BUSI2402U: Finance II Course outline for Winter, 2014

1. Course Details & Important Dates* Term Section 1 2 1 2 Course Type Lecture Lecture Lecture Lecture Day Wednesday Wednesday Friday Friday Time 11:10 a.m. 12:30 p.m. 12:40 p.m. 2:00 p.m. 6:40 p.m. 8:00 p.m. 12:40 p.m. 2:00 p.m. Final Exam Period

Winter 2014

Location J-Building 102 UA1350 UA1350 UA1350

CRN # 70389 70390 70389 70390

Classes Start

Classes End

Last Day to Drop Courses

January 8 , 2014

th

April 11, 2014

January 31, 2014

April 14 to 25, 2014

* for other important dates go to: www.uoit.ca>Current Students >Important Dates Prerequisite(s): BUSI 2401U Tutorials: **Tutorials will start on: Monday, January 13 , 2014
th

Tutorial Section Section 03 Section 04 Section 05 Section 06 Section 07

Location J102 UL9 UL11 UL9 UA1350

CRN # 70391 70392 70393 70394 73480

Day Friday Monday Monday Tuesday Wednesday

Time 3:40 p.m. 5:00 p.m. 12:40 p.m. 2:00 p.m. 9:40 a.m. 11:00 a.m. 9:40 a.m. 11:00 a.m. 8:10 a.m. 9:30 a.m.

2.

Instructor Contact Information Office UB2037 Phone TBD Email Please use Blackboard e-mail designated for the course.

Instructor Name Cheryl Wilson Office Hours: TBD

Laboratory/Teaching Assistant Name Lara Hasan Matthew Dewey Rishad Kazi Office Hours: TBD 3. Course Description

Office

Phone

Email Please use Blackboard email designated for the course.

This course, continuing from BUSI 2401U, provides an advanced understanding of corporate finance with focus on financial markets. Topics covered in this course include financial securities and financial markets, understanding and measurement of risk and returns, cost of capital, financial leverage of the firm and its dividend policy as well as an introduction to mergers & acquisitions. The course relies on a combination of lectures, in-class discussion, problem solving sessions and tutorials. Students will be expected to be able to demonstrate their competence in this course through assignments, a mid-term exam and a final exam. 4. Course Outcomes On the successful completion of the course, students will be able to: o Understand the concept of risk, return and portfolio theory o Understand the concept of capital asset pricing model (CAPM) o Learn about dividend policy and capital structure. o Understand the concept of risk management o Learn the basic techniques of option valuation 5. Course Design

The course relies on a combination of lectures, in-class discussion, problem solving sessions, and tutorials. Course Website: Blackboard will be used to provide a course website. Following course materials will be made available to the students through this website: Detailed course outline (this one) Lecture Notes, Assigned Problems, and Solutions Note: Lecture slides are posted to complement your learning experience; Students are responsible for all (prescribed) materials in the chapters of the textbook. Announcement: All announcements will be made through Blackboard. It is your responsibility to check any message or announcement posted to the site. Please check Blackboard frequently. 6. Outline of Topics in the Course Tentative Class Schedule Class Week 1 Week 2 Week 3 Week 4 Topic Introduction Lessons from Capital Market History Risk, Return and SML Risk, Return and SML th Assignment 1 due (Jan 24 ) Cost of Capital Reading Chapter 12 Chapter 13 Chapter 13 Chapter 14

Jan 8 Jan 11 Jan 15 Jan 17 Jan 22 Jan 24 Jan 29

Week 5

Jan 31 Feb 5 Feb 7 Feb 12 Feb 14 Feb 26 Feb 28 Mar 5 Mar 7 Mar 8 Mar 12 Mar 14 Mar 19 Mar 21 Mar 26 Mar 28 Apr 2 Apr 4 Apr 9 Apr 11

