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金融代写-FIN 534
时间：2022-04-27
Washington University in St. Louis
Olin Business School
FIN 534 – Advanced Corporate Finance II: Financing
Meeting:
Section 03: Wednesdays 6:15 - 9:15pm in Simon 106 + Zoom
Section 04: Thursday 6:15 - 9:15pm in Bauer 160 + Zoom
Office Hours:
By Appointment
See Canvas under Syllabus for a Zoom link
Teaching Assistant: TBA
Professor John Dooley
Office: Simon Hall 224
Email: dooley@wustl.edu
*Please lead Subject Line
with FIN 534B and section.
Olin’s Pillars of Excellence:
Olin students will:
1. Embody a values-based and data-driven ethos in their approach to all business situations
2. Understand the global opportunities and challenges facing businesses
3. Engage with business issues through the application of experiential knowledge, in addition to
the rigorous technical skills acquired in the classroom
4. Pursue world-changing initiatives with an entrepreneurial and innovative mindset and skillset
Course Objectives:
The purpose of this course is to provide an understanding of the financing decisions made by
corporations. While ACF I focused on firms' investment decisions, this course focuses on how
firms fund those investments, how they raise capital, and how they return capital to investors. By
the end of the course, you should be able to articulate how a variety of market frictions,
including taxes, financial distress costs, asymmetric information, and agency conflicts, affect
firms' financing decisions, and how these financing decisions interact with investment decisions.
The course content is designed to balance theories, computations, and applications through a
combination of lectures, case discussions, and practice problems. PMBA Prerequisites: FIN core
and 534. MBA Prerequisites: FIN 5200 and 534.
Course Material
Course packet: The course packet includes copies of the case studies we will discuss in class,
and should be available in the book store.
Textbook: I highly recommend using whichever Corporate Finance text you already own from
Fin 5203 (finance core) or equivalent. In the schedule below, I have included the relevant
chapters for each class session from the following textbook: Corporate Finance, 3rd Edition, by
Jonathan Berk and Peter DeMarzo, Pearson. This book serves as a useful reference not only for
this course but also for a finance profession. One copy of the book is available on reserve in the
Business (Kopolow) Library. The older editions (1st and 2nd) of the book are fine to use, too. An
alternative book is Principles of Corporate Finance by Richard Brealey, Steward Myers, and
Fanklin Allen (BMA). Its 8th-11th editions are all fine. While our lectures present topics in a
self-contained manner, reading assigned chapters from the textbook or relevant chapters from
BMA will reinforce your learning from the lectures.
Lecture notes: At each class session I will hand out copies of lecture slides. Note that, in order to
facilitate engagement in class, these notes will not contain answers to all the questions we will
discuss, or examples we will work out in class. However, if you miss something, “filled-in”
versions of the notes will be posted to Blackboard following each class.
Evaluation
Group Assignments (4)
Individual Assignment
Final Exam
Class Participation
Peer Evaluation
40%
10%
40%
5%
5%
How to prepare for class
We will rely on four primary learning tools:
o Interactive lectures
o Case discussions
o Assignments and practice problems
o Textbook readings
These are designed to complement one another. While some students may wish to emphasize
some tools more than others, depending on your learning style, I would not recommend
neglecting any of them.
It is important that you come to class prepared on case discussion days. The better prepared
you are, the better will be the classroom experience and the more we will all learn.
Lectures:
In our lectures, we will try to address three broad types of questions for each topic.
1. What does financial theory say about a given market friction?
Why is it costly to the firm? How can financial policy mitigate these costs?
2. Do firms actually behave this way?
Is there evidence from case examples, manager surveys or empirical studies that firms follow
the predictions of the theory?
3. How then should I manage my firm?
Which types of firms does the theory apply to most? What are the relationships between firm
characteristics and optimal financial policy?
How to do well on the assignments
The assignments are designed to help reinforce the material, apply concepts we’ve learned to
actual firm data, and prepare for the exams. They will include a combination of analytical
problems and questions pertaining to the cases we will discuss in class.
Assignment groups consisting of 4-5 people will be randomly formed at the end of the first
week and will be stable throughout the semester. If you object to being in a group a peer
please contact the instructor with the reason for your objection to request reassignment.
The assignments are due before the start of the class. You should submit them electronically.
Late assignments will not be accepted without prior permission.
Any re-grade requests must be submitted in writing, with an explanation of the proposed
discrepancy. Requests must be submitted within 2-weeks after the assignment is returned.
How to do well on the exam
The exam will contain both qualitative and quantitative questions.
