Fin U301 - Corporate Finance

NORTHEASTERN UNIVERSITY

FIN U301 - CORPORATE FINANCE

Fall 2007

Syllabus

Course Description: Develops the skills to make and implement financial policy decisions in a global economy. Specific objectives include developing an understanding of financial analysis; company valuation; capital markets; cost of capital; capital asset pricing and risk measurement; short- and long-term financial policies; working capital management; multinational financial management; and special topics including lease financing, debt refunding, mergers and acquisitions, and bankruptcy and restructuring. Offers opportunities to consider many broader issues including the relevance of globalization, the world economy, technological advances, and legal, social, and ethical issues related to the practice of corporate finance and business. Written and oral communications skills and teamwork are also stressed. Cases and spreadsheets are used extensively.

Instructor: Eliot H. Sherman Home Phone: (508) 893-0129 until 11:00 P.M.

Cell Phone: (617) 680-6616

E-mail: Esher10312@aol.com;

E.Sherman@neu.edu

Meeting: Section 7: Tuesday/Friday 221 Hayden 8:00 A.M. - 9:40 A.M.

Section 1: Tuesday/Friday 170 Dodge 3.25 P.M. - 5:05 P.M.

Office Hours: 409A Hayden Hall Tuesday/Friday 11:45 - 3:15 or by appointment

Text: Brigham, Eugene F., and Phillip R Daves, Intermediate Financial Management (9th Edition, (Mason, Ohio; Thomson/Southwestern; 2007)

Casebook specifically for my sections of Finance U301

Also The Wall Street Journal

Important Notice: Finance U301 has been designated by the University as a "writing" course. That means that your written assignments will be reviewed for writing skills: spelling, grammar, sentence structure, clarity, and writing effectiveness, and these skills will be included in the grading of the submissions. Any papers may be chosen for review by outside writing specialists. Therefore, you are urged to present your best writing skills in all assignments. Proper notation of sources and references is also required.

Class Date Assignment Topic

1 9/7 Introduction, Review of Basic Material; Focus on Financial

Statements; Assignment #1, 1A, 2

2 9/11 Ch 1, Overview of Financial Management, Corporate

EVA Pp. 232-234 Governance; Assignment #1, 1A Due

Options Pp.205-209

Corporate Governance Reading in Casebook

Also: Corporate Governance: Go to http://www.manulife.com/corporate/corporate2.nsf/Public/corporategovernance.html and read the Manulife Corporate Governance Website

3 9/14 Ch. 2 Risk and Return, Assignments #1B and #3 Assigned

Note: Chapters 3-5 are not specifically, or individually, assigned. However, they cover critical financial management material and skills. Students are expected to read these chapters and, if necessary, do the exercises and problems to be sure they have mastered the concepts of risk and return, time value of money, and valuation of financial securities. Knowledge and capability in these areas is assumed and expected in covering the topics in this course.

4 9/18 Ch 6, 7, 8 Financial Options; Financial Analysis; Assignment

Casebook: Ratios #1B, #3 Due

Tell a Story

Review MicroDrive financial statements on Pp. 216-217 carefully so that

you understand them. Chapter 6 is difficult and requires extra time to read and understand.

5 9/21 Financial Analysis Continued; Discussion of assignment;

Assignment #4 Assigned

Casebook: Note on Structural Analysis of

Industries Reading - Relate to the techniques of Financial Analysis utilized when analyzing financial ratios. Consider this case in the context of its original and revision dates and think about the current market place.

6 9/25 Ch 9, 21 Financial Planning; Working Capital Management: Cash,

Accounts Receivable; Assignment #4 Due

Dell Working Capital Case

Financial Performance of Dell Computer Case

Access the Dell Computer website and review and analyze the most recent Dell Financial Statements for discussion in class.

7 9/28 Ch. 9 Financial Planning - Business Plans, Strategic Planning

8 10/2 Ch. 9 Financial Planning - Annual Budget, Cash Budget,

Consideration of Cost Management

9 10/5 Ch. 10 Cost of Capital; Assignment #5 Assigned

10 10/9 Ch. 10 Cost of Capital, Assignment #5 Due

Nike Cost of Capital Case (Team Project)

11 10/12 Ch. 12,13 Capital Budgeting

Review Time Value of Money (from Finance U201)

Bring financial calculator to class

12 10/16 Ch. 12,13 Capital Budgeting

Bring financial calculator to class

13 10/19 Mergers and Acquisitions, Business Valuation

Ch. 26 Section on Mergers only (Pp. 894-929)

14 10/23 Mid-Term Exam; Assignment #6 Assigned

15 10/26 Warren