Course Outline

Spring 2012 Principles of Corporate Finance

1. Lecturer Marco La Cruz MBA CPA CISA 2. Goal of the course To familiarize the student with basic finance concepts including financial statements, security markets, time value of money, interest rates, and basic valuation. In addition the course allows the student to obtain an understanding of how financial managers can help maximize their firms’ values by improving decisions in areas like capital budgeting and working capital management. 3. Planning Class/Group study suggested problems

Week 1

Theme An overview of Managerial Finance Analysis of Financial Statements

Material

Chapter 1 Chapter 2

2-14, 2-15, 2-16 Chapt. 3 none

2 The Financial Markets and the Investment Banking Process Time Value of Money 3 Time Value of Money Chapter 3 and Chapter 4

4-2, 4-4, 4-7, 4-8, 4-11, 4-12, 4-13, 4-24, 4-25, 4-28, 4-36, 4-37

Chapter 4 Chapt 5: None

4 The Cost of Money (Interest Rates) Bonds (Debt) Characteristics and Valuation 5 Stocks (Equity) Characteristics and Valuation Stocks (Equity) Characteristics and Valuation Midterm Capital Budgeting Techniques 8 Capital Budgeting Techniques 9 10 11 12 Project Cash Flows and Risk Working Capital Policy Managing Short term assets Managing Short term liabilities Financial Planning and Control Chapter 9 Chapter 10 Chapter 14 Chapter 15 Chapter 16 and Chapter 17 Chapter 9 Chapter 5 Chapter 6 Chapter 6 and Chapter 7 Chapter 7

6-1, 6-2, 6-3, 6-4, 613, 6-14, 6-16, 6-19

7-26, 7-25

6 7

9-13, 9-16 10-10, 10-12, 14-11, 14-8 15-8, 15-10 16-9, 16-11, 16-13

1

13 14

Financial Planning and Control and Alternative Financing Arrangements Alternative Financing Arrangements and Corporate Restructuring

Chapter 17 and Chapter 18 Chapter 18

17-9, 17-11 18-5, 18-6

4. Organization and teaching methodology The course is primarily oriented towards lectures and problems. It is anticipated that some of the material in lectures will be familiar from prior...