FIN201 CORPORATE FINANCE

Unit Guide

Semester 3 2020
 FIN201 CORPORATE FIN ANCE

TRIMESTER 3 2020

About Corporate Finance (FIN201)

CONTACTS
Ms. Tu Thi Kim Thoa
Unit Instructor
Email: tkthoa@ueh.edu.vn
An Nguyen
Program Administrator 17 Pham Ngoc Thach Street, District 3, HCM City
Phone: 08 54465555 Email: an.nguyen@isb.edu.vn

UNIT OVERVIEW

This unit introduces students to the theoretical basis and analytical framework for corporate
financial decision making. It is concerned with both the investment decision of firms and the
determination of the financing mix necessary to achieve a firm’s financial objectives.
Investment decisions determine a firm’s size, its operating profits, its business risk and its
liquidity. Financing decisions affect a firm’s financing costs and its financial risk. These two
decisions, combined with the dividend decision, comprise the essential financial decisions
which firms must make.

PRE-REQUISITES

None

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Assessment Information

UNIT LEARNING OUTCOMES

The table below outlines the unit learning outcomes (ULOs) for this unit. Upon completion
of this unit, students will be able to:

1. Be familiar with the basic financial decision making and valuation concepts.
Understand and solve problems involving financial mathematics so as to be able to use
2.
appropriate tools to assist in managing an organization.

3. Be able to evaluate different types of securities.

4. Have developed critical skills in analysing capital budgeting projects.

Be able to evaluate a corporate's financial position and capital and project investment
5.
strategy for the future to maximize the Present Value of the Firm.
Understand the relationship between risk and return, and be able to estimate the cost of
6.
capital using alternative and appropriate methods.
Understand the firm’s capital structure and dividend policy, relevant theory and its
7.
limitations.

8. Have developed oral presentation skills.

9. Be able to select subsequent finance courses.

PROGRAM LEARNING OUTCOMES

In line with its focus on assuring students’ skills in unit learning outcomes 1-7 above, this
unit is also responsible for introducing/developing/assuring the following program-level
learning outcomes (PLOs):

Knowledge & Application

1. Solid understanding and competency of appropriate application of business discipline-
specific knowledge.
Communication
2. Competency in professional written and oral communication suited to multiple audiences
and contexts.
Teamwork
3.
Effective collaboration in teamwork or other tasks in organizational settings.
Critical thinking
4.
Critical thinking through appropriate observing, analysing and reasoning, etc.
Problem solving
5.
Effective and constructive problem solving.

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Ethics
6. An ethical perspective, including an understanding of the ethical responsibilities of
organizations.
Cultural Diversity
A global mindset, including an understanding of the different business settings, the ability to
7.
identify foreign market potentials, to diagnose cross-cultural communication problems and
propose appropriate solutions.

ASSESSMENT SUMMARY

DUE VALUE
ASSESSMENT ITEM LEARNING OUTCOMES
DATE (%)
1. In-class participation & discussion 5% ULO1-9
2. Quick Quiz 5% ULO1-9
3. Mid-term exam Session 10 20% ULO1-5
4. Written analysis and presentation 20% ULO2-8
5. Final exam TBA 50% ULO1-7

Final marks and grades are subject to confirmation by the School Assessment Committees
which may scale, modify or otherwise amend the marks and grades for the unit, as may be
required by University policies.
 Note: To successfully complete this unit, students must:
 Achieve a minimum of 50 marks;
 Complete all assessment items; and
 Attend 80 per cent of class time. See attendance requirements in the section of class
policies and rules below.

Assessment 1: Class participation & discussion (5%)

Due: Ongoing throughout the duration of the course.
 Class attendance and participation includes coming to class prepared and on time,
taking part in class discussions (this involves listening/reading as well as
writing/speaking and completing all in-class activities), asking questions, tutorials
presentation on recommended end-of-chapter problems, contributing your
knowledge and insights in whatever form is appropriate, and striving to make all
your contributions excellent. It also includes doing the required reading and writing
for each class.
 Attendance is checked by the lecturer. You are permitted no more than 20%
absences (3 sessions) during the term. Coming late by 15 minutes at the beginning
of the class, coming late by 5 minutes after the break, or leaving prior to the
scheduled end time without the permission of the lecturer will equate to an absence.

