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ACC 933 - Financial Management C01

Academic Credit Value:
3 units
Course Delivery Mode:
Virtual Classroom
Hours of Study:
42 hours
Course Prerequisite(s):
ACC 927 Intermediate Financial Accounting II and ACC 929 Intermediate Management Accounting (or equivalents) Be Advised: Students who do not meet the pre-requisites will be required to withdraw. In such cases, CCE’s withdrawal/refund policies will apply.
Course Anti-requisite(s):
N/A
Instructor Name:
Kris G. Krishnan, M.Eng (McMaster), MBA (University of Toronto), P. Eng, CPA, CMA, CMC, PMP
Course Dates:
09/17/2020 - 12/10/2020



Required Course Materials:
Fundamentals of Corporate Finance – 10th Canadian Edition Stephan A. Ross, Randolph W. Westerfield, Bradford D. Jordan, Gordon S. Roberts McGraw Hill Ryerson (2019)
Optional Course Materials:
Class Handouts and Cases for analysis and reporting and McGraw-Hill Connect
Course Description:

Students are advised to retain course outlines for future use in support of applications for employment or transfer of credits.
Refer to the Policy & Procedure section for further course and Centre for Continuing Education (CCE) information.  

Corporate Finance is one of the core areas for participants majoring in Finance, Accounting and Business Administration programs.  This course introduces current financial concepts and tools towards money management in organizations. The primary focus is participation in national and global market-driven competitive economies.

The course addresses the current best practices in financial planning and analysis towards a better corporate financial management – both on short and long-term perspectives.

Modern financial concepts based on time value of money, and tools such as cost of capital, discounted cash flows, valuation of securities and bonds, capital asset pricing models - are discussed and applied through case studies. Other topics include current practices in raising capital and long-term financial budgeting and short-term working capital management. The course is also designed to introduce topics on lease financing, hybrid securities and derivatives, mergers and acquisitions and an exposure to the international finance.

Learning Outcomes:

The primary focus of the course is to enable participants understand the relevance of key financial management concepts and appreciate the responsibility of financial managers towards integrated business analysis and decisions towards overall corporate strategy. Corporate finance is closely related to and draws business models from Economics, Accounting, Marketing and Quantitative Analysis.

Instructional Methodologies

This course is interactive.  The current best practices are illustrated through use of management cases and discussions through the analysis and interpretation of corporate information towards business decisions.

Course Evaluation

Method of Evaluation

Class Participation, Attendance & Discussions:      5%

Submission - A set of Cases                                      25%

Quizzes (2 Sets, 10% each)                                        20%

Mid-term Examination                              25%

Final Examination                                      25%

              Total Marks                                                 100%

Please note that regular attendance and participation in class discussion is mandatory to receive the 5% allocated for this process.

Others:

- Cases are submitted on a group basis unless otherwise stated. It is the responsibility of the students to form the group. A group may have up to three participants

- Quizzes will be administered twice – one before mid-term and one after mid-term exam. These quizzes are timed exercises

The final examination for all accounting courses will be administered through Examity®, a live remote online proctoring service.  Refer to your course in Avenue to Learn for details.​​​
Course Format:
This course is designed to present the fundamental concepts and theories in Financial Management and promote the application to the workplace and professional practice. Course activities will include instructor presentations, required readings and experiential learning activities (i.e. case studies, group discussions, projects, etc.).
Assignment Submission:
Course assignments are submitted to the appropriate A2L Assignment folder by the specified due date
Late Coursework:
Late assignments will be subject to a 2% per day late penalty (includes weekends and holidays) for up to seven (7) days. After this date, no assignments will be accepted and a grade of zero (0) will be applied.  Extensions for course work must be approved by the instructor before the due date (see Academic Regulations below), and will be granted for illness or emergencies only. Students may be asked to submit supporting documentation for an extension request. NOTE:  This policy applies to assignments and other hand in type coursework only.  This policy does not apply to discussion board topics/postings which do not allow for late postings/contributions.  

Policy & Procedures:

Academic Regulations (Attendance, Coursework, Tests/Exams):

In accordance with McMaster University’s General Academic Regulations, “it is imperative that students make every effort to meet the originally scheduled course requirements and it is a student’s responsibility to write examinations as scheduled.” Therefore, all students are expected to attend and complete the specific course requirements (i.e. attendance, assignments, and tests/exams) listed in the course outline on or by the date specified.  Students who need to arrange for coursework accommodation, as a result of medical, personal or family reasons, must contact the course instructor within 48 hours of the originally scheduled due date. It is the student’s responsibility to contact the Program Manager/Program Associate to discuss accommodations and procedures related to deferred tests and/or examinations within 48 hours of the originally scheduled test/exam, as per policy.  Failure to contact the course instructor, in the case of missed coursework, or the Program Manager/Program Associate, in the case of a missed test/examination, within the specified 48 hour window will result in a grade of zero (0) on the coursework/exam and no further consideration will be granted. 