In order to do well on the qualitative portion, you need to understand the concepts. For some
of the questions, there might be a “common sense” answer. Don’t be fooled. Think through
the issues we have studied and apply them to the questions.
For questions with calculations, it is the justifications, logic and interpretations which are
important and not the actual number. Bring a calculator but it need not be a fancy one. Show
all your work.
The final exam will be closed books and closed notes, but you may bring a one-page “cheat
sheet”.
The final exam covers the entire course.
How to do well on class participation
My evaluation of class participation is based on the quality as well as quantity of your
participation.
Answering questions, asking thoughtful questions and contributing comments that enhance
our class discussion are all valid ways to participate.
Communication
Please make use of the office hours or make an appointment to see me. I am usually on campus
prior to lectures and more than happy to find some time to meet with you. Your feedback on
what is interesting or difficult is important. Finally, the course is short. If you find yourself lost,
come see me as soon as possible. Do not wait for the exam before coming for help.
Tentative Schedule
A tentative schedule appears below. The chapter numbers listed are guidelines. Since this is a 6-
week course, not everything in each chapter will be covered in class.
Week Topic / Assignment / Exam B&D
1 Course Overview
1 Capital Structure
Modigliani-Miller in Perfect Markets
Ch 14
2 Capital Structure Decisions and Taxes Ch15
2 Group Assignment 1 and UST Case
3 Capital Structure Decisions and Bankruptcy Costs Ch 16
3 Tax-Bankruptcy Tradeoff Theory Ch 16
3 Information Asymmetry and Capital Structure Ch 16
3 Group Assignment 2
4 Moral Hazard, Agency Costs & Capital Structure Ch 16
4 IPOs, Raising Capital & Security Design Ch 23
4 Individual Assignment and Google IPO Case
5 LBOs and ABS Financing Ch 24.1, 24.4, 25, 28.6
5 Group Assignment 3 and Hertz Case
6 Payout and Cash Policy Ch 17
6 Group Assignment 4 and FPL Dividend Case
7 Final Exam
Academic Integrity
The Olin Business School is a community of individuals with diverse backgrounds and interests
who share certain fundamental goals. Primary among these goals is the creation and maintenance
of an atmosphere conducive to learning and personal growth for everyone in the community.
Becoming a member of the Olin community is a privilege that brings certain responsibilities and
expectations. The success of Olin in attaining its goals and in maintaining its reputation of
academic excellence depends on the willingness of its members, both collectively and individually,
to meet their responsibilities. All individuals associated with Olin should conduct themselves with
the utmost integrity in all aspects of their life, both on and off campus.
Below, I discuss three aspects of academic integrity. First, I present my commitment to matters of
integrity. Second, I provide an overview of Olin’s Code of Conduct as it relates to Academic
matters, and third, I discuss matters of Olin’s conduct of Conduct as it relate to Professional
behavior.
My commitment to Integrity as the instructor of this course
The purpose of Olin’s Code of Conduct is to clarify expectations about academic and
Professional behavior. The Code is meant to encourage and clarify appropriate academic,
classroom, interpersonal, and extra-curricular etiquette that is expected of each individual by
their peers, the faculty and the institution. It is also intended to help describe the overall
environment of excellence and professionalism that members of the Olin community seek to
establish and to continually enhance. It is the responsibility of each member of the Olin
community to uphold the spirit, as well as the principles, of the Code.
As an instructor, I will consistently and fully support Olin’s Academic Code of Conduct and
Olin’s Code of Professional Conduct. I take the matters of academic integrity and professional
conduct seriously and expect that you do, too. I encourage you to ask if you have any questions
about academic integrity in this course.
Please refer to the publication Integrity Matters: Olin Business School Code of Conduct for
specific responsibilities, guidelines and procedures regarding academic integrity. You may also
consult with MBA Program Dean Joe Fox or BSBA Program Dean Jeff Cannon if you have
questions or concerns.
Olin’s Code of Conduct as it relates to Academic matters
Student Academic Violations. It is dishonest and a violation of student academic integrity if
you:
1. Plagiarize – You commit plagiarism by taking someone else’s ideas, words or other types of
product and presenting them as your own. You can avoid plagiarism by using proper methods of
documentation and acknowledgement.
2. Cheat on an examination – You must not receive or provide any unauthorized assistance on
an examination. During an examination you may use only material authorized by the faculty.
