THE OHIO STATE UNIVERSITY Bus-Fin 721 - CORPORATE FINANCIAL MANAGEMENT Autumn Quarter 2011

INSTRUCTOR PHONE NUMBER OFFICE HOURS CLASS LOCATION EMAIL COURSE DESCRIPTION Susan Clark (614) 761-3420 638 Fisher Hall; MW 11:30-12:30 p.m.; TTh 2:30-3:30 p.m.; Other hours by appointment SB 209 clark.238@osu.edu Financial structure and problems of modern business corporations; common types of securities; working capital management and acquisitions, forecasting of capital needs, underwriting, options, management and distribution of retained earnings, cost of capital, derivatives, and capital budgeting THIS IS A GENERAL FINANCIAL MANAGEMENT COURSE, SO, MANY FINANCIAL MANAGEMENT SUBJECTS WILL BE COVERED Principles of Corporate Finance by Brealey/Myers/Allen ISBN 978-0-07-353073-4 (Edition 10e)

TEXTBOOK

Grading Homework - You must be prepared for class. This means having read the assigned information. There will also be homework assignments that will help emphasize class material. I will not collect these but they will be helpful when preparing for the exams. Exams - There will be two exams, each worth 100 points. Final - The final will not be comprehensive but will cover the material from the second exam to the end of the course. Exams (100 pts each) 200 points Final 100 points Total 300 points The stated schedule (shown below) and procedures in this course are subject to change in the event of extenuating circumstances. Continued enrollment in this course will indicate that the student has carefully read the syllabus and assumed responsibility for meeting course requirements.

Standards of Integrity and Conduct

Students are expected to be familiar with and abide by The Ohio State Universitys code of student conduct, available at http://studentaffairs.osu.edu/resource_csc.asp In accordance with OSU Faculty Rule 3333-5-487, all instances of academic misconduct will be reported to the Committee on Academic Misconduct, which recommends appropriate sanctions to the Office of Academic Affairs. Office of Disability Services (ODS) Any student who feels s/he may need an accommodation based on the impact of a disability should contact me privately to discuss your specific needs. Please contact the Office for Disability Services at 614-292-3307 in room 150 Pomerene Hall to coordinate reasonable accommodations for students with documented disabilities.

Bus-Fin 721: CORPORATE FINANCIAL MANAGEMENT (MW Tentative Schedule)

Date 9/21 9/26 9/28 10/3 Assignment Syllabus Goals and Governance of the Firm-- Chapter 1 How to Calculate Present Values Chapter 2 Valuing Bonds Chapter 3 The Value of Common Stocks - Chapter 4 Net Present Value and other Investment Criteria Chapter 5 Making Investment Decisions with the Net Present Value Rule Chapter 6 Introduction to Risk and Return- Chapter 7 Portfolio Theory and Capital Asset Model Pricing Chapter 8 Homework Ch. 2 #16,19,21 Ch. 3 #15,17, 20a,b Ch. 4 #16,19 Ch. 5 #8,11,15 Ch. 6 #16,18 Ch. 7 #14,20 Ch. 8 #15,16,17,18, 19 Ch. 9 #11,12,14 Ch. 10 #10 Ch. 14 #6 Ch.8 #11,12 Addl Problems Ch.2 #4,5,7,9,12, 14,20,25,26 Ch.3 #1,2,11,13,14 Ch.4 #3,4,5,18 Ch.6 #8

10/5 10/10 10/12 10/17 10/19 10/24 10/26 10/31 11/2 11/7 11/9 11/14 11/16 11/21 11/23 11/28 11/30 Tuesday, Dec 6th at 9:30 a.m.

Exam 1 Chapters: 1-7

Risk and the Cost of Capital Chapter 9 Project Analysis Chapter 10 Agency Problems, Compensation, and Performance Management - Chapter 12 Efficient Markets & Behavioral Finance - Ch13 Corporate Financing Chapter 14 How Corporations Issue Securities Ch 15 Payout Policy Chapter 16 Does Debt Policy Matter 17 Ch. 17 #19 Ch.9 #2 Ch.10 #13 Ch. 14 # 7 Ch.15 #7 Ch. 17 #3,8,13

Exam 2 Chapters 8-10, 12-15

How Much Should a Firm Borrow Ch 18 Financing and Valuation Chapter 19 Understanding Options Chapter 20 Credit Risk and the Value of Corporate Debt Chapter 23 The Many Different Kinds of Debt Chapter 24 Leasing Chapter 25 Financial Analysis Chapter 28 No class Financial Planning Chapter 29 Review for final Ch. 19 #1,2,7 Ch. 20 #14,15,22 Ch 19 #7 Ch. 20 #3,9,10,12

Ch. 25 #18 Ch. 28 #18,20

Ch. 25 #8,12

Final Chapters 16-20, 23-25, 28-29