Corporate Finance 1

[ADM3350 SESSION N | WINTER 2023]

Professor Dr. Ali Akyol

Office DMS 10144

E-mail [email protected]

Office Hours Wednesday 11:30am to 12:30pm or by appointment.

Class Location 55 Laurier (DMS) 1110

Class Hours Monday 8:30am to 9:50am

Thursday 10:00am to 11:20am

Prerequisite(s) All required 2000-level ADM core courses

Mandatory course of option BCom (Finance/Accounting) or specialization
Program of study

COURSE DESCRIPTION
Course Deliverable Due Date Weight on Final Grade

Weekly online questions 10 weekly questions 10%

Quizzes Week 4 (Feb 2) and Week 11 7.5 x 2 = 15%

(Mar 23)

Midterm examination (in-person) Week 8: Thursday, March 2 25%

from 10:00am to 11:20am

Final examination (in-person) As scheduled 50%

1
All materials prepared by the course professor, including lecture slides, class handouts and exam papers, are
protected by copyright. Copying or scanning them or posting them on a website is therefore a violation of copyright
and is illegal.

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The purpose of this intermediate corporate finance course is to follow up on the first introductory
course in financial management. It is intended to refine and deepen students’ knowledge of the
theory and practice of financial decisions in a rapidly changing corporate and business
environment. The course material will evolve around four major problems/decisions faced by
financial managers:
• Capital structure and payout policy
• Short term financing
• Mergers and acquisitions
• Options

COURSE CONTRIBUTION TO PROGRAM LEARNING GOALS

The Telfer School of Management has implemented an ongoing Assurance of Learning Process in
each of its core programs to ensure that, upon graduation, candidates have successfully achieved
key learning outcomes and skills from the Program. This course contributes to the achievement of
the following BCom Learning Goals:

LG1 Understand, Apply and Integrate Core Management Disciplines

LG2 Demonstrate Critical Thinking and Decision-making Skills

LG4 Apply high standards of Integrity, Ethics and Social Responsibility

LG6 Pursue Self-Development and Exhibit a Commitment for Life-long Learning

LG7 Provide Value to the Business Community in a chosen Area of Specialization

COURSE LEARNING OBJECTIVES

By the end of the course, students will be able to use course concepts and techniques to analyze
complex issues faced by managers in financial management and come up with sound solutions to
those issues. The issues that will be covered relate to, among others, capital structure, payout
policy, working capital management, short-term financial management, and mergers and
acquisitions. A constant focus on financial decisions and their implications on the market valuation
of the firm will be maintained.

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CONTRIBUTION TO COMPETENCIES OF THE CPA COMPETENCY

MAP
Along with other courses of the specialization in accounting, this course will help students develop
the following competencies of the CPA Competency Map:
• Develops or evaluates financial proposals and financing plans
• Evaluates the entity’s cash flow and working capital
• Evaluates the entity’s investment portfolio (partly in terms of option valuation and
mergers & Acquisitions)
• Evaluates sources of financing
• Evaluates decisions affecting capital structure
• Evaluates the entity’s cost of capital
• Evaluates decisions related to distribution of profits
• Develops or evaluates capital budgeting processes and decisions
• Develops or evaluates financial risk management policies
• Analyzes the use of derivatives as a form of financial risk management
• Evaluates the purchase, expansion, or sale of a business

TEXTBOOK/COURSE PACKAGE
COURSE MATERIALS WHERE TO GET IT

“Corporate Finance”, 5th Canadian Edition by Berk, The textbook is available at the
DeMarzo, and Stangeland (Pearson). bookstore and you can either
ISBN: 9780136648802 shop in store or online at
www.uottawashop.ca

Lecture slides Brightspace

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COURSE SCHEDULE
(Week) Dates Topic Required Assessment
Readings
(1) Jan 9/12 Capital structure 1 Chapter 17
(2) Jan 16/19 Capital structure 2 Chapter 18 W2Q
(3) Jan 23/26 Financial distress Chapter 19 W3Q
(4) Jan 30 / Feb 2 Payout policy Chapter 20 W4Q, Quiz #1
(5) Feb 6/9 Valuation with leverage Chapter 21 W5Q
(6) Feb 13/16 Working capital management Chapter 26 W6Q
(7) Feb 20/23 Reading week (no lecture)
(8) Feb 27 / Mar 2 Short-term financial planning Chapter 27 Midterm exam
(9) Mar 6/9 M&As and restructuring 1 Chapter 28 W9Q
(10) Mar 13/16 M&As and restructuring 2 Chapter 28 W10Q
(11) Mar 20/23 Corporate governance Chapter 29 W11Q, Quiz #2
(12) Mar 27/30 Financial options Chapter 14 W12Q
(13) Apr 3/6 Option valuation Chapter 15 W13Q

