Faculty of Management

(FOM)

BFN2104 Corporate Finance

COURSE OUTLINE
TRIMESTER 1, 2016/2017

BFN2104 Corporate Finance Trimester 1, 2016/17

1. Information About the Course

1.1. Teaching Staff
Subject coordinator
Room
Contact no.
Email+
Consultation*

: Ms. Thai Siew Bee

: FOM BR3002
: 03- 8312 5664
: sbthai@mmu.edu.my
: Monday 1000 1200; Tuesday 1100 - 1300

Lecturer
Room
Contact no.
Email+
Consultation*

: Ms. Kwan Jing Hui

: FOM BR3015
: 03- 8312 5682
: jhkwan@mmu.edu.my
: Tuesday 0900-1100; Wednesday 1400-1600

*Subject to change when necessary. Appointment is necessary to avoid any disappointment

+Kindly state your FULL NAME, ID & SUBJECT CODE clearly in your email whenever you wish to communicate with your
respective lecturer.

1.2. Class Schedule

Lecture Sections
BC01
Lecturer
Time
Venue

BC02
Lecturer
Time
Vanue

Tutorial Sections

:
:
:

:
:
:

Ms. Kwan
Tuesday 10am-12pm
CRCR0003 (FOM)

Ms. Thai
Tuesday 1pm -3pm
CRCR1002 (FOM)

BFN2104 Corporate Finance Trimester 1, 2016/17

BC01A
Tutor
Time
Venue

:
:
:

Ms. Kwan
Monday 10am-11am
CRAR3006 (FOM)

BC01B
Tutor
Time
Venue

:
:
:

Ms. Kwan
Monday 3pm-4pm
CRAR3006 (FOM)

BC01C
Tutor
Time
Venue

:
:
:

Ms. Kwan
Monday 2pm-3pm
CRAR3006 (FOM)

BC02A
Tutor
Time
Venue

:
:
:

Ms. Thai
Monday 9am 10am
CRAR 3007 (FOM)

BC02B
Tutor
Time
Venue

:
:
:

Ms. Thai
Wed 2pm -3pm
CRAR 3007 (FOM)

BC02C
Tutor
Time
Venue

:
:
:

Ms. Thai
Wed 1pm -2pm
CRAR 3007 (FOM)

1.3 Credit Hour

This course has 3 credit hours.

1.4. Pre-requisite
In order to take this course you must have passed:
- BFN1014 Financial Management 1
It is your responsibility to ensure that pre-requisite is satisfied and that you are properly enrolled
in this course. Otherwise the grade in this course may be withheld.

2. Course Objectives and Outcomes

2.1 Course Objectives
Provide a deeper understanding of financial theories, markets and problems faced by
corporations today to students majoring in Finance. Students will be exposed to the use of
financial tools and spreadsheets to assist in financial statement analysis, evaluation of investment
projects and portfolio management.

2.2 Learning Outcomes

By the end of the subject, students should be able to:

Understand the concept of time value of money.

Evaluate the different types of project base on risk management technique.

Understand the concepts of cost of capital and capital budgeting.

Understand the basic background information including economic, and financial

environment, and financial policy that are used to maximize the value of the firm.

BFN2104 Corporate Finance Trimester 1, 2016/17

3. Students Responsibilities and Conduct

3.1. Attendance
Under the University procedures, you are expected to be regular and punctual in all classes in
which you are enrolled. All applications for exemption from attendance at classes of any kind
must be made in writing to the respective lecturer with valid supporting documents (e.g. valid
medical certificate, etc.). Note that there are provisions in these procedures for the Faculty
to refuse final assessment if students attend less than 80% of their classes. It is expected
that you present yourself in lectures as responsible person who contributes actively to the
learning environment provided by fellow students and instructors.

3.2. General Conduct and Behavior

You are expected to conduct yourself with consideration and respect for the needs of your fellow
students and teaching staff. Conduct which unduly disrupts or interferes with a class, such as
ringing or talking on mobile phones, is not acceptable and students may be asked to leave the
class.

