BUSS207: Financial Management

Fall, 2022
Location: LG Posco Business Bldg #433 Class Time: Mon, Wed 10:30-11:45AM
Professor: Joon Ho Hwang Office: Dean’s Office cluster in
Business Main Bldg
Email: joonhwang@korea.ac.kr Office Hours: By appointment via email

TA: Minsoo Yoon ( yminsoo0928@korea.ac.kr )

Text: Parrino, Bates, Gillan, Kidwell, Fundamentals of Corporate Finance, 4th Edition,
Wiley. (Asia Edition)

Other Material: Financial calculator (with functions such as N, I/Y, PV, PMT, FV) can help
you in solving problems. If you plan to buy a financial calculator, I recommend
the Texas Instrument BA II Plus. App is also available. An alternative is to use
Excel. If you don’t have a financial calculator during quiz or exam, you may write
down the full equation without solving for the final answer.

Course Overview:
This course is an introductory course of finance. It begins with understanding the
concept of time value of money and how interest rates are determined. Based on these,
we then learn the valuation of financial instruments (bonds and stocks), the relationship
between risk and return, and tools and theories used in the financial decision makings of
corporations.

Grading:
Attendance 10%
Midterm Exam 40%
Final Exam 50%

Grading Scale:
A : 90 and above
B : 80-90
C : 70-80
D : 60-70
F : below 60

*The cutoffs of +/0 is based on the distribution and is usually where there is
the greatest separation in the scores within the same grade.
Any unethical behavior in class deemed by the professor will result in F.

1
 Schedule of contents (tentative and subject to change)

Chapter number in
Topic
Textbook
The Time Value of Money
5, 6 (and Discounted Cash Flows
and Valuation)

2.6 The Level of Interest Rates

8.1, 8.2 Bond Valuation

The Structure of Interest

8.3, 8.4, 8.5
Rates

9 Stock Valuation

7 Risk and Return

The Fundamentals of Capital

10 Budgeting
(Investment Decision)

13 The Cost of Capital

Capital structure Policy

16
(Financing Decision)

Dividends and Payout Policy

17
(Payout Decision)
Summary, intro to advanced
- courses in finance and
academic career

Copyright Law: Materials and lectures in this course are protected by Copyright Law. Materials
are presented in an educational context for personal use and study and should not be shared,
distributed, or sold in print - or digitally - outside the course without the permission of the
instructor.
Anti-graft Law: Do not ask the instructor to change the grade unless there is a flaw in grading.
Improper solicitation and graft for any matters are strictly prohibited by Anti-graft Law.