. 2003. Additional student resource
material can be found on and downloaded from the textbooks website (click on
student resources):
http://www.swcollege.com/finance/ehrhardt/focused/focused.html
Course Website:
An extensive web page will be available and it is highly recommended that students check it
out as soon as possible. The website includes, among other things,
a) administrative information (syllabus, e-mail addresses of instructors, final exam
schedule)
b) supplemental course material (solutions to end of chapter-problems, practice take home
assignments (THA), practice final exams)
c) lecture segments (using PowerPoint slides with audio and/or video)
The current web site address is: http://www.gsu.edu/~fnccwh/mba8230.html
Financial Calculator:
It is necessary that you have a financial calculator to use throughout the course and that you bring it
to class each Week. Many end-of-chapter problems require complex arithmetic operations, and a
financial calculator is necessary to solve these problems efficiently. Recommended financial
calculators are the Texas Instruments BA II Plus, the Hewlett Packard 10B or 12C, the Sharp EL 733,
and similar models. Approximate price: $30.
-2-
B.
Attendance Policy:
Each student is expected to attend ALL scheduled class meetings for the entire duration of the class
meeting. An attendance sign-up sheet will be circulated each class period. It is your responsibility
to sign the attendance sheet. If you do not sign the list, you will be considered absent (see the
note on academic honesty below). Students arriving late may be permitted to sign the sheet only at the
discretion of the instructor.
Any student who is absent from more than two weeks of classes will be dropped from the course.
Absences include the first week of class regardless of when a student registered for the course. If a
student is withdrawn for excessive absences after the midpoint of the grading period, a final grade of
WF will be assigned. There will be no exceptions to this policy!
An absence from class for any reason (job conflict, illness, appearance in court, transportation
problems, etc.), even if permitted and/or excused by your instructor, will count as one of the class
absences against the two week equivalent cumulative limit specified in the previous paragraph.
Academic Honesty:
The Department of Finance adheres strictly to the University's policy on academic honesty as
contained in the Academic Regulations section of the University catalog. Any student found copying
during exams or quizzes, signing someone else's name to the attendance list, using stored formulas in
programmable calculators, using non-authorized formula sheets or other notes during exams,
collaborating on and/or copying the time value of money take-home problem set or other take-home
assignments, or the like will receive an F for the course and possibly be subject to additional University
disciplinary action.
No other electronic devices are allowed during quizzes and exams besides a financial calculator (see
page 2). Such prohibited items include laptops, personal digital assistants (PDAs), text messaging
systems and similar devices. If you have any questions about the legality of your calculator, check with
your instructor.
-3-
C.
Grade Weights:
Final Exam
Take-Home Assignment
Quizzes
Instructor-Specific Component
50%
15%
20%
15%
Final Exam:
The final exam is cumulative and will be given on the day listed in the course outline.
Instructor-specific component:
These points are allocated at the discretion of the instructor and will vary by class section and
semester. This component may be a group project, presentation and/or paper, another quiz, a
spreadsheet-solution, a case study and/or a grade for class participation. Your instructor will explain
this component of your grade in detail during the first week of class.
-4-
D.
Daily assignments, which should be completed before that topic is covered in class, are listed in the
third column. Students are responsible to know and understand the subject matter covered in each
textbook chapter, regardless of whether that material has been covered in class. Students are also
responsible to know how to solve all assigned end-of-chapter problems for each textbook chapter listed
as a Prepare chapter.
Preparation
Class #
Class 1
Class 2
Class 3
Class 4
Class 5
Class 6
Class 7
Mini-session
Friday,
May 6th
Topics to be covered
The Cost of Capital
- Cost of Debt
- Cost of Equity
- Weighted Average Cost of Capital
Cash Flow Estimation and Risk Analysis
- Cash Flow Estimation
- Identifying Relevant Cash Flows
- Evaluating Basic Capital Budgeting Projects
Advanced Topics in Capital Budgeting
- Replacement Decisions
- Project Risk Analysis
- Introduction to Decision Trees
Real Options and Capital Budgeting
- Introduction to Financial Options
- Introduction to Real Options
- Decision Tree Analysis of Real Options
Financial Planning and Forecasting
Financial Statements
- Overview of Financial Planning
- Financial Statement Forecasting
Financial Statements, Cash Flows and Taxes
Analysis of Financial Statements
(Self-study chapters)
Capital Structure Decisions
- Business Risk and Financial Risk
- Capital Structure Theory
Capital Structure Decisions
- Estimating the Optimal Capital Structure
- Checklist for Making Capital Structure Decisions
MEMORANDUM
To:
From:
Semester:
Spring 2005
Subject:
a)
The Department of Finance schedules common, Department-wide final examinations in MBA 8230.
The Final Exam is scheduled for Friday, May 6th, 2005, 7.15 PM - 9.15 PM
Variances granted from the common final examination date are undesirable for obvious reasons.
Intrinsically, early examination exposes any student to question, even if innocent, when cheating is
discovered. The penalties for cheating are severe; consult GSUs Graduate Bulletin for specific
university regulations. Core courses are offered each semester. Therefore, if you foresee a personal
conflict with the examination date please register for the course in a later semester. Only the
Department Chairman grants variances for the final examination date, permission granted by others will
not be honored.
-6-
b)
Withdrawal:
Grades at withdrawal are determined in strict compliance with policies stated in the Graduate Catalog.
A grade of "W" indicates that a student, doing passing work, was permitted to withdraw from the
course. A grade of "WF" indicates that the student
1.
Voluntarily withdrew from a course before the midpoint for the grade period while doing failing
work,
2.
Was involuntarily withdrawn from a course before the midpoint of the grading period while doing
failing work,
3.
Voluntarily withdrew from a course after the midpoint of the grading period and was not awarded
a hardship withdrawal, or
4.
Was involuntarily withdrawn from a course after the midpoint of the grading period and was not
awarded a hardship withdrawal.
c)
Examinations:
Material from the text chapters (both preparation chapters and reading chapters), end-of-chapter
problems, supplemental problems, cases, and the prerequisites may be covered on the exams,
whether or not specific coverage in class has occurred.
-7-