CORPFIN 3500 - Corporate Finance Theory III

North Terrace Campus - Semester 2 - 2017

This course looks at theoretical issues in corporate finance and their practical application. Topics include capital structure and the preferences for debt or equity as suggested by agency models, including leases, pecking order theory and timing models; dividend policy; convertible securities and executive compensation; initial public offerings; internal capital markets and diversification.

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Course Details

Course Code	CORPFIN 3500
Course	Corporate Finance Theory III
Coordinating Unit	Adelaide Business School
Term	Semester 2
Level	Undergraduate
Location/s	North Terrace Campus
Units	3
Contact	Up to 3 hours per week
Available for Study Abroad and Exchange	Y
Prerequisites	CORPFIN 2502
Assumed Knowledge	SACE Stage 2 Mathematical Studies
Assessment	Exam/assignments/tests/tutorial work as prescribed at first lecture

Course Staff

Course Coordinator: Associate Professor Jean Canil

Course Timetable

The full timetable of all activities for this course can be accessed from .

See LEARNING ACTIVITIES SUMMARY below

Course Learning Outcomes

On successful completion of this course, students will be able to:

1. Make and interpret conceptual models and arguments in corporate finance
2. Identify the model appropriate for structuring a given financial problem
3. Evaluate the data requirements of a chosen model
4. Explain how outputs are sensitive to changed data or assumptions
5. Interpreting the results consistent with the model structure

University Graduate Attributes

This course will provide students with an opportunity to develop the Graduate Attribute(s) specified below:

University Graduate Attribute	Course Learning Outcome(s)
Deep discipline knowledge informed and infused by cutting edge research, scaffolded throughout their program of studies acquired from personal interaction with research active educators, from year 1 accredited or validated against national or international standards (for relevant programs)	1 through 5
Critical thinking and problem solving steeped in research methods and rigor based on empirical evidence and the scientific approach to knowledge development demonstrated through appropriate and relevant assessment	1 through 5
Teamwork and communication skills developed from, with, and via the SGDE honed through assessment and practice throughout the program of studies encouraged and valued in all aspects of learning	1 through 5
Career and leadership readiness technology savvy professional and, where relevant, fully accredited forward thinking and well informed tested and validated by work based experiences	1 through 5
Intercultural and ethical competency adept at operating in other cultures comfortable with different nationalities and social contexts able to determine and contribute to desirable social outcomes demonstrated by study abroad or with an understanding of indigenous knowledges	1 through 5
Self-awareness and emotional intelligence a capacity for self-reflection and a willingness to engage in self-appraisal open to objective and constructive feedback from supervisors and peers able to negotiate difficult social situations, defuse conflict and engage positively in purposeful debate	1 through 5

Learning Resources

Required Resources

The textbook for the course is Allen, F., R. A. Brealey, and S. C. Myers, Principles of Corporate Finance 12th edition McGraw Hill, 2017. (ABM). You must acquire the 12th edition as material is covered not contained in the 11th edition.

Online Learning

All material is available on MyUni.

Learning & Teaching Modes

Lectures supported by problem-solving tutorials developing material covered in lectures.

Workload

The information below is provided as a guide to assist students in engaging appropriately with the course requirements.

The University expects full-time students (i.e. those taking 12 units per semester) to devote a total of 48 hours per week to their studies. This means that you are expected to commit approximately 9 hours for a three-unit course or 13 hours for a four-unit course, of private study outside of your regular classes.

Students in this course are expected to attend all lectures throughout the semester plus one tutorial class each week.

