MBA 8135 – Corporate Finance

Course Syllabus Spring Semester 2013

Instructors: D. Beard, C. Hodges, M. Shrikhande

NOTE: This is the general course syllabus for MBA 8135. While the course is offered in multiple
sections each semester and taught by different instructors, it is coordinated at the department level. All
sections follow the same general syllabus, use the same textbook, and take the same common final
exam. At the beginning of the semester each instructor will provide an addendum to the general
syllabus for his/her section(s). The addendum contains section-specific information with respect to
contact information, class dates, assignments, evaluation criteria, etc.
This course syllabus provides a general plan for the course; deviations may be necessary.

Course Sections and Instructors:

The following table lists all sections of MBA 8135 for this semester. Each section has a unique Course
Number. Be sure to check your registration record on the GoSOLAR online system to locate the
correct time and location for your specific class and Instructor.
CRN Days Time Instructor Location
16320 W 04:30 pm – 07:00pm David Beard ALC 304
13390 M 07:15 pm - 09:45 pm Charles Hodges Online
13389 R 07:15 pm - 09:45 pm Milind Shrikhande ALC 204

Course Prerequisites/Corequisites:
Prerequisites: MBA 8000, MBA 8025; All students, regardless of degree program, must have
completed the appropriate prerequisites with a grade of "C-" or better.
Corequisites: MBA 8015, MBA 8030; Either or both of these courses can be taken simultaneously
with MBA 8135.
CSP: 1,2,3,6,7,8.

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 This course requires specific Computing Skills Prerequisites (CSPs), especially fundamental spreadsheet
skills. Students are expected to acquire the required computing skills through whatever means they
deem most appropriate before enrolling in a course. Students found to have insufficient CSP expertise
can be disenrolled from this course. Free eTraining is available to students for these skills.
For details see http://robinson.gsu.edu/rcbonline/csps.htm and http://www.gsu.edu/etraining/

Course Coordinator:
If you have general questions concerning the course or the course syllabus, you can contact the course
coordinator, Dr. Alfred Mettler, via e-mail at [email protected]. For all questions specific to your section
of the course, contact your instructor. Your instructor will provide you with specific contact
information in his/her addendum to the syllabus.

Catalogue Description:
This course focuses on the financial management of both publicly held and private corporations.
Students are presented with a conceptual framework for understanding and addressing problems
commonly faced by corporate decisionmakers and are provided opportunities to apply these concepts
to contemporary business situations. Topics covered include, but are not limited to: time value of
money, the relationship between risk and return including the capital asset pricing model, the valuation
and role of debt and equity, capital budgeting/project evaluation techniques, cost of capital, cash flow
estimation, project risk analysis, real options, company valuation, and capital structure decisions.

Required Text:
Ross, Westerfield, Jaffee: Corporate Finance, 9th. ed., ISBN 978-0-07-733762-9.
Additional student resource material can be found on and downloaded from the textbook’s website:
http://highered.mcgraw-hill.com/sites/0073382337/information_center_view0/

Financial Calculator:
It is necessary that you have a financial calculator to use throughout the course and that you bring it
to each class. Many end-of-chapter problems require complex arithmetic operations, and a financial
calculator is necessary to solve these problems efficiently. Recommended financial calculators are the
Texas Instruments BA II Plus, the Hewlett Packard 10B or 12C, and similar models. Approximate price:
$35.

COURSE SECTION POLICIES

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 Attendance Policy:
Each student is expected to attend all scheduled class meetings for the entire duration of the class
meeting. An attendance sign-up sheet will be circulated each class period. Students who do not sign the
sign-up sheet will be considered absent. Students arriving late may be permitted to sign the sheet only at
the discretion of the instructor.
Any student who is absent from more than the equivalent of three classes will be dropped from the
course. Absences include the first week of class regardless of when a student registered for the course.
The last day to withdraw and receive a “W“ is the midpoint of the grading period (per GSU’s academic
calendar). In the case of withdrawal before the grading period midpoint a “W“ is not given automatically.
To get a “W“ a student must have done satisfactory work (at the “C-“ level or higher). Unsatisfactory
work will result in a “WF“. If a student is withdrawn for excessive absences after the midpoint of the
grading period, a final grade of WF will be assigned automatically.
An absence from class for any reason (job conflict, illness, appearance in court, transportation problems,
etc.), even if permitted and/or excused by the instructor, will count as one of the class absences
against the three weeks equivalent cumulative limit specified in the previous paragraph.
A special word to VA students: Due to required University oversight of students receiving VA benefits, you
have a special burden of faithful class attendance. Under present guidelines, absence for a ten-
consecutive calendar day period necessitates a report to that effect to the VA Office at GSU, with
(presumably) a consequent adverse effect on your status vis-a-vis the U.S. Government. Please keep this
in mind.

