Essentials of corporate finance

1、6buad 215 foundations of business financeuniversity of southern californiafoundation of business financebuad 215spring 2006building: hoh 101mw: 8:00-9:50 a.m.instructor: dr. j. kashefi “dr. kash”course web page: wwwplease turn-off your cell phone.course assistance:room:hoffman hall 702 ltelephone:(2

2、13) 740-8864cal poly:(909) 869-2396fax:(213) 740-6650e-mail:jkashefi or dplease note my website e-mail does not work.office hours:mw 7:00-7:45 am and monday 12:00-1:00 pm.catalogue description:principles and practices of modern financial management; use of financial statement

3、s; valuation of investment; asset pricing under uncertainty; and elements of financial decisions. not available for credit to business majors. (4 units) prerequisite: buad 100 and acct 410 (no exception).course description:this course is primarily designed to introduce non-business majors to fundame

4、ntals of corporate finance. it explains the procedures, practices, and policies by which financial managers contribute to the successful performance of organization. the course also provides students with knowledge of key finance concepts and theoretical principles relating to the time value of mone

5、y, the effects of debt and dividend policy on firm value, the operation of financial markets, and the operation of foreign exchange markets. in addition, the course is intended to provide students with the tools to calculate the value of stock and bond investments, to evaluate investments in product

6、ive firm assets, to assess the risk of investments, to determine the cost of capital for firms and for individual projects, and to calculate exchange rates across different national currencies.academic integrity:the university is committed to maintaining academic integrity throughout its academic un

7、its. academic dishonesty is a serious offense that can diminish the quality of scholarship, the academic environment, the academic reputation, and the quality of a usc degree. please read the university catalogue to learn about academic dishonesty at the university of southern california and to the

8、responsibility of students, faculty, and administrators relating to this subject.disability services and programs (dsp)any student requesting academic accommodation based on a disability isrequired to register with disability services and programs (dsp) eachsemester. a letter of verification for app

9、roved accommodations can be obtained from dsp. please be sure the letter is delivered to me (or tota) as early in the semester as possible. dsp is located in stu 301 and is open 8:30 a.m. - 5:00 p.m., monday through friday. the phone numberfor dsp is (213) 740-0776.text requirement:title:essentials

10、of corporate financeauthor:stephen ross, randolph westerfield & bradford jordanpublisher:irwin/mcgraw-hilldate:2007, fifth editioncourse requirements:readings:you are responsible for the following readings in preparation for class participation and examinations.reading the assigned topics, as outlin

11、ed in the lecture schedule, from chapters in the required textbook.homework:1. the homework assignment and due dates will be announced during the class meeting.2. please make sure your homework is legible and shows all your calculations (not just the answer!). please print your name and id/ss number

12、 on each homework assignment.3. there are absolutely no points for late homework. if you cannot attend the class when homework is due, please fax it to the department before 10:00 a.m. of the due dates. e-mail attachment will not be accepted.quizzes:there are three quizzes in this course, which are

13、equally weighted. each quiz will cover the material discussed in class and presented in the textbooks. questions will be in multiple-choice essay and problems. questions will be similar to those listed at the end of each chapter in the textbook. please make a careful note of the quiz dates as listed

14、 in the lecture schedule because there is absolutely no make-up test!examinations:there is one mid-term and one final examination in this course. the final examination is comprehensive. each exam will cover material discussed in the class and textbook. questions will be in the forms of multiple-choi

15、ce essay and problems. the problem section will contain questions similar to those recommended in the lecture schedule. please make a careful note of the examination dates as listed in the lecture schedule because there is absolutely no make-up test!examination policy: all exams are closed book and

16、closed notes. you are required to follow all instructions given on the cover sheet of each test. failure to do so may result in not receiving credit for correct answers. it is your responsibility to check your test to ensure that no pages are omitted. the cover sheet to each test will explain how ma

17、ny pages there are to the test, how many questions are included in the test, and how many points are assigned to each question. you are responsible to check the number and sequence of the pages of each test. if your test is missing a page, ask the instructor for a new test. requests for re-grades be

18、cause pages are claimed to have been missing from a test will not be accepted. if you have any questions during a test, raise your hand and ask the instructor. no discussion with other class members will be allowed during a test. you may be asked to change seats during a test. this does not necessar

19、ily mean that you are suspected of cheating. you may be asked to show proper identification before, during, or after a test. you are required to bring your university student picture identification to each test. no programmable calculators or palm-held computers are allowed during a test. you cannot

20、 leave the classroom after examinations are distributed. please turn-off your pager and cell phone. no partial credit will be awarded for objective questions. requests for grade changes for such reasons as “i am only 2 points from a b” or “i need a few more points to be admitted into the business sc

21、hool” will not be considered. if you change your answer on the scantron sheet, it is your responsibility to properly erase any other answers you had previously selected. scantron sheets that are misgraded because of poor erasure marks will not be re-graded.grading policy:grades are determined in the

22、 following format:class attendance10 percenthomework10 percentthree quizzes15 percentmid-term examination25 percentfinal examination40 percenttotal 100 percentimportant dates:dateeventsjan 16, 2006no classfeb. 20, 2002no classmarch 20, 2006mid-term examinationmarch 13-17, 2006spring recessmay 8, 200

23、6final examinationlecture schedule:jan 9checking student listreview of course outlinechapter 1:introduction to financial managementfinance: a quick lookbusiness finance and the financial managerjan 11chapter 1:introduction to financial managementforms of business organizationthe goal of financial ma

24、nagementthe agency problem and control of the corporationfinancial markets and the corporationjan 16martin luther king day, university holidayjan 18chapter 2:financial statements, taxes, and cash flowthe balance sheetthe income statementtaxesjan 23/25chapter 3:working with financial statementsjan 30

25、/ feb 1 chapter 4introduction to valuation: the time value of moneyfuture value and compoundingpresent value and discountingfeb. 6/81st quiz chapters 1-3chapter 5:discounted cash flow valuationfuture and present values of multiple cash flowsvaluing level cash flows: annuities and perpetuitiesfeb 13c

26、hapter 5:discounted cash flow valuationfuture and present values of multiple cash flowsvaluing level cash flows: annuities and perpetuitiesfeb 15chapter 6:interest rates and bond valuationbonds and bond valuationmore on bond featuresbond ratingssome different types of bondsfeb 20no classfeb 22chapte

27、r 6:interest rates and bond valuationbonds and bond valuationmore on bond featuresbond ratingssome different types of bondsfeb 27chapter 7equity markets and stock valuationcommon stock valuationsome features of common and preferred stockmarch 1chapter 7equity markets and stock valuationcommon stock

28、valuationsome features of common and preferred stockquiz 2chapter 4-6march 6chapter 7:equity markets and stock valuationcommon stock valuationsome features of common and preferred stockmarch 13-15spring recessmarch 20mid-term examination: chapters 1-7march 22/27chapter 8:net present value and other

29、investment criterianet present valuethe payback period rulethe internal rate of returnthe profitability indexthe practice of capital budgetingmarch 29chapter 9:making capital investment decisionspro forma financial statements and project cash flowevaluating npv estimates & additional considerationsscenario and other what-if analysesapril 3chapter 10:some lessons from capital market histor