3. Copy or collaborate on assignments without permission – It is dishonest to collaborate with
others when completing graded assignments or tests, performing laboratory experiments, writing
and/or documenting computer programs, writing papers or reports and completing problem sets
(unless expressly discussed in class). If you have any questions regarding the definition of
allowable behavior, it is your responsibility to ask for clarification prior to engaging in the
collaboration.
4. Fabricate or falsify data or records – It is dishonest to fabricate or falsify data in laboratory
experiments, research papers, reports or other circumstances; fabricate source material in a
bibliography or “works cited” list; or provide false information on a resume or other document in
connection with academic efforts. It is also dishonest to take data developed by someone else and
present them as your own.
5. Engage in other forms of deceit or dishonesty that violate the spirit of the Code
For details, please refer to Integrity Matters: Olin Business School Code of Conduct
Olin’s conduct of Conduct as it relate to Professional behavior
Expectations – Professional Standards of Conduct
Olin students are expected to conduct themselves at all times in a professional manner.
Professional behavior includes, but is not limited to, the following:
In the classroom
Attendance: Students are expected to attend each class session. Students who must miss a
session for any reason should make every effort to notify the instructor prior to the class
meeting. Students should never register for courses scheduled in conflict with one another.
Punctuality: Students are expected to arrive and be seated prior to the start of each class
session. They should display their name cards in all classes at all times.
Behavior: Classroom interaction will be conducted in a spirited manner but always while
displaying professional courtesy and personal respect.
Preparation: Students are expected to complete the readings, case preparations and other
assignments prior to each class session and be prepared to actively participate in class
discussion.
Distractions:
o Exiting and Entering: Students are expected to remain in the classroom for the
duration of the class session unless an urgent need arises or prior arrangements have
been made with the professor.
o o Laptop, PDA, and Other Electronic Device Usage: Students are expected to not use
laptops, PDAs, and other electronic devices in classrooms unless with the instructor’s
consent and for activities directly related to the class session. Accessing email or the
Internet during class is not permitted as they can be distracting for peers and faculty.
o Cellular Phone and Pager Usage: Students are expected to keep their mobile phones
and pagers turned off or have them set on silent/vibrate during class. Answering
phones or pagers while class is in session is not permitted.
o Other distractions: Those identified by individual instructors, such as eating in the
classroom.
For details, please refer to Integrity Matters: Olin Business School Code of Conduct
Policy on Missing Classes and Exams for Interviews
We strongly advise that students schedule job and internship interviews around their class times
and exam schedules. Employers understand that academics are your top priority. For off-campus
interviews at the employer’s site, most will accommodate a student who needs to schedule an
interview around a class or exam. For on-campus interviews, you should sign up quickly- as
soon as possible- since these timeslots are fixed and are available on a first-come first-served
basis only. In the event that an interview conflicts with a scheduled class, you must notify the
professor in advance; the sooner you do that you demonstrate professional courtesy and a sense
of commitment to the professor. How the professor treats the absence is at the professor’s
discretion in accordance with the course syllabus or other means of communication. An
interview conflict is not a valid reason for missing an exam. If you experience or anticipate
problems, you should seek advice from Weston Career Center advisors.
Disabilities
Reasonable accommodations will be made for students with verifiable disabilities. Students who
qualify for accommodations must register through Washington University’s Center for Advanced
Learning Disability Resources (DR) in Cornerstone. Their staff members will assist me in
arranging appropriate accommodations.
Management Communication Lab
The Management Communication Lab, located in Simon 118C, is a school-wide resource that
supports Olin's mission to prepare students to communicate effectively in the business world.
Staffed by graduate consultants with strong communication skills, the Lab offers free one-on-one
and group consultations to address both written and oral communication.
The lab consultants can help you improve your skills for:
Class and job presentations (individual and team)
Case competitions
Business-style writing for class assignments
English spoken and written as a second language
The Weston Career Center advisers also refer students to the Lab for extra assistance with job-
search related communication skills.
To schedule an appointment, use the online system at the Lab's website. You can access the
appointment system from the Intranet on the Management Communication Lab home page or by
going directly to: http://rich65.com/wustl/. (You’ll need to enter login information the first time
you visit the site.) Dr. Sharon McMillen Cannon directs the Lab and can answer any questions
you may have about this resource.
Olin’s COVID Policies
Public health
You are expected to follow WashU and Olin COVID-related public health protocols including:
1. Complete daily self-screening.
2. Wear a mask that fully covers your mouth and nose.
3. Practice physical distancing.
4. Wash your hands and practice good hygiene.
5. Sanitize personal and shared spaces.
For complete details visit: https://olincovidresponse.wustl.edu/health-safety-at-olin/
Course modality
This course will be offered hybrid (at least initially).
