Business Finance 2 Fall 2022
ECON 372

The purpose of this course is to provide students with advanced topics in corporate finance and their applications. The key concepts and topics to be covered include security valuation, risk and return, risk diversification, capital asset pricing model (CAPM), investment performance measurement, financial derivatives, and forecasting. Students will learn how to apply these concepts to real world problems using various examples and case studies. The course deepens the general framework of financial landscape offered in ECON 371 by discussing the role of financial instruments and institutions in the economy. This course will further develop the analysis of firms’ and investors’ investment and financing decisions. The goal is to develop a deeper understanding of financial markets and investment strategies.

The objectives of this course are for students to:

• understand the need for firms and individuals to make financial decisions and together work towards overcoming the universal problem of scarcity;
• appreciate the relevance of finance in a changing world;
• develop the capacity to apply critical thinking to finance issues.

This class schedule is ambitious. Modifications and/or eliminations of certain content might be required given our limited time together. Any necessary modifications or eliminations to the course content will be communicated to you in class.

Tentative Schedule of Review Quizzes

• Quiz 1: Released September 19, due September 26. Coverage: Ch 10, 
• Quiz 2: Released September 26, due October 3. Coverage: Ch 11
• Quiz 3: Released October 3, due October 17. Coverage: Ch 12, Ch 13
• Quiz 4: Released October 24, due November 7. Coverage: Ch 14, 15
• Quiz 5: Released November 21, due November 28. Coverage: Ch 16, 17
• Quiz 6: Released November 28, due December 5. Coverage: Ch 18
• Any changes to this schedule and any other relevant information will be announced in MS Teams sessions.  

Resources from the BookStore (Digital)

Title : Fundamentals of Corporate Finance 3^rd ed + Mylab

Author: AC Berk et al

ISBN : 9780135219508

Price :  $95.00

Title : Learning Catalytics

ISBN : 9780134205496

Price :  $17.25 (one year)

The use of MyLab tests is optional. You may use them as a practice tool, but they will not be used for grading purposes. Learning Catalytics is used for bonus participation marks. More information on Learning Catalytics can be found on page 6 of this outline. 

Review Quizzes

• The purpose of the review quizzes is to help students identify and understand key concepts covered in the lectures and in the textbook.
• The format of the quizzes will mainly be multiple-choice questions, but there may also be some true-false questions, or short answer questions.
• The quizzes will be done online through the LEARN system.
• There will be a limited, but a reasonably long, time window set up in LEARN during which each quiz will be available for completion. There are two attempts for each quiz available and the better attempt counts.
• Quizzes that are not submitted on time will automatically receive a grade of zero.

Participation 

Participation is recommended, and it will be rewarded through bonus marks up to the total of two percentage points (2%) that will be added to the students’ final grade. Participation will be monitored through an online tool Learning Catalytics. You will be able to participate in any Learning Catalytics session at any time within the 28-day time window from the start date of each session. The start date of each session will be announced in class. The primary purpose of Learning Catalytics in this class is to enhance the feedback mechanism between students and the instructor so that we can identify areas that may require special focus. You will be able to submit answers to the questions I ask in class using Apple or Android smartphones and tablets, laptops, or through text message. Your participation grade will not depend on the correctness of your answers. 

Learning Catalytics 

We will be using the Learning Catalytics classroom response system. Included with the purchase of a new text is a subscription to Learning Catalytics (through Lab), which is a web-based student response system.

If you do not have a new text or code to MyLab, codes can be purchased separately through the bookstore, as it is the cheapest option - $17.25 CND for 12 months.

Through the Learning Catalytics website the cost is $12 USD (6 months) or $20 USD (12 months).  

To resister please visit www.learningcatalytics.com.

Please reference the step-by-step login document for detailed instructions. Under the Training & Support tab, you will find helpful information including technical support.  

Please email the rep Kelly if you need anything at all (kelly.archibald@pearson.com)

Midterms and Final Exam

• The format for midterms and the final exam will be a mix of multiple-choice questions, numerical calculation questions, and written problems.
• The final exam period for the Fall Term 2022 is December 9 - 23 inclusive. More on the UW Final Examination policy can be found here: http://ugradcalendar.uwaterloo.ca/page/Acad-Regs-Assignments-Tests-and-Final-Exams
• The final exams will be scheduled by The Registrar’s Office. The default time for the completion of the final exam is any 150 minutes.
• Only the Registrar’s Office can issue final grades.

