ADMN 255 Corporate Finance introduces you to finance concepts and provides you with essential knowledge of various tools used in corporate finance. You will examine the corporate financial environment and its impact on decision-making, introductory finance concepts (including the time value of money, investing and risk management) and distribution of earnings. In addition, you will look at capital budgeting techniques and short-, medium- and long-term financing decisions* (adapted from CPA).
Prerequisites: ADMN 252 or equivalent with a minimum of 60%
Accessibility Services Notice
Students who would like an academic accommodation and who have a documented disability should contact Accessibility Services, if they have not already done so.Course Details| Total number of weeks | 15 |
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| Total Credits | |
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| Total Hours | 45 |
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Typical hours per week breakdown| Lecture | 3 |
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Learning Outcomes
Upon successful completion of this course, the learner will be able to:
- Determine the components and calculation of a firm’s cost of capital
- Identify and evaluate internal, external, domestic and foreign sources of financing
- Compare purchase and lease financing options
- Outline the organization of securities markets
- Evaluate alternative corporate dividend policies
- Calculate the various values of convertible securities and other derivatives
- Identify the motives for mergers, and calculate the results of mergers on share value and earnings per share
- Explain the impact of foreign exchange on investment decisions
Teaching and Learning Approach
Teaching focusses on developing the student as a new professional. In class time is primarily spent working on
shared spreadsheets to develop both a clear understanding of financial accounting concelpts and the
spreadsheet and communication skills required in the workforce.
Students are expected to keep abreast of the technical concepts prior to class by reviewing the course notes.
The technical will be assessed in weekly quizzes, and small technical lectures will be interspersed with the
practical work in class.
Learning Resources
Required:
Block, Stanley B., Hirt, G.A, Danielsen, B.R., Short, D.J., and Peretta, M.A. (2024). Foundations of Financial
Management (13th Canadian Edition). Toronto: McGraw-Hill.
McGraw-Hill - (enrolment key is supplied with the textbook purchase)
Business/Financial Calculator, recommended TI BA11 Plus Calculator
Personal Computer - windows based with webcam, speakers and microphone
High speed Internet Service
Detailed Course Content, Topics, and Sequence Covered
1. 1. Orientation to Corporate Finance Preview of Chapter 10
2. 2. Ch.10 – Valuations and Rates of Return
3. 3. Ch. 11 - Cost of Capital
4. 4. Ch.13 - Risk & Capital budgeting
5. 5. Ch.14 - Capital Markets
6. 6. Ch. 15 – Investment Underwriting
7. 7. Ch. 16 – Long –Term Debt & Lease Financing
8. 8. Mid-Term week
9. 9. Ch. 17 – Common & Preferred Stock Financing
10. 10. Ch. 18 – Dividend Policy and Retained Earnings
11. 11. Ch. 19 – Derivative Securities
12. 12. Ch. 20 – External Growth through Mergers
13. 13. Ch. 21 – International Financial Management
14. 14. Case - CPA Prepare for Final Exam
15. 15. Final exam
Assessment
| Title | Learning Outcomes | Value |
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| In Class assignments & Quizzes (weekly) | 1,2,3,4,5,6,7,8 | 35% |
| Case studies | 1,2,3,4,5,6,7,8 | 15% |
| Mid-term Exam | 1, 2, 3, 4, 5, 6 | 25% |
| Final Exam | 1, 2, 3, 4, 5, 6, 7, 8 | 25% |
| Total | 100% |
Grading Table
Standard Academic and Career Programs Grading Table
| Percentage |
Letter Grade |
GPA |
| 90-100 |
A+ |
4.33 |
| 85-89 |
A |
4.00 |
| 80-84 |
A- |
3.67 |
| 76-79 |
B+ |
3.33 |
| 72-75 |
B |
3.00 |
| 68-71 |
B- |
2.67 |
| 64-67 |
C+ |
2.33 |
| 60-63 |
C |
2.00 |
| 55-59 |
C- |
1.67 |
| 50-54 |
P |
1.00 |
| 0-49 |
F |
0.00 |
| |
DNW |
0.00 |
See the Academic Calendar for General Information including how to withdraw from course(s) and other regulations.
Disclaimer
Information contained in this course outline is correct at the time of publication. Content of the course is revised on an ongoing basis to ensure relevance to changing educational, employment and market needs. The instructor will endeavor to provide notice of changes to students as soon as possible. The instructor reserves the right to add or delete material from courses.