FIN 2200 - CORPORATION FINANCE (3 credit hours ... OF ACCOUNTING AND FINANCE FIN 2200 - CORPORATION…

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<ul><li><p> 1 </p><p>UNIVERSITY OF MANITOBA </p><p>I.H. ASPER SCHOOL OF BUSINESS </p><p>DEPARTMENT OF ACCOUNTING AND FINANCE </p><p>FIN 2200 - CORPORATION FINANCE (3 credit hours) Winter 2013: A03, Tuesdays &amp; Thursdays, 1:00 p.m.-2:15 p.m., 122 Drake </p><p>Instructor: Alex Paseka </p><p>Office: 474 Drake Centre </p><p>E-mail: paseka@ad.umanitoba.ca </p><p>Phone: (204) 474-8353 </p><p>Office Hours: Open door policy or by appointment. </p><p>PREREQUISITES &amp; COREQUISITES: </p><p>Required Prerequisite: Intro. Financial Accounting ACC 1100 (formerly 9.110); Principles of </p><p>Economics ECON 1200 (formerly 18.120) </p><p>Required Co-requisite: Basic Statistical Analysis I STAT 1000 (formerly 5.100) </p><p>Note: All students are required to have completed Calculus and Linear Algebra before entering the </p><p>Bachelor of Commerce program through track 1; track 2 students are to have completed these </p><p>courses immediately upon entry into the Bachelor of Commerce program. Knowledge of Calculus </p><p>and Linear Algebra is assumed and required for FIN 2200. Non-Commerce students who do not </p><p>have this background are encouraged to consult with the professor as needed when concepts from </p><p>these subjects are used in class. </p><p>COURSE OBJECTIVE: </p><p>This course introduces students to the fundamentals of finance and presents theories and tools to be used </p><p>in addressing corporate finance problems and issues. </p><p>REQUIRED MATERIALS: </p><p>1. J. Berk, P. DeMarzo, and D. Stangeland, Corporate Finance, Second Canadian Edition, Pearson Canada, 2011 </p><p>2. Texas Instruments BAII Plus financial calculator. I will use this calculator for examples in class. </p><p>MYFINANCELAB </p><p>MyFinanceLab software allows students to practice course material essentially without limit. The </p><p>software will also identify topics still needing more work and will create a personalized study plan. </p><p>We require that you complete a series of online homework assignments in MyFinanceLab. You will need </p><p>a code to access MyFinanceLab assignments. There are two ways to acquire an access code: </p><p>1. A code is included with the purchase of a new textbook. New textbooks may be purchased from the Book Store. </p><p>2. Students not wishing to use a new hardcopy of the textbook may instead purchase a MyFinanceLab code separately on the internet. </p></li><li><p> 2 </p><p>Course Name: Corporate Finance FIN2200 Winter 2013 </p><p>Course ID: XL13-Q1B2-801Z-8DW2 </p><p>How to Register and Enroll in Your MyFinanceLab Course To join your instructor's course, please complete the following steps: </p><p>Steps to Register: </p><p>1. Go to http://www.myfinancelab.com and click the Student button, in the Register section. </p><p>2. Enter the course ID, XL13-Q1B2-801Z-8DW2, and click Next. </p><p>3. Choose to register an access code (came with your new textbook) or purchase access if you dont have an access kit/code. </p><p>4. Click the button to proceed to registration. </p><p>5. Follow the instructions to create your account. </p><p>6. Click the link to login. Youll be directed to http://www.myfinancelab.com, where you can enter the user name and password you just created. Click the login button. </p><p>7. The first time you enter the site youll be asked to enter your course ID. Enter your course ID XL13-Q1B2-801Z-8DW2. </p><p>To log into MyFinanceLab: </p><p>1. Go to http://www.myfinancelab.com </p><p>2. Enter the user name and password you just created, and click Log In (or hit the enter key). If you purchased access, visit the Textbook Resources inside your Instructor's Course for </p><p>additional purchase options. </p><p>Need Help? For assistance, please visit http://www.myfinancelab.com/support or see your instructor for </p><p>help. </p><p>Note: All communication with me should be done only by regular