Course Outline

Corporate Finance
Fall 2023

General Information
Course Number: COMM 308-F
Credits: 3
Course Instructor: Amr Addas
Office Hours: By appointment
Phone: x5275
Email: amr.addas@concordia.ca

Under normal circumstances, e-mail questions will be answered within 2 business

days.
Corporate Finance at-a-Glance
Readings from Assignments Class
Session Value
Textbook / Activity / Evaluation Date/Time/Location
Laurence Booth, W. Sean
Cleary, Ian Rakita: WileyPLUS Lec F : Wednesday
Introduction to Corporate Assignment (X 4) 14 :45-17 :30
COMM 308 Finance, WileyPLUS Card. Midterm 3.0 credits
5th Canadian Ed Final exam MB 3.210
ISBN: 9781119775362 Or
9781119561590

Course Description
This course provides a general understanding of the fundamental concepts of finance
theory as they apply to the firm’s long‑run and short‑run financing, and investment
decisions. Building on the objective of firm value maximization, students become
familiar with the conceptual issues underlying risk and return relationships and their
measurements, as well as the valuation of financial securities. They also learn the
concept of cost of capital, its measurement, and the techniques of capital budgeting as
practiced by today’s managers. Students are introduced to the basic issues surrounding
the firm’s short‑term and long‑term funding decisions and its ability to pay dividends.
Prerequisite: COMM 217; COMM 220 previously or concurrently.
Important Note on Course delivery and exams:
All exams (midterm and final) are planned to be in person. However, in case of
exceptional circumstances all assessments could be completely online. Online
midterm and final exams as well as the related alternates will then be provided through
the Concordia Online Exams (COLE) platform with online proctoring (also known as
auto-proctoring) in this case. More information about the COLE system may be found
at the COLE website.
Moodle:
We are using a Moodle website to facilitate interaction. Each student should have
access to the course site through the MyConcordia portal. There is also an All Sections
Moodle page, and this will have important course-wide messages and information
including but not limited to tutorials, changes in the class schedule and exam relevant
information. Any problems accessing your Moodle websites should be directed to
Help@concordia.ca.
Instructional Methods (Lectures and Tutorials):
All lectures will be delivered in-class if circumstances permit and using Zoom otherwise.
Each student should have access to the course site via existing computer accounts.
Any problems should be directed to Help@concordia.ca or by phoning 514-848-2424 X
7613.

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Tutorials:
Exercises related to the course are discussed during tutorials, which are available as
follows and may be subject to change. The Moodle COMM 308 All section folder
will have the latest information:

Day Wednesday Friday Monday Monday

12:00PM to 9:00 to 6:00 to

Time 6:00 to 8:30 2:30 PM 11:30 8:30

Location H 501 MB S2.401 FB S150 LS 105

Mehdi Erfan Vikramjeet Mehdi

Tutor Rasteh Gharouni Babbar Rasteh Topic

1 06-Sep-23 08-Sep-23 11-Sep-23 11-Sep-23 Math Review

2 13-Sep-23 15-Sep-23 18-Sep-23 18-Sep-23 Time Value Mechanics

3 20-Sep-23 22-Sep-23 25-Sep-23 25-Sep-23 Time Value Mechanics

4 27-Sep-23 29-Sep-23 02-Oct-23 02-Oct-23 Bond Valuation

5 04-Oct-23 06-Oct-23 09-Oct-23 09-Oct-23 Equity Valuation

11-Oct-23 13-Oct-23 16-Oct-23 16-Oct-23

6 18-Oct-23 20-Oct-23 23-Oct-23 23-Oct-23 Recap of TVM, Bond, Equity

7 25-Oct-23 27-Oct-23 30-Oct-23 30-Oct-23 Risk, Return

8 01-Nov-23 03-Nov-23 06-Nov-23 06-Nov-23 CAPM

Recap of TVM, Bond, Equity,

9 08-Nov-23 10-Nov-23 13-Nov-23 13-Nov-23 Risk & Ret, CAPM

10 15-Nov-23 17-Nov-23 20-Nov-23 20-Nov-23 Capital Budgeting

Cash Flow Estimation & Cost of

11 22-Nov-23 24-Nov-23 27-Nov-23 27-Nov-23 Capital

12 29-Nov-23 01-Dec-23 04-Dec-23 04-Dec-23 Derivatives & Final Recap

Course Objectives
This course introduces core concepts central to financial management and firm value
maximization. You will learn the basic methods of valuing corporate securities,
estimating cash flows, and making capital budgeting decisions. Introductions to portfolio
management theory, cost of capital, and options will round out the course