*Note: Supporting documentation will be required but will not ensure approval of accommodation(s).

Academic Integrity

 (Please note that CCE will adhere to a zero tolerance application of the policy)

You are expected to exhibit honesty and use ethical behavior in all aspects of the learning process. Academic credentials you earn are rooted in principles of honesty and academic integrity.  Academic dishonesty is to knowingly act or fail to act in a way that result or could result in unearned academic credit or advantage. This behavior can result in serious consequences, e.g. the grade of zero on an assignment, loss of credit with a notation on the transcript (notation reads: “Grade of F assigned for academic dishonesty”), and/or suspension or expulsion from the university.
It is your responsibility to understand what constitutes academic dishonesty. For information on the various types of academic dishonesty please refer to the Academic Integrity Policy, located at www.mcmaster.ca/academicintegrity.


The following illustrates only three forms of academic dishonesty:

1. Plagiarism, e.g. the submission of work that is not one’s own or for which other credit has been obtained, including copying solution sets.
2. Improper collaboration in group work.
3. Copying or using unauthorized aids in tests and examinations.

Academic Accommodations:

ACADEMIC ACCOMMODATION OF STUDENTS WITH DISABILITIES

Students with disabilities who require academic accommodation must contact Student Accessibility Services(SAS) at 905-525-9140 ext. 28652 or sas@mcmaster.ca  to make arrangements with a Program Coordinator. For further information, consult McMaster University’s Academic Accommodation of Students with Disabilities policy.

 Academic Accommodation for Religious, Indigenous or Spiritual Observances (RISO)
Students requiring academic accommodation based on religious, indigenous or spiritual observances should follow the procedures set out in the RISO policy. Students will need to contact their instructors as soon as possible to make alternative arrangements for classes, assignments, and other coursework. It is thestudent’s responsibility to contact McMaster Continuing Education to discuss accommodations related toexaminations.
On-line Elements:

Conduct Expectations:

As a McMaster student, you have the right to experience, and the responsibility to demonstrate, respectful and dignified interactions within all of our living, learning and working communities. These expectations are described in the Code of Student Rights & Responsibilities (the “Code”). All students share the responsibility of maintaining a positive environment for the academic and personal growth of all McMaster community members, whether in-person or online.

 It is essential that students be mindful of their interactions online, as the Code remains in effect in virtual learning environments. The Code applies to any interactions that adversely affect, disrupt, or interfere with reasonable participation in University activities. Student disruptions or behaviours that interfere with university functions on online platforms (e.g. use of Avenue 2 Learn, WebEx or Zoom for delivery), will be taken very seriously and will be investigated. Outcomes may include restriction or removal of the involved students’ access to these platforms.

 Copyright and Recording:

Students are advised that lectures, demonstrations, performances, and any other course material provided by an instructor include copyright protected works. The Copyright Act and copyright law protect every original literary, dramatic, musical and artistic work, including lectures by University instructors.

The recording of lectures, tutorials, or other methods of instruction may occur during a course. Recording may be done by either the instructor for the purpose of authorized distribution, or by a student for the purpose of personal study. Students who wish to record sessions need to acquire permission from the instructor. Students should be aware that their voice and/or image may be recorded by others during the class. Please speak with the instructor if this is a concern for you.

Turnitin.com:
This course may use a web-based service (Turnitin.com) to reveal plagiarism. Students will be expected to submit their work electronically to Turnitin.com and in hard copy so that it can be checked for academic dishonesty. Students who do not wish to submit their work to Turnitin.com must still submit a copy to the instructor. No penalty will be assigned to a student who does not submit work to Turnitin.com. All submitted work is subject to normal verification that standards of academic integrity have been upheld (e.g., on-line search, etc.). To see the Turnitin.com Policy, please go to McMaster Academic Integrity Policy.
 
Course Changes:

The instructor reserves the right to modify elements of the course and will notify students accordingly.

Extreme Circumstances:

The University reserves the right to change the dates and deadlines for any or all courses in extreme circumstances (e.g., severe weather, labour disruptions, etc.). Changes will be communicated through regular McMaster communication channels, such as McMaster Daily News, A2L and/or McMaster email.

