som 640 corporate finance professor hossein kazemipeople.umass.edu/kazemi/640-old/outline.pdf ·...

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Page 1: SOM 640 Corporate Finance Professor Hossein Kazemipeople.umass.edu/kazemi/640-old/outline.pdf · SOM 640 Corporate Finance Professor Hossein Kazemi 1. Basic Information: (a) Term:

SOM 640 Corporate FinanceProfessor Hossein Kazemi

1. Basic Information:

(a) Term: Fall 2017

(b) Class: Tuesdays & Thursdays 10:00-11:15, Room 210

(c) O�ce hours: Tuesdays 11:30-12:30, Thursdays 2:00-3:00, or by appointment

(d) O�ce: SOM 310A Tel: 545-5629

(e) E-mail address: [email protected]

(f) Personal web page: people.umass.edu/kazemi

(g) Course web page on Blackboard: uma.umassonline.net

2. Objective:

The purpose of this course is to introduce students to the area of �nancial economics. Studentswill learn about the basic concerns and responsibilities of �nancial managers, and gain anappreciation of the methods of analysis employed by them. Students pursuing a career in�nance should view this course as a �rst step in �nancial economics.

3. Textbook & Cases:

(a) Fundamentals of Corporate Finance, 11e, Ross, Wester�eld and Jordan. ebook

i. Title: Financial Decision Making Fall17

ii. Link: create.mheducation.com/shop/

iii. ISBN: 9781308889306

(b) Harvard Business School Cases

i. Link: cb.hbsp.harvard.edu/cbmp/access/6643577878

A. Assessing a Company's Future Financial Health

B. Tire City (includes and Excel supplement)

C. New Heritage Doll Company (includes an Excel supplement)

4. Other Tools: Finance calculator or apps

(a) Calculator: HP-12C or similar �nancial calculator with present and future values func-tions

(b) Online emulator: epx.com.br/ctb/hp12c.php

(c) iPhone App: itunes.apple.com/us/app/vicinno-financial-calculator/id400147868?mt=8

(d) Android App: play.google.com/store/apps/details?id=com.hp.hp12c

5. Assignments:

Reading assignments are from the textbook and the material posted on the website or dis-tributed in the class. Since you will be expected to participate in class discussions, you shouldalways complete the assignments before the class period. The material covered in this class ininherently cumulative, and it is imperative that you do not fall behind. I am here to help you,but it is your responsibility to get the help you need before problems get out of control.

6. Lecture Notes:

I will use slides to organize my lectures. Copies of these slide are available on Blackboard. Also,whenever possible, other reading materials that are distributed during class will be posted onthe web site.

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7. Problem sets, cases and exams:

(a) Cases: There are three cases. They are group projects. Use Blackboard to form groupsof 4-5 people by September 19. You will need to submit a printed copy of the case writeup at the beginning of the class. You may upload your case, but it has to be in PDFformat. No Excel or Word �les. A free PDF generator can be found here: cutepdf.com

(b) Problem Sets: There will be 4 problem sets. These are NOT group projects. You willneed to submit a CLEAN printed or hand written copy of the solution at the beginningof the class.

(c) Exams: There will be a mid-term and �nal exam. Final exam is not cumulative.

8. Class participation: To earn the points allocated to class participation,

(a) You must be fully engaged in what is taking place in the class { discussions, problemsolving, case review and so on

(b) Do not miss any class unless there is an emergency or a school sanctioned activity. In allof these cases you must let me know BEFORE the class starts (Other unusual cases willbe handled on a case by case basis).

9. Investment game and company reports: These are NOT required. The reports are based on asimulated investment game that you can play.

You could receive up to 6 points by participating in the investment game. To receive the full6 points, you will need to do the following:

(a) Finish in the top 3 in the simulated investment game

i. Go to the course website and follow the instructions for registering for the game. Youneed to sign up for the game called SOM640. Make sure that all of your trades aredone when you are logged into this game. Start investing before October 1.

(b) Write a report

i. Write a 10-12 page report, comparing the two �rms from the same industry (perhapstwo that you have invested in), making a case for investment in one of the two. Atypical report will consist of:

A. Background of the two �rms.

B. Stocks performance and additional statistics for the last 48 months. Data can bedownloaded from Bloomberg. This will be discussed in the class.

C. Analysis of �nancial statements, peer comparison, changes in �nancial position,etc.

D. Analysis of operations, competitive position, product lines, etc.

E. Equity valuation using one of the models discussed in the class

F. Conclusion and recommendation

(c) If your portfolio is NOT in the top 3 at the end of the term, then you are unlucky andyou will only receive 3 points for participating in the game and submitting a completedreport by the deadline. A printed copy of the report in PDF format must be submitted.

10. Summary of grading

4 Problem Sets: 4� 8 323 Cases: 3� 10 302 Exams: 2� 15 30Class participation 8Total Points of Requirements 100Investment Participation & Report 6Total Points + Extras 106

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11. Important Dates

12. Class policies:

(a) Please come to the class prepared to participate.

(b) Please avoid using your laptop, tablet or other electronic devises unless they are beingused to view or take notes.

(c) Enjoy the class and please let me know if I am moving too fast or too slow through thematerial. Please feel free to ask questions about what is being discussed in the class oranything �nance { do not promise to know the answer.

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