Corporate Financial Problems by uhf10081


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									                       FIN 435: Problems in Corporate Financial Policy
                                        Summer 2007
                           California State University, Northridge
                      Department of Finance, Real Estate and Insurance

Instructors: Dr. Monica Her and Dr. Chao Chen

Professor Her
Offices: JH4121; Office Telephone: 818.677.2436
Office Hours: 5:00 – 5:30 p.m. TR (July 17th – July 31st), and by appointment

Professor Chen
Offices: JH4115; Office Telephone: 818.677.4622
Office Hours: 5:00 – 5:30 p.m. TR (August2nd – August 16th), and by appointment

Course Description
The main objective of this course is to introduce students to the analysis of corporate financial
policy through case studies. We will use textbook, lecture notes and cases to analyze the
problems and develop financial policies. Topics covered include the application of capital
budgeting, financial statement analysis, risk and return, cost of capital, valuation, dividend
policy, capital structure, corporate control, corporate governance, etc.

Required Textbook and Readings
Robert Bruner: Case Studies in Finance (5th edition)
A Financial Management (FIN 303) textbook for a review of the basic financial theory.

In addition, the textbook has its own website at Click on the
student center, and you can download case spreadsheets needed for case discussion.

Grading Policy - Plus/minus grading will be used when determining the course grade

Exams: 50% (25% each; non-cumulative)
Textbook case pre-view report: 40% (10% each)
Class participation: 5%
Class discussion: 5%

Case Pre-view Report and Discussion
For each topic discussed in class, I will assign cases in advance for class discussion. You need to
read the case thoroughly and turn in a two-page summary report for the cases assigned at the
beginning of the class. Case notes with questions will be posted to guide you through the
reading. You do NOT need to answer the questions, but rather just to think about them. You will
find that it is quite beneficial to read the case before coming to class, as the class discussion will
heavily rely on the content of the case.

Fin435                                        1                                        Syllabus
Tentative Course Schedule*
Case 5: The Financial Detective
Case 6: Krispy Kreme Doughnuts, Inc.
Case 12: “Best Practice” in Estimating the Cost of Capital
Case 13: Nike, Inc.
Exam 1 – July 31st
Case 17: The Investment Detective
Case 28: An Introduction to Debt Policy and Value
Case 26: JetBlue Airways IPO Valuation
Case 29: Structuring Corporate Financial Policy
Case 30: The Wm. Wrigley Jr. Company
Exam 2 – August 16th

*As the pace of the material coverage will be strongly influenced by your backgrounds and the
efforts you expend on this course, this schedule remains TENTATIVE and is subject to change.

Other policies

Tardies or Absences: Come into class 10 minutes late will be considered as a tardy. Tardy or
absence will affect the grade of participation and discussion. Students who are 30 or more
minutes late to class will be considered as an absence. If you are late for more than 10 minutes
three times in this semester, you will be penalized as an absence. Each absence will lose 0.5% of
your total grade.

Problems and questions assigned will be discussed in class and will be part of your grade for
discussion. Discussion is important and will affect your discussion grade (discussion = 5% of the
total grade). You are encouraged to read assigned chapters, readings, and the WSJ before class
and take an active role for discussion. Classroom discussions and questions are strongly

Office hours are available and you are strongly encouraged to use office hours to see me
whenever you have any questions in finance.

Any late assignment will be penalized (at least 20% per date) and will not be accepted after 48

Fin435                                      2                                      Syllabus

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