FINE3015 2122 Course Outline Sem1 PDF

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Hong Kong Baptist University Department of Finance & Decision Sciences

FINE3015 Corporate Finance (Semester 1 2021-22) Instructor: Office: Tel: Email:

Dr. Samuel Ze-To WLB 811 3411 8091 [email protected]

Course Overview: This is intended as a second course in corporate finance. This course addresses the controversial issues and the more advanced topics in financial management. It offers students an opportunity to examine the theory of corporate finance and the role theory can play in leading practitioners towards sound financial decisions. Learning Outcomes: Upon completion of this course, students should be able to: 1. Perform capital budgeting analysis under certainty and uncertainty. 2. Evaluate the irrelevance of dividend policy issue and the capital structure controversy. 3. Discuss and evaluate the different motives and tactics in mergers and acquisitions. 4. Evaluate the impact of efficiency market hypothesis on financing and investment decisions. Textbook: Ross, Westerfield, Jaffe, Lim, Tan and Wong. Corporate Finance, 12th Edition, McGraw-Hill International Edition. References: Bodie, Z., Kane, A. & Marcus, A. J. (2009). Investments. (8th ed.). Boston: McGrawHill/Irwin. Brealey, R. A., Myers, S. C., & Allen, F. (2008). Principles of Corporate Finance (9th ed.). Boston: McGraw-Hill/Irwin. Brigham, E. F., & Daves, P. R. (2009). Intermediate Financial Management (10th ed.). Mason, Ohio:South-Western College Publishing. Journals: Zeto, Samuel (2016), Asset Liquidity and Stock Returns, Advances in Accounting, incorporating Advances in International Accounting (Accepted). Ze-To, Samuel, Y.M. (2012). Earnings Management and Accruals Anomaly Across Market States and Business Cycles, Advances in Accounting Incorporating Advances in International Accounting, Vol. 28, 344-352

1

Tentative Course Outline: Lecture Week 1

2

Topic Overview Introduction & Cash Flows Supplement Financial Statement Analysis Valuation and Capital Budgeting Discounted Cash Flows & Net Present Value

Chapte r 1-2

4-5

3

Capital Budgeting Decisions

6

4

Capital Budgeting under Risk

7

5

Risk Risk and Return: Lessons from Market History Return and Risk: The Capital Asset Pricing Model (CAPM) Risk, Cost of Capital, and Valuation Inefficient Markets

10, 11

Midterm Exam Capital structure Capital Structure and Dividend Policy Capital structure Dividends and Other Payout Long-Term Financing and Special Topic Raising Capital

16,17

6

7 8 9 10

Warren Buffett

13,14

16,17 19 20

11

Merger and Acquisition

29

12

Merger and Acquisition

29

Assessment Method: Class Participation/Discussion Mid-Term Exam (held in Lecture 7) Project/Assignment (Individual) Final Examination

Activity

10% 20% 20% 50%

Assignment Submission...