email! Check announcements on </p><p>D2L regularly. </p><p>GRADING AND EXAMINATIONS: </p><p>Final grades are based on the students weighted mark and performance relative to other students. </p><p>Assignments </p><p>(homework) </p><p>available on MyFinance Lab </p><p>(http://myfinancelab.mathxl.com/login_finance.htm) </p><p>20% </p><p>Midterm Exam Saturday, March 2, 2013, room and time TBA 30% </p><p>Final Exam Location and time TBA 50% </p><p>http://www.myfinancelab.com/http://www.myfinancelab.com/http://www.myfinancelab.com/http://www.myfinancelab.com/support</p></li><li><p> 3 </p><p>COURSE MATERIALS </p><p>Most supplemental material to the course (lecture notes, text book solutions, old exams, etc.) will be </p><p>available on the courses Desire2Learn (D2L) site. Students are responsible for checking D2L and </p><p>downloading the relevant material before each class. Follow the instructions below to log on to D2L: </p><p>1. Go to https://universityofmanitoba.desire2learn.com/ 2. Log into D2L using your UMnetID (formerly called your ccu account) account. You must have </p><p>previously claimed your UMnetID account in order to log into D2L. If you have not done so, </p><p>claim your UMnetID account by clicking on the ClaimID link under Current Students on the </p><p>University of Manitoba homepage (www.umanitoba.ca). If you are having problems logging into </p><p>your course visit the Accounts Office in 010 Dafoe Tunnel, contact the support desk by phone </p><p>(204) 474-8600 or email support@umanitoba.ca. </p><p>3. Once logged on to your D2L page, click on the FIN 2200 course title. For more information on how to use D2L read Student D2L Help Files when you are logged into D2L. </p><p>Homework Assignments (these are graded!) </p><p>Assignments will be provided regularly throughout the course using the MyFinanceLab software. These </p><p>assignments are meant to prepare students for examinations. Students must pay attention to the dates and </p><p>times that assignments are available and assignment due dates. Late assignments will not be accepted. </p><p>Check for course announcements regularly. </p><p>Students experiencing difficulties with assignments are further encouraged, after thoroughly reading the </p><p>text and reviewing class notes, to contact their instructors for assistance (see office hours). </p><p>Tentative availability dates are as follows: </p><p>Assignment Date Available </p><p>8:00 am </p><p>Date Due </p><p>7:00 pm </p><p>Material Covered </p><p>1 Jan 8 Jan 20 Chapters 1, 2, 3 </p><p>2 Jan 21 Jan 30 Chapters 4,5 </p><p>3 Jan 31 Feb 6 Chapters 4, 5 </p><p>4 Feb 7 Feb 20 Chapters 8, 9 </p><p>5 Feb 21 Mar 6 Chapters 6, 7 </p><p>6 Mar 7 Mar 20 Chapter 10, 11 </p><p>7 Mar 21 Mar 27 Chapters 12 </p><p>8 Mar 28 Apr 3 Chapter 14, 15, 16 </p><p>Extra Practice on D2L (these are optional but highly recommended): </p><p>For your added benefit, you will have access to eight extra practice assignments and eight extra </p><p>practice quizzes based on these assignments on D2L in Extra Practice and Quizzes folders, </p><p>respectively. Neither these assignments nor quizzes are graded. You will have unlimited attempts at the </p><p>quizzes. Once a practice set or a quiz shows up on D2L, it will stay there for the rest of the course (for </p><p>your unlimited use). Even though quiz attempts are unlimited, there will be a time limit for each attempt. </p><p>You will be able to see all this information (number of questions, time limit, etc.) when you click on a </p><p>quiz and before you press Begin button to start taking it. </p><p>Below is the availability of the quizzes and practice sets: </p><p>https://universityofmanitoba.desire2learn.com/http://www.umanitoba.ca/mailto:support@umanitoba.ca</p></li><li><p> 4 </p><p>Ungraded </p><p>Practice Sets </p><p>and Quizzes </p><p>Date Available </p><p>12:00 am </p><p>Material Covered </p><p>1 Jan 8 Chapter 1,2,3 </p><p>2 Jan 21 Chapter 4 </p><p>3 Jan 31 Chapters 4, 5, 5A </p><p>4 Feb 7 Chapters 8, 8A, 9 </p><p>5 Feb 