Raising Capital Financial Leverage and Capital Structure Dividends and Dividend Policy READING WEEK NO CLASSES Mergers and Acquisitions th Assignment 2 due (Feb 28 ) Risk Management Mid-Term Exam Risk Management / Options th Assignment 3 due (March 14 ) Options and Corporate Securities Short-term Finance and Planning Short-term Finance and Planning th Assignment 4 due (April 4 ) Review

Chapter 15/16

Week 6

Chapter 17

Week 7 Week 8 Saturday Week 9 Week 10 Week 11 Week 12 Week 13

Chapter 23 Chapter 24

Chapter 24/25 Chapter 25 Chapter 18/19 Chapter 18/19

Note: Recommended problems from each chapter will be posted on the website (Blackboard) before the lecture. Class schedule may be revised depending on the pace of the course. Please check Blackboard for any changes and announcements. Practice problems for each chapter will be assigned before the class. Please visit the course website (Blackboard) regularly for relevant information.

7.

Required Texts/Readings

Required Text book: th Ross, Westerfield, Jordan and Roberts, Fundamentals of Corporate Finance, 8 Canadian Edition, McGraw-Hill Ryerson, 2013

8.

Evaluation Method

Grading Scheme: Assignments (four) Mid-Term Final Exam Total % 20 30 50 100

Each course component will be given a percentage grade which will be weighted according to the grading scheme presented above in order to obtain a final course percentage. The final percentage marks will be converted to a letter grade according to the University General Academic Regulations (section 5.8 of Academic Calendar 2010-11).

Important Notes: 1. Students with special needs which require special accommodations must notify the professor within the first two weeks to allow sufficient time to make arrangement for the semester. 2. All assignments and exams must be done on the regularly date. Exceptions must be approved by the Student Advisor (Jessica Clarke) and Professor Cheryl Wilson in accordance with UOIT policy. If you miss any component (assignments, mid-term) due to any valid reason (see point 2 above), the weight will be transferred to the Final exam. I strongly advise you to complete the assignments and mid-term so that your final exam will not be too heavily weighted, basing your overall course evaluation upon a single days performance (the diversification principle).

3.

Assignments: Students are required to submit four assignments by using Lyryx. Please see the Tentative Class Schedule section to find the submission dates. Please do these assignments carefully. Many of the test questions will be based on these assignment questions. About Lyryx: It is an Online Learning and Assessment system. Please visit http://lyryx.com for more information. If you have purchased the textbook from the university bookstore, you will have a Lyryx account code. If you procure your textbook from any other source, you may need to purchase the Lyryx account separately. Once you can access the Lyryx account, please signup for your section (there is only one section for this course). Please buy ONLY the Lyryx account and not the McGraw-Hill or other alternative software that may be available. Confirm at the time of purchase that it is specifically LYRYX (this has been a problem in the past, and getting refunds is a difficult at the bookstore, so make sure you buy the correct access code for lyryx). Relevant information for your section: Educational Institution: Univ. of Ontario Institute of Technology (UOIT) Course Session: Winter 2014 Course Name: Finance II Course Code: BUSI 2402U Course Sections: CRN #70389 and CRN #70390 Textbook: Fundamentals of Corporate Finance, 8th Canadian Edition(Ross, Westerfield, Jordan, Roberts) We will discuss more about the system in the class. A brief outline on Lyryx registration process will be made available through course website. Midterm and Final Examination: Midterm/ Final examinations will be designed to test your knowledge of the course materials. While majority of the questions will be similar to what we have discussed in the class, be ready for some challenging questions. These challenging questions will be based on the topic discussed in the course, but may be quite different from the assigned problems for each chapter. Midterm and final examination paper will consist of multiple-choice questions (covering both theory and problems). You must bring your calculator. You may use an English-language dictionary during the examination. No Flexibility with Final Examination Date The date and time of the final exam for this course is set by the University office. All students are required to write the exam at that time. Only in exceptional circumstances will other arrangements be made. Examinations will not be rescheduled to accommodate airline or other travel arrangements. Photo-ID You must bring ID for writing a quiz, mid-term examination, and final examination. Instructor or the invigilator may verify your photo ID.

