Course Outline F2000T

8/2/2019 Course Outline F2000T

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Course Outline

FINE 2000T :030, Introduction to Corporate FinanceClass Day: Mondays & Wednesdays, 10:00 am to 11:30 amRoom: SSB W136Term: Winter, 2012Outline: http://athena.ssb.yorku.ca/course_material/W2012/CMD/FINE2000T.nsf

Instructor:George Klar, [email protected] N203GOffice hours: Mondays & Wednesdays, by appointment only

SecretaryStephanie Peca N204A, Seymour Schulich [email protected](416) 736-2100 ext. 44557

Brief DescriptionStudents learn about investment and financing in this core course. The investment decisionallocates scarce resources to projects in the organization, and involves asset valuation, capitalbudgeting, risk management, working capital management and performance assessment. Thefinancing decision chooses sources of cash to finance the investment decisions and involvescapital structure, financial instruments, the risk-return trade-off, financial planning and the costof capital. Ethical considerations and management in the global context are integrated into

these topics.

Prerequisite: none

Course Credit ExclusionAP/ECON 4400 3.00 (AS/ECON 4400 3.00 or AK/ECON 4082 3.00)

Course objectives:The course objectives are to introduce students to the theory of financial management and itsapplication to the business world. It analyzes how financial managers make decisions within aframework which emphasizes the time value of money (TVM) and the relationship between

expected return and risk. In addition, we examine the techniques that financial managers use toevaluate feasibility of undertaking new projects (i.e., capital budgeting).

This course is very fast paced, technical in nature, and it requires each student to doconsiderable out-of-class work. Problem solving throughout the course is required.
http://athena.ssb.yorku.ca/course_material/W2012/CMD/FINE2000T.nsfhttp://athena.ssb.yorku.ca/course_material/W2012/CMD/FINE2000T.nsfhttp://athena.ssb.yorku.ca/course_material/W2012/CMD/FINE2000T.nsf


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Organization of the Course:Class format is lecture with discussion and analysis of real time events. Students are expectedto prepare for class by having read the assigned readings, and maintained a regular reading ofnewspapers about the capital markets.

Assigned Reading:

Required reading for this course includes the following book. It is available for purchase fromthe York University bookstore. Other readings are available on-line:

Fundamentals of Corporate Finance, 4th Canadian Edition; Brealey, Myers, Marcus, Maynes & Mitra,McGraw-Hill Ryerson, 2009

Required Newpapers: Must should the National Post, Globe & Mailand Economist, plus otheron-line publications. We will review interesting articles from these publications from theprevious week and examine their implications.

Evaluation of Student Performance:The course grading scheme for undergraduate courses conforms to the 9-point system used in

other undergraduate programs at York. The possible course letter grades for a course (and thecorresponding grade points awarded for each grade are:

A+ 9 grade pointsA 8B+ 7B 6C+ 5C 4D+ 3D 2

F 0

(Students are reminded that they must maintain a cumulative GPA of at least 5.0 to remain ingood standing and continue in the program, and to qualify for their degree. Schulich gradingguidelines mandate a section GPA of between 5.5 and 7.0.)

Where instructors use numerical or percentage grades, Schulich grading policy does not requirea preset translation of percentages into specific letter grades. In this class, final letter gradeswill be determined by the following process:

Grade Evaluation:

Quiz #1 (45 min.) 10%Quiz #2 (45 min.) 15%Midterm Exam....... 30%Final Exam............ 45%

Total...... 100%

Any student who obtains less than 50% weighted average on the examinations may not passthe course. There are 2 exams: (i) a Midterm and (ii) Final. If you miss the Midterm and have


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submitted a properly completed Attending Physician Statement (APS), then your Final exam will bere-weighted upward and will now be worth 75% of your final course grade.

