Course Outline Afm

Master of Science in Finance Program The Chinese University of Hong Kong Advanced Financial Management (FINA 6092A/B/C, 2013-2014) Section: Time: Venue: Instructor: FINA6092A Mon 14:30-17:15 YIA-LT8 FINA6092B Wed 14:30-17:15 YIA-LT3 FINA6092C Thu 18:30-21:30 CYT-LT5

Prof. H. Zhang, CYT 1216, Tel: 3943-7760 Email: hzhang@cuhk.edu.hk Thursday 10:30 a.m.-12:00 noon or by appointment Ms. Lui Wing Yee, Winnie, CYT 1237, Tel: 3943-3735 Email: winnielui@baf.cuhk.edu.hk

Office Hour: Tutor:

Textbook: (BD) Jonathan Berk and Peter DeMarzo, Corporate Finance, 3rd ed., Pearson, 2014. Reference Book: Casebook: (KRT) W. Carl Kester, Richard S. Ruback and Peter Tufano, Case Problems in Finance, 12th ed., McGraw-Hill, 2005. (HV) Gabriel Hawawini and Claude Viallet, Finance for Executives, 4h ed., SouthWestern, 2011. Course Objectives: The objective of this course is to help students (future business executives) to learn how to create value through integrated financial, operating, investment and strategic decisions. The key is to understand basic finance theories/tools and applied them in a real-world setting. The course will adopt a student-centred pedagogy. A combination of lectures, cases, projects and in-class discussions will be used. For a case-method and class-discussion based course like this, pre-class preparatory work is essential. Class attendance and participation are mandatory. Requirements and Evaluation Class Participation Tutorial Class Group Case Presentation Case Report Mini-Project Presentation Exam Total 10 10 2x10 8x4 10 30 112

Course Outline Week Cases/Topic(s) Module I: Introduction Managing for Value Creation Case #0: Butler Lumber Company Reading(s)

1.

HV1; BD1-6(SSC)

2 3 4

Module II: Investment Decisions Capital Budgeting BD7-9; Case #1: PepsiCo Changchun Joint Venture: Capital Expenditure Analysis (Ivey 900N016) Case #2: Merck & Company: Evaluating a Drug Licensing BD 21-22; R1 Module III: Risk/Return and Cost of Capital Case #3:...