* Final course grades may be adjusted to conform to program or Faculty grade distribution profiles. Further information on grading can be found in Section 5 of the UOIT Academic Calendar. 9. Accessibility To ensure that disability-related concerns are properly addressed during this course, students with documented disabilities and who may require assistance to participate in this class are encouraged to speak with their instructor as soon as possible. Students who require alternative testing and examination arrangements or other academic accommodations must contact the Centre for Students with Disabilities (B297) as early as possible to ensure that your needs can be met. 10. Academic Integrity UOIT is committed to the fundamental values of preserving academic integrity as defined in UOIT policies and contained in the UOIT Calendar. Students and faculty at UOIT share an important responsibility to maintain the integrity of the teaching and learning relationship. This relationship is characterized by honesty, fairness and mutual respect for the aim and principles of the pursuit of education. Academic misconduct impedes the activities of the university community and is punishable by appropriate disciplinary action. Students are expected to be familiar with UOITs regulations on Academic Conduct (Section 5.15 of the Academic Calendar) which sets out the kinds of actions that constitute academic misconduct, including plagiarism, copying or allowin g ones own work to copied, use of unauthorized aids in examinations and tests, submitting work prepared in collaboration with another student when such collaboration has not been authorized, and other academic offences. The regulations also describe the procedures for dealing with allegations, and the sanctions for any finding of academic misconduct, which can range from a written reprimand to permanent expulsion from the university. A lack of familiarity with UOITs regulations on academic conduct does not constitute a defense against its application. Further information on academic integrity is available at: www.uoit.ca/EN/academicintegritystudent. Academic Misconduct will not be tolerated in this class. Any student found to be involved in plagiarism or cheating will be penalized in accordance to the UOIT Calendar Section 5.15. The standard penalty for a first offence will be a grade of 0 on the exam or assignment. Permanent expulsion from the university may be implemented as penalty if a student is found to be guilty of successive acts of academic misconduct. UOIT and faculty members reserve the right to use electronic means to detect and help prevent plagiarism. Students agree that by taking this course all assignments are subject to submission for textual similarity review to Turnitin.com. Assignments submitted to Turnitin.com will be included as source documents in Turnitin.com's restricted access database solely for the purpose of detecting plagiarism in such documents for five academic years. The faculty member may require students to submit their assignments electronically to Turnitin.com or the faculty member may submit questionable text on behalf of a student. The terms that apply to UOIT's use of the Turnitin.com service are described on the Turnitin.com website. If a student does object to the use of Turnitin.com, that student must sign and submit the Assignment Cover Sheet attached with each assignment submitted for assessment. Further information about Turnitin can be found in Resources on the Academic Integrity link on your laptop.

11. Final Examinations Final examinations are held during the final examination period at the end of the semester and may take place in a different room and on a different day from the regularly scheduled class. Check the published Examination Schedule for a complete list of days and times. Students are advised to obtain their UOIT Student ID Card well in advance of the examination period as they will not be able to write their examinations without it. A UOIT Student ID card can be obtained at the Campus ID Services, in G1004 in the Campus Recreation and Wellness Centre.

Students, who through religious obligations are unable to write a final examination when scheduled, will be permitted to write a deferred examination. These students are required to give three weeks notice to the faculty concerned and to document the religious obligations involved. An Application for Deferred Examination for Religious Observances form is available through the Registrars Office. Students who miss an exam for medical or compassionate grounds may submit a request for deferral, along with supporting documentation, to the Faculty Advising offices within five (5) working days. Medical deferrals will be comprised of a completed UOIT Medical Statement form completed by the student and physician within 24 hours following the missed examination, and a UOIT Application for Deferred Examination form. These forms can be found on the UOIT website, or the Web CT FBIT Announcement Board. Further information on final examinations is available at: www.uoit.ca/EN/main2/about/14057/14152/Academic_Policies_and_Procedures/Finalexam.html 12. Course Evaluations Student evaluation of teaching is a highly valued and helpful mechanism for monitoring the quality of UOITs programs and instructional effectiveness. To that end, course evaluations are administered by an external company in an online, anonymous process during the last few weeks of classes. Students are encouraged to participate actively in this process and will be notified of the dates via MyCampus.

