Introduction to Corporate Finance

MBA 5250 E – Fall 2022

Professor Bruce Millar CIM, FCSI, FICB, MBA, CPA, CMA

E-Mail bmillar@uottawa.ca
Office Hours By appointment via zoom
Class Location LPR 155 (modality is “in-person”)
Class Dates/Hours Tuesdays, 25 October to 29 November, from 7 pm to 10 pm

Weight on
Course Deliverable Due Date
Final Grade
Weekly Assignments Due dates are identified in Connect 20%
Week of 9 November
2 x Quizzes Week of 30 November 2 x 20%=40%

Final Exam Date set by Administration 40%

Course Description

This course introduces students to the foundational concepts and analytical approaches related
to corporate finance. Topics to be covered include financial management and the financial
environment; long-term financial planning and corporate growth; introduction to valuation and
discounted cash flows; capital investment analysis and project evaluation, and governance.

www.telfer.uOttawa.ca
Course Learning Outcomes

MBA 5250 is an introductory corporate finance course designed to provide you with the basic
understanding of finance needed to integrate this functional business area with the other
components of the MBA program. An understanding of corporate finance will allow you to
assess whether an investment is worthwhile, how it might be improved, and how it might be
funded. Emphasis is placed on the information needs of decision-makers.

At the end of the course, students should be able to –

• Describe and apply the basic concepts of corporate finance, such as the time value of
money, financial risk, cash flow analysis, capital investment decision criteria
• Differentiate between accounting value and market value, accounting income and cash flow
• Understand and apply net present value in investment decision analysis and how to project
cash flows to determine if a project might be acceptable.
• Understand the factors determining the growth of a firm and how to finance projects

Links between Course Learning Outcomes and MBA Program Learning

Goals

An understanding of how and why financial decisions are made impacts a variety of important
operational, strategic and management functions within a firm. Specifically, this course relates
to LG1 and LG2 by providing the knowledge required of people in management roles to
understand, apply, and make financial decisions within their organizations.

Learning Goal 1: Understanding Management Foundations and the Global Business

☒
Environment
Learning Goal 2: Integrating Business Functions and developing decision-making,
☒
critical thinking and analytic skills
☒ Learning Goal 3: Developing a Strategic Perspective
Learning Goal 4: Developing Responsible Leadership, Communication and Teamwork
☐
Skills
☐ Learning Goal 5: Understanding the Value of Globalization
Learning Goal 6: Understanding the practical realities of delivering results to the
☐
business community.

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Textbook
The textbook for this course is “Fundamentals of Corporate Finance,” by Brealey, Myers, 7th
Canadian edition. The McGraw-Hill Connect platform will also be used and is accessed via the
following link - https://connect.mheducation.com/class/b-millar-mba-5250-fall-2022. Enter
your uOttawa email address and complete the brief online registration form that follows.

This textbook includes many practice questions at the back of each chapter. I will be assigning
and posting solutions for recommended questions for your own practice. We will also use some
of these questions to solidify the concepts that we learn, by doing these together during our
synchronous lecture time. In addition to these, there are weekly assignments to be completed
through McGraw-Hill Connect. Lecture slides will be posted weekly on Brightspace, prior to
each scheduled class to augment the chapter readings.

Class Schedule (subject to change as necessary)

Class Date Subject Required Activities

Readings
Theme – Governance, Financial Markets, Accounting and Finance
25 Oct Governance of the firm Chapter 1 Smartbook Assignment
Financial Markets and Chapter 2 Chapter problems
Institutions Chapter 3
Accounting and Finance
Theme – Time Value of Money, Valuing Securities, Project Analysis, Governance
1 Nov The Time Value of Money Chapter 5 Smartbook Assignment
Chapter problems
8 Nov NPV and Other Investment Chapter 8 Smartbook Assignment
Criteria Chapter problems
15 Nov Discounted Cash Flows Chapter 9 Smartbook Assignment
Chapter problems
22 Nov Project Analysis Chapter 10 Smartbook Assignment
Chapter problems
29 Nov Corporate Financing and Chapter 14 Smartbook Assignment
Governance Chapter problems
TBD Final Exam Period

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Instructional Methods and Evaluation

This course contains both synchronous (in-person) and asynchronous activities, purposefully
designed to provide flexibility in your learning process. The course is designed in a sequential
module structure in Brightspace, with resources and complete instructions to be provided for
each topic and due dates noted. Synchronous (in-person) activities will be completed during the
scheduled class sessions, while the asynchronous activities are to be completed online at any
time once made available in Brightspace and Connect.

