Finance (FNCE) 371

Applications in Corporate Finance (Revision 4)

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Delivery Mode: Individualized study online with (eTextbook)

Credits: 3

Area of Study: Applied Studies
(Business and Administrative Studies)

Prerequisite: FNCE 370

Centre: Faculty of Business

FNCE 371 is not available for challenge.

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Note: Students planning to transfer this course to a Professional Accounting designation (i.e., CPA) are advised that they will be required to achieve a grade higher than the minimum passing grade. See the Professional Accounting Designation Website for details.

Overview

Corporate finance has undergone tremendous changes in recent years. As new global markets open, there will be even more changes and expanding opportunities, which will affect the role of financial decision makers. In this course, you will apply the fundamental concepts in corporate finance (from FNCE 370) to a variety of areas in corporate finance, such as short-term financial management, lease management, and international concerns. With the assistance of case studies, you will apply corporate finance concepts to real-life situations. Through videos, you will see how managers in real businesses apply corporate finance models in their firms’ financial management systems.

After completing this course, you will be able to

  • Work out short-term financial plans for a firm, including plans for managing short-term financing, credit policy, inventory, cash, and liquidity.
  • Analyze issues faced by corporations, such as international corporate financial management, leasing, mergers and acquisitions, and risk management.
  • Evaluate the use of derivative securities in a corporate setting;
  • Discuss behavioural finance concepts and their impacts as they relate to the validity of the Efficient Market Hypothesis.
  • Use Excel data tables, functions, formulas, PivotTables, and PivotCharts to organize and analyze data.

Outline

  • Lesson 1: Short-Term Finance and Planning
  • Lesson 2: Cash and Liquidity Management
  • Lesson 3: Credit and Inventory Management
  • Lesson 4: International Corporate Finance
  • Lesson 5: Leasing
  • Lesson 6: Mergers and Acquisitions
  • Lesson 7: Risk Management (An Introduction to Financial Engineering)
  • Lesson 8: Options and Corporate Securities
  • Lesson 9: Introduction to Behavioural Finance

Evaluation

Your final grade in FNCE 371 is based on three assignments, one Midterm Examination, and one Final Examination. You must achieve a minimum grade of 50 percent on the Final Examination and an overall course grade of at least "D" (50 percent).

The following chart describes the credit weight associated with each course requirement:

Activity Weighting
Assignment 1 10%
Assignment 2 10%
Assignment 3 10%
Midterm Exam 30%
Final Exam 40%
Total 100%

The examination(s) for this course will be written in the traditional pen and paper format.

To learn more about assignments and examinations, please refer to Athabasca University's online Calendar.

Course Materials

Textbooks

Registration in this course includes an electronic textbook. For more information on electronic textbooks, please refer to our eText Initiative site.

Ross, S. A., Westerfield, R. W., Jordan, B. D., & Roberts, G. S. (2016). Fundamentals of corporate finance (9th Can. ed.). Toronto: McGraw-Hill Ryerson. ISBN 9781259087585

A print version of the eText may be available for purchase from the publisher through a direct-to-student link provided on the course website; you can also acquire the textbook on your own if you wish.

Other Resources

All other learning resources will be available online.

Special Course Features

You will require a type of spreadsheet software (MS Office Excel or compatible).

A financial calculator is essential to your success in the course. You may bring one of the following financial calculators with you when you write the exams: Sharp EL-733A, EL-738, EL-738C, EL-738F, EL-738FC, Casio FC-200V, HP 10BII+, HP 12C (including Platinum series), HP17BII+, or Texas Instruments TI-BA II Plus—no other calculators are allowed unless written permission is given by the course coordinator prior to the examination.

Athabasca University reserves the right to amend course outlines occasionally and without notice. Courses offered by other delivery methods may vary from their individualized-study counterparts.

Opened in Revision 4, August 9, 2018.

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