Make-up Examinations:
Generally, make-up exams are not allowed. A student who is ill or otherwise knows that he or she will
not be able to attend a scheduled examination must notify the professor prior to the examination of the
reason for the expected absence. The Memorandum from the Chairman of the Finance
Department on the last two pages of this syllabus outlines the attendance guidelines for scheduled
examinations in more detail.

GSU Academic Honesty Policy:

The On Campus Student Handbook provides students with a wealth of information that can assist them
throughout their matriculation at Georgia State (see www.gsu.edu/studenthandbook), including the most
current version of GSU’s “Student Code of Conduct and Administrative Policies and Procedures”. It
may be viewed at www.gsu.edu/codeofconduct/
Behavior consistent with College and University policies on academic honesty and treatment of
members of the University community is expected of all. Cheating, plagiarizing, submitting the material
for credit in more than one class, and other deceptive conduct with respect to a student’s work output

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 will be dealt with according to the University Policy on Academic Honesty.
Plagiarism and misrepresentation of work are serious offenses, which can lead to expulsion and a grade
of “F” for the course. Plagiarism includes, but is not limited to, taking material from any source written
by another and presenting it as your own by failing to indicate full and accurate attribution to the
correct author/creator. This includes marginally altering material taken from another source and calling
it your own creation. Plagiarism includes materials taken from internet sources. Proper citation
requires quote marks or other distinctive set-off for the material, followed directly by a reference to the
source. The source details may be in the footnotes/endnotes/references section, but only listing a
reference without proper indication in the text is not proper attribution and can be considered
plagiarism. Misrepresentation of work includes, but is not limited to, presenting material that was
prepared for another class or outside work as an original work product that was produced for this class.
All work turned in for this class is represented by the student(s) to be original material prepared in
fulfillment of this course’s requirements.

Academic Honesty:
The Department of Finance adheres strictly to the University's policy on academic honesty as
contained in the Academic Regulations section of the University catalog. Any student found copying
during exams or quizzes, signing someone else's name to the attendance list, using stored formulas in
programmable calculators, using non-authorized formula sheets or other notes during exams,
collaborating on and/or copying any in-class or take-home assignments, or the like will receive an F for
the course and possibly be subject to additional University disciplinary action.
In general all university and college regulations concerning academic honesty shall apply. Students are
expected to recognize and uphold standards of intellectual and academic integrity. The university
assumes as a minimum standard of conduct in academic matters that students be honest and that they
submit for credit only the products of their own efforts.
It is particularly important that students read and understand the portions of the University Policy on
Academic Honesty that relate to plagiarism, unauthorized collaboration, falsification, and multiple
submissions. As mentioned before, the University Policy on Academic Honesty is explained in detail in
the Student Handbook (available online at http://www.gsu.edu/studenthandbook/ ) and the Student Code
of Conduct (available online at http://www.gsu.edu/codeofconduct/ ). This Policy represents a core value
of the University. All members of the University community are responsible for knowing and abiding by
its tenets. Students are expected to carefully review the online Policy prior to undertaking any research
or other assignments.

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 Students are encouraged to discuss freely with faculty any questions they may have pertaining to the
provisions of the Policy on Academic Honesty prior to submitting assignments. Lack of knowledge of
the contents of the University Policy on Academic Honesty is not an acceptable defense to any
charge of academic dishonesty.

Disabilities or Special Needs:

Students who wish to request accommodation for a disability may do so by registering with the Office of
Disability Services. Students may only be accommodated upon issuance by the Office of Disability
Services of a signed Accommodation Plan and are responsible for providing a copy of that plan to
instructors of all classes in which accommodations are sought. Please let your instructor know if you
have a disability or special need that requires accommodation.

Miscellaneous Policies:
 The students’ GSU e-mail addresses (as shown in GoSOLAR) will be used as the primary means of
communication. Students should therefore check their GSU e-mail accounts at least on a daily basis.
 Students are expected to be punctual for class –- being tardy means missing important course
announcements and disrupting the learning process for others. Students who arrive late are
expected to enter and take a seat quietly
 There will be a 10-minute break during most classes. It will occur at about the mid-point, but may
vary based on the flow of the material.
 Beepers, cell phones and similar devices should be turned off or put in vibration mode at the
beginning of the class. E-communication devices should not be used during class, and must not be
used during examinations.
 A computer/iPad or other digital devices should only be used during class to access course materials
and to work on relevant course content
 All students are to conduct themselves consistent with University policies concerning behavior in
the classroom and toward others in the University community. Students should consult their
student handbook, “On Campus”, for details on these policies.