METHODS USED TO EVALUATE STUDENT PERFORMANCE

Course Deliverable Due Date Weight on Final Grade

Weekly online questions 10 weekly questions 10%

Quizzes Week 4 (Feb 2) and Week 11 7.5 x 2 = 15%

(Mar 23)

Midterm examination (in-person) Week 8: Thursday, March 2 25%

from 10:00am to 11:20am

Final examination (in-person) As scheduled 50%

Please note that it is not possible to submit extra course work to improve your mark.

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INSTRUCTIONAL METHODS
The course is designed in a sequential module structure in Brightspace with some online
components and with resources and complete assignment instructions to be provided for each
topic and due dates noted.

Each week, the following resources will be made available to you on Brightspace:
• Lecture slides
• Weekly practice questions and answers

A graded online weekly question component is also created. There will be 10 such questions
starting in Week 2 and students need to answer each weekly question posted by the professor by
5:00pm, Friday of the same week to earn a mark. See the course policies section for additional
details.

Starting in Week 2, there will also be weekly meetings (DGDs) with a teaching assistant to give you
the opportunity to ask questions and/or go over the weekly practice questions.

RECORDINGS OF SESSIONS
Any synchronous sessions may be recorded, and your image, voice and name may be disclosed to
classmates. Note that by remaining in sessions that are being recorded, you are agreeing to the
recording.

EXPECTATIONS FOR COMMUNICATIONS

Students are asked to monitor the Announcements panel on Brightspace and their uOttawa.ca e-
mail accounts regularly and carefully (not your personal email accounts such as Yahoo, Gmail,
Outlook.com, or Hotmail) as this are the conduits through which the professor will communicate
matters that concern the entire class.

Please ensure that you have set up your Brightspace account to receive notification of
announcements to your uOttawa.ca email address.

The professor will only respond to email message from registered students using their uOttawa.ca
email account. Please note that e-mails from non-university accounts will not be answered and e-
mails will not be read and answered on weekends. The professor will not respond to e-mails
requiring a detailed explanation on a topic, to solutions to examples, or on quiz or exam questions.
Please make use of office hours to get answers to questions that you might have with regards to
course content and materials.

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TECHNICAL REQUIREMENTS AND SUPPORT

If you experience difficulties with Brightspace or with logins to any uOttawa systems, please do
not contact the instructor or the course TA until you have tried to solve the problem through the
IT supports in place at the University.

For all questions related to Brightspace, call the support line between 8 AM and 8 PM (Eastern) at
1-866-811-3201 OR submit an online request using this form 24 hours a day.

For any other IT related issues, please contact IT services. They have a helpdesk that you can call,
or you can submit a service ticket with a specific request 24 hours a day.

For problems connecting to the library services, you can also contact the Morisset Help Desk.

OURIGINAL
We will be using the software Ouriginal for confirming the authenticity of your submissions. It uses
text-matching technology to detect sections of your text that have not been properly referenced.
The system will allow you to view the authenticity report before you submit your final report to
help you adequately reference your sources. Learn more about Ouriginal’s privacy policy.

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COURSE POLICIES
COURSE CONDUCT
The Telfer School of Management prides itself on a strong sense of shared values drawing upon
principles of respect, integrity, professionalism and inclusion to guide interactions inside and
outside the classroom. The Telfer School strives to provide a well-rounded and outstanding
education enriched through experiential learning and a positive student experience. You are
encouraged to familiarize yourself with our expectations related to course conduct at the Telfer
School. Please refer to our Statement of Shared Rights and Responsibilities.

PREVENTION OF SEXUAL VIOLENCE

The University of Ottawa is committed to a safe and healthy campus for work, for study and for
campus community life for all members of the University community. The University, as well as
various employee and student groups, offer a variety of services and resources to ensure that all
uOttawa community members have access to confidential support and information, and to
procedures for reporting an incident or filing a complaint. For more information, please visit
uOttawa Sexual violence: support and prevention.

CLASS ATTENDANCE
Class attendance is expected and is necessary to successfully complete this course.