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At the end of this course, students should be able to demonstrate a general
understanding and specific skills on the following:
• General: Conceptual frameworks underlying valuation, asset pricing, risk/return
tradeoffs, and investment vs. financing decisions. In addition, students are expected
to use these frameworks to (i) identify relevant information (ii) define major from
minor issues, and (iii) apply concepts to problem-solve and make recommendations.
• Specifics: Time value of money; Terminology and Techniques that value bonds,
shares, and investment projects; Identification of relevant cash flows; Mechanics of
determining the firms cost of capital; and Recognizing payoffs for call and put
options.

Course Materials
Textbooks Required:
Laurence Booth, W. Sean Cleary, Ian Rakita: Introduction to Corporate Finance,
WileyPLUS Card. 5th Canadian Ed
Note: There are three versions of this book available: Hardbound book, the loose leaf
(binder ready) version, and the e-book. They are all identical in content. However, you
should purchase the book bundled with WileyPLUS which will be required for the
Assignment.
Calculator:
A financial calculator is not essential, (although, strongly recommended) for this course.
The Texas Instruments BAII+ is recommended as you may use this model for CFA
exams should you undertake that program.

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Schedule (may be subject to change)
Please note that this schedule may be subject to change. To ensure that you are well
prepared for each class, it is strongly recommend that you always read one chapter
ahead and have the slides not only for the current class listed but also for the following
class.

Session Date Topics Chapters (Booth)

Overview; Introduction;
1 6 – Sept, 23 1.1 to 1.4, 2.1 to 2.4
Outline

2 13 – Sept, 23 Time Value of Money (TVM) 5.1 to 5.8

3 20 – Sept, 23 Time Value of Money (TVM) 5.1 to 5.8

25 – Sept, 23 WileyPLUS Assignment 1 Due: TVM (Chapter: 5)

4 27 – Sept, 23 Bond Valuation 6.1 to 6.3, 6.5 (just

introduction)

5 4 – Oct, 23 Equity Valuation 7.1, 22.1 (discuss with first

part of 7.1), 7.2 to 7.5

16 – Oct, 23 WileyPLUS Assignment 2 Due:

Bond & Equity Valuation (Chapters: 6 & 7)

Risk, Return and Portfolio

6 18 – Oct, 23 8.1 to 8.6
Theory

Mid-term Exam (in class, in person) 120 minutes

7 25 – Oct, 23
Time Value of Money, Bond Valuation, Equity Valuation

1 – Nov, 23
8 CAPM 9.1 to 9.3

6 – Nov, 23 WileyPLUS Assignment 3 Due:

Risk & Return, and CAPM (Chapters: 8 & 9)

8 – Nov, 23 Market Efficiency 10.1 to 10.5

9
Capital Budgeting 13.1 to 13.3 and 20.2

15 – Nov, 23 Capital Budgeting 13.1 to 13.3 and 20.2

10
Cash Flow Estimation 14.1 to 14.3

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 20 – Nov, 23 WileyPLUS Assignment 4 Due: Market Efficiency, and
Capital Budgeting (Chapters: 10 & 13)

22 – Nov, 23 14.1 to 14.3 and 14.4

11 Cash Flow Estimation
Sensitivity

29 – Nov, 23 Unfinished Business 12.1 to 12.2 (and Covered

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Derivative Securities Call, Protective Put)

Final Exam – 3 hours (cumulative)

Dec 6th - 19th 2023
(Exact date will be announced on Moodle, once available)

Study Guide
COMM 308 “All Sections” Folder in Moodle: All students have access to the COMM
308 “All Sections” folder in Moodle, in addition to their own section’s folder. Important
course-wide messages and important course-wide information will be posted there,
including basic course information, a math review, end of chapter (EOC) solutions, and
past final exams. The “Student Message Board” can be used to post questions to the
tutors, which will be answered within 48 hours. For example, students might ask for help
on a posted final exam question, EOC question, or a basic concept question. Please do
not email tutors directly. There is also a “Tutorial Material” section, where tutorial
material, problems, and solutions, will be posted each week.
Students are strongly advised to read the book chapter(s) discussed in the respective
session BEFORE attending the session. After attending the respective session,
students should be able to complete all related EOC questions independently. Solutions
can be verified with the solutions posted in the COMM 308 “All Sections” folder. In case
of unsolved questions, these should be directed to the “Student Message Board” in the
“All Sections” folder in Moodle. It is also strongly recommended to solve as many
problems from past exams posted on Moodle as possible.

