ACA120 - Corporate Finance

Outline information
Semester
Schools offering this subject
Last revision date 2018-11-05 09:53:39.376
Last review date 2018-11-05 09:53:39.376

Subject Title
Corporate Finance

Subject Description
This course is a continuation of the study of corporate finance started in Finance. It provides an in-depth study of issues and tools that will assist financial specialists in making corporate financing decisions. Students learn how to select the appropriate financial and investment strategies to achieve the company's goals and objectives, given the economic environment in which the firm operates. Analytical techniques relating to financial decision making are studied. Topics include dividend policy, investment decisions, derivatives, risk management, international financial management, options and swaps.

Credit Status
For information regarding exemptions for courses included in CPA’s Advanced Certificate in Accounting & Finance (ACAF) program please see https://media.cpaontario.ca/earn-your-acaf/pdfs/Seneca%20AAF%20Course%20Chart.pdf

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

  1. Describe and classify the goals and functions of financial management. Describe and classify the goals and functions of financial management.
  2. Identify and analyze the relationship between the balance sheet, income statement and statement of changes in financial position from the perspective of a financial manager.
  3. Evaluate the financial performance of a firm using ratio analysis.
  4. Explain the concept of the "time value of money" and calculate financial results using present value techniques.
  5. Calculate the value of financial assets such as bonds, preferred stock, and common shares using present value techniques.
  6. Compare and contrast the net present value technique with other capital budgeting techniques.
  7. Assess the relationship between current asset management and short‐term financing and the impact of risk on these decisions.
  8. Identify the sources of short‐term financing and determine the use of such to make effective financing decisions.
  9. Describe and analyze a security's risk and return using the capital asset pricing model.
  10. Apply the measurement of risk to capital budgeting decisions.
  11. Identify and explain the common statistical measures of dispersion used in finance to measure risk. (i.e. variance, standard deviation, and beta)
  12. Apply three standard approached to valuation under leverage and quantify the effect of leverage.
  13. Explain the principals involved in corporate dividend policy and evaluate the effects of dividend policy on internal financing.
  14. Explain the function of capital markets in Canada and discuss the role of investment underwriting.
  15. Evaluate the use of long-term debt, preferred and common shares in financing the firm.
  16. Illustrate the use of term loans and leases in financing and analyze the factors involved in the lease purchase decision.
  17. Apply discounted cash flow concepts to leasing decisions.
  18. Define the meaning and explain the role of various types of derivatives, such as options and futures, and the market for them.
  19. Describe warrants and compare them to convertible securities.
  20. Calculate the hedge on futures and the values of call and put options.
  21. Discuss the importance of financial forecasting and demonstrate the use of financial forecasts to estimate future cash requirements.
  22. Describe and analyze corporate restructuring through mergers and divestitures.
  23. Define financial distress using the stock-based and flow-based approaches.
  24. Evaluate the importance of international factors in the role of the financial manager.

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.