FNCE 3P93
Corporate Finance
Corporate Finance
Fall 2012
2012
General Information
Instructor: Dr. Lawrence He
Office:
Taro 328
Phone:
(905) 688-5550 ext. 4540
Email:
LHE@brocku.ca
General Information
Classroom and Time:
Sec 1
14:00 – 15:30 T R
Sec 2
08:00 – 09:30 M
11:00 – 12:30 R
Sec 6
19:00 – 22:00 M
TA 405
TA 405
TA 405
PL 409
Office Hours:
Monday 09:30 – 11:00, 14:30 – 16:00 or after class or by appointments
Course Materials
Ross, Westerfield, Jordan and Roberts, h Fundamentals of Corporate Finance, 7tth
Canadian Edition.
Lecture Notes on Sakai
Lecture Notes on Sakai
Financial Calculator (recommended)
Financial Calculator (recommended)
Grading & Policy
Two Case Studies (15%)
Form a group of 2 – 3 students
Midterm Test (35%)
Comprehensive Final Exam (50%)
Common Course Outline
Common Problem Sets & Exams
Common Exam Grading Scheme
What is Corporate Finance?
Corporate Finance addresses the following three questions: 1.
2.
3.
What long-term investments should the firm engage in? engage in? (investment decision) decision How can the firm raise the money for the required investments? required investments? (financing decision) decision How much short-term cash flow does a company need to pay its bills? company need to pay its bills? (net working working capital)
The Balance-Sheet Model of the Firm
Total Value of Assets:
McGraw-Hill/Irwin
Corporate Finance, 7/e
Total Firm Value to Investors:
Fi
The Balance-Sheet Model of the Firm
The Capital Budgeting (Investment) Decision
Capital Budgeting
Decision
McGraw-Hill/Irwin
Corporate Finance, 7/e
What longterm investments should the firm engage firm engage in? The Balance-Sheet Model of the Firm
The Capital Structure (Financing) Decision
St
How can the firm raise the money for the required investments?
McGraw-Hill/Irwin
Corporate Finance, 7/e
The Balance-Sheet