Quiz:There are 2 Quizs during the term and both held in-class. On these days, a lecture will also begiven in the balance of the available time. The first Quiz (10% weight) is designed to ensureyou have mastered some early concepts and can apply these using your calculator. If you missQuiz #1 and a valid APS is received, the weight of Quiz #1 will be transferred to your Mid-TermExam and thus, the Midterm will be worth 40%.

Quiz #2 (with a 15% weight) deals with more advanced financial issues. If you miss Quiz #2and a valid APS is provided, the weight of Quiz #2 will be transferred to the Final Exam (thus,the Final Exam is worth 60%).

Exams:Midterm exam: A 90-minute Mid-Term exam will be held mid-way through the term. You willbe provided with a formula sheet as part of the exam booklet. You must bring a non-programmable calculator with no text capabilities. No books, notes, phones or computers are

allowed during the exam.

Final Exam: The final exam will be 3 hours long and will cover the entire course. You will beprovided with a formula sheet as part of the exam booklet. You must bring a non-programmable calculator with no text capabilities. No books, notes, phones or computers are

NOTE: Any student who misses 3 or more of the Quizs or Exams will automatically be deemedto have not fulfilled the course requirements and will receive a grade of Incomplete (I).

Academic Honesty:Academic honesty is fundamental to the integrity of university education and degree programs.The Schulich School will investigate and will act to enforce academic honesty policies where

apparent violations occur. Students should familiarize themselves with York Universitys policyon academic honesty. It is printed in full in your student handbook and can also viewed on-lineon the Schulich website, clicking through as indicated:

Schulich website ProgramsMasters Degree Learn MoreAcademic Policy

While academic dishonesty can take many forms, there are several forms of which studentsshould be highly aware because they are the ones that are most likely to occur in the context ofa specific course.

[1] Plagiarism. Plagiarism is the presentation of information, ideas, or analysis generated

by other people as being your own. It includes direct quotations as well a substantiveparaphrases where the course of that information or idea is not clearly identified to thereader. Students should be careful to present their written work in a way that makes itcompletely clear in each and every cases where a quotation, a paraphrase, or ananalysis is based on the work of other people. (This includes information from allsources, including websites.)


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[2] Cheating. Cheating is an attempt to gain an unfair advantage in an evaluation.Examples of such violations include (but are not limited to) consulting prohibitedmaterials during an examination or copying from another student.

[3] Failure to follow limitations on collaborative work with other students in preparingacademic assignments. Each class differs in the mix of assignments and group-versus-individual preparation that is allowed. The instructor will make clear the extent ofcollaboration among students that is acceptable among students on various pieces ofassigned work. Students should abide by those limitations and, if they are unsure aboutwhether a certain level or form of collaboration would be acceptable, to clarify thatquestion with the instructor in advance.

[4] Aiding and abetting. A student is guilty of violating academic honesty expectations ifhe/she acts in a way that enables another student to engage in academic dishonesty. Ifa student knows (or should reasonably expect) that an action would enable anotherstudent to cheat or plagiarize, that students action constitutes an academic honestyviolation. Illustrative examples include making your exam paper easily visible to othersin the same exam or providing your own working or finished documents for an

individual assignment to another student (even if that other student said that he/shejust wanted to get an idea of how to approach the assignment or to check whetherthey had done theirs correctly).

[5] Use of academic work in more than one course. Generally, academic work done forevery course is new work, done for that course only. If a student wishes to use someor all of the academic work done for an assigned task in one course in another course,the student must get explicit, priorpermission from both instructors so that theyagree that the scope and nature of the overlapping use of that work is such that it canfairly be counted toward both courses.

Other information:

Use of laptops, cellphone, PDAs, Blackberrys, are NOT allowed in thelecture room. They MUST be turned off. Repeated interruptions by yoursmartphone may lead to it being confiscated for the duration of the class.

I will post lecture slides before the class and materials to the CMD. Review all materialbefore the lecture. Be prepared to participate and engage in discussion.