Student Assessment:
Your constructive assessment of this course plays an indispensable role in shaping education at Georgia
State. Upon completing the course, please take time to fill out the online course evaluation.

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 ASSIGNMENTS AND EVALUATION CRITERIA
Grade Weights:
Problem sets, group assignments, quizzes, etc. 35%
Mid Term Exam(s) 30%
Final exam 35%

Problem Sets, Group Assignments, Quizzes, etc.:

Problem sets, group assignments, quizzes etc. are allocated at the discretion of the instructor and will
vary by class section and semester. Your instructor will explain this component of your grade in detail
during the first week of class.

Mid Term Exam(s):

Your instructor will inform you about the date and exact content of the mid term exam(s) during the
first week of class.

Final Exam:
The final exam is cumulative and will be given on the day listed in the course outline. You must attend
the final exam on the scheduled date or you must apply for a final exam variance. To apply for a variance
date for your final exam, read and carefully follow the instructions in the Memorandum from the
Chairman of the Finance Department (last 2 pages of syllabus).

Exam Policies:
No other electronic devices are allowed during quizzes and exams besides a financial calculator
(see page 2). Such prohibited items include laptops, iPads, tablets, cell phones, smart phones, personal
digital assistants (PDA’s), text messaging systems and similar devices. If you have any questions about the
legality of your calculator, check with your instructor.
Material from the text chapters, class handouts, end-of-chapter problems, supplemental problems, cases,
and the prerequisites may be covered on the exams, whether or not specific coverage in class has
occurred.
All course grades, once assigned, are final and cannot be changed except in the rare event of a
mathematical miscalculation by the instructor.

Grading Policy - Department of Finance:

In accordance with Departmental policy, for masters level courses (MBA and FI prefixed), it is expected
that no more than 35 percent of the students in a given class section will receive a grade of A+, A, or

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 A-. The majority of the remaining students are expected to receive grades of B+, B, or B-. Those
students demonstrating significantly lagging performance shall earn grades at the C-level or lower as
appropriate.
The finance department employs the +/- grading system. A grade of “C-“ is considered a passing grade
for this course and a “C-“ is considered passing for prerequisite purposes for this course as well as for
all finance electives. Refer to the University catalog for information concerning +/- grading and quality
points for GPA calculations.

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 TENTATIVE COURSE SCHEDULE
This outline provides a general plan for the course; deviations may be necessary.
Your instructor may use a slightly different sequence of topics and mid term exam(s) in your section.

Textbook chapters
Class # Topics to be covered (RWJ, Corporate Finance, 9th. ed., 2010)
Course Policies and Overview
Introduction to Corporate Finance - Read Entire Course Syllabus
Class 1 - Goals of Financial Management
- Conflicts between Company Stakeholders - Chapter 1
- Financial Markets
Time Value of Money - Read Handbook of your Calculator
- FV/PV of Cash Flows and Cash Flow Streams - See www.tvmcalcs.com
- Compounding/Discounting - Chapter 4
Time Value of Money
Class 2 - Multiple Compounding and Discounting - Chapter 4
- Different compounding periods
- Amortized Loans
Risk and Return
- Expected Rate of Return - Chapter 10
Class 3 - Standard Deviation of Returns
- Relationship between Risk and Return
The Capital Asset Pricing Model
- Measuring Portfolio Risk - Chapter 11
Class 4 - Diversification
- The Capital Asset Pricing Model (CAPM)
Bonds and Their Valuation
- Terminology and Characteristics of Bonds - Chapter 8
Class 5 - Bond Valuation
- Bond Yields
Stocks and Their Valuation
- Terminology and Characteristics of Stocks - Chapter 9
Class 6 - Stock Valuation Models
- Growth Opportunities and PVGO model
Mid Term Exam
Class 7 (based on material covered so far)

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 Textbook chapters
Class # Topics to be covered (RWJ, Corporate Finance, 9th. ed., 2010)
Investment Rules
- Capital Budgeting Decision Rules - Chapter 5
Class 8 - NPV versus IRR
- Independent and Mutually Exclusive Projects
Capital Investment Decisions
- Cash Flow Estimation - Chapter 6
Class 9 - Identifying Relevant Cash Flows
- Evaluating Capital Budgeting Projects
Capital Budgeting and Risk
- Sensitivity Analysis, Scenario Analysis - Chapter 7
Class 10 - Real Options
- Decision Trees
Risk, Cost of Capital, and Capital Budgeting
- Cost of Debt - Chapter 13
Class 11 - Cost of Equity
- Weighted Average Cost of Capital
Cost of Capital / Capital Budgeting
- Examples and Application - Chapter 13
Class 12 Capital Structure Decisions - Chapter 16
- Financial Leverage and Firm Value
Capital Structure Decisions
- Financial Distress Costs - Chapter 16
Class 13 - Estimating the Optimal Capital Structure - Handouts
- Capital Structure Theory
Special Topics
Class 14 Review and Synthesis - TBA