This grading policy will be implemented strictly for all students in the course (with the exception of verified illnesses or self-isolation due to COVID-19). 

Missing a Midterm Due to Illness During the Term

• Missing a midterm will automatically result in a grade of zero for that midterm. If the illness can be documented[1], with approval, you may transfer the weight of the missed midterm to the final exam. This remedy is a privilege and not a right.

Missing a Midterm Due to Self-Isolation 

• If the self-isolation can be documented, with approval, you may transfer the weight of the missed midterm to the final exam. This remedy is a privilege and not a right.

Missing the Final Exam Due to Illness

• Missing the final exam is a serious matter, which automatically results in a grade of zero for the final exam and possibly a failing grade for the course. Please carefully read the Economics Department policy on deferred final exams for instructions.
• Students are permitted to self-declare illness due to COVID-19 but will require a virtual Verification of Illness Form if they missed an exam due to mental health or non-covid-19 related illness.
• The Undergraduate Associate Chair will determine whether a deferred exam will be granted if required.
• No deferred final exam will be provided for students who missed all the exams (including the final exam) in this course.
• Elective arrangements (such as travel plans) are not considered acceptable grounds for granting an accommodation.

[1] Students are permitted to self-declare illness due to COVID-19 but will require a virtual Verification of Illness Form if they missed an exam due to mental health or non-covid-19 related illness.

Intellectual Property

Students should be aware that this course contains the intellectual property of their instructor, TA, and/or the University of Waterloo. 

Intellectual property includes items such as:

• Lecture content, spoken and written (and any audio/video recording thereof);
• Lecture handouts, presentations, and other materials prepared for the course (e.g., PowerPoint slides);
• Questions or solution sets from various types of assessments (e.g., assignments, quizzes, tests, final exams); and
• Work protected by copyright (e.g., any work authored by the instructor or TA or used by the instructor or TA with permission of the copyright owner).

Course materials and the intellectual property contained therein, are used to enhance a student’s educational experience. However, sharing this intellectual property without the intellectual property owner’s permission is a violation of intellectual property rights.  For this reason, it is necessary to ask the instructor, TA and/or the University of Waterloo for permission before uploading and sharing the intellectual property of others online (e.g., to an online repository).

Permission from an instructor, TA or the University is also necessary before sharing the intellectual property of others from completed courses with students taking the same/similar courses in subsequent terms/years.  In many cases, instructors might be happy to allow distribution of certain materials. However, doing so without expressed permission is considered a violation of intellectual property rights.

Please alert the instructor if you become aware of intellectual property belonging to others (past or present) circulating, either through the student body or online. The intellectual property rights owner deserves to know (and may have already given their consent).

Chosen/Preferred First Name

Do you want professors and interviewers to call you by a different first name? Take a minute now to verify or tell us your chosen/preferred first name by logging into WatIAM.

Why? Starting in winter 2020, your chosen/preferred first name listed in WatIAM will be used broadly across campus (e.g., LEARN, Quest, WaterlooWorks, WatCard, etc). Note: Your legal first name will always be used on certain official documents. For more details, visit Updating Personal Information.

Important notes

• If you included a preferred name on your OUAC application, it will be used as your chosen/preferred name unless you make a change now.
• If you don’t provide a chosen/preferred name, your legal first name will continue to be used.

Mental Health Support

All of us need a support system. The faculty and staff in Arts encourage students to seek out mental health support if they are needed.

On Campus

Due to COVID-19 and campus closures, services are available only online or by phone.

• Counselling Services:  counselling.services@uwaterloo.ca / 519-888-4567 ext. 32655
• MATES:  one-to-one peer support program offered by the Waterloo Undergraduate Student Association (WUSA) and Counselling Services

Off campus, 24/7

• Good2Talk:  Free confidential help line for post-secondary students. Phone: 1-866-925-5454
• Grand River Hospital: Emergency care for mental health crisis. Phone: 519-749-4300 ext. 6880
• Here 24/7: Mental Health and Crisis Service Team. Phone: 1-844-437-3247
• OK2BME: set of support services for lesbian, gay, bisexual, transgender or questioning teens in Waterloo.  Phone: 519-884-0000 extension 213

Full details can be found online on the Faculty of Arts website

Download UWaterloo and regional mental health resources (PDF)

Download the WatSafe app to your phone to quickly access mental health support information.

