The coursepack for this course will closely follow the in-class lectures. In a sense, the coursepack is intended to free the student from the burden of taking copious notes; the instructor would prefer to focus more on the content of the lecture material. Many students in the course will use the Coursepack as their primary text (a few may use the Coursepack as their only set of readings, though this is not recommended). There will be many exercises and problems in this coursepack. Students should be certain to understand all relevant readings in the Coursepack and be able to work through all relevant exercises.

Students requiring review in mathematics or elementary finance should do so before the second week of the term (This is important). Comfort with all of the material in Chapters 2 through 6 of the Elementary Mathematics Review will be essential to this course. In addition, material covered in an introductory financial management course will be necessary for keeping up with the course. Material related to introductory finance may be obtained through Chapters 4 through 6 of the Elementary Mathematics Review . Material in Chapters 7, 8 and 9 of the Elementary Mathematics Review might be helpful later in this course. End of chapter solutions are provided as well. Finally, many students will find readings that may be added from time-to-time on the Additional Readings page to be helpful for exam preparation or otherwise interesting. A separate page for exam preparation may also prove quite useful. There are links to sample exams as well.

The material below is provided in *.pdf format which can be downloaded by selecting the appropriate links. After downloading, you will need to access this material with Adobe Acrobat Reader . If you do not have this program, it can be downloaded without cost by linking to Adobe's site , selecting the "Get Acrobat Reader link" and following instructions. Feel free to report any difficulties to or obtain any needed assistance from John Teall .
 
PART I: INTRODUCTION, REVIEW AND ESSENTIAL CONCEPTS 
I.    Introduction
A.    Introduction to the Corporation
B.    The Corporate Finance Function
C.    An Introduction to Financial Securities and Markets

II.    Time Value of Money
A.    Interest and Discount Rates
B.    Simple Interest
C.    Compound Interest and Discount Rates
D.    Intra-period Compounding
E.    Continuous Compounding
F.    Annuities and Perpetuities
G.    Growing Annuities and Perpetuities

III.    Return and Risk    
A.    Project Return
B.    Internal Rate of Return
C.    Project Risk
D.    Project Return Co-movement
E.    Portfolio Return
F.    Portfolio Risk
G.    The Market Portfolio and Relative Risk Measurement

IV.    An Overview of Equilibrium Asset Pricing Models
A.    The Capital Asset Pricing Model
B.    Arbitrage Pricing Theory

V.    Cost of Capital: Essential Concepts
A.    Introduction and Essential Definitions
B.    Accounting Based Measures
C.    Applications

VI.    An Introduction to Foreign Exchange Rates and Markets (Optional as prerequisite)
A.    Introduction to Foreign Exchange and Rates
B.    Introduction to Forward Exchange Rates and Contracts


PART II: ASSET MANAGEMENT

VII.    Capital Budgeting: Elementary Concepts 
A.    Introduction
B.    The Payback Method    
C.    Expected Versus Required Return Method    
D.    The Net Present Value Method    
E.    The Profitability Index Method    
F.    Important Capital Budgeting Decision Factors
G.    NPV Examples

VIII.    Capital Budgeting: Advanced Topics  
A.    Adjusted Present Value    
B.    Projects with Different Life Expectancies
C.    The Duration Problem
D.    Multi-stage Growth Models
E.    Capital Budgeting in the International Arena
F.    Evaluating Options Imbedded in Projects    
G.    The Certainty Equivalence Model

IX.    Derivative Securities and Risk Management
A.    Risk Management and Derivative Securities: An Introduction
B.    Options Contracts    
C.    Forward and Futures Contracts    
D.    Exchange Options and Futures
E.    Swap Contracts
F.    Exotic Options
G.    Managing Exchange Exposure

X.    An Introduction to Working Capital and Cash Management
A.    Introduction to Working Capital Management and the Treasurer's Function
B.    Introduction to Cash Management
C.    Deterministic Cash Management Models (Baumol)    
D.    The Miller-Orr Cash Management Model    

XI.    Management of Marketable Securities, Receivables and Inventory
A.    Marketable Securities Management    
B.    Receivables Management    
C.    Inventory Management

PART III: CAPITAL MANAGEMENT

XII.    Capital Requirements, Leverage and Market Efficiency
A.    External Funding Requirements
B.    Term Structure and the Balance Sheet Hedge
C.    Operating and Financial Leverage
D.    Efficiency of Capital Markets    

XIII.    Capital Structure
A.    Introduction to the Capital Structure Problem    
B.    Perfectly Efficient Capital Markets and Capital Structure Irrelevance    
C.    Corporate Income Taxes and Capital Structure    
D.    Bankruptcy Costs and Capital Structure
E.    Personal Income Taxes and Capital Structure    
F.    Information, Signalling and Capital Structure
G.    Capital Structure and the Agency Problem    
H.    Pecking Order Theories
I.    Empirical Evidence Regarding Capital Structure    
J.    Concluding Remarks

XIV.    Private and Public Placements of Debt
A.    Lending Institutions and Private Placements
B.    Public Placements
C.    Bond Contracts and Features    
D.    Warrants, Convertibles and Callables    
E.    Euromarkets and Euromarket Securities
F.    The Bond Refunding Decision

XV.    Financial and Operating Leases
A.    Financial Leases
B.    Operating Leases

XVI.    Equity Issues and the Underwriting Process
A.    Primary and Secondary Equity Markets
B.    Common Stock Characteristics    
C.    Rights Issues    
D.    Venture Capital, Investment Banking and the Underwriting Process    
E.    Firm Commitment and Best Efforts Offerings
F.    The IPO Underpricing Anomaly
G.    Pricing the New Issue
H.    Seasoned Offerings
I.    Preferred Equity

XVII.    Dividend Policy
A.    Introduction to the Dividend Policy Problem    
B.    Perfectly Efficient Capital Markets and Dividend Policy Irrelevance    
C.    Income Taxes and Dividend Policy    
D.    Information, Signalling and Dividend Policy
E.    Free Cash Flow, the Agency Problem and Dividend Policy
F.    Empirical Evidence Regarding Dividend Policy    
G.    Concluding Remarks    

PART IV: CORPORATE CONTROL

XVIII.    An Introduction to the Market for Corporate Control
A.    An Introduction to the Theory of the Firm
B.    What is the Market for Corporate Control?
C.    Corporate Objectives and the Agency Problem Revisited

XIX.    Corporate Governance and Voting
A.    The Corporate Charter and Bylaws
B.    Board Structure
C.    Managerial Hierarchical Structure
D.    Proxies
E.    Proxy Assignments and Raids

XX.    Managerial Compensation, Shareholdings and Performance
A.    Managerial Compensation
B.    Managerial Compensation and Performance
C.    Managerial Shareholdings and Entrenchment

XXI.    Corporate Takeovers
A.    Motives for Takeovers
B.    Forms of Takeovers

XXII.    Going Private Transactions and Alternative Organizational Forms
A.    LBOs and Management Buyouts
B.    Employee Buyouts and ESOPs
C.    Partnerships and Proprietorships
D.    Master Limited Partnerships

XXIII.    Governance Failures, Corporate Failures and Restructuring
A.    Effective Corporate Governance
B.    Corporate Kleptocracy and Cooking the Books
C.    Rotten to the Core and Asleep at the Wheel
D.    Cleaning up the Mess
E.    Financial Distress
F.    Bankruptcy
G.    Restructuring
H.    Forecasting Financial Distress