University of California, Los Angeles Anderson School Basic Managerial Finance Anderson School MGT 130 Winter 2013

Section 1: Mon-Wed, 3:30-4:50, Fowler A139 Section 2: Mon-Wed, 5:00-6:20, Fowler A139
Text: Corporate Finance: Core Principles & Applications (3rd ed) by Ross, Westerfield, Jaffe, Jordan Instructor: Shane Shepherd email: shane.shepherd@anderson.ucla.edu Office Hours: TBD Focus: This course offers an introduction to some of the most important topics in Managerial Finance. Emphasis is placed on the optimal allocation of resources for corporations. The first part of the course deals mainly with optimal decisions under certainty, where resources are allocated over time, while the second part analyses decisions under uncertainty. Broad topics will include corporate financial analysis, corporate control, present value and security valuation, capital budgeting and dividend policy, capital structure, and security markets. Factors and models explaining security returns are investigated, as well as the concept of market efficiency. A discussion of behavioral finance will also question the assumptions behind efficient markets. The course concludes with a discussion of options and their applications.

Prerequisites: Some knowledge of economics, accounting, math, statistics, and considerable intellectual curiosity.

Grades: The course grade will be based 20% on 3 required homework problems, 30% on the mid-term exam, and 50% on a final examination. Grades will be given on a curve. In addition to the required problem sets, additional homework assignments will be given out following each lecture and are recommended but not graded. Regular completion of the optional homework will ensure good understanding of the course material. The mid-term exam is on February 11th, during the regularly scheduled class period. There will be no lecture or assignment for that day. The final exam is scheduled Monday, Mar 18, 8:00 am 11:00 am. Anyone who cannot take the exams at the scheduled or agreed-upon times should not register for the course. No make up exams will be given.

MGMT 130, Anderson School, Winter 2013 Schedule of Classes, Topics, and Assignments

Date
Jan 7 9

Class
1 2

Topic
Overview and Introduction Financial Statements & Cash Flows Financial Statements Analysis & Models Discounted Cash Flow Valuation Interest Rates and Bond Valuation No class Martin Luther King Jr. Holiday Stock Valuation Net Present Value Capital Investment Decisions Risk Analysis, Real Options, Budgeting Risk vs. Return & CAPM (part 1)

Reading
Ch. 1 Ch. 2 & Ch. 3

14 16 21 23 28 30 Feb 4 6

3 4 5 6 7 8 9 10

Ch. 4 Ch. 5

Ch. 6 Ch. 7 Ch. 8 Ch. 9 Ch. 10

Feb 11 11
13 18 20 25 27 Mar 4 6 11 13 12 13 14 15 16 17 18 19 20

Mid-term Examination
CAPM (part 2) and Arbitrage Pricing Theory No Class Presidents Day Holiday CAPM and Arbitrage Pricing Theory Cost of Capital and Cap Budgeting Efficient Markets and Alternative Indexing Capital Structure: Basic Concepts Captial Structure: Limits and Leverage Options & Corporate Finance Behavioral Finance

No Assignment
Ch. 11

Ch. 11 Ch. 12 Ch. 13 Ch. 14 Ch. 15 Ch. 17 TBD

Mar 18

Final Examination

8:00-11:00 AM