Corporate Finance Homework – Chapter 4

Corporate Finance2 CreditsBU. 231. 620. 62Thursday 6pm 9pm, 10/18/201212/13/2012F all told2, 2012Columbia, Columbia Center, 218 teacher Shabnam Mousavi Contact Information Phone Number (410)234-9450 E-mail Address emailprotected edu Office Hours Monday/Thursday 10am-noon Required textual matter and Learning Materials (1) Berk, J. and P. DeMarzo. 2007. Corporate Finance. 2nd Edition. Pearson, Addison-Wesley with MyLab entrance fee. The ISBN is 0-13-295-040-5. (2) Lecture Notes. The lecture notes entrust be posted weekly on Blackboard, before screen. 3) MyFinanceLab All homework and quizzes be posted on MyFinanceLab. Instructions available at the cobblers last of this syllabus. Course ID mousavi28617 Blackboard Site A Blackboard scarper site is set up for this course. apiece student is anticipate to check the site throughout the semester as Blackboard will be the firsthand venue for outside classroom communications between the instructors and the students. Students send aw ay access the course site at https//blackboard. jhu. edu. Support for Blackboard is available at 1-866-669-6138.Course Evaluation As a research and learning community, the C ary dividing line school day is committed to continuous improvement. Therefore each student must complete the course rating as part of the continuous improvement process. Information on how to complete the evaluation will be provided near the end of the course. Disability Services Johns Hopkins University and the C ary Business School be committed to making all academic programs, support services, and facilities accessible.To determine eligibility for accommodations, please contact the Carey Disability Services Office at while of admission and allow least four weeks prior to the beginning of the first class meeting. Students should contact Rachel abode in the Disability Services office by phone at 410-234-9243, by fax at 443-529-1552, or email carey. emailprotected edu. Important Academic Policies and Serv ices * celebrate Code * Statement of Diversity and cellular inclusion * Tutoring * Carey Writing Center * Inclement Weather PolicyStudents are strongly encouraged to consult the Johns Hopkins Carey Business School Student Handbook and Academic Catalog and the School website http//carey. jhu. edu/syllabus_policies for precise information regarding the above items. Course comment The coating of this course is to analyze the major decisions of a corporation. The course deals primarily with a firms investment and financial backing decisions and the firms interaction with capital markets. Topics include valuation of future property flows and attempt, capital budgeting, capital structure theory, and pay-out theory.Course Overview About 90% of total revenues in the US economy are generated by corporations. beneathstanding decision-making within a corporation, whether it is about the choice of investment or about how to brook capital to finance a specific investment, is fundamental ly definitive to understand the key players in right hand aways economy. This course provides the tools to understand efficient decision-making within a corporation by employing the notion of absence seizure of arbitrage (i. e. , the Law of One Price), namely the fundamental principle shaping all aspects of modern finance.While my goal cannot be to make you expert managers in eight weeks, you will be able to evaluate important corporate decisions coherently within the framework of the no-arbitrage principle. Student Learning Objectives for This Course All Carey graduates are expected to demonstrate competence on four Learning Goals, operationalized in eight Learning Objectives. These learning goals and objectives are supported by the courses Carey offers. For a complete list of Carey learning goals and objectives, please refer to the website http//carey. jhu. edu/LearningAtCarey/LGO/index. html. The learning objectives for this course are . You should be able to price future cert ain (and uncertain) streams of income. 2. You should be able to use effectively valuation methods when making capital-budgeting decisions. 3. You should recognize the financial and strategic implications of alternative corporate financing decisions in distinguishable environments. 4. You should recognize the financial and strategic implications of alternative corporate pay-out decisions in different environments. 