DEPARTMENT OF FINANCE AND ECONOMICS

Rutgers University
Corporate Finance
33:390:400:04
Mahmud Hassan, Ph.D
2015
Professor
Office Hours: T 5:30-6:30 pm
1 WP, Room 1164
Room: BRR 5062
Phone: 973-353-5386
by Appointment
Fax: 973-353-1019
Class: 100 Rockafeller
E-mail: hassanm@business.rutgers.edu
BRR 5101

Fall,

OR

Room:
T

6:40 9:30 pm
Introduction
Corporate Finance is an area of Finance dealing with corporations economic
and financial decisions both long term and short. The primary goal of this
discipline is to help the corporate managers maximize the shareholders
value by making proper evaluation and decision involving assets and
liabilities. Management must allocate limited resources in competing
investment opportunities, capital structure decision, dividend policy, and
other tools available to achieve its value maximizing strategies.
Course Objective
The course is designed with an emphasis on applications of financial tools in
the corporate environment. Combinations of lectures and discussions on
different topics important to corporate decision making process will enable
students to develop analytical skill necessary to solve a variety of corporate
decisions. After completing this course, students should be able to analyze
financial decisions involving capital structure, dividend policy, leasing,
options and derivatives, mergers and acquisitions, and international
corporate finance.
Class Attendance
1

Attendance to each class is mandatory. Students are expected to be

prepared to ask questions on the readings and actively participate in class
discussions. If students miss more than two classes, their course grades may
be downgraded by one notch i.e. from A to A-, B+ to B etc.

Course Grade
The course grade will be determined based on performance in four equally
weighted quizzes.
Text book and readings
The required text of the course is Corporate Finance by Ross,
Westerfield, and Jaffe, McGraw-Hill. I shall be using a few selected
chapters of this book for the class. McGraw-Hill will create a
customized print version of the book and it is available at the book
store. The ISBN number is 978-130823799-2.
You may buy the e-book version of the text specially designed for this course
which the students can purchase from the site:
www.mcgrawhillcreate.com/shop, enter Mahmud Hassan in the search box.
The ISBN number of the eBook is 9781121990623.
The following is the tentative schedule of the class. Any change in the
schedule will be announced in the class.
Schedule
Day
Reading
Sept. 1
Sept. 8
Sept. 15
Ch. 16
Sept. 22
Ch. 16 (contd)
Sept. 29
Ch. 17
Oct.
6

Topic
Introduction and Review
No class, Monday Schedule
Capital Structure
Capital Structure (contd)
Capital Structure and Debt Capacity
Quiz 1 (Chs. 16 and 17)
2

Oct.
6
Ch. 18
Oct. 13
Ch. 18 (contd)
Oct. 20
Ch. 19
Oct. 27
Oct. 27
Ch. 21
Nov. 3
Ch. 21 (contd)
Nov. 10
Ch. 22
Nov. 17
Nov. 17
Ch. 25
Nov. 24
Ch. 29
Dec.
1
Ch. 31
Dec.
8

Capital Budgeting and Valuation

Capital Budgeting and Valuation (contd)
Dividends Policy
Quiz 2 (Chs. 18 and 19)
Leasing
Leasing (contd)
Options
Quiz 3 (Chs. 21 and 22)
Derivatives
Mergers and Acquisitions
International Corporate Finance
Quiz 4 ( chs. 25, 29, and 31)