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Assessment 2: Quick Quiz (5%)

Due: TBA
Length: about 30 minutes
Quiz will be in the form of online multiple choice questions for lecture revision and
preparation purposes.

Assessment 3: Mid-term exam (20%)

Due: Session 8
Length: 60 - 75 minutes
Will test on Learning Outcomes 1-5 and Chapters 1,2,3,4,6,8,9 of Ross, Westerfield &
Jaffe, 11th Edition
 Closed book, combination of MCQs, calculations, short written answers on
theoretical and conceptual foundations of finance
 Marking criteria and standards: Based on logic, accuracy, comprehensiveness of
answers

Assessment 4: Written analysis and presentation (Small

Groups) (20%)
Length: 15-20 minutes (max)
 Groups of 4 or 5 will be assigned by lecturers and each group will be assigned with
presentation topic and due at the first class of the course.
 Cases will be allocated to each team one week before their presentation. Cases are
drawn from various required chapters of textbook (RW&J) 11th Edition or assigned
by the lecturer.
Marking criteria and standards:
 Teams of 4-5 will be initially assessed with the same mark (subject to peer
evaluation). Fair allocation of work is to be managed by team members. Each team
member should make oral presentation assisted by PowerPoint where appropriate
(and backed by written report of no more than 3 pages) for minimum 5 minutes of
Introduction (5 marks), Analysis (10 marks), and Conclusions/Result (5 marks). Key
assumptions need to be clearly stated in the use of analytical frameworks and
financial models/formulae.
 The weight of mark for this assessment will be equally divided between written
analysis and oral presentation.

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Assessment 5: Final exam (Individual) (50%)

Due: TBA
Length: 2 hours
 Analytical Calculations & Written Answers based on Required Readings, Lectures,
and Case Studies covered throughout the course.
 Marking criteria and standards
 Based on logic, accuracy, correctness, and comprehensiveness of answers

Teaching Activities
LEARNING RESOURCES

Textbook Ross, S., Westerfield, R., Jaffe, Corporate Finance (11th ed.).

Reference Brigham, E.F., & Houston, J. (2009). Fundamentals of Financial Management

books (12thed.). Cengage Learning.
 Saunders, A. & Cornett, M.M. (2007). Financial Markets & Institutions – An
Introduction to the Risk Management Approach (3th ed.). McGraw Hill

Other Financial Calculator

requirements
BA II Plus by Texas Instruments (necessary for DCF, NPV, IRR, and Bond
calculations)

LEARNING RESOURCES
E-library http://search.proquest.com/login
Username: UEHCMC2010 Password: thuvien0810

E-learning http://elearning.isb.edu.vn/

SCHEDULE OF ACTIVITIES

SESSION PROGRAM SCHEDULE WEEKLY READINGS & ACTIVITIES

Introduction to the unit

1 Chapter 1, Ross, Westerfield, & Jaffe, 11th Edition
Introduction to Corp. Finance

 Chapters 2, Ross, Westerfield, & Jaffe, 11th Edition

Financial Statements and
2 (optional readings 2.3)
Cash Flow
 Recommended problems: 2.3,5,6,9,11,13,14,18,20

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SESSION PROGRAM SCHEDULE WEEKLY READINGS & ACTIVITIES

 Chapters 3, Ross, Westerfield, & Jaffe, 11th Edition

3 Financial Statements Analysis
 Recommended problems: 3,4,5,7,8,9,13,19,20

 Chapters 4, Ross, Westerfield, & Jaffe, 11th Edition

Discounted Cash Flow (optional readings 4.5 &4.6)
4
Valuation  Recommended problems:
7,8,9,10,12,13,18,23,25,36,45,48

 Chapter 6, Ross, Westerfield, & Jaffe, 11th Edition

Making Capital Investment  (optional readings 6.5)
5
Decisions  Recommended problems:
 1,2,3,6,7,8,9,11,20,23