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Homework assignments: EOC questions as well as past exams are posted on Moodle
and should be seen as Homework assignments. These assignments are ungraded.
However, it is in the best interest of students to solve these questions as a means of
preparing for the Final as well as the Midterm.
Tutorials: In addition to the lectures, several tutorial sessions are conducted every
week for COMM 308 students. Students are expected to attend at least one (two) tutorial
session every week (in the summer semester) to help reinforce the understanding of
key topics. The tutorial schedule has been selected to provide opportunities fitting to the
vast majority of student’s time schedule. Tutorials are designed to reinforce the
objectives of the course and to create an enjoyable learning experience. Ideally
students should try to solve the tutorial questions in the tutorial slides posted on Moodle
BEFORE attending the tutorial. Any discrepancies from the derived solutions prior to
the tutorial and the presented solution during the tutorial should be brought to the
attention of the tutor.

Course Assessment and Grading

The objective of this course is to broaden the knowledge and skills in Corporate
Finance. Working through the assignments will enable students to develop a better
understanding of this field. Feedback will be provided to you throughout the course.
Course grades will be determined by combining points of the midterm and final
as well as four WileyPLUS Assignment.
Assessment Date Weight
Midterm (120 minutes) See Class schedule 40%
WileyPLUS Assignment (2.5%X 4) see Class schedule 10%
Final exam (3 hours) tbd 50%
Total 100%
Important Note 1:
If you fail to submit an assignment, the weight of that assignment will be transferred to
the final exam.

Important Note 2:
A minimum grade of 40% on the final and 50% overall is required to pass the course.

Mid-term guidelines:
Following Procedures and guidelines applies to the midterm.
• If you have a valid reason not to be able to participate in the midterm, you will
need to send your instructor an official documentation, at least 7 days before
the scheduled midterm and ask for approval to participate in the alternate. Please
see “Examination conflicts” for acceptable reasons to participate in the alternate. If
you do NOT provide official documentation on time or fail to provide sufficient

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 documentation with respect to acceptable examination conflicts, you cannot
participate in the alternate and results in zero marks for the midterm. There are no
exceptions for non-compliance.

• If you missed the midterm (e.g. due to health issues), you will need to submit
official documentation to your instructor about the reason you missed the
midterm within 24 hours of the scheduled midterm. Please see “Missed exams”
for eligibility reasons (same rules as for Eligibility for DEF apply). Official
documentation entails, for example, a doctor’s note or a police report. If you have
official documentation, you will be allowed to take the alternate to the midterm.
If you miss both, midterm and alternate, and you provided official and sufficient
documentation, in line with the above guidelines, the weight of the midterm will be
transferred to the final.
If you do NOT provide official and sufficient documentation, you will receive a
zero on the respective exam.
Letter and Number Grades:
Letter grades will be assigned based on the table below. Final grades will be rounded
to the nearest integer (Example: Numbers less than 81.5% will be rounded to 81%,
numbers greater than or equal to 81.5% will be rounded to 82%).
At the end of each course, the instructor will submit a letter grade for every student
registered. The following list provides the equivalent letter and number grades for
assignments in this course:
Letter Grade Score Range Letter Grade Score Range
A+ 90 [%] - 100 [%] C 63 [%] - 66 [%]
A 85 [%] - 89 [%] C- 60 [%] - 62 [%]
A- 80 [%] - 84 [%] C+ 67 [%] - 69 [%]
B+ 77 [%] - 79 [%] D+ 57 [%] - 59 [%]
B 73 [%] - 76 [%] D 53 [%] - 56 [%]
B- 70 [%] - 72 [%] D- 50 [%] - 52 [%]
F 0 [%] - 49 [%]
* D- is the minimum requirement to pass the course.
Historically, the average GPA of the course has been 2.17.
Note, numbers will be rounded. For example if you have 84.5% it will be rounded to
85% and you will receive “A”, if you have 84.4% it will be rounded to 84% and you will
receive “A-“ More information about the grading system, examinations, and
performance requirements is available in section 16.3 of the Undergraduate Calendar.
(https://www.concordia.ca/academics/undergraduate/calendar/current/sec16/16.html#
b16.3).