21 Chapters 6, 7, 7A </p><p>6 Mar 7 Chapters 10, 11 </p><p>7 Mar 21 Chapter 12, 13.1 </p><p>8 Mar 28 Chapters 14, 15, 16 </p><p>Labs: </p><p>Corporate Finance Labs will be held on Fridays. The labs are compulsory for all students. Attendance </p><p>will be taken at each of the labs and students may have one mark deducted from their final exam for each lab </p><p>that was not attended. Each lab corresponds to a course section. Students are to show up for the lab that corresponds to the course section they are registered for. The structure of a typical lab will be solving one </p><p>to six or so problems (depending on the size of the problems). Note that since most of the problems </p><p>discussed at the labs are more advanced than and do not overlap with those on the assignments, you miss </p><p>those labs at your own peril. Lab instructors may reserve, at their discretion, 10-20 min at the end of labs </p><p>to answer student questions. </p><p>Labs are there to help students to prepare for tests in a less formal environment than lectures themselves. </p><p>It is essential for students to prepare for labs by working through problem sets in advance and to show up </p><p>for labs regularly. Tentative lab schedule is given below: </p><p>Lab Date Material Tested </p><p>Lab #1 January 11 Chapter 3 </p><p>Lab #2 January 18 Chapter 4, 5, 5A </p><p>Lab #3 January 25 Chapter 4, 5, 5A </p><p>Lab #4 February 1 Chapter 8, 8A, 9 </p><p>Lab #5 February 8 Chapters 8, 8A, 9 </p><p>Lab #6 February 15 Chapter 6, 7, 7A </p><p>Lab #7 March 1 Chapter 6, 7, 7A </p><p>Lab #8 March 8 Chapter 10, 11 </p><p>Lab #9 March 15 Chapter 10, 11 </p><p>Lab #10 March 22 Chapter 10, 11 </p><p>Lab #11 March 29 Chapter 12 </p><p>Lab #12 Apr 5 Chapter 14, 15, 16 </p><p>Exams: </p><p>Formula sheets will not be provided for the examinations. Instead, students are permitted to bring in one </p><p>8.5 by 11 inch sheet of paper on which they can write anything on both sides. For the final examination, </p><p>each student may bring in an additional sheet of paper (8.5 x 11 inches) on which he/she can write </p><p>anything. (Thus for the final, you may bring in a total of two sheets of paper.) You should begin preparing </p><p>your formula sheet immediately. Formula sheets must be hand written (both sides permitted). NO </p><p>word-processed or photocopied material is allowed on your formula sheet. Improper formula sheets </p><p>will be confiscated; offending students will be allowed to complete the exam without any formula sheet. </p></li><li><p> 5 </p><p>After the exam, offending students will be referred to the Deans office on a violation of academic </p><p>integrity. </p><p>PROFESSIONAL CONDUCT </p><p>Students are expected to demonstrate professional conduct for the duration of the course. Some aspects of </p><p>this include the following: attending each class and arriving on time, restricting discussions in class to the </p><p>current course material, keeping mobile phones in the off or silent modes, and not placing or </p><p>answering calls, text messages, or emails during class time. Unprofessional conduct is disruptive to the </p><p>learning environment and makes mastering the course material more difficult for all students. </p><p>TENTATIVE COURSE SCHEDULE: </p><p>You will find that the course progresses quickly and the material covered builds on earlier material. It is </p><p>important to stay current in your studies otherwise you will not understand the new material as it is </p><p>presented. If you read the text in advance of the relevant classes, you will have a much better chance of </p><p>understanding the material as it is taught. It is the students responsibility to read the assigned material </p><p>prior to the relevant class. </p><p>Lecture Topic Chapter </p><p> Course outline (read it thoroughly!). </p><p>Chapter 1 is a self-study. To refresh the material from </p><p>the prerequisite accounting course, ACC 1100, study </p><p>Chapter 2 on your own. The knowledge of material </p><p>from chapters 1 and 2 will be assumed; it will not be </p><p>covered in class. </p><p>1,2 (self-study) </p><p>Jan 8-10 Arbitrage and Financial Decision Making Chapter 3, 3A </p><p>(appendix, except for </p><p>Arbitrage with </p><p>Transaction Costs) </p><p>Jan. 15-29 Time Value of Money, Interest Rates 4 (skip 4.6), 5, 5A </p><p>Jan.31-Feb 12 Valuation of Bonds and Stocks </p><p>8, 8A, 9(skip 9.3-9.4) </p><p>Feb. 14-28 Capital Budgeting 6, 7 (skip 7.5), 7A </p><p>Midterm Break, Feb. 18 Feb. 22 </p><p>Mar. 5 19 Risk, Return, and Portfolio Theory 10,11 </p><p>Saturday, </p><p>March. 