Downtown
Saturday, Final Exam (13.00-15.30) (classrooms/locations to be announced in
May 4th class)

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 MEMORANDUM

To: Students Enrolled in MBA 8135

From: Chairman - Department of Finance
Semester: Spring 2013
Subject: MBA 8135 course policies

a) Attendance for Final Exam

The Department of Finance schedules common, department-wide final examinations for MBA 8135.
The Final Exam is scheduled for Saturday, May 4th , 2013, 13.00-15.30 pm
Variances granted from the common final examination date are undesirable for obvious reasons.
Intrinsically, early examination exposes any student to question, even if innocent, when cheating is
discovered. The penalties for cheating are severe; consult GSU’s Graduate Bulletin for specific university
regulations. Core courses are offered each semester. Therefore, if you foresee a personal conflict with
the examination date please register for the course in a later semester. Only the Department Chairman
grants variances for the final examination date; permission granted by others will not be honored.
Guidelines for requested variance:
1. Requests for variance must be received in the Department's office a least one-week prior to the
midpoint in the semester in which you are taking the course. This lead-time will allow for course
withdrawal in the event of the denial of a variance request. Semester midpoint dates can be
found at http://calendar.gsu.edu/calendar/EventList.aspx
2. A letter must be written to the Chairman and must be supported by additional documentation
regarding the student's conflicting obligation. Job conflicts are to be supported by a letter from
the student's supervisor on company stationary. Variances for students involved in the wedding
of an immediate family member will be considered. Others will not. Copies of a wedding
invitation and statement of kinship must support those considered.
3. The letter to the Chairman should include your social security number, telephone number,
address, name of instructor, and course section. It should be mailed or faxed to the Chairman of
the Department of Finance, Robinson College of Business, 35 Broad Street, Atlanta, Georgia
30303 (Fax: 404-413-7312).
4. If a variance request is approved, the Department will determine the date and site of an
alternate examination. It is Departmental policy that an alternate examination will be scheduled
at an earlier rather than a later date.

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 b) Attendance for Scheduled Examinations (other than the final exam):
The GSU Graduate Catalog states: "…Students must be present for announced quizzes, laboratory
periods, or final examinations unless the reasons for the absences are acceptable to the professors
concerned...”
A student who cannot take a scheduled exam (other than the final exam) must comply with the
following guidelines:
1. A formal request for permission to be absent from an exam should be submitted to the instructor in
advance of the examination, if possible. If circumstances preclude an advance request, a formal
request for an excused absence must be submitted to the instructor within seven (7) days of the
date of the missed examination.
2. A formal request for advance permission to be absent or to excuse an absence that has already
occurred must take the form of a letter to the instructor supported by additional written
documentation of the conflicting situation that interferes with attendance at the examination. For
example, job conflicts are to be documented by a supervisor’s letter on company stationary; military
reserve conflicts are to be documented by a copy of orders to duty; health conflicts are to be
documented by the written statements of a health professional; conflicts because of attendance to
funerals or weddings are to be documented by copies of obituaries or wedding invitations.
3. No "makeup" exams during the semester will be given in this course. If any exam is not taken as
scheduled and if the absence is excused, then the grade weight(s) of the missed exam(s) will be
transferred to the final examination.
4. An examination score of 0 will be given if the instructor does not permit or excuse an absence from
the exam discussed above. Absence from any exam, even when permitted or excused will count as
one of the class absences against the limit specified in the previous section on "Attendance Policy".

c) Withdrawal:
Grades at withdrawal are determined in strict compliance with policies stated in the Graduate Catalog.
A grade of "W" indicates that a student, doing passing work, was permitted to withdraw from the
course. A grade of "WF" indicates that the student:
1. Voluntarily withdrew from a course before the midpoint for the grade period while doing failing
work,
2. Was involuntarily withdrawn from a course before the midpoint of the grading period while doing
failing work,
3. Voluntarily withdrew from a course after the midpoint of the grading period and was not awarded a
hardship withdrawal, or
4. Was involuntarily withdrawn from a course after the midpoint of the grading period and was not
awarded a hardship withdrawal.

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