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Details of Assignment/Exams
WileyPLUS Assignment:
Information on the WileyPLUS assignment will be available on COMM 308 "All sections"
folder in Moodle and on your own section's folder in due time. If you miss an
assignment, the weight of that assignment will be transferred to the Final exam.

In case of exceptional circumstances, this course will be taught, and (remaining)

assessments will be completed completely online.

Midterm and Final exams:

Midterm (Final) will consist of 75% multiple-choice questions and 25% long
problems. These questions will be designed to test you on theory, application,
and calculation. All exams are in person and closed book.
In case of exceptional circumstances exams will be hosted on COLE and questions will
be calculation and multiple-choice type.
Allowable material
• Up to 2 non-programmable calculators;
• Scantrons: ONLY use an HB-pencil to fill out the forms. Forms filled out in pen
or marker cannot be read and no points will be allocated. Please read carefully
the document “Multiple Choice Exam Scoring Reference” before taking the
exam. (see https://www.concordia.ca/content/dam/concordia/docs/IITS/exam-
scoring/Multiple_Choice_Exam_Scoring_Reference_new.pdf);
• Formula sheet will be provided by your instructor; and
• Bilingual dictionary
Exams will take place at the designated date and time set by the professor (midterm)
or during the exam period set by the Exams office (final). All exam times will be set to
Eastern Standard/Daylight Time. It is the student’s responsibility to be on time for the
exams and in case of exceptional circumstances to have fully functional IT to participate
in the online exams on COLE. It is not the instructor’s responsibility to fix any IT related
issues. Please note that IT, such as laptops can be rented from the library. It is the
student’s responsibility to inform themselves about the options and terms to rent IT from
the library prior to the exams.
You must show your Concordia University Identification card to validate your identity.
Alternative government-issued photo identification will be accepted, though it is not
recommended. Only identification in English or French will be accepted.
Students who require additional accommodations for their exams due to a
documented disability should contact the Access Centre for Students with Disabilities
as soon as possible (acsdinfo@concordia.ca).

9
If you face issues during any exam, you should inform your instructor or invigilator of
those issues immediately and hand in your unfinished exam. If you decide to cancel
your exam, go to the hospital the same day of your exam. You will need medical
documentation when you request a weight shift (midterm) or write your exam at a later
date (final). See also https://www.concordia.ca/students/exams/regulations.html for
more details. Once the exam is submitted and neither the instructor nor the invigilator
was informed about any medical condition before, the exam will be graded as submitted.
Ideally, if you feel unwell do not participate in the exam and consult a doctor
immediately.

Assessment of Learning Objectives

The learning objectives are assessed through homework assignments, a mid-term
examination, and a final examination.

Learning Activity Examinations

Assignments (mid-term and
Learning Objective
final)

Acquire knowledge of the

language of Finance, the
conceptual framework of Theory-based exam Theory-based
Corporate Finance and asset questions exam questions
pricing and be aware of their
limitations

Application-
Apply Finance concepts and Application-based
based exam
rules to specific situations. questions
questions

Use computer technology to Application based

solve problems related to the questions requiring the use
course content. of computing tools