3.3. Keeping informed

You should take note of all announcements made in lectures, tutorials or on the MMLS web site.
From time to time, the University will post important announcements on the web without providing
you with a paper copy. You will be deemed to have received this information

4. Learning Assessment
4.1. Assessment Details

Assessment
Final Exam
Mid term exam
Assignment:
Group assignment
Individual assignment
TOTAL

Percentage
50 %
25 %

BFN2104 Corporate Finance Trimester 1, 2016/17

20%
5%
100%

4.2. Mid Term Examination (20%)

Date

: 17th August 2016 (Week 8- Wednesday)

Time

: 8pm-9pm (NIGHT)

Duration

:1 hour

Venue

: to be confirmed

Chapters covered

: Chap 1, 3, 4 & 6

Format

: The exam will be closed book and consists of questions & problems in
a multiple-choice and written-answer format.

If you fail to sit for the examination at the scheduled time, there is NO guarantee that a
supplementary examination will be provided. Please note that ONLY serious illness, with valid
document for absence (i.e. Medical certificate) will be considered for the supplementary
test.

4.3. Group Assignments (20%)

The assignments will be assigned and the details will be posted in MMLS during the trimester.
This is a GROUP ASSIGNMENT. Thus, NO individual assignment will be accepted for
assessment under any circumstances. You should form a group consisting of 5 students ONLY.
Upon formation, please fill in the Online Group Registration Form (B01: https://goo.gl/eJpNW5;
B02: Please refer to MMLS). A leader shall be appointed and he/she will liaise with the lecturer
upon request. It is your responsibility to inform your respective lecturer if you fail to find yourself a
group by 15th July 2016 (Friday- Week 3). Random grouping shall be done by the lecturer
thereafter.

All work submitted must be your own. Copying or not acknowledging the work of others is
considered plagiarism. The University regards plagiarism as a form of academic misconduct and
has strict rules regarding plagiarism. The group shall be assigned ZERO for the said assessment
if committed in such misconduct without further negotiation.

BFN2104 Corporate Finance Trimester 1, 2016/17

4.4. Final Examination (50%)

Time and Venue will be announced in University timetable.

The final examination is a 2-hour closed book examination covering course material from
chapters not covered during the mid term examination. Chapters covered during the mid term
exam will NOT be covered in the final examination. It consists of questions and problems in
both multiple-choice and written-answer formats.

WARNING: Poor class attendance (less than 80%) is sufficient justification for the barring of final
examination.

5. Course Resources
5.1. Required Textbook
Megginson. Smart & Graham (2010), Financial Management,3rd Edition, South - Western,
CENGAGE Learning. (ISBN-13: 978-0-538-74558-1)

5.2. References
Ross, S.A, Westerfield RW, Jaffe J, Lim J, Tan R., Wong, H (2015). Corporate Finance: Asia
Global Edition, McGraw Hill. (ISBN: 978-1-259-01183-2)
Parrino, R, Kidwell, D, Bates T (2015), Corporate Finance 3rd Edition, Wiley.
Brealey RA, Myers SC (2013) Principles of Corporate Finance: Global edition, McGraw Hill.

5.3. Others
Current news media, online newspapers and magazines such as The Star, Investor Digest, Asian
Wall Street Journal, Corporate World, Fortune, Forbes and others.

BFN2104 Corporate Finance Trimester 1, 2016/17

6. Lecture Plan*
WEEK

1
(27/06/201603/07/2016)

TOPIC

TUTORIAL

Project Group
Registration
(5 in a group)

Chapter 1: The Scope of Corporate

Finance

HARI RAYA BREAK

(04/07/201610/07/2016)

Review Questions
1-1, 1-3, 1-4

3
(11/07/201617/07/2016)

Chapter 3: The Time Value of Money

REMARKS

Problems
P1-1a, 1-2a, b, c & d

PUBLIC HOLIDAY
- Eidul Fitri (6 - 7 July)
- 1MMU Leave (5 & 8 July)
- Student must already have
access to a textbook
- Last day for group
registration
15/07/2016 (Friday)
- ASSIGNMENT to be posted
on MMLS

