EF4314 - Sem.

B, 2022-23

Course Outline
EF4313 Corporate Finance
Instructor
Name: Professor Yue Ma, Department of Economics and Finance, CityUHK
Office: Lau Ming Wai Academic Building, Room 9-232
Work Phone: 3442 2405
Email: yue.ma@cityu.edu.hk
Office Hours: Monday 2:30-4:30pm; Wednesday 9:00-11:00am

Teaching assistant:
Name: Ms Yongshi JIE (email: ysjie2-c@my.cityu.edu.hk)

Course Website
Course lecture, assignment, solutions to problems, important class announcements, and
important deadline dates will be announced on Canvas. You are required to check the
website on regular basis.

Course Objective
This course aims at providing students the knowledge and skills required to make corporate
financial decisions like cashflow management and investment and financing decisions. The
course also aims to enable students to apply financial principles and theories to
understanding issues of importance to corporate managers and solving problems in real
corporate settings.

Course Materials:
Textbook: Corporate Finance, by Stephen Ross, Randolph Westerfield, Jeffrey Bradford,
and Bradford Jordan. McGraw-Hill/Irwin. 13th edition (International Edition) 2021, ISBN:
9781265533199.
To buy the textbook, go to the CityU bookshop.

Lecture notes: The slides and practice problems will be posted on the Canvas before the day
of each lecture.
 EF4314 - Sem. B, 2022-23

Course Requirement
Practice problems:
For each lecture, some of the problems in the textbook will be suggested for practice.
Solutions of these problems will be posted on the Canvas. These problems will not be
graded but students are required to try and understand for the continuous assessment
and the final exam.

Grade
50% of the final grade will come from the 2-hour final exam. You can bring in one-page
A4-size double-sided of notes and a calculator during the exam. 50% of the final grade
will come from one big problem set to be posted on the Canvas. You can hand in your
answers of the problem set in a group of 2-3 students in the last week of the semester.
You must pass both the big problem set and the final exam.

Tentative Course Schedule

Lecture 1 Introduction to Corporate Finance (chapter 1)

Lecture 2 Case Study: Investment Decisions of Baldwin Company (chapter 6)
Lecture 3 Real Option (chapter 7)
Lecture 4 Capital Structure: MM Theories (chapter 16)
Lecture 5 Valuation and Capital Budgeting for the Levered Firm (chapter 18)
Lecture 6 Advanced Valuation with Leverage (after exam reading)
Lecture 7 Financial Distress I: Bankruptcy and Reorganization (chapter 30)
Lecture 8 Financial Distress II: Agency Theories of Corporate Finance (after exam
reading)
Lecture 9 Financial Distress III: Limits to the Use of Debt (chapter 17)
Lecture 10 Dividend Policy (chapter 19)
Lecture 11 IPO (chapter 20)
Lecture 12 CEO Compensation (chapter 23)
Lecture 13 Mergers, Acquisitions, and Divestitures (chapter 29)