5. You should understand agency problems in the context of corporate financing and pay-out decisions and their ethical implications. Attendance PolicyClass attendance is mandatory. Each student should read the appoint materials and give careful thought to background information prior to each class session. Having done so will not only(prenominal) facilitate class discussion, it will also lighten your workload because the lectures are much easier to follow after the readings bugger off been digested. Assignments Course grades will be based on 3 quizzes (Dates on MyFinan ceLab), homework assignments, and a final exam. The quizzes will be available on MyFinanceLab. A supreme of one quiz can be missed. If a quiz is missed, additional weight (10%) is put on the final exam. Missing a quiz only considers not sitting for it. For example, it does not mean discarding an unfavorable grade ex-post. ) Homework assignments will be posted each week on MyFinanceLab. You can work on these in groups but you do not have to do so, if you so choose. afterwards due date no points will be given for a homework. The final exam will be about 3-hour long. It will be closed-book. A two-sided (A4) self made consolidation-sheet will be allowed. Evaluation and Grading Assignment Learning Outcome Weight 3 quizzes 1-5 10% each Assignments 1-5 20% Final exam 1-5 50%Important notes about grading policy The grade for good mathematical process in a course will be a B+/B. The grade of A- will only be awarded for polished performance. The grade of A will be reserved for those who demonstrate extraordinarily excellent performance. The grades of D+, D, and D- are not awarded at the graduate level. Grade appeals will ONLY be considered in the case of a documented clerical error. Tentative Course Calendar *The instructor reserves the right to alter course content and/or adjust the pace to accommodate class progress. REMARK1 no class on 11/22, and 11/29- ThanksgivingREMARK2 Online material including quizzes, activities, and practices are designed on MyFinanceLab Always check your MyFinanceLab for assignments You are responsible for completing online requirements and submitting your work before deadlines. Pre-course readings Chapters 1 and 2 of Berk and DeMarzo. If you cannot read these chapters for the first class, it is important that you do so for the second class. Week Content Reading 1 (1) Valuing cash flows (2) Net present value Chapters 3 and 4 2 * Fundamentals of capital budgeting Chapter 7 Quiz1 see dates on MyFinanceLab (1) Debt and equity financing (2 ) Modigliani-Miller Chapter 14 4 (1) Debt and taxes (2) The cost of bankruptcy (3) Optimal capital structure the trade-off theory (4) direction costs time-permitting Chapters 15 and 16 5 Quiz2 see dates on MyFinanceLab * Information and pay-out policy Chapter 17 6 no class Online quizzes and assignments (on MyFinanceLab/Blackboard, beyond homework) for minimum total of 3 hours distributed through semester 7 Quiz3 see dates on MyFinanceLab * More on capital budgeting (with leverage and market imperfections) (1) Risk and return (2) Systematic versus idiosyncratic risk (3) Evaluating the cost of capital Chapter 18 Chapter 10 and Chapter 12 8 Final Exam, in Class encyclopaedic - Copyright Statement Unless explicitly allowed by the instructor, course materials, class discussions, and examinations are created for and expected to be utilise by class participants only. The recording and rebroadcasting of such material, by any means, is forbidden. Violations are subject to sanctions under the Honor Code. MyLab / Mastering Student Registration Instructions To register for BU. 231. 620. 62. FA12 1. Go to pearsonmylabandmastering. com. 2. Under Register, click Student. 3. Enter your instructors course ID mousavi28617, and click Continue. 4.Sign in with an existing Pearson account or create an account If you have used a Pearson website (for example, MyITLab, Mastering, MyMathLab, or MyPsychLab), enter your Pearson username and password. Click Sign In. If you do not have a Pearson account, click Create. Write down your new Pearson username and password to help you remember them. 5. Select an option to access your instructors online course Use the access code that came with your textbook or that you purchased separately from the bookstore. obtain access using a credit card or PayPal. If available, get 17 days of pro tempore access. (Look for a link near the bottom of the page. ) 6. Click Go To Your Course on the Confirmation page. Under MyLab / Mastering impertine nt Design on the left, click BU. 231. 620. 2. FA12 to start your work. Retaking or continuing a course? If you are retaking this course or enrolling in another course with the same book, be sure to use your existing Pearson username and password. You will not need to pay again. To sign in afterwards 1. Go to pearsonmylabandmastering. com. 2. Click Sign In. 3. Enter your Pearson account username and password. Click Sign In. 4. Under MyLab / Mastering New Design on the left, click BU. 231. 620. 62. FA12 to start your work. Additional Information See Students > Get Started on the website for detailed instructions on registering with an access code, credit card, PayPal, or temporary access.