4
(18/07/201624/07/2016)

5
(25/07/201631/07/2016)

Chapter 4: Valuation

Review Questions
3-2, 3-4, 3-5
Problems
3-3, 3-6, 3-9. 3-13, 3-19, 326, 3-34, 3-37, 3-45

Chapter 6: Risk, Return and the

Capital Asset Pricing Model

Problems
4-2, 4-8, 4-14, 4-22, 4-23,
4-24, 4-26

NO CLASSES
(for B01, B01A, B01B & B01C)
- Replacement classes to be
done in Week 5 (please check
MMLS for more details)

B01 REPLACEMENT
CLASSES
(for B01, B01A, B01B & B01C)
B01 Lecture (Chapter 4):
28 July 2016 (Thu), 6pm-8pm
Tutorial (Chapter 3):
B01A: 4pm-5pm (29 July- Fri)
B01B: 5pm-6pm (29 July- Fri)
B01C: 6pm-7pm (29 July- Fri)

6
(01/08/201607/08/2016)

7
(08/08/201614/08/2016)

8
(15/08/201621/08/2016)

Chapter 7: Capital Budgeting

Processes and Techniques

Problems
6-1, 6-6, 6-12, 6-14, 6-17,
6-22 & 6-24

Chapter 9: Cost of Capital and Project

Risk

Problems
7-2, 7-4, 7-9, 7-11, 7-12, 721, 7-26

Chapter 11: An Overview of Long

Term Financing

Problems
P9-1, P9-4, P9-9, P9-10,
P9-12, P9-13, P9-14, P915

BFN2104 Corporate Finance Trimester 1, 2016/17

MID TERM EXAMINATION

Date: 17th August 2016
(Wednesday)
Time: 8pm-9pm (NIGHT)
Venue: To be advised
Coverage: Chap 1,3, 4 & 6

9
(22/08/201628/08/2016)

10
(29/08/201604/09/2016)

Chapter 12: Capital Structure: Theory

& Taxes

Review Qs
11-4, 11-6, 11-7, 11-8, 1112, 11-16, 11-21
Problems
P11-3, P11-5, P11-6
Review Questions
12-1, 12-2, 12-5

Chapter 14: The Link between Capital

Structure & Capital Budgeting

Public Holiday (31 Aug- Wed)

Problems
P12-13, P12-17, P12-19,
P12-21, P12-23
Review Questions
14-1, 14-2, 14-4, 14-5

11
(05/09/201611/09/2016)

Chapter 15: Payout Policy

Problems
P14-1, P14-3, P14-8, P149, P14-17, P14-18
Review Questions
15-2, 15-6, 15-8

12
(12/09/201618/09/2016)

13
(19/09/201625/09/2016)

14
(26/09/201602/10/2016)

Chapter 20: International Financial

Management

Chapter 22: Cash Conversion,

Inventory and Receivables
Management
REVISION

Problems
P15-2, P15-6, P15-10,
P15-22

ASSIGNMENT
Submission Deadline:
09/09/2016 (Fri) before 5pm

Public Holiday
(12 Sept & 16 Sept)
Replacement Classes for
B01A, B01B & B01C
B01A: 4pm-5pm (14 Sep- Wed)
B01B: 5pm-6pm (14 Sep- Wed)
B01C: 6pm-7pm (14 Sep- Wed)

Problems
P20-1, P20-2, P20-3, P207, P20-10, P20-18
Problems
P22-9, P22-13, P22-17,
P22-20, P22-22, P22-24

03/10/201609/10/2016

STUDY BREAK

10/10/201623/10/2016

FINAL EXAMINATION**

Note:
*Subject to change if and when necessary
**Mid-term exam will include the first 4 chapters and the rest (8 chapters) will be covered in the Final Exam

BFN2104 Corporate Finance Trimester 1, 2016/17