2 </p><p>Midterm: time and location TBA 1, 2, 3, 4, 5, 5A, 6, 7, </p><p>7A, 8, 8A, 9 </p><p>March. 20 Last date for voluntary withdrawal </p><p>Mar.21-26 Capital Asset Pricing Model (CAPM) 12 (skip 12.5-12.6, only </p><p>WACC from 12.7), 13.1 </p><p>Mar. 28- Apr.2 Capital Structure 14 (skip 14.4-14.5), 15, </p><p>16 (skip 16.8) </p><p>Apr. 4-9 Options, Futures and Forwards 20 (skip 20.5), 30.2 </p><p>(only Hedging with </p><p>Futures) </p><p>TBA Final Exam: 3 hours Cumulative </p></li><li><p> 6 </p><p>ACADEMIC INTEGRITY: </p><p>It is critical to the reputation of the I. H. Asper School of Business and of our degrees, that everyone </p><p>associated with our faculty behaves with the highest academic integrity. As the faculty that helps create </p><p>business and government leaders, we have a special obligation to ensure that our ethical standards are </p><p>beyond reproach. Any dishonesty in our academic transactions violates this trust. The University of </p><p>Manitoba General Calendar addresses the issue of academic dishonesty under the heading "Plagiarism and </p><p>Cheating". Specifically, acts of academic dishonesty include, but are not limited to: </p><p> using the exact words of a published or unpublished author without quotation marks and without referencing the source of these words </p><p> duplicating a table, graph or diagram, in whole or in part, without referencing the source </p><p> paraphrasing the conceptual framework, research design, interpretation, or any other ideas of another person, whether written or verbal (e.g., personal communications, ideas from a verbal presentation) </p><p>without referencing the source </p><p> copying the answers of another student in any test, examination, or take-home assignment </p><p> providing answers to another student in any test, examination, or take-home assignment </p><p> taking any unauthorized materials into an examination or term test (e.g., crib notes) </p><p> using any unauthorized materials in an examination or term test (e.g., crib notes) </p><p> impersonating another student or allowing another person to impersonate oneself for the purpose of submitting academic work or writing any test or examination </p><p> stealing or mutilating library materials </p><p> accessing tests prior to the time and date of the sitting </p><p> changing name or answer(s) on a test after that test has been graded and returned </p><p> submitting the same paper or portions thereof for more than one assignment, without discussions with the instructors involved. </p><p>Group Projects and Group Work: Many courses in the I. H. Asper School of Business require group </p><p>projects. Students should be aware that group projects are subject to the same rules regarding academic </p><p>dishonesty. Should a violation occur, group members are jointly accountable unless the violation can be </p><p>attributed to a specific individual(s). </p><p>Some courses, while not requiring group projects, encourage students to work together in groups (or at least </p><p>do not prohibit it) before submitting individual assignments. Students are encouraged to discuss this issue </p><p>as it relates to academic integrity with their instructor to avoid violating this policy. </p><p>In the I. H. Asper School of Business all suspected cases of academic dishonesty are passed to the </p><p>Dean's office in order to ensure consistency of treatment. </p></li><li><p> 7 </p></li></ul>