This course focuses on individual functional competencies. Therefore, the evaluation of student
performance is via weekly assignments through McGraw Hill Connect, two online quizzes, and a final
exam. The allocation of marks for the final grade will be as follows:

Weekly Chapter Assignments 20%

2 x Quizzes (20% each) 40%
Final Exam 40%

Students must achieve a C+ in order to pass this course.

Weekly Assignments
There are weekly, online assignments for each chapter to reinforce the concepts covered.
These are completed through McGraw Hill Connect.

Quizzes and Final Examination

Two quizzes will be given during the term to help you ensure you are keeping up with the material
and to give you feedback on your individual progress. The questions will be drawn from the material
covered up to the test date. The final examination questions are drawn from all the chapters covered.
The tests and final exam will be a mix of calculation and analysis questions.

Technical Requirements and Support

This course requires that you to have a laptop or desktop computer with a reliable, high-speed
Internet connection that allows you to watch videos, participate in discussion forums, upload
images and use your uOttawa Google Drive.

Video conferencing software (MS Teams, Adobe Connect, Zoom) is used for meeting with the
instructor-- so you will need to have a webcam and audio/voice capabilities through your
computer. MS Teams, Adobe Connect, and Zoom work on mobile/smart phones as well.

If you experience difficulties with Bright space or with logins to any uOttawa systems, please do
not contact the instructor or the course TA until you have tried to solve the problem through
the IT supports in place at the University.

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For all questions related to Bright space, call the support line between 8 AM and 8 PM (Eastern)
at 1-866-811-3201 OR submit an online request using this form 24 hours a day.

For any other IT related issues, please contact IT services. They have a helpdesk that you can
call, or you can submit a service ticket with a specific request 24 hours a day.

For problems connecting to the library services, you can also contact the Morisset Help Desk.

Recording of sessions
Class sessions may be recorded, and your image, voice and name may be disclosed to
classmates. Note that by remaining in sessions that are being recorded, you are agreeing to the
recording.

Expectations for Communications

Please use my school email (bmillar@uottawa.ca) for all communications related to our course.
Likewise, I ask that you use your uOttawa.ca email address for sending messages.

Students are asked to monitor their uOttawa.ca e-mail accounts regularly and carefully (not
your personal email accounts such as Yahoo, Gmail or Hotmail) as this is the conduit through
which I will communicate matters that concern the entire class. Please ensure that you have
set up your Brightspace account to receive notification of announcements to your uOttawa.ca
email address.

Expectations for Student Participation

Our regular synchronous (in person) class time will involve a variety of teaching methods from
class discussion of key topics to coverage of select exercises and problems. Please note that the
finance concepts covered cannot be learned just by reading. You will obtain maximum benefit
from the course only if you thoroughly read the textbook material and try to solve the
suggested exercises and problems on your own. Solutions to exercise and problems will be
posted on Brightspace weekly.

Course Conduct

The Telfer School of Management prides itself on a strong sense of shared values drawing upon
principles of respect, integrity, professionalism and inclusion to guide interactions inside and
outside the classroom. The Telfer School strives to provide a well-rounded and outstanding
education enriched through experiential learning and a positive student experience. You are
encouraged to familiarize yourself with our expectations related to course conduct at the Telfer
School. Please refer to our Statement of Shared Rights and Responsibilities.

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Professor’s Bio –

My Teaching Philosophy Statement

To help students achieve academic success and in doing so, develop and encourage a lifelong
interest in learning. I will do this by augmenting my classroom instruction with real life
examples from my professional career.

