NYU Stern School of Business

Undergraduate College

C15.0007.002: CORPORATE FINANCE

Fall 2010

Instructor Details

Wurgler, Jeffrey

jwurgler@stern.nyu.edu

TBD

KMEC 9-54


See official syllabus.

 

Erin Smith

erin.smith@stern.nyu.edu

TBD

TBD

 

Course Meetings

TR, 9:30am to 10:45am

Tisch T-UC25


Final Exam:

Schedule exceptions
    Class will not meet on:
    Class will meet on:

 

Course Description and Learning Goals

This is an introductory course in corporate finance. The course has three main objectives:

  1. Develop an understanding of the tools that are used to value investment projects and companies (valuation).
  2. Understand the basic issues involved in how firms should raise funds for their real investments (financing). 
  3. Evaluate how investment and financing decisions are related

See official syllabus for more information.

 

Course Pre-Requisites

The prerequisite for this class is a passing grade in Foundations of Financial Markets. Therefore, I expect you to be comfortable with the following topics: time value of money, discounted cash flow analysis, risk-return trade-off, diversification, valuation of bonds and stocks, and the Capital Asset Pricing Model (CAPM).

 

Course Outline

The class is divided into 8 topics.  We will need about 2 - 4 classes for each topic, depending on the length of the prepared lecture notes and the number of questions you have. To prepare yourself for a lecture, please read the corresponding chapters in the textbook and review the lecture notes after we discussed them in class. This is the outline for the lectures:

 

Topic

Lecture Notes

Book Chapter

(10th Edition)

 

 

 

Valuation

 

 

Net Present Value

1

2.1-2.4

Rules for Making Investment Decisions

2

5.1-5.4, 6.4

Real Options

3

10.4, 22.2-22.4

Cash Flow Analysis

4

6.1-6.3, 10.2-10.3

Cost of Capital

5

8.2-8.3, 9.1-9.3

 

 

 

Financing

 

 

Capital Structure

6

17.1-17.4, 18.1-18.3

Payout Policy

8

 16.1-16.5

 

 

 

Valuation & Financing

 

 

Capital Structure and Investment Decisions

7

19.1-19.4

 

The course schedule is subject to change (please follow the announcements in class).

 

REQUIRED MATERIALS

Lecture Notes (required):

We will use lecture notes. The booklet with the lecture notes will be distributed in the first class. The lecture notes contain gaps in material which we will fill out together in class.

Case Studies (required):

There will be three case studies for the course.  The case studies are available for purchase at the NYU bookstore.  The discussion questions will be distributed in class.                      

Textbook (required):

The lecture notes are self-contained. In addition to the class notes, I recommend that you use the textbook

The lecture notes are based mostly on this book. The relevant chapters are indicated in the course schedule. This textbook can be used as background reading for those of you who wish to read ahead of the lecture or dig deeper into the material.

The textbook is available for purchase at the NYU Bookstore or online.  The textbook is also available on Reserve at the NYU Library.

 

Assessment Components

At NYU Stern we seek to teach challenging courses that allow students to demonstrate differential mastery of the subject matter. Assigning grades that reward excellence and reflect differences in performance is important to ensuring the integrity of our curriculum and the value of your diploma.

I use the following percentage distribution for grading:

All exams are graded according to a grading schedule, which awards points for completing specific steps of a question and deducts points for mistakes.  I use a grading schedule to ensure that all students are treated fairly.  I therefore do not adjust grades based on appeals after exam.  In almost all cases, this would involve changing the grading schedule, which would be unfair to other students.  However, if I make an obvious mistake (e.g. not adding up points correctly), let me know and I will be happy to correct the mistake.

In case you feel that your exam is not graded fairly, you have the right to make a formal appeal.  In this case, you need to submit a written explanation why you think I should adjust the grading. You need to submit your appeal within one week after the exam.  I will then have a look at your explanation and your exam and see whether I should make an adjustment.  In this case, I reserve the right to re-grade the entire the exam.

In Core Courses, NYU faculty has adopted a standard of rigor for teaching where:

Note that while we use these ranges as a guide, the actual distribution for this course and your own grade will depend upon how well each of you actually performs in this course.

Please see www.stern.nyu.edu/undergraduate/grading for “Teaching and Grading at the NYU Stern Undergraduate College” for more information.

Following departmental guidelines, I will not give incompletes.

 

Grading

See previous section and official syllabus.

 

Re-Grading

See official syllabus.

 

Stern Policies

See official syllabus.

 

Academic Integrity

Integrity is critical to the learning process and to all that we do here at NYU Stern. As members of our community, all students agree to abide by the NYU Stern Student Code of Conduct, which includes a commitment to:

The entire Stern Student Code of Conduct applies to all students enrolled in Stern courses and can be found here:

Undergraduate College: http://www.stern.nyu.edu/uc/codeofconduct
Graduate Programs: http://w4.stern.nyu.edu/studentactivities/involved.cfm?doc_id=102505

To help ensure the integrity of our learning community, prose assignments you submit to Blackboard will be submitted to Turnitin.  Turnitin will compare your submission to a database of prior submissions to Turnitin, current and archived Web pages, periodicals, journals, and publications.  Additionally, your document will become part of the Turnitin database.

 

Recording of Classes

Your class may be recorded for educational purposes

 

Students with Disabilities

If you have a qualified disability and will require academic accommodation of any kind during this course, you must notify me at the beginning of the course and provide a letter from the Moses Center for Students with Disabilities (CSD, 998-4980, www.nyu.edu/csd) verifying your registration and outlining the accommodations they recommend.  If you will need to take an exam at the CSD, you must submit a completed Exam Accommodations Form to them at least one week prior to the scheduled exam time to be guaranteed accommodation.

 

READ ME

THE OFFICIAL INFORMATION FOR THIS COURSE IS ON THE OFFICIAL SYLLABUS AND UPDATED IN CLASS.  THIS PAGE WILL NOT BE UPDATED.  DO NOT RELY ON THIS PAGE.

 

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