Finance 325
Intermediate Finance
Fall 2008
Professor: Dr. Song Office: SS 3357
Office Hour: 4:00 – 5:00pm (Tue/Thu)
or by appointment Phone:
594-5334
E-mail: moon.song@sdsu.edu
I. Course Description
Finance
325 is designed to strengthen and extend your knowledge of financial theory and
practice. Topics covered include the theory of value, risk and return, capital
investment decisions, and financing decisions. We also discuss the mechanics
and regulatory environment of corporate takeovers, leveraged buyouts, and
various form of managerial compensation. This course draws
from and integrate
material in your previous finance, economics, accounting, and quantitative
methods course. Especially, you should be familiar with the basic statistics
and elementary calculus.
II.
Course Prerequisites
Prerequisites
for Finance 325 include a minimum grade of C in Finance 323 and other
requirements in the General Catalog.
III.
Course Materials
Text:
Brealey Myers Allen, Principles of Corporate
Finance, McGraw-Hill/Irwin, Ninth edition.
IV. Grades, Assignment, and Exams
Final
grades will be based on assignments, homework (10%), midterm exam I, II (30%,
30%), final exam (30%).
*. All of the assignments
will require the use of a spreadsheet package.
*. Late assignment will
be depreciated.
*. Exams are closed book
and will consist of numerical problems.
*. No make-up exam is
allowed.
*. All exam and graded
assignments will be kept by the professor.
COURSE OUTLINE
CLASS TOPIC
1 Ch 1 Finance and the Financial Manager (Introduction)
2 Ch 2 Present Values, Objective of the Firm, and
Corporate Governance
2 Ch 3 How to Calculate Present Values
3 Ch 4 The Value of
Bonds
4 Ch 5 The Value of
Common Stocks
5 Ch 6 Advanced Issues of Capital Budgeting
6/7 Ch 7 Making Investment Decisions with NPV Rule
8/9 Ch 8/9 Risk, Return, and
10 Midterm
Exam I (October 2, Thursday)
11/12 Ch 10 Capital Budgeting and Risk
13 Ch 13 Economic Value Added (EVA)
13 Ch 14 Efficient Market and Behavioral
Finance
14/15 Ch 17 Payout Policy
15/16 Ch 18 Does Debt Policy Matter?
17/18 Ch 19 How Much Should a Firm Borrow?
19 Midterm
II (November 4, Tuesday)
20/21 Ch 20 Financing and Valuation
22 Ch 21 Understanding Options
23/24 Ch 22 Valuing Options
25 Ch 23 Real Options
26 Ch 24 Credit Risk and the Value of Corporate Debt
27 Ch 26 Leasing
28 Ch 32 Mergers
29 Review