1020 FIN3101 All
1020 FIN3101 All
1020 FIN3101 All
FIN3101 CORPORATE FINANCE
Semester II, 2010/2011
Instructors
A/P Chen Renbao, A/P Tan Siew Kuan, Ruth, and Dr. Jiekun Huang
Course Objectives
This course is designed to give students the capacity to understand and evaluate the theory
and apply, in real world situations, the techniques that have been developed in corporate
finance. The following broad questions will be addressed. How should a firm decide whether
to invest in a new project? How much debt and equity should a firm use to finance its
activities? How should a firm pay its investors? What determines the value of a firm?
Examples and cases will be used to illustrate the concepts taught in lectures.
Textbook and References
Main Textbook: Modern Financial Management (RWJJ), By Ross, Westerfield, Jaffe and Jordan,
McGraw‐Hill International Edition, 8th edition, 2008. It is advised that students purchase a
new copy of the textbook with an S&P card. The card has a 6‐month validity, which enables
students to access online financial data for some tutorial questions. If you get the text from
your senior, you may not have a valid S&P card.
References: Principles of Corporate Finance, By Brealey, Myers, and Allen, McGraw‐Hill
International Edition, 9th edition, 2008. News articles from sources such as Wall Street
Journal and Financial Times will be discussed in class.
Grading
Class Participation 5%
3 Tutorial Assignments 9%
1 Case study and 2 Critiques 26%
Test 1 20%
Test 2 40%
Total 100%
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Closed Book Tests
No formula sheet will be provided in the tests. However, students are allowed to bring in
ONE (1) sheet (A4 size) of formulas. Only NUS approved calculators are allowed. The tests
may consist of open‐ended questions that examine the overall understanding and creativity
of the student with respect to the course materials.
Class Participation
Students are expected to read suggested readings in advance of class and to actively
participate in class discussions. Extra credit will be granted to those who can contribute
towards class discussions.
Case Assignments
Three cases will be discussed in this course. Each class will be broken into 9 groups for case
assignments. For each case, there will be three primary groups and six critique groups.
Groups 1A, 1B, & 1C will take on the primary responsibility for case 1; groups 2A, 2B, & 2C for
case 2, and groups 3A, 3B, & 3C for case 3. The 3 primary groups for the case will each submit
a double‐spaced, typewritten comprehensive report not exceeding 15 pages (including texts,
tables and appendices) by the due date. In addition, they have to distribute copies of their
reports to the other 6 critique groups by the same due date. The 6 critique groups are
required to submit a one‐page critique of the reports in class before the case presentation.
During case presentation, the three groups with primary responsibility will be given 30
minutes each to present their analysis. All students are expected to actively participate in the
case discussions. Case assignment and guidelines will be made available on IVLE two weeks
before the due date.
Tutorial and Discussion
Students are expected to come prepared for the tutorial. Each tutorial consists of a number
of questions and/or mini‐cases related to topics that are covered in class. These questions
may require downloading and analysis of financial data. Please note that group‐based
answers will be collected for grading. The group membership is the same as that for case
study. Based on the quality of the submissions, certain groups will be requested to present
the tutorial answers in class.
Submission Policy
ALL group tutorial answers and case reports must be submitted by the due date and time.
Late submissions will be penalized.
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