This course provides a foundation in theories of finance. Topics include time value of money, net present value analysis, security valuation, portfolio theory, asset pricing models, capital budgeting decision, capital Structure decision, sources of financing for a firm, dividend policy, and mergers and acquisitions. Course/Learning objective This course is designed to give MBA students an overview of the role of uncial management in business firms and to facilitate understanding of financial concepts and their applications. It is also intended to develop some proficiency in the use of the basic tools and techniques employed in financial analysis, traditional as well as newer concepts.
It is, therefore, to help students understand why corporate financial managers behave the way they do. Students must also absorb facts and institutional materials being covered in lectures as well as in the text. Prerequisite MGM 201 (Quantitative Analysis) and MGM 211 (Financial Accounting) Course Materials 00 Textbook: Richard Bradley et a’, Fundamentals of Corporate Finance, 7th deed. , McGraw-Hill Irwin Alternative Textbook: Bradley et al, Principles of Corporate Finance, 1 lath deed.. McGraw-Hill Irwin. The spirit of the two books is similar. However, Fundamentals is less intimidating, and focuses attention on the underlying concept rather than the formula.
Fundamentals uses numerical examples to a greater degree than in Principles, and assumes little in the way of background knowledge. On the other hand, Principles is known for its relaxed and informal writing style. Fundamentals are available for purchase in the LACK bookstore while one copy of Principles is reserved in the Riviera library. O Optional Text: Study Guide to the text Grading policy A. Midterm B. Final Exam C. Homework 20% D. Team p reject 15% E. Class Participation 5% Grades will be posted throughout the term on learn. If you find any problem with your score, you must inform the instructor within one week from the time this score is posted. After one week, scores will not be reviewed.
In the case of score dispute, the entire exam or assignment will be reviewed, not just the question(s) in dispute. The score could go up, down, or remain the same. A. And B. Exams: There will be one midterm and one final exam. The final exam is basically uncommunicative in terms of topics covered, but obviously, you are assumed to know the main concepts and techniques covered in the midterm exam. Students who are absent from any exam without prior permission will receive a score of zero for that particular exam. Requests for permission to be absent from an exam will be considered only in cases of serious illness, and a formal note and a phone call from the physician must be accompanied. No exception to this rule under any circumstances!
Students are required to solve some problems at the end of each assigned chapter in the textbook. This homework (Homework A) is not to be submitted but solving them by yourself is crucial to understand the subject matter and to monitor your progress in the course. Some exam questions will resemble homework problems. Web Exercise and Mini Cases (Homework B) are to be submitted at the beginning of the class immediately following previous class meeting when we discuss the chapter of interest. Also, the pace and structure of the lectures and discussions will presume that students have employed the weekly read ins assignment prior to the first class meeting in that week.
Each group will be given a contemporary issue in financial management along with a lead article. Students in each group become panelists during the discussion of the issue. The following guidelines apply: The group and topic assignments will be made during April 8th class meeting. Each group will first read the lead article. Then it will study the issue assigned, search for challenges or supports, and be prepared for the panel discussion. In doing so, students in each group are welcome to use real data they can find on the internet or through the Sobs Computing. Each student in the group must significantly contribute to the group’s oral presentation as well as to its write-up.
Each student will evaluate and assign a grade to each other member in the same group The panel discussion will be held during the 9th and 1 10th weeks. (Most likely also during a 2-hour-long make up class for pm on Friday, June 6th if necessary. ) For the panel discussion, the group will prepare and distribute some hand- outs to help the audience better understand the issue. The final write-up is due at the beginning of the final exam. No credit will be given for projects overdue. Scores for this project will be based on the group’s understanding of the issue, originality, oral presentation, and defense during the panel discussion, and final write-up.
Class Notes and Handouts Class notes (Powering slides) will be available at least one day before the class meetings. Note that another packet that has all class handouts for this class will be available on I-Jar’s learn site. Course Schedule Note: (1 ) The above schedule is tentative; can be changed depending on our speed. 2) I may need to have a mandatory self-study class in May (likely May 20th). Integrity statement: At the University of California, Riverside (CUR) honesty and integrity are fundamental values that guide and inform us as individuals and as a community. The academic culture requires that each student take responsibility for learning and for producing work that reflect their intellectual potential, curiosity, and capability.
