Download 2 Questions on the Corporate Finance - Final Exam | MF 807 and more Exams Corporate Finance in PDF only on Docsity! CORPORATE FINANCE MF 807 Boston College Mike Barry Spring 2000 Office: Fulton 224D M 7:00 – 9:30 Phone: (617) 552-0238 Office Hours: M 5:30 – 6:45, email: barrymj@bc.edu Tu 1:00 – 2:00, Th 4:30 – 5:30 & by appointment COURSE OBJECTIVES: The overall intent here is to develop students’ understanding of corporate finance. Within that broad goal, we’ll examine four specific objectives: 1. Financial statement and valuation analysis a. interpretation of ratios b. valuation of corporations – useful for IPOs and for takeovers 2. Discuss issues related to a firm’s investment decision a. capital budgeting (buying fixed assets) b. the cost of capital c. mergers and acquisitions 3. Discuss issues related to a firm’s financing decision (how does the firm pay for its investments?) a. issuing new securities b. payouts to shareholders c. capital structure (how much debt should a firm have?) 4. Apply corporate financial theory and analytical tools covered in this course a. solving assigned problems from the textbooks and problem sets b. preparing case studies MILESTONES: Below are key dates throughout the semester: Event Approximate Date Grade Weight First exam February 21 20% First case write-up March 13 10% Second exam April 3 20% Second case write-up April 10 10% Problem set May 1 10% Final exam May 8 30% Note: Makeup exams will be given only for very extenuating circumstances. Since students taking makeup exams will have had more time to prepare for the exam, the makeup exams will be more difficult than the in-class exams. PREREQUISITE: MF 704 or MF 722 (or equivalent) 1 Textbooks: 1. Damodaran, Aswath, Corporate Finance: Theory and Practice, (Wiley, 1997). Note that solutions to the end of chapter problems can be downloaded from Prof. Edie Hotchkiss’ web page (http://www2.bc.edu/~hotchkis, then find the link to the MF 807 class page). 2. Course pack of notes available in the bookstore. Calculator: You will definitely need a calculator for this course. The calculator must be able to calculate the answer to yx such as (1.10434)1.222 . It also must be able to compute internal rates of return (IRR). It will make life easier if you buy a financial calculator. Many students in the past have bought the Sharp EL-733A. It costs about $30 at the BC bookstore or at Staples (or Service Merchandise). I’ve used the Hewlett-Packard (HP) 12-C since 1990. The HP 17BII is good, but more sophisticated than I (or likely you) need and is quite expensive. Whichever calculator you buy, IT’S YOUR RESPONSIBILITY TO LEARN HOW TO USE IT. 2