A Little About My Background

I have enjoyed a diversified career, with experience in the areas of financial and managerial
accounting, enterprise risk management, international trade financing, investing, strategic
planning, leadership, and governance.

In addition to my professional background, I have also taught University courses at the

graduate and undergraduate levels, in financial and managerial accounting, corporate finance
and investing. I currently teach with the Business Schools at Carleton University, Nipissing
University, and the University of Ottawa's Telfer School of Management. I have also facilitated
in the CPA Professional Education Program (facilitating Core One & Two, Financing, and
Capstone One & Two) and facilitated in the CMA Strategic Leadership Program for ten years
prior to the amalgamation of the accounting bodies.

I earned my BA from the Royal Military College of Canada and my MBA from the Université du
Québec à Montréal. In addition to holding a Chartered Professional Accountant designation, I
also earned fellowships with the Canadian Securities Institute (FCSI) and the Institute of
Canadian Bankers (FICB).

I remain active in my community, having served as a Board of Director for several not-for-profit
corporations in the Ottawa area. I currently serve as a Governor on the Boards of the
Winchester District Memorial Hospital and Hospital Foundation.

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COURSE POLICIES
Academic Integrity

Academic Regulation 14 defines academic fraud as “any act by a student that may result in a
distorted academic evaluation for that student or another student. Academic fraud includes
but is not limited to activities such as:
a) Plagiarism or cheating in any way;
b) Submitting work not partially or fully the student’s own, excluding properly cited
quotations and references. Such work includes assignments, essays, tests, exams,
research reports and theses, regardless of whether the work is written, oral or another
form;
c) Presenting research data that are forged, falsified or fabricated;
d) Attributing a statement of fact or reference to a fabricated source;
e) Submitting the same work or a large part of the same piece of work in more than one
course, or a thesis or any other piece of work submitted elsewhere without the prior
approval of the appropriate professors or academic units;
f) Falsifying or misrepresenting an academic evaluation, using a forged or altered
supporting document or facilitating the use of such a document;
g) Taking any action aimed at falsifying an academic evaluation.”1

The Telfer School of Management does not tolerate academic fraud. Please familiarize
yourself with the guidance provided at: http://web5.uottawa.ca/mcs-
smc/academicintegrity/home.php

Intellectual Property

All forms (printed, digital, etc.) of course materials prepared by the instructor (including e-
mailed or Bright space content) are protected by copyright. This covers all files, assessments,
solutions, cases, and other materials. Copying, scanning, photographing, posting, or sharing by
any means is a violation of copyright and will be subject to appropriate penalty as prescribed by
University of Ottawa regulation.

Academic GPS
The Academic GPS hub is a one-stop shop for academic support. Whether you’re an
experienced student or just starting out, you’ll find some great resources to help you succeed.

With the Academic GPS, you can:

• chat with a mentor seven days a week
• register for study groups
• take part in study methods workshops (note taking, time management, exam
preparation, stress management, etc.)
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 • book an appointment with a mentor

For more information: uOttawa.saea-tlss.ca/en/academic-gps

Health and Wellness

Your wellness is an integral part of your success. If you don’t feel well, it can be hard to focus on
your studies. Dedicated professionals and fellow students who care about you are always ready
to provide advice and support. Depending on your needs, many activities and services exist to
accompany you during your academic journey. Services include:
• opportunities to connect;
• counselling sessions
• peer support;
• physical activity;
• wellness activities and workshops;
• spiritual guidance.

If you want to connect with a counsellor, you can book an appointment online or go to their
walk-in clinic at 100 Marie-Curie, fourth floor. You can also drop-in to our wellness space, chat
online with a peer helper, or access 24/7 professional help through the website.

For more information and to access these services, go to uOttawa.ca/wellness.

Academic accommodations
We try to make sure all students with disabilities have equal access to learning and research
environments, the physical campus and University-related programs and activities. The
Academic Accommodations service works with other campus services to create an accessible
campus learning environment, where students with disabilities have an equal opportunity to
flourish. We offer a wide range of services and resources, provided with expertise,
professionalism and confidentiality.

