Lifelong Learning for a Brighter World

Jing Zhou, McMaster University Continuing Education Accounting graduate Jing Zhou, McMaster University Continuing Education Accounting graduate

Accounting

Cheques and balances. It all adds up.

Work towards your CPA designation!

ACC 933 - Financial Management C01 (fast-track)

Academic Credit Value:
3 units
Course Delivery Mode:
In-Person
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:
Frank Tristani, B. Comm.(McMaster), FICB, CFP
Course Dates:
03/11/2019 - 04/29/2019



Required Course Materials:
Text: Fundamentals of Corporate Finance – 9th Canadian Edition Stephan A. Ross, Randolph W. Westerfield, Bradford D. Jordan, Gordon S. Roberts McGraw Hill Ryerson (2013) ISBN: 13: 978-125908758-5
Optional Course Materials:
Class Handouts and Cases for analysis and reporting and McGraw-Hill Connect
Course Description:

This course in 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 participating in the local and global economies.

The course covers the current best practices in financial analysis and planning through the application of financial concepts. These include financial performance ratios, time value of money, financial markets and institutions, securities and valuation of firms, cost of capital, risks and return, long-term financial budgeting and working capital management.

In addition, the course also introduces topics on lease financing, hybrid securities and derivatives, trust funds, mergers and acquisitions and international corporate finance.

Learning Outcomes:
The primary focus of the course is to enable participants to 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.
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

Class Participation & Attendance / Discussions   5 %
Assignments (Two - see below for details) 25 %
Mid-term Exam 30 %
Final Examination 40 %
Total Marks             100 %

Class Participation (5%)
The class participation mark is determined by assessing student contributions to discussion and problem-solving suggestions during case analyses. It is highly recommended that students complete the assigned reading and review the specified cases each week to contribute to their individual learning and class participation mark.

Assignments (25%; for 2 assignments)
These are individual assignments where students will be required to conduct a mini-case analysis where they will provide an overview, analysis, summary of potential solutions and recommended approach and; specific problems.

Mid-term Exam (30%)
The mid-term test will be a combination of concepts through multiple choice, short answer, problems and descriptions combined with analysis where students will have the opportunity to demonstrate their understanding of the principles and practices of strategic management learned to date.

Final Exam (40%)
The final exam is comprehensive and will cover all of the course content. It will be a combination of multiple choice, short answer questions, problems and case analysis.

Note:
Mid-term and final examinations may be administered in-class.
Final examination may be in a common room setting.

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:
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:
Students who require academic accommodation should contact Student Accessibility Services (SAS).  Staff at SAS will evaluate your learning needs and, if required, will provide a letter for the course instructor. It is the student’s responsibility to inform the instructor and Program Manager of any accommodation requirements at the start of the course.  For more information, contact SAS at ext. 28652 or visit http://sas.mcmaster.ca
On-line Elements:
Material for this course may be accessed through McMaster’s learning system, Avenue to Learn. Your instructor will notify you if, or when, you will be required to log in and use the tools and materials available through this on-line system. Computers are available for use in various locations across McMaster main campus including all libraries, computer labs, and CCE’s Gathering Place. To access Avenue to Learn go to: http://avenue.mcmaster.ca
You will be required to enter your MAC ID (login and password). To activate your MAC ID, contact University Technology Services.
Turnitin.com:
McMaster University uses 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.
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, the Centre for 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 the Centre for 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:

 

Topic Area

Topics

Chapters

 

Overview of Corporate Finance


Introduction to Corporate Finance & Financial Statements, Cash Flows and Taxes

1 & 2



Chapter Review Problems and Self-Test 2.1 Page 59


Chapter 2 Questions & Problems, Page 66, Questions 24, 25, 26, 27,28



Financial Statements and Long Term Financial Planning

Working with Financial Statements & Long Term Financial Planning and Corporate Growth

