HARVARD UNIVERSITY

MGMT E-2700
CORPORATE FINANCE
Fall 2017 SEMESTER
Preliminary

Lecturer Ned Gandevani, MBA, PhD

Office Phone: 617-603-6951
Cellular Phone: 617-910-6256
E-mail: Gandevani@fas.harvard.edu
Class hours: Tuesdays 5:30 to 7:30 pm
Class Location: Harvard 104

Teaching Assistant Raju Kunaparaju

Email: rajuk.e2620@gmail.com
Cell Number: 610-329-9913

Chiwai Chow
Email: chiwaichow@g.harvard.edu
Cell: 781-510-3435

Course Description
The goal of this course is to develop the analytical skills for making corporate investment with
regards to financial decisions and risk analysis. This course examines various theories
including the concept of present value, the opportunity cost of capital, discounted cash flow
analysis, a consortium of valuation techniques, issues between short and long term financial
management, risk and return, capital asset pricing model, arbitrage pricing model, capital
budgeting, corporate capital structure and financing decisions, dividend policy, investment and
financial decisions in the international context—including exchange rate/interest rate risk
analysis—and issues of corporate governance and control. In essence, we explore the very
patterns of corporate finance that have shaped the familiar yet complex terrain of today's
global economy. (4 credits)
Course Format
The course format will be based on the assigned readings, exercises, and cases from the
textbook or other external sources. The homework and cases should enhance your
understanding and comprehension of the material in the textbook. In addition, the cases
should provide a link from the classroom to relevant business situations and problems.

Online option in on-campus courses

This course meets on campus each week, and the lectures are videotaped and posted online.
If you enroll in courses with an online option, you can attend lectures in person; watch them
online at your convenience, or both.

Prerequisite
Since this is very similar to a second year MBA course that builds on what was covered a
number of core courses, a successful completion of graduate level finance and accounting
courses is also required here: Financial Accounting ECON S/E-1900 and Principles of Finance
MGMT S/E2000. Financial Statements Analysis MGMT S/E-2600, and Business Analysis and
Valuation S/E-2620, Valuation are helpful.

Course Materials
Required: ESSEN.OF CORP.FINANCE, Edition: 9TH
Stephen Ross, Randolph Westerfield , and Bradford Jordan
McGraw-Hill Education; 9 edition (February 18, 2016)
ISBN-10: 1259277216 and ISBN-13: 978-1259277214

Students are required to purchase Connect to submit weekly assignments and online exams.
When purchase Connect access, you’ll have access to eBook as well.
ISBN:9781259697456.
To sign up use this link http://connect.mheducation.com/class/d-gandevani-2

Exams
There will be a mid-term and final examination in this course. These exams will occur on the
date indicated on the syllabus, unless otherwise noted. The midterm exam will be online. The
final exam will have two parts; online and take-home. The take-home project should be
submitted on the date indicated on the syllabus.
Note: the undergrad students may have a different take-home project from graduate students.

Homework and Case Assignments

Students are expected to review and complete homework and case assignments using the
information that is provided below. These assignments will be worth 35% towards your final
course grade: Each weekly assignment should be submitted to Connect on the appropriate
due date. For late submission within one week, grades are deducted by 50%. No late
assignment accepted after one week from the due date.
Grading
The maximum score in this class is 1,000 points. The categories, which contribute to your final
grade, are weighted as follows.

Assignment Points Weighting

Weekly Assignments 280 28%

Case Assignment 70 7%

Mid-term Exam (online) 300 30%

Final Exam (Parts A & B) 350 35%

Total 1000 100%

Letter Grade Grade %

A 94 – 100%
A- 90 – 93.9%
B+ 87 – 89.9%
B 83 – 86.9%
B- 80 – 82.9%
C+ 77 – 79.9%
C 73 – 76.9%
C- 70 – 72.9%
F Below 70%

Disability Services Office

The Extension School is committed to providing an accessible academic community. The
Disability Services Office offers a variety of accommodations and services to students with
documented disabilities. Please visit http://www.extension.harvard.edu/accessibility-student-
services for more information.
Academic Honesty
The Harvard University Extension School expects students to understand and maintain high
standards of academic honesty. Examples of academic misconduct include, but are not
limited to, the following: plagiarism, cheating and computer network abuse. All work submitted
to meet the course requirements is expected to be the student’s own work. In the preparation
of work submitted to meet course requirements, students are expected to distinguish their
own ideas and language from information derived from other sources. Without prior written
approval by both instructors, students may not submit the same material for two courses.