 

Course Withdrawal Policy:
Policies related to dropping a course and course withdrawals are posted to the Centre for Continuing Education’s program webpage, FAQs & Policies (https://www.mcmastercce.ca/cce-policies#Dropping). 
Storm Closure Policy:
In the event of inclement weather, McMaster Continuing Education will abide by the University’s Storm Closure Policy:  https://www.mcmaster.ca/policy/Employee/storm_emergency_policy.pdf, and will only close if the University is closed.  All in-class courses, exams and room bookings by internal and external clients will be cancelled if McMaster Continuing Education is closed.  On-line courses will take place as scheduled.
Grading Scale:
 Grade Equivalent
Grade Point
Equivalent Percentages
A+ 12 90-100
A 11 85-89
A- 10 80-84
B+ 9 77-79
B 8 73-76
B- 7 70-72
C+ 6 67-69
C 5 63-66
C- 4 60-62
D+ 3 57-59
D 2 53-56
D- 1 50-52
F 0 0-49
Course Schedule:

Week #                          Course Topics                                    Chapters & Cases Due

Topic # 1         Overview: Corporate Finance                      (Chapters: 1 – 4)

1          Over view / Financial Statements Analysis                           1, 2, 3

        

2          Financial Analysis and Long-term Planning                         3, 4

  • Students should already have a good exposure to these areas from Financial/ Managerial accounting courses – Focus is on analysis, interpretations and recommendations

            Class Objectives: Topic # 1: (Two Sessions)

  • Overview of Corporate Finance integrated to  Corporate Strategy
  • Role of Financial officers in organizations
  • Discussion on Corporate ethics, Compensation scheme and Governance
  • Financial Statements and Performance Analysis
  • Long-term Financial Planning & Forecasting     

Topic # 2         Valuation of Cash flows, Stocks & Bonds      Chapters:  5 – 8)

3                                 Time Value of Money concepts                                            5, 6

                                    Discounted Cash-flow Valuations                            

                                                                                                                      Case # 1 Due

 

4          Stock & Bond Valuation Fundamentals                                6, 7     

5          Stock Market Reporting                                                         8         

Class Objectives: Topic # 2: (Two Sessions)

  • Concept of time value of money / Future and Present Values 
  • Applications: Loans and amortization / Money markets in Canada
  • Characteristics of Long-term debts / Preferred Equities / Common Equities
  • Stock Valuation: Basic, Constant growth, variable growth models

Quiz # 1 (Timed exercise)

Topic # 3         Capital Budgeting & Investment Decisions (Chapters:  9 – 11)

6          Investment Criteria, Decisions & Analysis              

Class Objectives; Topic # 3 (Two Sessions)

  • Investment Evaluation Tools: Payback/NPV/IRR
  • Investment Decisions - Tax Implications
  • Leverage and Capital Structure / Capital Rationing
  • Project Evaluations / B/E Analysis / Operating Leverage               

7         Mid-term Exam

Topic # 4         Capital Market Theory                                             (Chapters 12 - 14)

8                                Capital Market Hypothesis

                                    Risk, Return and Diversification

Class Objectives: Topic # 4 (Three Sessions)

  • Cost of Equity and Debt
  • Weighted Average Cost of Capital
  • Capital Asset Pricing Models
  • Measuring and Managing Risks                              

Topic # 5         Raising Capital and Capital Structure Theory        (Chapters 15 - 17)                                                                                               

9        Raising Capital                                                                       15                                                                                                                       

10        Leverage and Capital Structure                                             16

                                                                                                                                    Case # 2 Due

11        Dividends and Dividend Policies                                           17

            Class Objectives: Topic # 5 (Two Sessions)

  • Initial Public Offerings (IPO)
  • Issuing Long-term Debt
  • Dividend Policies
  • Quiz # 2 (Timed Exercise)

Topic # 6          Special Topics in Corporate Finance                       (Chapters 21 - 23)

                                    Introduction to International Finance

                                    Leases, Mergers & Acquisitions

12        International Finance / Leases/Mergers                                22           

            Class Objectives: Topic # 6 (One Session)

  • Foreign Exchange Markets
  • Leases and Purchasing
  • Financial Implications of Mergers and Acquisitions

13      Final Examination                                                                                                   

Notes:                        

  • Cases and assignments will be posted at Avenue to Learn.
  • All cases must be submitted on time as indicated above.
  • Cases will be marked, and feedback given usually the following week.