ENGM 180: Corporate Finance

Spring Term 2009

Instructor

Instructor: Katharina Lewellen
Office: 316 Tuck Hall
E-mail: k.lewellen@dartmouth.edu
Telephone: (603) 646 8247

Classes

Monday and Tuesday, 10:15-11:45am, B01 MacLean

Course Description

The objective of the course is to study financial aspects of managerial decisions and the capital markets in which firms raise funds for investment. We develop the tools needed for valuing investment projects, such as the determination of the relevant cash flows, estimating cost of capital, and dealing with risk. We will then use these basic tools to value companies and to select investment projects. Finally, we analyze how companies finance their investments: what determines a company's need for external financing, be it debt or equity, and how to choose the optimal debt-equity mix.

Teaching Methods

We will present the basic insights of corporate finance theory, but emphasize the application of theory to real business decisions. Each session will involve class discussion. In some instances, discussion will be centered on lectures; in others it will be centered on a business case. Your participation is critical to the success of the course.

Readings/Books

  • Ross, Westerfield, and Jaffe, Corporate Finance, 8th ed., McGraw-Hill, Irvin
  • Course packet: Contains the case studies, and some supplementary readings for the course. Please pick it up from Daryl Laware at Thayer (Registrar).

Academic Coordinator

Mary Biathrow
Office: 309C Tuck Hall
E-mail: Mary.L.Biathrow@tuck.dartmouth.edu
Telephone: (603) 646-8249

Teaching Assistants

The teaching assistants will grade the assignments and exams and hold review sessions. The time and location of the review sessions will be announced in class. Feel free to contact the teaching assistants directly if you have problems.

Requirements/Grading

  • Case write-ups and problem sets: 10 %
    • Case write-ups: Students form teams of 3 or 4, and hand in a single write-up per team. Write-ups are due in the beginning of class during which the case is discussed (make copies to refer to during the class).
    • Problems sets: You should work on problems sets individually and hand in an individual assignment in the beginning of class on the due date.
  • Class participation: 10%
  • Quizzes: 30 % (in class, see the syllabus)
  • Final: 50 % (June 5th)

Further Details on Case Write-Ups

Each case will come with guideline questions. Students are required to submit a two-page memorandum on the case, and to work in teams of no more than four. Teams with less than three people are strongly discouraged. Only one memorandum must be handed in for a given group. The memoranda should be typed and double-spaced. They should be written as if you were presenting it to your business colleagues. The two-page limit is for text only. You may attach as many numerical calculations or graphs as you wish. Memoranda will not be accepted after the class has met.

  • Each student is expected to be familiar with the case, to understand his or her group's analysis and conclusions, and be ready to answer questions when cold-called.
  • Each team member must make a substantial contribution to the assignment. It is not, for example, acceptable to divide the assignments among the team members (e.g., part of the team does case 1 and another part does case 2), though the team may divide the work of any one assignment to complete it as they deem appropriate.
  • The team may not collaborate with other students outside of the team.
  • Some of the cases may have been used before at Thayer, Tuck, or other institutions. You may not use class notes, solutions, or other materials related to the cases that have been provided in the past.

Figuring out how to "crack" the case may take you some time. The process of figuring out what the relevant information is and which of the many ideas discussed in class or in the textbook are applicable to the case is an essential component of learning through the case method. You will get better with practice (i.e. please don't be discouraged if your answers to the guideline questions are wrong). Finally, don't be upset if class discussion moves beyond the study questions.

There are no single correct solutions for the cases and therefore you will not be graded for "correct" solutions in your case write-ups. Grading system is designed so that all "good faith efforts" will result in full credit.

Seating Chart and Name Cards

Please display name cards in class at all times. This will allow me to get to know you and evaluate your class participation. Starting with the second class, please choose your seat in class and use the same seat for the remainder of the term.

Blackboard

More information about this course can be found on Blackboard. You can login to Blackboard using your DND username and password.