Some services we offer

• Help for students with disabilities in making the transition
• Permanent and temporary accommodation measures
• Learning strategy development
• Adaptive exams
• Transcriptions of learning material
• Interpretation (ASL and LSQ)
• Assistive technologies

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If you think that you might need any of our services or supports, email the Academic
Accommodations service (adapt@uOttawa.ca).

Deadlines for submitting requests for adaptive measures during exams:

All final exams, tests, mid-terms, deferred exams

- 7 days before the exam (not including the day of the exam and statutory holidays)

Get a head start on research. Visit the Library!

The University of Ottawa Library has everything you need to produce quality results, quickly
and efficiently.

- Use the Research Guides to get you started.

- Find scholarly articles, market intelligence, and much more in their collections.
- Book an appointment with a Librarian to get you/your group started on a challenging
research question.
- Visit the virtual Library or visit in person at the Desmarais building, rm. 2141.

Notice against sexual violence

The University of Ottawa will not tolerate any act of sexual violence. This includes acts such as
rape and sexual harassment, as well as misconduct that take place without consent, which
includes cyberbullying. The University, as well as various employee and student groups, offers a
variety of services and resources to ensure that all uOttawa community members have access
to confidential support and information, and to procedures for reporting an incident or filing a
complaint. For more information, please visit http://www.uOttawa.ca/sexual-violence-support-
and-prevention/.

Language Choice
Except in programs and courses for which language is a requirement, all students have the right
to produce their written work and to answer examination questions in the official language of
their choice, regardless of the course’s language of instruction.

Peer Evaluations

Working in teams is an important aspect of the Telfer MBA program. You are expected to
contribute fully to all team assignments and to meet deadlines required by the team.
Professors might require that each student review the contributions of his or her teammates.
The purpose is to provide constructive feedback, but the peer evaluations will also be used to
reduce individual marks for those students who, according to their teammates, are not

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contributing fully to the team’s deliverables. Please note that in some situations, this reduction
could lead to a failing grade for the course.

Personal Ethics Statement Concerning Telfer School Assignments

Group Assignment:

By signing this Statement, I am attesting to the fact that I have reviewed not only my own work,
but the work of my colleagues, in its entirety.

I attest to the fact that my own work in this project meets all of the rules of quotation and
referencing in use at the Telfer School of Management at the University of Ottawa, as well as
adheres to the fraud policies as outlined in the Academic Regulations in the University’s Calendar.
I further attest that I have knowledge of and have respected the “Beware of Plagiarism” brochure
found on LMS / BrightSpace.

To the best of my knowledge, I also believe that each of my group colleagues has also met the
rules of quotation and referencing aforementioned in this Statement.

I understand that if my group assignment is submitted without a signed copy of this Personal
Ethics Statement from each group member, it will be interpreted by the Telfer School that the
missing student(s) signature is confirmation of non-participation of the aforementioned
student(s) in the required work.

______________ _______________
Signature Date
________________________________ _______________
Last Name (print), First Name (print) Student Number

______________ _______________
Signature Date
________________________________ _______________
Last Name (print), First Name (print) Student Number

______________ _______________
Signature Date
________________________________ _______________
Last Name (print), First Name (print) Student Number

______________ _______________
Signature Date
________________________________ _______________
Last Name (print), First Name (print) Student Number

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______________ _______________
Signature Date
________________________________ _______________
Last Name (print), First Name (print) Student Number

Personal Ethics Statement – Telfer School of Management

Individual Assignment:

By signing this Statement, I am attesting to the fact that I have reviewed the entirety of my
attached work and that I have applied all the appropriate rules of quotation and referencing in
use at the Telfer School of Management at the University of Ottawa, as well as adhered to the
fraud policies outlined in the Academic Regulations in the University’s Calendar. I further attest
that I have knowledge of and have respected the “Beware of Plagiarism” brochure found on
Brightspace.

________________________________ ______________
Signature Date

________________________________ ______________
Last Name (print), First Name (print) Student Number

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