Seoul, South Korea
Area of Study
Business, Finance, Financial Management
Taught In English
It is assumed that students entering ISC305 took Principles of Finance (some schools use different course titles such as Financial Management or Introduction to Finance).
Course Level Recommendations
ISA offers course level recommendations in an effort to facilitate the determination of course levels by credential evaluators.We advice each institution to have their own credentials evaluator make the final decision regrading course levels.
Recommended U.S. Semester Credits3
Recommended U.S. Quarter Units4
Hours & Credits
This course aims to enable students to understand the financial decision making practice of corporations in different circumstances and the advanced techniques required by financial managers. The course also aims to enable students to apply financial principles and theories to understanding issues and solving problems in real-world settings independently. We will examine the costs and benefits of various financing choices with an emphasis on issues related to taxation, agency problems, information problems, and managerial incentive problems. These issues will be explored in the context of a firm’s capital structure choice, payout policy, security issue choice, and mergers and acquisitions.
Problem Sets: Students are required to understand financial concepts and academic theories thoroughly and apply them to find solutions. There will be two problem sets, which will be posted on the course website. This is an individual assignment, so each student should submit his/her own assignment before due dates, which will be indicated in each problem set. Solutions will be posted on the course website after the due dates.
- Group assignment: There will be a group assignment based on Case #4. Students are required to understand critical issues in the case and conduct an independent analysis to develop their own solutions. The assignment will be posted on the course website. You have to work on this as a group and a group should hand in one set of answers. The group members will receive the same grade for their group case assignment. Three to four students form one group. Hand in the list of your group members by email or in class by July 6th.
- Individual assignments: For Cases #1, #2, and #3, each student is required to answer some brief questions on the cases. These questions will be posted on the course website and they are due before the lecture that covers the case. These questions are intended to give you an incentive to read the case in advance and to think about some of the important issues.
Exam: There will be a mid-term and a final exam. Some of the problems will require calculations, while some will be conceptual questions. This is a closed-book exam.
Tentative Course Outline:
Cost of Capital Chapter 13
Long-Term Financing Chapter 15
Marriott Case 1
Capital Structure: Basic (part 1) Chapter 16
Capital Structure: Limits to the Use of Debt (part 1) Chapter 17
Review Session (Problem set #1 is due)
Massey-Ferguson Ltd.--1980 Case 2
Financing and Valuation Chapter 18
Payout Policy Chapter 19
Issuing Securities Chapter 20
Eskimo Pie Corp. Case 3
Convertibles Chapter 24
Mergers and Acquisitions Chapter 29
Nova Chemical Corp. Case 4
Review Session (Problem set #2 is due)
Courses and course hours of instruction are subject to change.