Calculator: Every student must have a hand-held calculator that has Time Value ofMoney functions and you will need to be able to use your calculator effectively. Someexamples of calculators you may wish to purchase include; The Sharpe EL 733A (or later)

model, or the Texas Instruments BAII Plus or the Hewlett Packard HP10, are all good choices.(Look for n, i or I/Y, PMT, PV, FV, CF, IRR and NPV functions).


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Punctuality and decorum:Lectures will start at the indicated time, sharp. Students are expected to be on time. If you areuncharacteristically late due to unforeseen circumstances, please take a seat at the back of theclass and try not to disturb anyone. Students are asked to remain in the class for the duration ofthe lectures and not to leave the classroom and/or come back and forth at will. If you must leaveearly occasionally, please have the courtesy to let me know in advance.

Email protocol:As I teach several different courses and sections, it is essential that the following email protocolbe observed:

Email me from your Schulich email account ([email protected]) under allcircumstances

Use the email address at the top of this course outline only

On the subject line, provide your course code (FINE2000) and section (e.g., Sect. X) anda brief description of the purpose of your email

To receive a response to your email, sign your email with your full name and studentnumber

Consolidate your queries into a single email

Provide your attempted solution to exercises and problems when seeking help
mailto:[email protected]:[email protected]:[email protected]:[email protected]


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Schedule of Topics and Readings:The following list of lecture topics and readings indicate the material to be read, reviewed and/or prepared for thevarious class sessions. If any changes in this schedule become necessary, notifications will be posted in the course CMD,and where such changes need to be announced between class sessions, an email will be sent to students Lotus Notesemail accounts, notifying them of the change.The topic order is stated below and is a guideline only. The instructorreserves the right to alter the schedule as needed.

Prof. Klar / FINE 2000T / 10:00 am Room W136

Last revised: 21/12/2011

Lecture Date Topic and Textbook Material1 Jan. 4, Wed Introduction to Corporate Finance - Chapters 1 & 2

2 Jan 9, Mon Review of Accounting and Finance - Chapter 3

3 Jan 11, Wed Financial Statement Analysis - Chapter 17

4 Jan 16, Mon Financial Statement Analysis - Chapter 17 (cont)

5 Jan 18, Wed Time Value of Money ("TVM") - Chapter 4

6 Jan 23, Mon TVM (cont)

7 Jan 25, Wed Bonds - Chapter 5 & QUIZ #1 (worth 10%; covers Ch. 3, 4, 17) - 45 min.

8 Jan 30, Mon Bonds (cont)

9 Feb 1, Wed Stocks - Chapter 6

10 Feb 6, Mon Stocks (cont) & Corpt Financing - Chapter 13 (sections 13.2-13.5 only)

11 Feb 8, Wed Net Present Value ("NPV") & Other Criterion - Chapter 7

12 Feb 13, Mon Net Present Value & Other Criterion - Chapter 7 (cont)

13 Feb 15, Wed MID-TERM EXAM (worth 30%; covers Ch. 1-6 & 13, 17) - 90 min.

No Classes Feb. 20-24 **** BBA Reading Week ****

14 Feb 27, Mon Discounted Cash Flow Analysis - Chapter 8

15 Feb 29, Wed DCF (cont)

16 Mar 5, Mon Project Analysis - Chapter 9

17 Mar 7, Wed Introduction to Risk and Return - Chapter 10

18 Mar 12, Mon Risk (cont) & QUIZ # 2 (worth 15%; covers Ch. 7-9) 45 min.

19 Mar 14, Wed Risk, Return & Capital Budgeting - Chapter 11

20 Mar 19, Mon Risk, Return & Capital Budgeting - Chapter 11 (cont)

21 Mar 21, Wed Cost of Capital - Chapter 12

22 Mar 26, Mon Cost of Capital - Chapter 12 (cont)

23 Mar 28, Wed How Corporations Issue Securities - Chapter 14

24 Apr 2, Mon Review & catch-up

Apr 4-20 FINAL EXAM (Date TBA) 3 hours

Course Outline F2000T

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