 Chapters 8, Ross, Westerfield, & Jaffe, 11th Edition

Interest Rates and Bond (optional readings 8.5)
6
Valuation  Recommended problems:
1,2,3,5,6,8,9,10,17,18,28

 Chapters 9, Ross, Westerfield, & Jaffe, 11th Edition

(optional readings 9.4)
7 Stock Valuation
 Recommended problems:
 1,2,4,6,8,9,11,12,13,14,15,16

 Chapter 10, Ross., Westerfield, & Jaffe, 11th Edition

(optional readings 10.7 & 10.8)
Risk and Return - Lessons
 Recommended problems: 1,7,8,9,10,12,13,19,23
from Market History

8 
 Chapter 11, Ross., Westerfield, & Jaffe, 11th Edition
Return and Risk-The Capital
(optional readings 11.7)
Asset Pricing Model (CAPM)
 Recommended problems:
 1,4,5,7,9,10,13,14,15,16,22,23,27

 Chapter 13, Ross., Westerfield, & Jaffe, 11th Edition

Risk, Cost of Capital, and
9 (optional readings 13.4; 13.9 &13.10)
Valuation
 Recommended problems: 1,4,5,7,8,9,11,17,19

Mid-term exam Chapters of 1, 2, 3, 4,6, 8 and 9

10
Group Presentation 1  Groups of 1, 2, 3 and 4

Long-Term Financing: An  Chapters 15, Ross., Westerfield, & Jaffe, 11th

Introduction Edition (optional readings 15.5 and 15.7)
11

Raising Capital  Chapter 20 (optional reading 20.8; 20.10)

Capital Structure: Basic

 Chapters 16, Ross., Westerfield, & Jaffe, 11th
Concepts
Edition
 Recommended problems:
12  1,2,3,4,6,6,8,9,13,14,16,17,18,19,21,25
Chapter 17 (optional readings 17.3; 17.6; 17.8 and
Capital Structure: Limits To
17.9)
The Use of Debt

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SESSION PROGRAM SCHEDULE WEEKLY READINGS & ACTIVITIES

Recommended problems: 1,2, 3,4,5,6

 Chapter 21, Ross., Westerfield, & Jaffe, 11th Edition

(optional readings 21.5 &21.7)
13 Leasing
 Recommended problems:
1,2,3,4,5,6,7,8,9,10,13,14,15

 Chapters 26, Ross., Westerfield, & Jaffe, 11th

Edition (optional readings 26.3 & 26.5)
 Recommended problems: 5,6,7,8,9,10,12
Short-Term Financing&
14 
Working Capital Management
 Chapter 28, Ross., Westerfield, & Jaffe, 11th Edition
(optional readings 28.6 &21.7)
 Chapter 28: 1,3,5,11,12

Group Presentation 2  Groups of 5, 6 and 7


15
 Course Revision: Chapters of 10, 11, 13, 15, 16,
Exam revision 17, 20, 21, 26, 27 & 28

 Chapters of 10, 11, 13, 15, 16, 17, 20, 21, 26, 27 &
16 FINAL EXAM
28

General Information & Policy

Referencing
Plagiarism
Student assignments are to contain original content created by the students. Assignments
will be rejected if they include plagiarised content or contain excessive amounts of
quoted/cited material and minimal original content. Students will receive a grade of ZERO
(0%) for any assignments rejected for this reason. Written assignments WILL BE checked
by the lecturer with Turnitin.com, an online plagiarism-checking tool.
Sources
Furthermore, your reference to support your statements must be from a reliable source,
such as textbooks, additional reading materials, and reference books. However, many
websites are not reliable sources. Examples are Wikipedia.org, about.com, and ask.com. If
you are not sure if a reference is acceptable or not, please contact the lecturer.
Referencing & Citation
The Publication Manual of the American Psychological Association (APA) 6th ed., will
serve as the primary reference materials for all students. Therefore, all papers must be
submitted in APA format. The mechanics of student papers and work will be evaluated, as
well as the content.

