Revised Office Hours

Introduction to Finance - COMM 308 AA

Summer 2017

Instructor Dr. Ian Rakita, CFA

Office MB 10th floor, #213
E-mail Ian.rakita@concordia.ca
Office Hours Wednesday: 1:00 – 2:30
Class Time and Location: MW 2:45 – 5:30, H535

Prerequisite: COMM 217, COMM 220 (Previously or concurrently)

INTRODUCTION:
This course introduces core concepts central to financial management and firm value maximization. You
will learn the basic methods of: valuing corporate securities, estimating cash flows, and making capital
budgeting decisions. Introductions to portfolio management theory, cost of capital, and options will round
out the course.

Important:
We will use a Moodle website to facilitate interaction. Each student should have access to the course
site through the MyConcordia portal. There is also an All Sections Moodle page and this will have
important course-wide messages and information including: tutorial information, some basic course
information, a math review, end of chapter (EOC) questions/solutions as well as past final exams with
solutions. There is a "Student Message Board" where you can post questions to the tutors Any problems
accessing your Moodle websites should be directed to Help@concordia.ca.

LEARNING OBJECTIVES:
At the end of this course, students should be able to demonstrate a general understanding and specific
skills on the following:
 General: Conceptual frameworks underlying valuation, asset pricing, risk/return tradeoffs, and
investment vs. financing decisions. In addition, students are expected to use these frameworks to
(i) identify relevant information (ii) problem-solve, and (iii) make recommendations based on a
sound decision-making process.
 Specifics: Time value of money: terminology and techniques that value bonds, shares and
investment projects; Identification of relevant cash flows; Mechanics of determining the firms cost
of capital; and Recognizing payoffs for call and put options.

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REQUIRED MATERIALS:
Textbook: Introduction to Corporate Finance (4th Edition), by Booth, Cleary, Rakita, Wiley 2016.
Calculator: A scientific or financial calculator is required for this course. Make sure you have a model
that can compute [NPV] and [IRR] calculations. Your text gives guidance for problems executed with
the BA II Plus model from Texas Instruments. This is also the model often used for CFA exams;
however, there are other suitable models and manufacturers.

GRADING SYSTEM FOR THIS COURSE:

A+ 90 - 100 B+ 77 - 79 C+ 67 - 69 D+ 57 - 59
A 85 - 89 B 73 - 76 C 63 - 66 D 53 – 56
A- 80 - 84 B- 70 - 72 C- 60 - 62 D- 50 – 52

FNS 49 and below

More information about the grading system, examinations, and performance requirements is available
in section 16.3 of the Undergraduate Calendar. http://registrar.concordia.ca/calendar/16/16.html#16.3)

COURSE ASSESSMENT AND EVALUATION:

Exams Weight Date Chapters (relevant
sections in schedule)
Mid-Term 30% May 24 1-3; 5-7
Assignment (Wiley
10% June 11 5-9, 13-14
code required)
Final Exam 60% Date TBA Cumulative - entire
(common to all course
set by exams office
sections)
A minimum mark of 40% on the final exam and 50% on the course overall is required to pass the course.
All exams are closed book, but an equation list will be provided. The final exam has multiple choice
questions requiring theory and calculations, as well as written problems involving calculations (showing
formulas and all necessary steps, not just calculator button entries), and diagrams. There can also be
short answer questions requiring a few sentences of explanation.
Formula Crib Sheet: Formula crib sheets will be provided to all students by their instructor for all
exams. Students will not be permitted to bring their own. The formula sheet to be provided on the exam
can be found on the All Sections Moodle page.
Exam Procedures: Students should bring a picture ID to all exams. Students should make sure they
bring scientific or financial calculators and that those calculators have sufficient battery power.
About Missed Finals: Rules about eligibility to write a deferred final exam can be found at
http://registrar.concordia.ca/exam/faqdef.html. IMPORTANT: There is no guarantee that a deferred
exam will be written by the same instructor(s) who were teaching in the term when you first took the
course. The course content can also vary somewhat from term to term; therefore students writing
deferred exams are advised to monitor the course again to make sure they are prepared.

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TUTORIALS:
In addition to lectures, several tutorial sessions are conducted every week for Comm 308 students.
Tutorials are designed to reinforce the objectives of the course and to create an enjoyable learning
experience. All Comm 308 students are encouraged to attend at least one tutorial session every week.
The tutorial schedule and updates will be posted in the COMM 308 All Sections Moodle folder.
Outside Tutorial Companies (A-Plus, SOS, etc.) Please note that private tutorial companies, some
of whom aggressively promote their services on and off campus, are not authorized by Concordia
University to distribute flyers on University premises and may not use Concordia University facilities to
promote or provide their services on some flyers. Concordia University and its academic departments
do not have any affiliation with these companies even though names such as JMSB, Concordia, or
references to specific departments or courses often appear in a visible way on some flyers.