Students are expected to write (or submit) all course deliverables as scheduled according to this
Course Outline. Absences for reasons listed in academic regulation 9.5 (with the appropriate
documented justification) are the only acceptable reasons for failure to hand-in or complete a
requirement of this course at the specified time. THERE WILL BE NO EXCEPTIONS. For a missed
mid-term or final examination, documentation must be submitted along with a deferred exam
application form to the Student Services Centre (DMS1100) of the Telfer School of Management.

Please visit the following webpage to download the form and carefully read the directives.

For other missed deliverables, the appropriate documentation can be submitted directly to the
Professor.

INDIVIDUAL PARTICIPATION IN WEEKLY QUESTIONS

This course requires you to answer 10 weekly questions (WQs) on various topics posted by the
professor on Brightspace at the start of each week starting in Week 2 (there will be 10 such WQs,
each worth 1 mark). Each student needs to submit her/his own answer by 5:00pm Friday of the

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week in which there is such a question. Make sure that you support your answers with
demonstrated research and sources. The objective is to learn something new.

The answers will be checked by the professor and/or the teaching assistant. The assessment of
your answers will also take into account the quality of your submission including, but not limited
to, your language and writing (see the next section). Note that a short but tightly focused answer
usually earns more points than a verbose, rambling answer, and requires less time to write.

If you fail to submit your answer by 5pm, Friday each week in which we have a WQ, you will not
be awarded any mark and will receive zero (0) for that week.

LANGUAGE & WRITING

You will be judged on your writing abilities on all written deliverables. It is recommended to take
the appropriate measures to avoid mistakes such as spelling, syntax, punctuation, inappropriate
use of terms, etc.

Professors show a marked bias for a movement from theory/definition (textbook, supplementary
readings, class discussion) to your own words to a concrete example. In other words, make a clear
reference to an accepted theoretical foundation, then explain it in your own words and then
provide a concrete example to support your idea (from a case study, from a class discussion, from
a real life situation that you have observed, from history,…).

In the event of poor language quality, you may be penalized up to 15% to the professor’s
discretion. Please see the “Writing Resources”.

Regulation 8.5
Except in programs and courses for which language is a requirement, all students have the right
to produce their written work and to answer examination questions in the official language of their
choice, regardless of the course’s language of instruction.

LATE SUBMISSIONS
Late submissions are not tolerated. Exceptions are made only for illness or other serious situations
deemed as such by the professor.

ABSENCES FROM EXAMS

University regulations require all absences from exams/quizzes and all late submissions due to
illness to be supported by a relevant documentation.

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Absence for any reason must be justified in writing, to the Student Services Centre
([email protected]) within five business days following the date of the exam.
Please visit the following webpage to download the deferral request form and carefully read the
directives. The Telfer School reserves the right to accept or refuse the reason. If the absence from
the exam is not deemed justifiable, the student will receive a zero. If the absence from the midterm
exam is deemed justified, the weight of the midterm will be added to the weight of the final exam.
Thus, a deferred midterm exam will NOT be provided. If the absence from the final exam is deemed
justified, the student who missed the exam will write a deferred exam.

Modification to academic regulation 9.5. on absence to course evaluation: As of September 1st,

students will only be permitted to defer one deliverable per course. Should you miss the midterm
for a reason approved by the SSC, you will not be allowed to defer another course deliverable. This
also applies to any deliverable for which a weight transfer is possible. Exceptions could be made,
but it will be at the discretion of the SSC, and each request will be evaluated on its own merit.

Religious absences: If a religious holiday or a religious event will force you to be absent during an
evaluation, it is your responsibility to inform your professor and the Student Services Centre as
early as possible.

INTELLECTUAL PROPERTY
All forms (printed, digital, etc.) of course materials prepared by the instructor (including e-mailed
or Brightspace content) are protected by copyright. This covers all files, assessments, solutions,
cases, and other materials. Copying, scanning, photographing, posting, or sharing by any means is
a violation of copyright and will be subject to appropriate penalty as prescribed by University of
Ottawa regulation.

ACADEMIC INTEGRITY
Academic Regulation 14 defines academic fraud as “any act by a student that may result in a
distorted academic evaluation for that student or another student. Academic fraud includes but is
not limited to activities such as:

a) Plagiarism or cheating in any way;

b) Submitting work not partially or fully the student’s own, excluding properly cited quotations
and references. Such work includes assignments, essays, tests, exams, research reports and
theses, regardless of whether the work is written, oral or another form;
c) Presenting research data that are forged, falsified or fabricated;
d) Attributing a statement of fact or reference to a fabricated source;

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e) Submitting the same work or a large part of the same piece of work in more than one
course, or a thesis or any other piece of work submitted elsewhere without the prior
approval of the appropriate professors or academic units;
f) Falsifying or misrepresenting an academic evaluation, using a forged or altered supporting
document or facilitating the use of such a document;
g) Taking any action aimed at falsifying an academic evaluation.”1

The Telfer School of Management does not tolerate academic fraud. Please familiarize yourself
with this guidance.

