# Finance (FNCE) 370

## Overview of Corporate Finance (Revision 9)

Delivery Mode: Individualized study online or grouped study

Credits: 3

Area of Study: Applied Studies

Prerequisite: MATH 215 or MGSC 301 and ACCT 250 or ACCT 253.

FNCE 370 has a Challenge for Credit option.

## Overview

FNCE 370 presents a comprehensive and detailed treatment of the theories, applications, and financial tools used in a corporate financial environment. The course emphasizes understanding, analyzing, and integrating financial information as an aid to making financial decisions.

The course discusses the impact of interest rates, taxation, dividends, cash flow, and other business considerations on financial decision making. It also examines the role of financial institutions and regulations in corporate financial management. Building on the conceptual foundations of financial management, the course also introduces some interesting but complex topics in corporate finance.

## Outline

• Lesson 1: Reviewing Prerequisite Concepts
• Lesson 2: Forecasting, Growth Planning, and EFN
• Lesson 3: Time Value of Money
• Lesson 4: Time Value of Money (II)
• Lesson 5: Bond Valuation
• Lesson 6: Stock Valuation
• Lesson 7: NPV and Other Investment Criteria
• Lesson 8: Operating Cash Flows and Capital Investment Decisions
• Lesson 9: Project Analysis and Evaluation
• Lesson 10: Historical Average Returns and Risk
• Lesson 11: Portfolio Return and Risk, and the Security Market Line
• Lesson 12: Cost of Capital
• Lesson 13: Raising Capital
• Lesson 14: Capital Structure Decisions and the M&M Propositions
• Lesson 15: Dividends and Dividend Policy

## Evaluation

Your final grade in FNCE 370 is based on 15 online quizzes, 5 assignments, and a Final Examination. To receive credit for this course you must achieve a minimum grade of “D” (50 percent) on the Final Examination, and an overall course grade of D (50 percent). If you are taking FNCE 370 to transfer credit to one of the accounting organizations, check the organization’s specific requirements.

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

Activity Weighting
Assignment 1 5%
Assignment 2 5%
Assignment 3 5%
Assignment 4 5%
Assignment 5 5%
Online Quizzes 25%
Final Exam 50%
Total 100%

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

Note: Students planning to transfer this course to a Chartered Professional Accountant designation are advised that they will be required to achieve a grade higher than the minimum passing grade. See CPA Requirements for details.

## 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, ON: McGraw-Hill Ryerson. ISBN  9781259087585

A print version of the eText can sometimes be purchased 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 materials

A Sharp EL-738 calculator is included. All other materials will be available to students online.

The course materials for this course are shipped as a shrink-wrapped package. If the shrink wrap is broken, the materials are not returnable.

### Special Course Features

You will require a type of word processing software (Word or equivalent) and spreadsheet software (MS Office Excel or other).

## Challenge for Credit Course Overview

The Challenge for Credit process allows students to demonstrate that they have acquired a command of the general subject matter, knowledge, and intellectual and/or other skills that would normally be found in a university level course.

Full information for the Challenge for Credit can be found in the Undergraduate Calendar.

## Challenge Evaluation

To receive credit for the FNCE 370 challenge registration, you must achieve a grade of at least D (50 percent) on the examination.

Paper Exam (closed book; 3 hours)

Students are permitted to bring into the examination one “cheat” sheet of 8½ x 11” paper, written on one side only (one side must be blank).

In the examination, students may use one of the following calculators only:
Sharp EL733A, EL-738, EL-738C, EL-738F, or EL-738FC financial calculators; the
Texas Instrument BA II Plus financial calculator; or the Hewlett Packard 12C and 10BII series financial calculators

No other calculators may be used without written permission from the course coordinator, obtained at least one day prior to the examination.

### Undergraduate Challenge for Credit Course Registration Form

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 9, January 10, 2017

Updated October 09 2018 by Student & Academic Services