Learning Activities Summary

Week	Topic #:	Topic:	Reading:
1	1	Does debt policy matter?	Ch.17 + Titman.pdf
2	2	How much should a firm borrow?	Ch.18 pp.460-479
3	3	The pecking order and Stulz (1990)	Ch.18 pp.479-486 + Lakshmi.pdf; Frank.pdf + additional reading
4	4	Leases	Ch.25 + distributed readings
5	5	Convertibles	Ch. 24 pp 630-636 + Mayer.pdf
6 Class test. 2.10pm Wednesday 30 August. More information will be provided closer to the date
7	6	Payout policy	Ch.16 + LaPorta.pdf & Brandon.pdf
8	7	Equity and debt issues including IPOs	Ch.15 (exclude p. 398 dealing with rights issues) + Loughran and Ritter.pdf
Mid-semester break
9 Class test starts at 2:10pm Wednesday 4 October. More information will be provided closer to the date.
	8	Executive compensation	Ch.12 pp 302-311 + Core et al.pdf
11	9	Internal capital markets	Gertner.pdf + Stein.pdf + additional reading
12 Review Lecture and Tutorials for Topic 9

Note: Reading may be varied during the semester.

Specific Course Requirements

Consultations arranged prior to tests and exams. Otherwise by appointment.

The University's policy on Assessment for Coursework Programs is based on the following four principles:

Assessment must encourage and reinforce learning.
Assessment must enable robust and fair judgements about student performance.
Assessment practices must be fair and equitable to students and give them the opportunity to demonstrate what they have learned.
Assessment must maintain academic standards.

Assessment Summary

Assessment Task	Weighting	Learning Outcome
Class Test 1: 50 minutes Topics 1-3	15%	All
Class Test 2: 50 minutes Topics 4-6	20%	All
Final Exam: 3 hours, closed-book All topics	65%	All
Total	100%

To pass this subject, 50% overall is required (this subject is not 'double pass'). Neither test is redeemable.

Assessment Detail

The course has two in-course tests of 50 minutes each. Test 1 covers topics 1-3 while test 2 covers topics 4-6. More information will be provided closer to the dates.

Submission

Both tests will be collected on the day of the test.

Course Grading

Grades for your performance in this course will be awarded in accordance with the following scheme:

M10 (Coursework Mark Scheme)
Grade	Mark	Description
FNS		Fail No Submission
F	1-49	Fail
P	50-64	Pass
C	65-74	Credit
D	75-84	Distinction
HD	85-100	High Distinction
CN		Continuing
NFE		No Formal Examination
RP		Result Pending

Further details of the grades/results can be obtained from Examinations.

Grade Descriptors are available which provide a general guide to the standard of work that is expected at each grade level. More information at Assessment for Coursework Programs.

Final results for this course will be made available through .

Student Feedback

The University places a high priority on approaches to learning and teaching that enhance the student experience. Feedback is sought from students in a variety of ways including on-going engagement with staff, the use of online discussion boards and the use of Student Experience of Learning and Teaching (SELT) surveys as well as GOS surveys and Program reviews.

SELTs are an important source of information to inform individual teaching practice, decisions about teaching duties, and course and program curriculum design. They enable the University to assess how effectively its learning environments and teaching practices facilitate student engagement and learning outcomes. Under the current SELT Policy (http://www.adelaide.edu.au/policies/101/) course SELTs are mandated and must be conducted at the conclusion of each term/semester/trimester for every course offering. Feedback on issues raised through course SELT surveys is made available to enrolled students through various resources (e.g. MyUni). In addition aggregated course SELT data is available.
Student Support
Policies & Guidelines
This section contains links to relevant assessment-related policies and guidelines - all university policies.
Fraud Awareness

Students are reminded that in order to maintain the academic integrity of all programs and courses, the university has a zero-tolerance approach to students offering money or significant value goods or services to any staff member who is involved in their teaching or assessment. Students offering lecturers or tutors or professional staff anything more than a small token of appreciation is totally unacceptable, in any circumstances. Staff members are obliged to report all such incidents to their supervisor/manager, who will refer them for action under the university's student鈥檚 disciplinary procedures.

The 成人大片 is committed to regular reviews of the courses and programs it offers to students. The 成人大片 therefore reserves the right to discontinue or vary programs and courses without notice. Please read the important information contained in the disclaimer.

Authorised by:	Deputy Vice-Chancellor and Vice-President (Academic)
Maintained by:	Course Outlines Administrator

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