STUDENT SUPPORT SERVICES

Academic GPS

The Academic GPS hub is a one-stop shop for academic support. Whether you’re an experienced
student or just starting out, you’ll find some great resources to help you succeed.

With the Academic GPS, you can:

• chat with a mentor seven days a week
• register for study groups
• take part in study methods workshops (note taking, time management, exam
preparation, stress management, etc.)
• book an appointment with a mentor

For more information: https://gps-uottawa.ca/en

Health and Wellness
Your health and well-being are key parts of your success as a student. The uOttawa community provides a
wide range of services, supports and activities to support you in your wellness journey.

Visit uOttawa.ca/wellness. to access resources such as:

• Access to 24/7 help

• Mental health and counselling information
• Medical, health and insurance information
• Campus activities and workshops
• Peer support 7 days a week (virtual Peer Wellness Chat)
• Wellness Lounge

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• And so much more…

You can also access the Student Health and Wellness Centre, exclusively open to University of Ottawa
and Saint Paul University students. The centre is staffed by a multidisciplinary team of health
professionals, including physicians, nurse practitioners, registered nurses, health promotion specialists
(education), psychotherapists, a psychologist and psychiatrists working together in a shared care model.

You can book your appointment with a health practitioner in person at 801 King Edward, Room N203, by
calling 613-562-5498, by using the web portal, or by downloading the UpPatient app. All this information
and more is available at uOttawa.ca/wellness.

Academic accommodations
We try to make sure all students with disabilities have equal access to learning and research
environments, the physical campus and University-related programs and activities. The
Academic Accommodations service works with other campus services to create an accessible
campus learning environment, where students with disabilities have an equal opportunity to
flourish. We offer a wide range of services and resources, provided with expertise,
professionalism and confidentiality.

Some services we offer

• Help for students with disabilities in making the transition
• Permanent and temporary accommodation measures
• Learning strategy development
• Adaptive exams
• Transcriptions of learning material
• Interpretation (ASL and LSQ)
• Assistive technologies

If you think that you might need any of our services or supports, email the Academic
Accommodations service ([email protected]).

OTHER U OTTAWA SERVICES THAT YOU MIGHT FIND USEFUL

• Career Services:
o Telfer Career Centre
o U Ottawa Career Services
• Counselling Service

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PERSONAL ETHICS STATEMENT CONCERNING TELFER SCHOOL

ASSIGNMENTS
Group Assignment:

By signing this Statement, I am attesting to the fact that I have reviewed not only my own work, but the
work of my colleagues, in its entirety.

I attest to the fact that my own work in this project meets all of the rules of quotation and referencing in
use at the Telfer School of Management at the University of Ottawa, as well as adheres to the fraud policies
as outlined in the Academic Regulations in the University’s Undergraduate Studies Calendar Academic
Fraud Webpage.

To the best of my knowledge, I also believe that each of my group colleagues has also met the rules of
quotation and referencing in this Statement.

I understand that if my group assignment is submitted without a signed copy of this Personal Ethics
Statement from each group member, it will be interpreted by the Telfer School that the missing student(s)
signature is confirmation of non-participation of the aforementioned student(s) in the required work.

______________________________ __________________________

Signature Date

______________________________ __________________________

Last Name (print), First Name (print) Student Number

______________________________ __________________________

Signature Date

______________________________ __________________________

Last Name (print), First Name (print) Student Number

______________________________ __________________________

Signature Date

______________________________ __________________________

Last Name (print), First Name (print) Student Number

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______________________________ __________________________

Signature Date

______________________________ __________________________

Last Name (print), First Name (print) Student Number

______________________________ __________________________

Signature Date

______________________________ __________________________

Last Name (print), First Name (print) Student Number

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Personal Ethics Statement

Individual Assignment:

By signing this Statement, I am attesting to the fact that I have reviewed the entirety of my attached work
and that I have applied all the appropriate rules of quotation and referencing in use at the Telfer School of
Management at the University of Ottawa, as well as adhered to the fraud policies outlined in the Academic
Regulations in the University’s Undergraduate Studies Calendar Academic Fraud Webpage.

______________________________ __________________________

Signature Date

______________________________ __________________________

Last Name (print), First Name (print) Student Number

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