DEPARTMENT OF ECONOMICS
Economics 327.01
Corporate Finance
Spring 2009
spring 2008 Professor
Paul G. Munyon
TTh 8:30 - 9:50
Carnegie 207, 269-3142
ARH 131 E-Mail:
MUNYON@grinnell.edu
Professor's Home Page:
http://www.grinnell.edu/individuals/munyon/index.html
Course Home Page:
http://www.grinnell.edu/individuals/munyon/corpfin09.html
LISTSERV:
Organization
This course will meet for
approximately three hours each week. You
should be prepared to be an active participant in every class session. Being prepared for each class will be
essential for making the best possible use of the basic material presented in
each class and for staying up-to-date with the rapidly changing world of
finance. In addition, your participation
in class discussions will account for at least 20 percent of your course grade.
Problem Sets
There will be eight (8) "Pre-quizzes"
given on Thursday mornings during the semester. On those Thursday morning, class will begin at
8:15 rather than 8:30. Students will
have approximately 20 minutes to complete each "Pre-quiz" in
class. Each "Pre-quizzes" will
provide you an opportunity to test your understanding of important new material
in a timely manner. Your performance
will contribute to your final grade to the extent that you take advantage of
each "Pre-quiz" to test your understanding of material likely to be
covered on exams during the semester.
Examinations
There will be three exams (80
minutes each) given during the course of the semester. The course outline provides the dates for
these exams. Each exam will account for 15 percent of your grade. A
comprehensive final examination will account for 35 percent of your course grade.
The time for the final is the assigned examination period. You may plan on the dates listed on the
syllabus, and I will plan on the dates listed.
Home Page
Economics 327.01 has a home page. This page contains dynamic links to the
On-line Wall Street Journal,
EDGAR, and other useful resources.
Required
The course syllabus lists the
required reading for the course. I may
assign additional reading during the semester. The required materials are:
Brigham and Ehrhardt,
FINANCIAL MANAGEMENT: Theory and Practice (12th edition).
The Wall Street Journal: If you do not
now subscribe to the WSJ, you will be able to order a subscription to
the paper on the first day of class. With your subscription to the WSJ, you
will receive a password for the on-line version.
Financial Calculator
You MUST have a
financial calculator. The Bookstore
stocks the HP 10BII and at least one other financial calculator. Any calculator with built-in financial
functions should serve you well.
DEPARTMENT OF ECONOMICS
Economics 327.01
Corporate Finance
OUTLINE
Week 1
January 20: Chapter 1: Introduction and a First Look at
Contemporary Chaos
January 22: Chapter 1 and Financial Press: Continuous
Change in Capital Markets
Week 2
January 27: Chapter 2: Time Value of Money
January 29: Chapter 2 and 3: Money and Financial
Statements (Pre-quiz 1)*
Week 3
February 3: Chapters 3 and 4: Accounting for Cash Flows and
Ratios
February 5: Chapter 5: Bonds (Pre-quiz 2) *
Week 4
February 10: Chapter5 and 6: Bonds and Risk and Return—Exploring
the Basic CAPM
February 12: Chapters 6 and 7: Risk and Return—Rethinking
CAPM (Pre-quiz 3) *
Week 5
February 17: Credit
Default Swaps: What is Left after the
Risk is Gone?
February 19: Examination I
Week 6
February 24: Chapter 8:
Stocks and Stock Markets
February 26: Chapter 8: Stocks—Valuation is in the
"eye" of the holder (Pre-quiz 4) *
Week 7
March 3: Chapter 10: Cost of Capital--WACC
March 5: Chapter 10: Cost of Capital—WACC (Pre-quiz 5) *
Week 8
March 10: Chapter 10: Beyond the simple WACC
March 12: Chapter 11:
Capital Budgeting: Cash Flow Evaluation (Pre-quiz 6) *
Spring Break
Week 9
March 31: Chapter 11 and 12: Evaluating Risky Cash Flows
April 2: Examination II
Week 10
April 7: Chapters 9 and 13: Financial Options and Real
Options
April 9: Chapter 14: Financial Planning—Planning for
Financing (Pre-quiz 7) *
Week 11
April 14: Chapter 16: Capital Structure
April 16: Chapter 17: Capital
Structure (Pre-quiz 8)*
Week 12
April 21: Chapter 20: Lease Financing
April 23: Chapter 21: Other Hybrid Financing
Week 13
April 28: Examination
III
April 30: Chapter 22: Working Capital and Working without
Capital
Week 14
May 5: Chapter 23: Derivatives
May 7: Chapter 23: Derivatives: Managing Risk or Risking Management?
Finals Week
May 14: Final Examination at 9:00 AM (Thursday)
* On those Thursdays when there is a scheduled
"Pre-quiz," class will begin at 8:15 instead of 8:30. Students will have approximately 20 minutes
for each "Pre-quiz."