FIN603 - Finance II

Outline info
Semester
School
Last revision date 2017-11-20 15:22:19.945
Last review date 2017-11-20 15:22:22.33


Subject Title
Finance II

Subject Description
FIN 603 is a continuation of the study of corporate finance started in FIN 401 with emphasis on the raising of funds, their cost, and the allocation of these funds, particularly to long term capital assets. Analytical techniques relating to financial decision making are studied. Corporate mergers and the importance of foreign exchange in financial management are introduced in this subject.

Credit Status
For information regarding exemptions for courses included in CPA’s Advanced Certificate in Accounting & Finance (ACAF) program please see https://www.gocpaontario.ca/Content/Attachments/Seneca%20College.pdf

Learning Outcomes
Upon successful completion of this subject the student will be able to:

1. Discuss the principles involved in selecting a financial structure for a firm.

2.Compute the weighted average cost of capital to the firm.

3. Determine and evaluate long-term investment decisions using various valuation methods.
4. Apply the concept of risk to capital budgeting decisions.

5. Illustrate the use of term loans and leases in financing; analyze the factors involved in the lease-purchase decision.

6. Explain the principles involved in corporate dividend policy and evaluate the effect of dividend policy on internal financing.

7. Discuss corporate restructuring through mergers/acquisitions/ divestitures.

8. Evaluate the importance of international factors in the role of financial manager.

9. Discuss the role of derivative securities in corporate finance including rights, warrants, convertibles, forwards, futures and options.

Cheating and Plagiarism
Each student should be aware of the College's policy regarding Cheating and Plagiarism. Seneca's Academic Policy will be strictly enforced.

To support academic honesty at Seneca College, all work submitted by students may be reviewed for authenticity and originality, utilizing software tools and third party services. Please visit the Academic Honesty site on http://library.senecacollege.ca for further information regarding cheating and plagiarism policies and procedures.

Discrimination/Harassment
All students and employees have the right to study and work in an environment that is free from discrimination and/or harassment. Language or activities that defeat this objective violate the College Policy on Discrimination/Harassment and shall not be tolerated. Information and assistance are available from the Student Conduct Office at student.conduct@senecacollege.ca.

Accommodation for Students with Disabilities
The College will provide reasonable accommodation to students with disabilities in order to promote academic success. If you require accommodation, contact the Counselling and Disabilities Services Office at ext. 22900 to initiate the process for documenting, assessing and implementing your individual accommodation needs.

Prerequisite(s)
FIN 401 - Finance I
QNM222 - Business Statistics
ACC 517 – Intermediate Accounting II

Topic Outline

  •     Market Efficiency
  •     Investment Risk and Return
  •     The Cost of Capital
  •     Capital Structure
  •     Capital Budgeting
  •     Debt Refunding
  •     Lease Financing
  •     Dividend Policy and Retained Earnings
  •     Derivatives, Options, Risk
  •     External Growth Through Mergers & Amalgamations
  •     International Financial Management

Mode of Instruction
In-Class

A combination of teaching methods will be utilized which may include lectures, case studies, discussions, group and individual work.

Prescribed Texts
TITLE: Foundations of Financial Management
EDITION: 10th Edition
AUTHORS: Block, Hirt, Danielsen, Short, Perretta
PUBLISHER: McGraw-Hill Ryerson
ISBN: 9781259024979


Reference Material
None

Required Supplies
None

Promotion Policy

Grading Policy
A+ 90%  to  100%
A 80%  to  89%
B+ 75%  to  79%
B 70%  to  74%
C+ 65%  to  69%
C 60%  to  64%
D+ 55%  to  59%
D 50%  to  54%
F 0%    to  49% (Not a Pass)
OR
EXC Excellent
SAT Satisfactory
UNSAT Unsatisfactory

For further information, see a copy of the Academic Policy, available online (http://www.senecacollege.ca/academic-policy) or at Seneca's Registrar's Offices.


Modes of Evaluation
Assignments are due on the dates specified. Should extenuating circumstances arise, please contact your instructor prior to the assignment due date so that an appropriate course of action can be established. Late assignments may be subject to a penalty of up to 10% per week and will not generally be accepted beyond two weeks from the due date.

In cases of cheating or plagiarism, the College Academic Policy will prevail. Please ensure that all assignments and reports are properly documented.

Students are referred to the following website for Seneca College Library style guides, Academic Honesty Policy and Copyright guidelines:

http:/senecacollege.ca/library

Dates for evaluations are specified in the weekly schedule addendum to this outline. The evaluation process may include, but is not limited to, tests, exams, assignments or presentations. Any absences or missed submissions due to medical or other reasons must be supported by medical or other appropriate documentation within one (1) week of the due date. The faculty and program area must be notified immediately in the event of a missed evaluation. Upon acceptance of the documentation, the weighting of the missed deliverable will normally be applied to the final exam.

English Competency

The ability to communicate effectively is essential for success in business. Therefore, you must demonstrate English competency in this subject in both oral and written work. Ensure your written work includes correct sentence structure, spelling and punctuation. Always spell check, edit and proofread your work.

Grading is based on the following marking scheme:

Mid Term Test 30%
Quiz 2 x 10% 20%
Final Examination 50%





Please retain this course outline document for future educational and/or employment use.

Program Coordinator
Cynthia Duncan

Approved by: Academic Program Manager - Business Studies Danielle Mercier