Feb 01, 2023  
2021-2022 Undergraduate Academic Catalog 
2021-2022 Undergraduate Academic Catalog [ARCHIVED CATALOG]

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BA 2550 - Corporate Finance

2 lecture hours 2 lab hours 3 credits
Course Description
This course continues with the fundamental concepts of finance and accounting. The focus of this course is long-term financial management including capital budgeting, capital structure, cost of capital, relevant costs, and investments.  The term project will solidify the capital budgeting concepts.  (prereq: BA 2510  and BA 2530 )
Course Learning Outcomes
Upon successful completion of this course, the student will be able to:
  • Identify and calculate acceptance criteria and projected cash flows in a capital budgeting decision
  • Describe the capital structure decision and calculate the cost of capital
  • Describe and calculate the value of investments
  • Calculate and analyze the relevant costs in strategic decisions
  • Identify the financial concerns for a decentralized organization

Prerequisites by Topic
  • None

Course Topics
  • Review of accounting and finance
  • Investment decision rules
  • Fundamentals of capital budgeting
  • Valuing stocks
  • Estimating cost of capital
  • Capital budgeting and valuation with leverage
  • Raising equity capital
  • Debt financing
  • Leasing

Laboratory Topics
  • Describe corporations and financial markets
  • Review financial statements
  • Review time value of money
  • Review bonds
  • Describe the price of risk
  • Demonstrate NPV, IRR, and payback methods for valuing projects
  • Describe project selection criteria
  • Identify the effects of financial constraints
  • Create earnings forecasts
  • Examine the components of free cash flows
  • Evaluate projects using sensitivity analysis and scenario analysis
  • Describe the effects of MACRS depreciation
  • Demonstrate the dividend discount model
  • Describe valuations based on free cash flow models
  • Identify comparable firms’ models
  • Determine the components of cost of capital
  • Identify the project cost of capital and risk adjustments
  • Demonstrate how leverage effects capital budgeting
  • Examine the effects of corporate tax on capital budgeting decisions
  • Identify the effects of periodically adjusted leverage policies
  • Examine equity financing for private companies
  • Identify the key elements of an initial public offering (IPO)
  • Describe seasoned equity offerings
  • Describe types of debt
  • Identify common bond covenants and repayment provisions
  • Explain leasing concepts
  • Identify reasons for leasing
  • Describe the accounting, tax and legal consequences of leasing

Carol Mannino

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