Rutgers University School of Management

Rutgers Business School—Newark & New Brunswick 29:390:329:68 Finance Spring 2004 (revised 2/6/04)

Professor Yangru Wu Office: MEC 118 Phone: 973-353-1146 Classroom: Hill 105 Meeting time: Saturday 12:30-3:20pm Office Hrs: by appointments only Email: [email protected] http://andromeda.rutgers.edu/~yangruwu

Required

1. Ross, Stephen, Randolph Westerfield, and Bradford Jordan (2004), Essentials of Corporate Finance, 4th ed., McGraw-Hill Irwin (ISBN: instructor’s edition 0-07-253201-7, student edition 0072510765). 2. In addition, a financial calculator is required. Your calculator must be able to calculate YTM, NPV and IRR. My recommended model is TI BAII Plus. Make sure you can understand the manual.

Highly Recommended

1. The Wall Street Journal. 2. Study Guide to the Ross et al. text.

References

1. Brealey, Richard and Stewart Myers (2000), Principles of Corporate Finance, 6th ed., McGraw-Hill. 2. Brigham, Eugene, and Michael Ehrhardt (2002), Financial Management: Theory and Practice, 10th ed., Harcourt, Inc.

Exams, Grading and Others

Exam 1 (40%), March 6, Saturday Exam 2 (40%) , May 8, Saturday Homework (20%)

All exams are required. There is absolutely no make up exam. If you are unable to take the first exam for some acceptable reason, you must obtain approval from me. In that case, I will count your second exam twice (80%). A student missing an exam without my prior approval will receive 0 point for that exam.

1 Homework will be assigned on a regular basis. The assignments are mandatory and are designed to help you prepare for the exams. Assignments will be collected and some of them will randomly be chosen to be graded. You must always prepare to submit your assignment on time. Late submissions will not be accepted. If you are out of town, you should either drop the assignment off in my mailbox before the due date or make arrangements to submit the assignment through another student in the class.

Topics Covered

1. Introduction Chapter 1

2. Time Value of Money Chapter 4 Homework: problems 16, 17, 18, 20, 22

3. Discounted Cash Flow Valuation Chapter 5 Homework: problems 23, 32, 42, 46, 53, 55

4. Rick and Return Chapters 11 Homework: problems 10, 17, 19, 33, 38

5. Bond and Interest Rate Chapters 6 Homework: problems 11, 15, 16, 21, 23, 24

6. Stock Valuation Chapters 7 Homework: problems 9, 16, 18, 20, 21

7. Investment Criteria Chapters 8 Homework: problems 3, 4, 7, 13, 15, 27

8. Project Cash Flow Analysis Chapters 9 Homework: problems 2, 4, 5, 7, 13

9. Cost of Capital Chapters 12 Homework: problems 3, 5, 8, 17, 18