Corporate Finance

Korea University

Course Description

  • Course Name

    Corporate Finance

  • Host University

    Korea University

  • Location

    Seoul, South Korea

  • Area of Study

    Business, Finance, Financial Management

  • Language Level

    Taught In English

  • Prerequisites

    It is assumed that students entering ISC305 took Principles of Finance (some schools use different course titles such as Financial Management or Introduction to Finance).

  • Course Level Recommendations

    Upper

    ISA offers course level recommendations in an effort to facilitate the determination of course levels by credential evaluators.We advice each institution to have their own credentials evaluator make the final decision regrading course levels.

    Hours & Credits

  • Credits

    3
  • Recommended U.S. Semester Credits
    3
  • Recommended U.S. Quarter Units
    4
  • Overview

    Course Objective:      

    This course aims to enable students to understand the financial decision making practice of corporations in different circumstances and the advanced techniques required by financial managers.  The course also aims to enable students to apply financial principles and theories to understanding issues and solving problems in real-world settings independently. We will examine the costs and benefits of various financing choices with an emphasis on issues related to taxation, agency problems, information problems, and managerial incentive problems.  These issues will be explored in the context of a firm’s capital structure choice, payout policy, security issue choice, and mergers and acquisitions. 

     

    Requirements:          

    Problem Sets: Students are required to understand financial concepts and academic theories thoroughly and apply them to find solutions. There will be two problem sets, which will be posted on the course website.  This is an individual assignment, so each student should submit his/her own assignment before due dates, which will be indicated in each problem set.  Solutions will be posted on the course website after the due dates.

    Case Assignments:

    1.  Group assignment: There will be a group assignment based on Case #4. Students are required to understand critical issues in the case and conduct an independent analysis to develop their own solutions.  The assignment will be posted on the course website.  You have to work on this as a group and a group should hand in one set of answers.  The group members will receive the same grade for their group case assignment.  Three to four students form one group. Hand in the list of your group members by email or in class by July 6th
    2.  Individual assignments: For Cases #1, #2, and #3, each student is required to answer some brief questions on the cases.  These questions will be posted on the course website and they are due before the lecture that covers the case.  These questions are intended to give you an incentive to read the case in advance and to think about some of the important issues.   

    Exam: There will be a mid-term and a final exam.  Some of the problems will require calculations, while some will be conceptual questions.  This is a closed-book exam. 

    Tentative Course Outline:

    Week 1:

    Course Introduction

    Cost of Capital                                                                                                Chapter 13

    Long-Term Financing                                                                                     Chapter 15

    Marriott                                                                                                           Case 1

    Week 2:

    Capital Structure: Basic (part 1)                                                                     Chapter 16

    Week 3:

    Capital Structure: Limits to the Use of Debt (part 1)                                     Chapter 17

    Review Session (Problem set #1 is due)

    Mid-term exam

    Week 4:

    Massey-Ferguson Ltd.--1980                                                                          Case 2

    Financing and Valuation                                                                                 Chapter 18

    Payout Policy                                                                                                  Chapter 19

    Week 5:

    Issuing Securities                                                                                            Chapter 20

    Eskimo Pie Corp.                                                                                            Case 3

    Convertibles                                                                                                   Chapter 24

    Week 6:

    Mergers and Acquisitions                                                                               Chapter 29

    Nova Chemical Corp.                                                                                     Case 4

    Review Session            (Problem set #2 is due)

    Final exam

Course Disclaimer

Courses and course hours of instruction are subject to change.