10
Behavior and Academic Integrity
All individuals participating in courses are expected to be professional and
constructive throughout the course, including in their communications.
Classroom Etiquette:
Classroom Do’s: Please arrive to class on time. If possible, arrive a few minutes early
to find a good seat and get settled. In case you arrive late or leave early please do so
quietly. If you need to talk to a colleague or on the cellphone, please excuse yourself
from the room to do so and return quietly thereafter. You may bring food or drink into
the classroom, if it does not disturb other students and your instructor. Read the material
before class. It is recommended to take notes while your instructor is lecturing. Ask
questions when something does not make sense. If you do not want to ask during the
lecture, see your instructor after class or in office hours. Instructors are usually
understanding of different situations, and if you let them know ahead of time. If you do
miss a class, ask a classmate for a copy of their notes or ask them for details of what
you missed. It is not the instructor’s responsibility to bring students up to speed when
missing class.
Classroom Don’ts: Don’t talk while your instructor is lecturing or when other students
are called on to speak. Don’t sleep in class. Don’t use your phone unless in case of
emergency. Turn your phone off in class, or at the very least turn the ringer completely
off and put your phone away. Don’t use social media on your laptop or any device while
in the class. Not only will you distract yourself, but you will also distract your peers. If
you know you have to leave early, let your instructor know before class, or send him or
her an email ahead of time if you know in advance that you will have to leave early.
Don’t ask or send emails to the instructor about issues clearly outlined and explained in
the course outline or on Moodle.
In case of online lecture: You should keep your video on (preferably), and your
microphone should always be kept muted. If you have a question, you should raise your
hand (using the raise hand function on Moodle) and wait to be invited by the instructor
to start speaking.

11
How to email faculty: All John Molson School of Business students are provided with
a Concordia email address. You should use your Concordia email address for all
university correspondence. Messaging your instructor with your official Concordia email
address will ensure that your instructor knows who you are. It will also ensure that your
message does not go into a spam folder. Your emails should be appropriate and
respectful. Write clear messages that effectively communicate your question or point,
and do not use any profane language. Proofread your message before you send it.
Make sure your spelling and punctuation are correct and avoid spelling abbreviations.
An email should not read like a text message, Facebook or Twitter post.
Below, you will find a sample email that can help you as you compose emails in the
future.

Sample Email

Subject: Assignment 2 Question – COMM 308

Salutation: Dear Professor/Dr./Mr./Ms. __________,
Body: I had a question regarding question 7 in the assignment 2 that is due next Friday,
October 10. I was wondering if the interest rate is annual or semi-annual, because it
was not specified in the question.
Closing: Thank you! Kind regards, John Smith (section A, student ID 123456)

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Honesty and integrity is expected from all students. Cheating of any sort will be
dealt with as sternly as University policy allows.
The Code of Conduct (Academic) at Concordia University states that the “integrity of
University academic life and of the degrees, diplomas and certificates the University
confers is dependent upon the honesty and soundness of the instructor-student learning
relationship and, in particular, that of the evaluation process. As such, all students are
expected to be honest in all of their academic endeavors and relationships with the
University.” (Undergraduate Calendar, section 17.10). Students are strongly
encouraged to read the pertinent section in the Concordia Undergraduate calendar and
visit the following web address: http://www.concordia.ca/students/academic-
integrity.html both of which provide useful information about proper academic conduct.
Make sure to take the Academic Integrity Test if you have not done it already.
Concordia students are subject to the Code of Rights and Responsibilities which applies
both when students are physically and virtually engaged in any University activity,
including classes, seminars, meetings, etc. Students engaged in University activities
must respect this Code when engaging with any members of the Concordia community,
including faculty, staff, and students, whether such interactions are verbal or in writing,
face to face or online/virtual. All students enrolled at Concordia are expected to
familiarize themselves with the contents of this Code. Failing to comply with the Code
may result in charges and sanctions, as outlined in the Code.
Please see also the Code of Rights and Responsibilities:
http://www.concordia.ca/content/dam/common/docs/policies/official-policies/BD-3.pdf
Plagiarism: The most common offense under the Academic Code of Conduct is
plagiarism which the Code defines as “the presentation of the work of another
person as one’s own or without proper acknowledgement.” This includes material
copied word for word from books, journals, Internet sites, professor’s course notes etc.
It refers to material that is paraphrased but closely resembles the original source. It also
includes for example the work of a fellow student, an answer on a quiz, data for a lab
report, a paper or assignment completed by another student. It might be a paper
purchased from any source. Plagiarism does not refer to words alone – it can refer to
copying images, graphs, tables, and ideas. “Presentation” is not limited to written work.
It includes oral presentations, computer assignment and artistic works. Finally, if you
translate the work of another person into any other language and do not cite the source,
this is also plagiarism.
In Simple Words: Do not copy, paraphrase, or translate anything from anywhere
without saying where you obtained it!
(Source: The Academic Integrity Website: http://www.concordia.ca/students/academic-
integrity.html)