3 & 4



Chapter Review Problems and Self-Test 3.1, 3.2, 3.3, 3.4, Pages 98 & 99


Chapter Review Problems and Self-Test 4.1, 4.2, 4.3, Pages 135

Valuation of Future Cash Flows

Time Value of Money & Discounted Cash Flow Valuation

5 & 6


Chapter Review Problems and Self-Test 5.1, 5.2, 5.3, 5.4, 5.5, Pages 165


Chapter Review Problems and Self-Test 6.1, 6.2, 6.3, 6.4, 6.5, 6.6 Pages 202

Valuation of Future Cash Flows

Interest Rates and Bond Valuation & Stock Valuation

7 & 8


Chapter Review Problems and Self-Test 7.1, 7.2, Pages 254


Chapter Review Problems and Self-Test 8.1, 8.2, Pages 284

Capital Budgeting

Net Present Value and Other Investment Criteria & Making Capital Investment Decisions with Project Analysis and Evaluation

9 & 10, Parts of 11


Chapter Review Problems and Self-Test 9.1, 9.2, 9.3, Pages 322


Chapter 9 Questions & Problems, Page 322, Questions 17 and 18


Chapter 9 Questions & Problems, Page 331, Questions 24 & 25


Chapter Review Problems and Self-Test 10.1, 10.2, 10.3, Pages 369


Chapter Review Problems and Self-Test 11.1, 11.2, Pages 416


Mid- Term Exam



Risk and Return

Lessons from Capital Market History & Return, Risk, and the Security Market Line

12 & 13


Chapter Review Problems and Self-Test 12.1, 12.2, Pages 454


Chapter 12 Questions & Problems, Page 458, Questions 14, 15 and 16


Chapter Review Problems and Self-Test 13.1, 13.2, 13.3, 13.4, Page 501 & 502


Chapter 13 Questions & Problems, Page 506, Questions 9 and 10


Chapter 13 Internet Application Questions, Question 1, Page 509

Cost of Capital and Long Term Financial Policy

Cost of Capital & Raising Capital

14 & 15

Chapter Review Problems and Self-Test 14.1, 14.2, 14.3, Page 545


Chapter 14 Internet Application Questions, Question 20, Page 550


Chapter Review Problems and Self-Test 15.1, 15.2, Page 602


Chapter 15 Internet Application Questions, Question 1, Page 607

Cost of Capital and Long Term Financial Policy

Financial Leverage and Capital Structure Policy & Dividends and Dividend Policy

16 & 17

Chapter Review Problems and Self-Test 16.1, 16.2, 16.3, Page 644 & 645


Chapter 16 Questions & Problems, Page 649, Questions 12 and 13


Chapter Review Problems and Self-Test 17.1, 17.2, Page 687


Chapter 17 Questions & Problems, Page 690, Question 8 and Page 691, Question 14

Short-Term Financial Planning and Management

Short-Term Financial Planning & Cash & Liquidity Management

18 & 19

Chapter Review Problems and Self-Test 18.1, 18.2, Page 729


Chapter 18 Questions & Problems, Page 733, Questions 6 and 7 and 8


Chapter Review Problems and Self-Test 19.1, Page 763


Chapter 19 Questions & Problems, Page 764, Question 5 and Page 765, Q7

Short-Term Financial Planning and Management

Credit & Inventory Management

20

Chapter Review Problems and Self-Test 20.1, 20.2, 20.3, 20.4 Page 802


Chapter 20 Questions & Problems, Page 806, Question10 and Page 807, Question 16



Topics in Corporate Finance

International Corporate Finance & Leasing & Mergers & Acquisitions

Parts of

21, 22 & 23


Chapter Review Problems and Self-Test 21.1, 21.2, Page 840


Chapter 21 Questions & Problems, Page 844, Questions 7, 8 and 10


Chapter Review Problems and Self-Test 22.1, 22.2, Page 870


Chapter Review Problems and Self-Test 23.1, 23.2, Page 908

Derivative Securities, Corporate Finance and Behavioural Finance

Risk Management: Financial Engineering & Options and Corporate Securities, Implications for Financial Management

24, 25 & 26


Chapter Review Problems and Self-Test 24.1, 24.2, Page 943


Chapter 24 Questions & Problems, Page 945, Questions 1 and 4


Chapter Review Problems and Self-Test 25.1, 25.2, Page 987


Chapter 25 Questions & Problems, Page 989, Questions 1, 2 and 3 and Page 990 Questions 7 and 10.


Chapter 26 Questions and Problems, Page 1028, Questions 6, 7, 8, 9.

Final Exam