BUSN 6021: Corporate Finance
NOTE: For registration please contact Bob Gaglardi School of Business and Economics General Program Inquiries (Email: mba@tru.ca or Tel: 1-877-663-4087).
Students develop the knowledge and skills required to effectively manage a firm’s operating and fixed assets, and to fund those assets with an optimal mix of short-term and long-term debt and equity financing. Topics include time value of money; goals of the firm, corporate governance and executive compensation; financial statement analysis; quality of earnings; maturity matching; short-term financial planning; capital budgeting; risk and return and stock valuation; bond valuation and interest rates; cost of capital; capital structure; and dividend policy.
Learning outcomes
- Incorporate the concept of time value of money in decision making.
- Defend the importance of share price maximization and progressive corporate governance and executive compensation practices to the success of a corporation.
- Analyze an organization’s performance utilizing appropriate financial statement analysis techniques.
- Evaluate the quality of an organization’s earning and make the necessary adjustments to better reflect actual performance.
- Assess the degree to which a company matches the maturity of its assets and liabilities and the problems that mismatching may create.
- Develop a short-term financial plan for an organization that achieves its financial goals and objectives.
- Conduct a capital budgeting analysis of a new project or venture.
- Evaluate risk and incorporate it in the calculation of a required rate of return.
- Value the bonds and shares issued by organizations. • Determine the appropriate cost of capital for different projects or ventures.
- Determine the optimal capital structure of a company based on an assessment of its operational leverage and other factors.
- Develop an appropriate dividend policy for an organization.
Course topics
- Module 1: Introduction to Corporate Finance
- Module 2: Financial Statement Analysis
- Module 3: Time Value of Money
- Module 4: Bond Valuation and Interest Rates
- Module 5: Risk and Return
- Module 6: Cost of Capital
- Module 7: Stock Valuation
- Module 8: Capital Budgeting
- Module 9: Capital Structure
- Module 10: Dividend Policy
- Module 11: Short-Term Financial Planning
Required text and materials
Online students are responsible for sourcing and ordering their own textbooks. Please see the list of required textbooks here: https://www.tru.ca/distance/courses/MBA_Textbook_List.pdf.
Please note that publishers may offer several package options that include additional resource material not required in your course. You may purchase a package of your choice as long as it includes the correct author, title and edition listed for your course.
If you have any questions about obtaining the correct textbook, please contact OLMaterials@tru.ca. They will be happy to assist you.
Additional requirements
A computer with Internet access is required.
Assessments
Please be aware that should your course have a final exam, you are responsible for the fee to the online proctoring service, ProctorU, or to the in-person approved Testing Centre. Please contact exams@tru.ca with any questions about this.
In order to successfully complete this course, students must obtain at least 50% on the final mandatory examination and 70% overall.
| Assignment 1: Financial Statement Analysis | 15% |
| Assignment 2: Cost of Capital | 15% |
| Assignment 3: Stock Valuation | 15% |
| Assignment 4: Discussion Summary and Analysis | 15% |
| Final Exam (mandatory) | 40% |
| Total | 100% |
Open Learning Faculty Member Information
An Open Learning Faculty Member is available to assist students. Students will receive the necessary contact information at the start of the course.
