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Welcome to Finance 321 Advanced Corporate Finance. Professor Stephen D’Arcy Spring Semester 2007. Course Overview. In Fin 221 and 300 you learned some financial tools and techniques In Fin 321 you are going to learn to use them By the end of this course you will be able to:
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Welcome to Finance 321Advanced Corporate Finance Professor Stephen D’Arcy Spring Semester 2007
Course Overview In Fin 221 and 300 you learned some financial tools and techniques In Fin 321 you are going to learn to use them By the end of this course you will be able to: • analyze the financial condition of a corporation • calculate the cost of capital for a project • recognize the various ways the risk of the project can be altered • determine whether a corporation should invest in a project • compare debt, equity and alternative financing approaches • explain how a particular project should be structured and funded
Capital Management and Risk Management • Capital management deals with determining the best capital structure to minimize the cost of capital • Risk management deals with the risks an organization faces • Risk and expected return are related • Risk management and capital management are similarly related
Introductions • About me (the instructor) • About you (the students) • Identify yourself • Tell me where I am most likely to see you on campus
Index Card Info • Name • Hometown • State if USA • Otherwise Country • Year in School • Sophomore, Junior, Senior, Grad Student • Major • Primary extra-curricular activity • Career goal • Undecided is okay
Course Requirements • Textbook – Brealey, Myers and Allen – Principles of Corporate Finance, 8th Edition • i-clicker
Registering Your i-clicker • Go to www.iclicker.com (as listed on the back of your i-clicker) • Click on Register ** (on left side of page) • Enter your name • For Student ID input your net id (your U of I e-mail address before the @) (This is important!) • Input your Clicker ID which is listed on the back of your i-clicker • Input the verification word that appears on the page • Click Enter
Class Activity 1Jen and Berries You are planning to open an ice cream shop in town and are trying to decide how best to finance this project. Break up into teams of four to discuss the issues listed on the handout. Write your names and the answers to the questions on the sheet. After 10 minutes we will then discuss this situation. Be prepared to participate in this discussion.
Next Class • Role of a Financial Manager • Guest speaker, Dennis Spice • Institutional advisory company • Founding partner of a venture capital firm • Member of several board of directors • Previously Executive Director of the State Universities Retirement System of Illinois