GOODMAN SCHOOL OF BUSINESS

BROCK UNIVERSITY
Department of Finance, Operations, and Information Systems (FOIS)
FNCE 2P91, Corporate Finance I, Section 06
Fall 2014


Instructor: Dr. Tatyana Sokolyk
Office: Taro 325
Phone: (905) 688-5550 ext. 4781
E-mail: tsokolyk@brocku.ca (preferred method of communication)
Class Hours: Monday 19:00 - 22:00
Classroom: AS 202
Office Hours: Monday 17:00 18:30, and by appointment on Monday, Wednesday, or Thursday (email
48 hours in advance)


Course Description

Finance function in the private and public sectors. Techniques of financial analysis. Investment in current
assets, capital budgeting, valuation, risk and return.


Prerequisites

Students should ensure they have the necessary prerequisites to take this course, which are ACTG 1P11
or 1P91, ECON 1P91 and 1P92, MATH 1P01 or 1P97, and MATH 1P98. Students not possessing the
prerequisites will automatically be deregistered.


Textbook

Ross, S., Westerfield, R., Jordan, B., and Roberts, G. (2013). Fundamentals of Corporate Finance (8th
Canadian ed.). McGraw-Hill Ryerson Ltd.


Course Objectives

Students will be introduced to the basic concepts, instruments, and techniques used for financial decision
making. Discussions will include specific issues related to valuation and capital investment decisions. The
time value of money concept will be studied first, which will provide the necessary foundation for capital
budgeting decisions, followed by the characteristics and valuation of fixed income securities as well as
common shares. In addition, the course will examine the relationship between risk and return, methods
for measuring risk, investment diversification, and portfolio risk analyses.


Attendance

Students are expected to attend all lectures. Calculators are required for each class. A scientific
calculator is the minimum required for the course. A financial calculator is useful but not required.
Programmable calculators are not permitted on quizzes or examinations. Knowing how to use the
memory function on your calculator is strongly encouraged. A grade of zero will be assigned to a missed
quiz or examination unless justified by the necessary documentation, in which case the associated marks
will be re-assigned.


Course Communications

Announcements and course materials will be posted throughout the term to the Sakai site for this course.
The solutions for all the end of chapter problems have been posted under Resources / Textbook
Solutions. If you have a question that requires a straightforward answer, send me your question in an
email. For questions requiring more detailed explanations or if there is an issue you would like to discuss
in person, stop by during office hours or send me an email to request a meeting.

Evaluation Structure

Component Date and Time Chapters Weight

In-class Quiz #1 Sep 29 1, 5, and 6 7.5%
Midterm Examination Oct 25 from 9a to 12p 1 and 5 to 9 35%
In-class Quiz #2 Nov 17 2 and 10 to 12 7.5%
Final Examination TBA Cumulative 50%

Changing the weightings of the evaluation structure or completing an extra assignment for additional
marks to make up for a poor performance on one or more of the above components is not an option.

November 4 is the last date for withdrawal without academic penalty and last day to change from credit to
audit status.


Assigned Textbook Readings and Tentative Lecture Schedule

Assigned readings are to be completed prior to the class in which the material will be discussed,
therefore, familiarity with the relevant concepts and formulas is assumed.

1 Introduction to Corporate Finance
5 Introduction to Valuation: The Time Value of Money
6 Discounted Cash Flow Valuation
7 Interest Rates and Bond Valuation (exclude section 7.7)
8 Stock Valuation
9 Net Present Value and Other Investment Criteria
2 Financial Statements, Cash Flow, and Taxes (exclude sections 2.1-2.2)
10 Making Capital Investment Decisions
11 Project Analysis and Evaluation (exclude sections 11.3-11.7)
12 Lessons from Capital Market History (exclude section 12.6)
13 Return, Risk, and the Security Market Line (include Appendix A)
14 Cost of Capital


Academic Integrity

Academic misconduct is a serious offence. The principle of academic integrity, particularly of doing ones
own work, documenting properly (including use of quotation marks, appropriate paraphrasing and
referencing/citation), collaborating appropriately, and avoiding misrepresentation, is a core principle in
university study. Students should consult Section VII, Academic Misconduct, in the Academic
Regulations and University Polices entry in the Undergraduate Calendar, available at
http://brocku.ca/webcal to view a fuller description of prohibited actions, and the procedures and
penalties.



Academic Accommodation Statement

As part of Brock University's commitment to a respectful work and learning environment, the University
will make every reasonable effort to accommodate all members of the university community with
disabilities. If you require academic accommodations related to a documented disability to participate in
this course, you are encouraged to contact Services for Students with Disabilities in the Student
Development Centre (4th floor Schmon Tower, ex. 3240). You are also encouraged to discuss any
accommodations with the instructor well in advance of scheduled assessments.


Academic Accommodation Due to Religious Obligations

Brock University acknowledges the pluralistic nature of the undergraduate and graduate communities
such that accommodations will be made for students who, by reason of religious obligation, must miss a
quiz or examination. Students requesting academic accommodation on the basis of religious obligation
should make a formal, written request to their instructor for alternative dates.


Medical Exemption Policy

The University requires that a student be medically examined in Health Services, or by an off-campus
physician prior to an absence due to medical reasons from a quiz or exam. Students should also supply a
signed medical certificate. The Medical Certificate can be found at
http://www.brocku.ca/health-services/policies/exemption