Appendix: Other Policies and Expectations for the Learning Environment 1. Effective Learning in the Classroom
The following are suggestions on how to carry out effective learning in your daily studying: Pre-Class Preparation: Before you go to your classroom, you should allow enough time for commuting, and eat a healthy meal or snack. Also, you should ask yourself the following questions: Have you previewed the reading assignments? Have you noted down key insights and questions from your reading? * Rule of thumb: for every hour lecture, you need approximately three hours of outside class studying to reinforce the material learnt in class. In-Class Attitude: In order to get the most out of your lectures, you need to: Arrive to class On Time Concentrate (be curious and be motivated) Be Active: o in class discussion o in group activities o in creative and critical thinking And you should also AVOID the following: Eating 'strong smelling' or 'noisy' food Getting involved in side conversions

 After class

Sending signs that scheduled class time is up, i.e. closing up your laptop or standing) Answering cellular phones in class (Please ensure that cell phones are turned off during class)

Review lecture notes; highlight key points Consult instructors or TA for unresolved questions Seek help when necessary Finish assignments on time

2. The use of your laptop in the classroom

The use of laptops often enhances the learning experience. However, there are circumstances when it can be obstructive. Instructors have the right and the responsibility to determine appropriate classroom protocols for student use of laptops. Students refusing to comply with such requests may be requested to remove themselves from the classroom. Students refusing to comply may also be considered to be in violation of our University code of conduct and disciplinary action may result. Section 5:15 of the undergraduate calendar provide additional information on these matters. Examples of appropriate use of laptops: Taking lecture notes Course related computing Limited messaging for learning purposes Download course material from Blackboard Examples of Inappropriate Use of Laptop - Watching movies - Playing computer games - Social messaging

Please Note: During class, we will have laptop open periods when you may use your laptop to take notes, solve problems etc. We will also have laptop closed periods when we will engage in a large group or small group discussion which do not require the use of a laptop. For students who definitively need laptops open for the full duration of the lecture, please be seated in the front of the class, so as to ensure that you can adequately participate in the class discussions.

3. Effective team management

The following are suggestions on how to effectively manage your teamwork: Setting clear objectives Signing the team contract Meeting regularly Conducting effective meetings Assigning roles to members Staying in touch: meeting; emails; phones Managing conflicts effectively

4. Managing Conflict
The following are suggestions on how to resolve conflict that could possibly happen during your studying: Have a team contract to guide conflict resolution. The team "leader" might send an e-mail to the absent member, and copy all members, asking why he or she missed the meeting. Keep an attendance log and use this as part of your peer review process. Try to avoid making any decisions that are known to be an issue for an absent member until that person can be reached.

5. In the event of the illness

In the event of illness, you are suggested to: Please stay home so as not to spread it to others Contact your Academic Advisor by email or phone right away not your instructor.

The Academic Advisors will organize any assignment, test or lab adjustments if needed. You can find your academic advisor contact information at: http://businessandit.uoit.ca/EN/main/35922/142644.html Also check the following website http://www.cdc.gov for further health and wellness information.

6. Academic Planning and General Information

Please follow the link below to view our academic resources and calendar. This link will provide you with information pertaining to Grade point average (GPA), Academic Standing Requirements, Internship Programs, Graduation Information, etc. http://www.uoit.ca/EN/main/11258/academic_resources.html

Other links of interest include: http://www.uoit.ca/EN/main/11258/231915/academic_advising.html for information on Academic Advising http://businessandit.uoit.ca/EN/main/96618.html for information pertaining to FBIT Undergraduate Programs http://www.gradstudies.uoit.ca/ for information on Graduate Programs http://www.uoit.ca/EN/main/11258/campus_services.html for information on Campus Services http://businessandit.uoit.ca/EN/main/96624.html for information pertaining to Student Clubs