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IP
Content belonging to instructors shared in online courses, including, but not
limited to, online lectures, course notes, and video recordings of classes remain
the intellectual property of the faculty member. It may not be distributed, published,
or broadcast, in whole or in part without the express permission of the faculty member.
Students are also forbidden to publish exam questions in any form or use their
own means of recording any elements of an (online) class or lecture without
express permission of the instructor.
Any unauthorized sharing of course content may constitute a breach of the Academic
Code of Conduct and/or the Code of Rights and Responsibilities. As specified in the
Policy on Intellectual Property, the University does not claim any ownership of or interest
in any student IP. All university members retain copyright over their work. Not adhering
to the Academic Code of Conduct will not only cause an investigation in the
matter by the Office of Rights & Responsibilities. Violating copy rights and not
respecting intellectual property may also cause legal consequences.

Extraordinary Circumstances
In the event of extraordinary circumstances and pursuant to the Academic Regulations,
the University may modify the delivery, content, structure, forum, location and/or
evaluation scheme. In the event of such extraordinary circumstances, students will be
informed of the changes.

Please note that in enrolling for this course, you are agreeing to:
• That you will be responsible for ensuring appropriate, properly functioning
technology (webcam, a microphone, Chrome browser, as well as a reliable
internet connection) if necessary.
• That you will need a quiet place within which to attend lectures and take the
quizzes and the final exam if necessary.
• This website: http://www.concordia.ca/online/exams/proctored-online-exams.html
has many FAQs that you can consult prior to enrolling in this course.

In case of exceptional circumstances, the exams format may be subject to change and
all (remaining) exams will be online proctored.

14
Please note the following information, in addition to the information stated above
with respect to online live proctored exams (in case applicable):
• That your image, voice, and screen activity will be recorded throughout the duration
of the exam.
• That any recording made will only be viewed by authorized university personnel (no
external entity has authorization to review the recording).
• That you will be responsible for ensuring appropriate, properly functioning
technology (webcam, a microphone, appropriate browser, and an ability to download
any necessary software, as well as a reliable internet connection with a minimum of
a 3G connection).
• That you are very strongly recommended to enter the virtual test site found at the
COLE website and become familiar with the software that will be used for your exam
before starting the exam.
• That you will need a quiet place within which to take the exam. Earplugs or noise-
cancelling headphones that are not connected to a device may also be used to allow
you to focus for the duration of the exam.
• Please note that there are in-exam supports you should spend time getting to know.
Visit the COLE website for more information

15
List of Student Services
Concordia University offers many on-campus support services that are available to
students free of charge. The web link http://www.concordia.ca/students/help4u.html is
a virtual student information desk; it is a useful facility that guides students to a specific
support service that can provide appropriate assistance. You can also visit
http://www.concordia.ca/students/campus-services.html for direction to various support
services. Here is a list of some useful services at Concordia University:
1. Aboriginal Student Resource Center:
https://www.concordia.ca/students/aboriginal.html
2. Academic Advisor (please check for possible updates):
a. Walk-In Advising (MB 4.201) Monday to Friday
b. JMSB Undergraduate Student Affairs Office 514-848-2424, ext. 2721
3. Academic Integrity: http://www.concordia.ca/students/academic-integrity.html
4. Access Centre for Students with Disabilities: concordia.ca/offices/acsd
5. Advocacy and Support Services: http://www.concordia.ca/offices/advocacy.html
6. Birks Student Service Centre: https://www.concordia.ca/students/birks.html
7. Concordia Library Citation and Style Guides:
library.concordia.ca/help/howto/citations
8. Counselling and Psychological Services:
http://www.concordia.ca/students/counselling-life-skills.html
9. Dean of Students Office: concordia.ca/offices/dean-students
10. Financial Aid and Awards: concordia.ca/offices/faao
11. Health Services: concordia.ca/students/health
12. International Students Office: concordia.ca/students/international
13. New Student Program: http://www.concordia.ca/students/new.html
14. Sexual Assault Resource Center: https://www.concordia.ca/conduct/sexual-
assault.html
15. Student Hub: concordia.ca/students
16. Student Success Centre: concordia.ca/students/success
As a Concordia student, you are a member of the Concordia Student Union and have
many resources available to you including:
a) HOJO (Off Campus Housing and Job Bank): csu.qc.ca/hojo
b) CSU Advocacy Centre: csu.qc.ca/advocacy

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