You are responsible for understanding Harvard Extension School policies on academic
integrity (www.extension.harvard.edu/resources-policies/student-conduct/academic-integrity)
and how to use sources responsibly. Not knowing the rules, misunderstanding the rules,
running out of time, submitting "the wrong draft", or being overwhelmed with multiple demands
are not acceptable excuses. There are no excuses for failure to uphold academic integrity. To
support your learning about academic citation rules, please visit the Harvard Extension School
Tips to Avoid Plagiarism (www.extension.harvard.edu/resources-
policies/resources/tipsavoidplagiarism), where you'll find links to the Harvard Guide to Using
Sources and two, free, online 15-minute tutorials to test your knowledge of academic citation
policy. The tutorials are anonymous open learning tools.

Expectations and Assumptions

It is important to your success in this course to remain current with the readings, homework and
case assignments. Please be prepared to discuss the assigned readings, cases and homework.
Homework, case assignments and examinations will occur on the date indicated on the
syllabus. The submission of late case assignments or an unexcused absence from an
examination will not be accepted. I will have office hours by appointment throughout the
semester. My office hours in campus are 30 minutes before and after each class.

Students Participation
To gain a better learning experience, students are encouraged to participate actively in the
lectures or TA sessions. Here are several suggestions how you may participate:
1. Weekly in person class attendance in campus.
2. Weekly online class attendance.
3. Weekly attendance and asking questions in Sections conducted by TA.

Undergrad Students
Students who have signed up as an undergraduate course will need to take Part A of the final
exam only.

Lesson Plan

Classes Dates Topics & Readings Assignments

1 8/29/2017 Chapter 1. Introduction to Financial Management Access Connect for
Weekly Assignment
Due 9/4/2017
2 9/05/2017 Chapter 2. Financial Statements, Taxes, and Cash Access Connect for
Flow Weekly Assignment
Due 9/11/2017
3 9/12/2017 Chapter 3. Working with Financial Statements Access Connect for
Weekly Assignment
Due 9/18/2017
4 9/19/2017 Chapter 4. Introduction to Valuation: The Time Value Access Connect for
of Money Weekly Assignment
Due 9/25/2017
5 9/26/2017 Chapter 5. Discounted Cash Flow Valuation Access Connect for
Weekly Assignment
Due 10/2/2017
6 10/03/2017 Chapter 6. Interest Rates and Bond Valuation Access Connect for
Weekly Assignment
Due 10/9/2017
7 10/10/2017 Online Midterm Exam Covering Chapters 1, 2, 3, 4, 5, and 6

8 10/17/2017 Chapter 10. Some Lessons from Capital Market Access Connect for
History Weekly Assignment
Chapter 11. Risk and Return Due 10/23/2017
9 10/24/2017 Chapter 12. Cost of Capital Access Connect for
Weekly Assignment
Due 10/30/2017
10 10/31/2017 Chapter 13. Leverage and Capital Structure Access Connect for
Weekly Assignment
Due 11/6/2017
11 11/07/2017 Chapter 7. Equity Markets and Stock Valuation Access Connect for
Weekly Assignment
Case Assignment
Due
Due 11/13/2017
12 11/14/2017 Chapter 8. Net Present Value and Other Investment Access Connect for
Criteria Weekly Assignment
Due 11/20/2017
13 11/21/2017 Chapter 9. Making Capital Investment Decisions Access Connect for
Weekly Assignment
Due 11/27/2017
14 11/28/2017 Chapter 14. Dividends and Dividend Policy Access Connect for
Chapter 15. Raising Capital Weekly Assignment
Due 12/4/2017
15 12/05/2017 Final Exam Review

16 12/12/2017 Final Exam (Parts A and B) – Part A, Online Part Covers Chapters 7, 8,
10, 11, 12, 13, 14, and 15.