CORPFIN 3500 - Corporate Finance Theory
North Terrace Campus - Semester 1 - 2021
General Course Information
Course Code CORPFIN 3500 Course Corporate Finance Theory Coordinating Unit Adelaide Business School Term Semester 1 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 Course Description 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.
Course Coordinator: Md Abdul Wasi
The full timetable of all activities for this course can be accessed from Course Planner.See LEARNING ACTIVITIES SUMMARY below.
Course Learning OutcomesOn 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
Required ResourcesThe textbook for the course is Allen, F., R. A. Brealey, and S. C. Myers, Principles of Corporate Finance 13th edition McGraw Hill, 2019. (ABM).
There are additional readings available under course readings on canvas. More information will be provided closer to the start of semester 1.
Recommended ResourcesThere are a list of recommended resources under course readings in canvas. More information will be provided closer to the start of semester 1.
Online LearningAll material is available on MyUni.
Learning & Teaching Activities
Learning & Teaching ModesLectures supported by problem-solving tutorials developing material covered in lectures.
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 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
Topic # Topic: Reading: 1 Does debt policy matter? Chapter 17 + Titman.pdf 2 How much should a firm borrow? Chapter 18 pp. 475-486 3 The pecking order and Stulz (1990) Chapter 18 pp. 486-500 + Lakshmi.pdf + Frank.pdf + additional readings 4 Leasing Chapter 25 + additional readings 5 Convertible debt Chapter 24 pp. 641-653 + Mayer.pdf Individual (online) assignment No tutorials this week. More information on canvas. Mid-semester break 6 Payout policy Chapter 16 + LaPorta.pdf + Brandon.pdf 7 IPOs Chapter 15 (excluding p412 dealing with rights issues) Class test No tutorials this week. More information on canvas. 8 Executive compensation Chapter 12 pp.311-323 + Core et al.pdf 9 Internal capital markets Gertner.pdf + Stein.pdf + additional reading Review
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 SummaryDue to the current COVID-19 situation modified arrangements have been made to assessments to facilitate remote learning and teaching. Assessment details provided here reflect recent updates.
Related learning outcome
Assignment (Individual) 25% TBA 1-3 All Online test 25% TBA 4-6 All Online exam 50% TBA All All
No information currently available.
No information currently available.
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.
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.
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