CORPFIN 7022 - Advanced Corporate Finance (M)

North Terrace Campus - Semester 2 - 2016

The objective of the course is to gain an appreciation of the theoretical controversies surrounding corporate finance policies, leading to formulation of financing strategies. Topics: competing capital structure theories including financial distress and agency costs, dividend policy and taxation, IPOs in both debt and equity markets, motives for convertibles and warrants, rationales for corporate diversification including internal capital markets and agency theory.

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Course Details

Course Code	CORPFIN 7022
Course	Advanced Corporate Finance (M)
Coordinating Unit	Adelaide Business School
Term	Semester 2
Level	Postgraduate Coursework
Location/s	North Terrace Campus
Units	3
Contact	Up to 4 hours per week
Available for Study Abroad and Exchange	Y
Prerequisites	ACCTING 7019, CORPFIN 7005, COMMERCE 7033, ECON 7200
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 Course Planner.

See Learning Activities Summary

Course Learning Outcomes

By the end of this course students should be able to:
1. Critically evaluate theoretical research in corporate finance
2. Explain the implications of theory for practical financial management
3. Compare various models of investment decision making under uncertainty
4. Investigate the impact of alternative financing proposals that a firm may face in both the short and long term and argue recommendations

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 4
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 4
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 4
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 4
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 4
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 4

Learning Resources

Required Resources

The textbook for the course is Allen, F., R. A. Brealey, and S. C. Myers, Principles of Corporate Finance 11th edition McGraw Hill, 2010. (ABM). You must acquire the 11th edition as there is material covered that is not contained in the 10th edition.

Online Learning

Online resources provided 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	Readings:
1	Does debt policy matter?	Ch.17 + Titman.pdf
2	How much should a firm borrow?	Ch.18 pp.448-467
3	The pecking order and Stulz (1990)	Ch.18 pp.467-478 + Lakshmi.pdf; Frank.pdf + additional reading
4	Leases	Ch.25 + distributed readings
5	Convertibles	Ch. 24 pp 617-623 + Mayer.pdf
Class test starting at 9.10am and to be held in the lecture theatre No tutorials this week
6	Payout policy	Ch.16 + LaPorta.pdf & Brandon.pdf
7	Equity and debt issues including IPOs	Ch.15 (exclude p. 389 dealing with rights issues) + Loughran and Ritter.pdf
Mid-semester break
Class test starting at 9.10am and to be held in the lecture theatre No tutorials this week
8	Executive compensation	Ch.12 pp 295-304 + Core et al.pdf
9	Internal capital markets	Gertner.pdf + Stein.pdf + additional reading
Review Lecture and Tutorials for Topic 9

Note: Reading may be varied during the semester

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	Weighting	Topics covered	Related learning outcome
Class Test 1: 50 minutes	10%	1-3	All
Class Test 2: 50 minutes	10%	4-5	All
Assignment:	15%	6	All
Final Exam: 3 hours, Closed-book	65%	All	All

To pass this subject, 50% overall is required. Neither the test nor the assignment, are redeemable. More details will be given in class.

Assessment Detail

Detailed information will be provided during the course.

Submission

Presentation of Assignments ·
Please must retain a copy of all assignments submitted. · Please attach an ‘Assignment Cover Sheet’, which is signed and dated by you before submission. · All group assignments must be attached to a ‘Group Assignment Cover Sheet’, which must be signed and dated by all group members before submission. All team members are expected to contribute approximately equally to a group assignment. Lecturers can refuse to accept assignments, which do not have a signed acknowledgement of the University’s policy on plagiarism.

Assignment Guidelines including Referencing Details
A copy of the Postgraduate Programs Communication Skills Guide will have been given to you at the beginning of your program. This guide will assist you structure your assignments. This publication also provides guidelines on a range of other important communication skills including writing essays and management reports, making oral presentations etc. In preparing any written piece of assessment for your postgraduate studies it is important to draw on the relevant ‘literature’ to support critical analysis. Also essential is to reference the literature used. Correct referencing is important because it identifies the source of the ideas and arguments that you present, and sometimes the source of the actual words you use, and helps to avoid the problem of plagiarism. (Further information on plagiarism is provided later in this course outline.) The Harvard system is widely used in the Business School. Guidelines for the use of this style of referencing can be found in the Communication Skills Guide. Further assistance with referencing is available from the Faculty’s Learning Support Advisors. The contact details are provided on page 6 of the Communication Skills Guide.

Late Assignment Submission
Students are expected to submit their work by the due date to maintain a fair and equitable system. Extensions will generally only be given for medical or other serious reasons. All requests for extensions must be emailed to the lecturer in charge of the course before the due date. Each request will be assessed on its merits. A late assignment (without prior arrangement) will be penalised by a 5% mark reduction for each day that it is late.

Return of Assignments
Lecturer’s aim to mark and return assignments to students within two (2) weeks of the due date with written feedback. Students are responsible for collecting their marked assignments from the Hub.

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 Access Adelaide.

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’s disciplinary procedures.

The University of Adelaide is committed to regular reviews of the courses and programs it offers to students. The University of Adelaide 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