Course Name (short): Advanced Corporate Finance
School: Business
Program(s): Bach Bus Admin Market Manage, Bach Business Admin Accounting, Bach Business Admin Finance, Bach Human Resources, BachBus Admin Spply Chain Mgmt
Program Coordinator(s): Tba
Course Leader or Contact: Tba
Originator: Lynn Easson-Irvine
Designate: Jessica MacDougall
Version: 1.01
Status: Approved (APPR)

Calendar Description
Students examine a variety of advanced finance issues and the tools used by financial managers in decision making. Topics include financial markets and portfolio risk, capital budgeting, long-term sources of funds, capital structure and dividend policy, treasury risk management, financial planning, and long-term planning and strategic issues in finance.

Typical Instructional Format

Courses may be offered in other formats.

Section I Notes: This course will be delivered in hybrid format.

Detailed Description
Students examine a variety of advanced finance issues and the tools used by financial managers in decision making. Topics include financial markets and portfolio risk, capital budgeting, long-term sources of funds, capital structure and dividend policy, treasury risk management, financial planning, and long-term planning and strategic issues in finance. Through a combination of various learning techniques including interactive lectures, problem solving activities and case studies, students develop the decision making skills required of financial managers.

Program Context

 Critical Performance
By the end of this course, students will have demonstrated the ability
to analyze advanced financial concepts and recommend effective courses
of action to optimize performance of the enterprise in a complex
global environment.

Learning Outcomes
To achieve the critical performance, students will have demonstrated
the ability to:
1.  Develop recommendations to management using advanced financial 
    concepts.
2.  Compute capital budgeting alternatives to maximize return on 
    investment. 
3.  Identify long term sources of financing to optimize an entity¿s 
    capital structure.
4.  Recommend a dividend policy to maximize market value of corporate 
    securities.
5.  Evaluate special financing and investment alternatives.
6.  Assess the impact of treasury-risk management decisions in a 
    complex corporate environment.
7.  Analyze the use of futures, forwards, options and swaps for 
    alternative sources of corporate securities.
8.  Construct effective financial plans in a complex global 
    environment.
9.  Explain the impact on stakeholders of volatile financial markets 
    and decision-making.
10. Interpret financial results to recommend optimal courses of 
    action.
11. Demonstrate professional behaviours including:
    a. work effectively in a team environment
    b. meet due dates
    c. produce professional quality assignments
    d. use reference materials responsibly

Students demonstrate their learning in the following ways:

Assignments (3x5%)                    15%
Case studies (3x5%)                   15%
Midterm exam (Module 1 - 4)           30%
Final exam (comprehensive)            40%
                                     100%

Assignments and case studies are to be completed in small groups. All
other evaluations are on an individual basis.

In addition to achieving a minimum 50% overall grade, a student must
have a combined average of at least 50% on the non-group components of
the evaluation plan in order to receive credit for this course.

Elali, W. and Trainor, T. (2009). Advanced Corporate Finance, A
Practical Approach. (1st ed.). Toronto: Pearson Education Canada.

Module 1: Review of Basic Financial Concepts
1. Purpose and nature of valuation
   a. Fair market value concept
2. Impact of interest rates
3. Role of financial markets
4. Total and marginal returns
5. Transferring wealth
6. Approaches to valuation (Asset/Discounted Cash Flow/Market
   Multiples Modes)
7. Common inputs to valuation techniques
Learning Outcome: 1, 3

Module 2: Capital Budgeting Under Uncertainty
1. Portfolio theory/diversification
2. Measuring risk and returns
3. Capital budgeting in a portfolio framework
4. Market risk and total risk
5. Capital rationing
6. Annual capital budgeting process
7. Optimal investment decision making
Learning Outcome: 1, 2, 3
Assessment: Assignment #1 (5%)

Module 3: Long-term Sources of Funds
1. Bank financing
2. Corporate bonds
3. Preferred shares
4. Common shares
5. Issuing securities
6. Ownership and control
Learning Outcome: 1, 2, 3, 4
Assessment: Case Study #1 (5%)

Module 4: Capital Structure
1. Capital Structure
2. Impact of personal and corporate taxes
3. Effect of bankruptcy costs
4. Other influences on capital structure
5. Selecting optimal capital structure
Learning Outcome: 1, 2, 3

MIDTERM EXAM (Modules 1 ¿ 4) 30%

Module 5: Dividend Policy
1. Theoretical foundation
2. Dividend policy in practice
3. Dividend payment procedures
4. Stock dividends and stock splits
5. Share repurchases and dividend decisions
6. Short-term financing
7. Asset-Backed financing
Learning Outcome: 1, 3, 4, 5
Assessment: Assignment #2 (5%)

Module 6: Special Financing and Investment Decisions
1. Project financing
2. Investment and financing decisions
3. Evaluating lease financing
4. Forms of Expansion and Divestiture
   a. Mergers
   b. Acquisitions
   c. strategic alliances
   d. joint ventures
   e. spin-offs
5. Leveraged buyouts
Learning Outcome: 1, 2, 3, 5
Assessment: Case Study #2 (5%)

Module 7:  Treasury Risk Management
1. Types of treasury risk
2. Measuring risk exposure
3. Basic risk management
4. Risk management considerations
5. Financing international trade
Learning Outcome: 1, 3, 4, 5, 6

Module 8: Futures and Forwards 
1. Futures and forward traders
2. Basic valuations
3. Hedging with forwards and future contracts
Learning Outcome: 1, 3, 5, 7
Assessment: Assignment #3 (5%)

Module 9: Options and Swaps
1. Options
2. Basic valuations
3. Corporate securities
4. Hedging with options
5. Hedging with swaps
6. Costs of hedging
7. International considerations
   a. Exchange risks
   b. Political risks
   c. Economic risks
   d. International sources of capital
Learning Outcome: 1, 3, 5, 7, 9 

Module 10: Financial Planning
1. Role of forecasting
2. Pro-forma financial statements
3. Short-term financial planning
4. Long and short-term financing decisions
5. Financial ratios
6. Financial planning models
7. Strategic decisions and ethical considerations
8. Trend analysis
Learning Outcome: 1, 3, 4, 5, 8, 10
Assessment: Case Study #3 (5%)

FINAL EXAM (Comprehensive - Modules 1-10) (40%)