Territorial Acknowledgement

We acknowledge that we are living and working on the traditional territory of the Attawandaron (also known as Neutral), Anishinaabe and Haudenosaunee peoples. The University of Waterloo is situated on the Haldimand Tract, the land promised to the Six Nations that includes ten kilometres on each side of the Grand River.

For more information about the purpose of territorial acknowledgements, please see the CAUT Guide to Acknowledging Traditional Territory.

Academic freedom at the University of Waterloo

Policy 33, Ethical Behaviour states, as one of its general principles (Section 1), “The University supports academic freedom for all members of the University community. Academic freedom carries with it the duty to use that freedom in a manner consistent with the scholarly obligation to base teaching and research on an honest and ethical quest for knowledge. In the context of this policy, 'academic freedom' refers to academic activities, including teaching and scholarship, as is articulated in the principles set out in the Memorandum of Agreement between the FAUW and the University of Waterloo, 1998 (Article 6). The academic environment which fosters free debate may from time to time include the presentation or discussion of unpopular opinions or controversial material. Such material shall be dealt with as openly, respectfully and sensitively as possible.” This definition is repeated in Policies 70 and 71, and in the Memorandum of Agreement, Section 6

Cross-listed courses

Please note that a cross-listed course will count in all respective averages no matter under which subject code it has been taken. For example, a PHIL/PSCI cross-list will count in a Philosophy major average, even if the course was taken under the Political Science subject code.

Economics Department Deferred Final Exam Policy

All deferred Final Exam requests for economics courses are administered by the Economics Undergraduate Office. Please consult the Deferred Exam Policy at 

https://uwaterloo.ca/economics/undergraduate/resources-and-policies/deferred-final-exam-policy.

Academic integrity: In order to maintain a culture of academic integrity, members of the University of Waterloo community are expected to promote honesty, trust, fairness, respect and responsibility. [Check the Office of Academic Integrity for more information.]

Grievance: A student who believes that a decision affecting some aspect of their university life has been unfair or unreasonable may have grounds for initiating a grievance. Read Policy 70, Student Petitions and Grievances, Section 4. When in doubt, please be certain to contact the department’s administrative assistant who will provide further assistance.

Discipline: A student is expected to know what constitutes academic integrity to avoid committing an academic offence, and to take responsibility for their actions. [Check the Office of Academic Integrity for more information.] A student who is unsure whether an action constitutes an offence, or who needs help in learning how to avoid offences (e.g., plagiarism, cheating) or about “rules” for group work/collaboration should seek guidance from the course instructor, academic advisor, or the undergraduate associate dean. For information on categories of offences and types of penalties, students should refer to Policy 71, Student Discipline. For typical penalties, check Guidelines for the Assessment of Penalties.

Appeals: A decision made or penalty imposed under Policy 70, Student Petitions and Grievances (other than a petition) or Policy 71, Student Discipline may be appealed if there is a ground. A student who believes they have a ground for an appeal should refer to Policy 72, Student Appeals.

Note for students with disabilities: AccessAbility Services, located in Needles Hall, Room 1401, collaborates with all academic departments to arrange appropriate accommodations for students with disabilities without compromising the academic integrity of the curriculum. If you require academic accommodations to lessen the impact of your disability, please register with AccessAbility Services at the beginning of each academic term.

Turnitin.com: Text matching software (Turnitin®) may be used to screen assignments in this course. Turnitin® is used to verify that all materials and sources in assignments are documented. Students' submissions are stored on a U.S. server, therefore students must be given an alternative (e.g., scaffolded assignment or annotated bibliography), if they are concerned about their privacy and/or security. Students will be given due notice, in the first week of the term and/or at the time assignment details are provided, about arrangements and alternatives for the use of Turnitin in this course.

It is the responsibility of the student to notify the instructor if they, in the first week of term or at the time assignment details are provided, wish to submit alternate assignment.