SUPPORT SERVICES
Concordia University offers many on-campus support services that are available to help students
achieve academic and personal success, as follows:
List of Student Services:
1. Academic Advisor, Department of Finance: Prof. Monir Wahhab
JMSB Academic Advice appointments: https://ejmsb.concordia.ca/iab_regs.
2. Counselling and Psychological Services: concordia.ca/students/counselling-life-skills
3. Concordia Library Citation and Style Guides: library.concordia.ca/help/howto/citations.html
4. Student Success Centre: concordia.ca/students/success
5. Health Services: concordia.ca/students/health
6. Financial Aid and Awards: concordia.ca/offices/faao
7. HOJO (Off Campus Housing and Job Bank): csu.qc.ca/hojo
8. Academic Integrity: concordia.ca/students/academic-integrity
9. Access Centre for Students with Disabilities: concordia.ca/offices/acsd
10. CSU Advocacy Centre: csu.qc.ca/advocacy
11. Dean of Students Office: concordia.ca/offices/dean-students
12. International Students Office: concordia.ca/students/international
13. Student Hub: concordia.ca/students

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TENTATIVE SCHEDULE OF LECTURES:
Class Date Ch Chapter Sections Topic and Class Activity

1 May 3 1 Omit 1.5 – 1.6 Course Introduction

2 Omit 2.5 An Introduction to Finance
3 Omit 3.1 – 3.2, 3.4, 3.5 from pages 86-91 Business (Corporate Finance)
including Capital gains/losses, CCA
Financial Statements
Recapture and Terminal losses
2 May 8 5 Cover All Sections Time Value of Money (TVM)
3 May 10 5 Cover All Sections TVM continued…
4 May 15 6 Omit 6.4 (Term Structure) Bond Valuation & Interest Rates
5 May 15-17 7 Omit 7.4 (Using Multiples), 7.5 (Simple Equity Valuation
Valuation Example).
May 22 Victoria Day – No Class
May 24 MIDTERM EXAM Chapters 1-3; 5-7 as indicated
6 May 29 13 Omit 13.4 – 13.5 (Capital Rationing, Capital Budgeting, Risk
International Considerations) Considerations, and Other
Special Issues
7 May 31 14 Omit 14.4 – 14.5 (Sensitivity to Inputs, Cash Flow Estimation and
Inflation and CB Decisions) Capital Budgeting Decisions
DISC
Deadline
8 June 5 8 Cover All Sections Risk, Return and Portfolio
Theory
9 June 7 9 Omit 9.4 (Alternative Asset Pricing Models) The Capital Asset Pricing Model
(CAPM)

10 June 12 10 Omit 10.4 – 10.5 (Behavioural Finance, Market Efficiency

Implications of Market Efficiency)
11 June 12 20 Omit 20.1 (Financing Sources), 20.4 Cost of Capital
(Effects of Operating and Financial
Leverage), 20.5 (Only omit the Fed Model
on pages 719-720), 20.7 (Cost of Capital
and Investment)
12 June 14 12 Omit 12.4 (Black-Scholes OPM), 12.5 Options
(Options Markets). Stop at page 429
13 June 19 22 Cover only 22.1, 22.2 and 22.7 Dividends

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ASSESSMENT & LEARNING OBJECTIVES:
The learning objectives are assessed through quizzes, a mid-term examination and a final examination.

Learning Activity Mid-Term and

Homework
Final Exams
Learning Objective
Acquire knowledge of the language of
Finance, the conceptual framework of Theory-based
Theory-based questions
Corporate Finance and asset pricing exam questions
and be aware of their limitations

Apply Finance concepts and rules to Application-based

Application-based questions
specific situations. exam questions

Use computer technology to solve Application based questions

problems related to the course requiring the use of computing
content. tools

ACADEMIC INTEGRITY:
I expect honesty and integrity from my students. Cheating of any sort will be dealt with as sternly as University
policy allows.
The Code of Conduct (Academic) at Concordia University states that the “integrity of University academic life
and of the degrees, diplomas and certificates the University confers is dependent upon the honesty and
soundness of the instructor-student learning relationship and, in particular, that of the evaluation process. As
such, all students are expected to be honest in all of their academic endeavours and relationships with the
University.” [Undergraduate Calendar, section 16.3.14 or Graduate Calendar, Code of Conduct (Academic).]
 All students enrolled at Concordia are expected to familiarize themselves with the contents of this
Code. You are strongly encouraged to visit the following web address:
http//johnmolson.Concordia.ca/ugrad/codeofconduct.pdf, which provides useful information about
proper academic conduct.
 Student Advocate Program has produced a short video presentation on academic misconduct as well as
pamphlets in four languages: English, French, Chinese and Arabic. These are available to students
at:http://supportservices.concordia.ca/studentadvocateprogram

DISCLAIMER:
The instructor reserves the right to change or update this outline, and any other course related materials, as
required. The student will be informed in a timely manner through announcements during class and/or on the
Moodle website.