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Business 298

Corporate Finance and Capital Markets

Credits: 3

Length of Course: 14 weeks

Classroom Hours per Week: 4

Prerequisites: 15 credits, English 099, Economics 103 and 105

Corequisite: Accounting 251

Text: Fundamentals of Corporate Finance, latest Canadian edition, McGraw-Hill Ryerson Ross, Westerfield, Jordan & Roberts


Course Description:

This is an introductory finance course covering the concepts and analytical tools required to solve financial problems. Topics include corporate finance, time value of money, bond and stock valuation, capital budgeting, risk and return, diversification, CAPM, market efficiency, cost of capital, and international corporate finance.

This course provides an introduction to corporate finance. It covers concepts and analytical tools indispensable in solving financial problems; it aims to teach a sound understanding of the fundamentals of corporate finance and to develop problem-solving skills.


Course Outline:

Week Topic
Week 1 Overview of corporate finance
Week 2 Time value of money
Week 3 Discounted cash flow valuation
Week 4 Bond valuation
Week 5 Stock valuation
Week 6 Raising capital
Week 7 Investment criteria
Week 8 Capital investment decisions
Week 9 Project analysis and evaluation
Week 10 Lessons from capital markets
Week 11 Risk, return, and diversification
Week 12 Cost of capital
Week 13 International corporate finance

Evaluation:

Assignments and Reports 20 %
Mid-term exam 40%
Final exam 40%

Instructors:

Stéphane Deseau, M.Econ. (Maine, France), M.Sc. (Quebec)

Cheryl Fu, B.A. (Beijing), M.A. (Simon Fraser), Ph.D. candidate

Fatin Jallad, B.A., B.Sc. (Portland), M.Sc. (New Mexico), M.Sc. (Arizona)


Transferability: see www.bctransferguide.ca