Submission

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Assignment cover sheet

 All assignments are required to be submitted with an Assignment Cover Sheet.
 Group assignments are to be submitted with a Group Assignment Cover Sheet as
well as a Peer Evaluation Form depending on the request of unit instructor.
Non-contributing team members can sometimes be an issue with group-work structured
assessment. Individual student group work scores may be adjusted as a result of peer
dissatisfaction with a particular student’s contribution to group work assignments, as
reflected in submissions of the evaluation form.
Note:
 Assignment cover sheets and the evaluation form can be located on MyISB system
 Students are advised to keep a copy of all assignments submitted for marking.

Submission style
Assignments are expected to achieve a professional standard:
 Be typed, one and a half spaced, on A4 paper
 Use a simple clear format, suitable for a report to senior management in a commercial
organisation.

Submission method
Soft copy: submitted electronically via E-learning system by 11:55 PM on the due date
(Suggested title: Student name_Unitname_Name of Assignment).
Hard copy: submitted to ISB Submission Box at the Reception Area (17 Pham Ngoc
Thach) by the due date.

Late assignment and make-up policy

No late assignments will be accepted unless prior authorisation granted by the Academic
Department based on a Special Consideration Application for assessment task extension.
Students must complete all assessments on the assigned dates including quizzes, mid-
term test, and final exam. If there are extenuating or unforeseen circumstances, students
must follow the school’s policies and procedures accordingly.

Attendance
Students are required to attend a minimum of 80% of all classes (which normally 12/15
sessions).
Other cases equating to an absence:
 Arriving to class late by 15 minutes at the beginning,
 Arriving late by 5 minutes after the break
 Leaving prior to the scheduled end time without the permission of the lecturer
If you are unable to attend any session, please let your lecturer know AND submit a
request for absence form to program administrator prior to the session.

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 IMPORTANT: Students will not be allowed to sit in the final examination if violating the
above absence rule.

Electronic device use

 Cell phones will be turned off or switched to vibrate mode before class starts.
 No phone calls or text messaging are allowed inside classroom during class time.
 Portable listening and/or music devices may not be operated in the classroom.
 Headphones and/or ear buds of any type may not be worn while in the classroom
whether operating or not.
 Laptop and other electronic devices are not permitted unless specifically
authorised by the lecturer exclusively for note taking and doing class work.

 IMPORTANT: If you are in violation of these policies you will be excused from class
and an absence will be assessed.

Email etiquette
Your lecturers receive many emails each day. In order to enable them to respond to your
emails appropriately and in a timely fashion, students are asked to follow basic
requirements of professional communication.
Your emails should:
 Have a concise and descriptive title, including the class and name of the unit you
are enquiring about
 Be clear about the intention of their emails
 Use appropriate tone and language, proof-read what is written in the email before
sending it.
Students should also allow 3-4 working days for a response before following up. If the
matter is legitimately urgent, you may indicate “URGENT” in the email subject header.
Make an appointment: If your email request is complex and requires a lengthy response it
may be probably best to make an appointment with your lecturer/instructor to meet in
person.

Student behaviour guidelines

Everyone must behave professionally. Students are expected to demonstrate respect for
teacher and fellow students at all times. Behaviour that is disruptive to a positive learning
environment reported to the teacher will result in a warning on the first instance; the
second instance might result in a failing grade along with expulsion from the school.
Unacceptable behaviors can be:
 Cheating on an exam
 Collaborating with others on work to be presented, if contrary to the stated rules of
the course

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 Submitting, if contrary to the rules of the course, work previously submitted in

another course
 Knowingly and intentionally assisting another student in any of the above actions,
including assistance in an arrangement whereby work, classroom performance,
examination, or other activity is submitted or performed by a person other than the
student under whose name the work is submitted or performed
 Plagiarising

 IMPORTANT:
 First violation will result in a grade ZERO (0%) for that assignment.
 Second violation will result in a failing course grade.

Disability support services

Students with disabilities are advised that accommodations and services are available at
UEH-ISB. It is the student's responsibility to contact UEH-ISB office and submit appropriate
documentation prior to receiving such services.

Additional information
This unit guide may be revised at the discretion of the Academic Department with approval
from Program Academic Director and School Academic Committee where appropriate.

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