SemesterSpring Semester, 2020
DepartmentMBA Program, First Year MBA Program, Second Year
Course NameFinancial Management
InstructorCHAN KONAN
Course TypeRequired
Course Objective
Course Description
Course Schedule



Topic/Text chapters



Feb. 20

Introduction (BMA 1,28/RWJ 1-3)



Feb. 27

Capital budgeting (BMA 2,5-6/RWJ 4-6)



Mar. 5

Stock and bond valuation (BMA 3-4/RWJ 8-9)



Mar. 12

Risk & return (BMA 7-8/RWJ 10-11)



Mar. 19

Cost of capital (BMA 9/RWJ 13)

EVA (BMA 28)


(Cost of capital)

*Best practices in estimating the cost of capital: An update

*The real key to creating wealth

Mar. 26

Field trip, no class



Apr. 2

Holiday, no class



Apr. 9

Field trip, no class



Apr. 16


Valuation/DCF method



Evidence on EVA


Apr. 23

Payout Policy (BMA 16/RWJ 19)


Excess cash and shareholder payout strategies

Apr. 30

Payout Policy (BMA 16/RWJ 19)



*Reappearing dividends

May 7

Capital structure (BMA 18/RWJ 16)


Agency costs of free cash flow, corporate finance, and takeovers

May 14

Capital structure (BMA 18/RWJ 16)



*How to choose a capital structure

May 21

M & A (BMA 31/RWJ 29)


Creating value with mergers and acquisitions

May 28

M & A (BMA 31/RWJ 29)

Sanofi (M&A)


Jun. 4




Jun. 11

Final Exam



The above schedule is extremely tentative, and subject to change. Any variations will be announced in the class and posted on the course web.

* means “highly recommend”

Teaching Methods
Teaching Assistant

Sherwin Chu (


The weights of the various components in determining the final grade will be:

A1. Class Participation 25%

A2. Exam 25%

A3. Cases and assignments 50%

Total 100%


Textbook & Reference

Corporate Finance by Ross, Westerfield, Jaffe, 12th edition, 2019 (RWJ), or

Corporate Finance by Brealey, Myers, Allen, 12th edition, 2017 (BMA)


Some supplement materials of this course will be extracted from the following book as well.

Corporate Finance by Berk and DeMarzo, 4th edition, 2017


Urls about Course