Rutgers Business School Piscataway

COURSE 33:390:400

<<Corporate Finance>>
INSTRUCTOR

Dr. Alexander Amati Levin, room 145

Office Hours: Wednesdays 8:40 AM to 10:40 AM & by appointment

amati@andromeda.rutgers.edu
A NON-PROGRAMMABLE FINANCIAL CALCULATOR IS REQUIRED FOR THIS CLASS. STRICTLY, NO OTHER ELECTRONIC DEVICE IS ALLOWED IN CLASS (NO LAPTOP, CELLPHONE, iPAD, iPOD, iPHONE, VOICE RECORDER, CAMERA, PDAETC.). ALL SUCH DEVICES MUST BE TURNED OFF COMPLETELY BEFORE YOU ENTER THE CLASSROOM.
COURSE OVERVIEW & OBJECTIVES This course explores issues in the practice of corporate finance with respect to capital budgeting, capital structure, dividend policy, growth, and risk management. A financial calculator is required. Be sure it is a financial calculator. I recommend the BA II Plus Professional (about $38). For tutorials on financial calculators, visit this website: http://www.tvmcalcs.com . You must have your calculator with you at all lectures; you will be solving problems routinely in class. Please note that I do not post solutions to problems we solve in class. Attendance is required. COURSE MATERIAL & WORKLOAD

The textbook we shall use this semester is Corporate Finance by Ross, Westerfield, & Jaffe, 10th , from McGraw Hill bundled with CONNECT. Additional reading material will be distributed in class or posted on Blackboard. Practice sets and quizzes will be posted on CONNECT. I expect you to work hard on the practice sets and voice in class any disagreement with or difficulty in understanding the solutions to these practice sets. You must complete each practice set or quiz by its due date, late submissions will not be tolerated. Five case studies (+/-1) will be assigned during the semester. You are encouraged to work in groups on these cases. Please form stable groups by end of week two. A term paper is DUE MAY 10th at 10AM. The topic will be assigned during the 2nd week of the semester. Your grade will be determined as follows:
15 15 15 20 20 10 CONNECT CONNECT

GRADING

PS QZ CaseStudy Exam I Exam II TermPaper

Attendance Total

12 107 pts

Missing class will cost you 6 points per occurrence, up to a total loss of 12 points per semester.

Your course letter grade is likely to be determined as follows: A>94 points, B+>87, B>84, C+>77, C>74, D>60, F<60

Page

EXAM DATES

Exam I Exam II

Thursday, March 14 Thursday, May 2nd

COURSE OUTLINE

Although minor modifications may develop as the course progresses, we are likely to proceed as

follows: Topic 0 Review of Basic Concepts & Models from 300 DCF Valuation, NPV & Other Bonds & Stocks Valuation Risk & Return: CAPM Making K Investment Decisions Managing Growth Sustainable growth Risk analysis, Real Options & K Budgeting Risk, Cost of Capital, and Valuation Long-Term K Management K Structure: K Structure: The Levered Firm Dividend Policy Short-Term K Management Cash Management Credit & Inventory Management Leasing Options Framework in Corporate Finance Options & Corporate Finance Real Options--Revisited Mergers & Acquisitions

Topic 1

ch 3 + Lecture notes + Higgins PPT ch 7 + Lecture notes ch 13

Topic 2

ch 16 ch 17 ch 18 ch 19

Topic 3

ch 27 ch 28 ch21

Topic 4

ch 22, 23 Lecture notes + Dixit PPT ch 29

EXAM PROTOCOL The only two items allowed on your table are: an authorized calculator and a pen. You cannot exit the room once the exam has started (Please report any documented medical condition that necessitate frequent use of bathroom during the first two weeks of classes).

Make-up exam policy As a rule, I do not give make-up exams. If you miss an exam and I do not accept your excuse, your grade for that exam will be zero. In the very rare case in which I may grant you a make-up exam, you acknowledge that I reserve the right to change the format and the content of your make-up exam.
EMAIL PROTOCOL ALWAYS START THE SUBJECT LINE with

400-05

STUDENTS with disabilities Please communicate directly with the Deans office by the end of the second week of classes. The Deans office will determine the nature of the disability and the necessary accommodations. STUDENT ATHLETES If you expect to miss class and/or examinations due to events which conflict with class, please inform me of the dates on which those events will occur in writing by the end of the second week of classes.

Notes
SPRING RECESS Regular Classes End Exam Period End of Term March 16 thru Mar 24 May 6 May 9 thru May 15 May 15

Page