Office hours
Office hours will be held online via Zoom.
My office hour times: see first page.
Student Rotation (for hybrid courses)
You can find student rotation assignment on Canvas under Syllabus.
Session length, and entry/exit protocols
For spring 2022, passing times between classes are extended to 15 minutes. Entry and exit
to/from class will be carried out as follows:
When and where possible, students arriving to class should utilize outside waiting areas, such
as courtyards, until five minutes prior to the start of class in order to avoid congregating in
close proximity of exiting students.
At the end of class, students should exit the room while keeping physical distance. Students
closest to the doors should proceed out first, with those farthest from the exit leaving last.
The instructor will be the last to leave and facilitate an orderly transition between classes.
Students should avoid loitering in areas where congestion may occur (i.e. faculty podiums,
narrow hallways or at the entrance and exits of buildings).
Student illness or quarantine:
To accommodate the needs of remote students at different time zones, all Olin class sessions
in Spring 2020 are being livestreamed and recorded. This includes the chat and video.
If you are ill or experiencing symptoms, please take care of yourself and follow the
university guidelines related to COVID-19 and contact Habif Health and Wellness:
https://students.wustl.edu/habif-health-wellness-center/.Sick students should not come to
class under any circumstances.
You may find yourself well but in quarantine due to possible exposure, diagnosed with
COVID-19 but not experiencing symptoms, or ill but still able to participate. If you are well
enough to participate, it is expected that you will attend and participate in the course
remotely over Zoom and promptly communicate any additional requests or needs with me.
If you are sick and unable to participate in class due to illness, you should reach out to me
directly to discuss your situation. We will work together to determine how you may make up
missed materials and in what time-frame, how I can support you in learning the material, and
how you will participate in or manage team assignments, among other course logistics.
In both scenarios, it is important that you take care of your health. I expect that you will
communicate with me as soon as you realize that you will be unable to attend class.
Alternate operations (shutdown) contingency
We must be prepared to move to fully online instruction, should the university move to alternate
operations. Should that be the case, I will teach the class fully online over Zoom.
Guidelines for attending online/hybrid class sessions
What is expected of me when attending class virtually via Zoom?
Remote students are strongly encouraged to have their device camera enabled during class. A
virtual background is also encouraged. Adjust lighting in your learning environment to
ensure you are visible on camera. For example, you can place a lighting source behind your
PC (the lighting in front of the camera should be brighter than any lighting behind the
camera).
To ensure proper Zoom functionality, students must sign in to Zoom with their WUSTL key.
Remote students should add “-ONL” to the end of their profile name so that the instructor
and fellow students know who is attending class virtually. Students on Zoom who are
attending in-person should add “-IP” to their profile names.
Remote students should utilize headphones or another secondary microphone source for
communicating during class. Doing so will ensure that the instructor, and other students, are
able to hear each student clearly as well as minimize audio feedback.
Privacy concerns should be taken into account before joining the video and using the chat.
If I have a question or comment, how do I notify my instructor and communicate?
Remote students should raise their hand virtually using the “Raise Hand” functionality within
Zoom. This “raised hand” will be acknowledged by either the instructor or the Classroom
Engagement Moderator. Once notified, the instructor will call on the remote student or
address the question/comment.
Students may also utilize the Chat functionality within Zoom. For this option, students
should type either “COMMENT” or “QUESTION” at the beginning of the chat box entry.
This will be identified by either the instructor or Classroom Engagement Moderator. Once
notified, the instructor will call on the remote student.
When a student (in the classroom or remote) is called upon, it is recommended that the
student state their name prior to addressing the instructor with a question or comment. This
will ensure students know which of their peers is speaking.
It is recommended that remote students DO NOT raise their actual hand on camera. It is also
recommended that students DO NOT begin speaking unless called upon.
Distractions
Students are expected to remain in the virtual classroom for the duration of the class session
unless an urgent need arises, or prior arrangements have been made with the instructor.
Students are expected to focus on the class session and not multi-task.
Students are expected to keep their mobile phones turned off or have them set on
silent/vibrate during class. Answering phones while class is in session is not permitted.
What should I do if my instructor has been disconnected from Zoom?
If we are in a hybrid or in-person format, the instructor (or the Classroom Engagement
Moderator) will contact AV support to get the classroom logged back in as quickly as
possible. Stay on the Zoom link and monitor your email for additional instructions.
If we are in a fully virtual format, students should remain on Zoom for at least 5 minutes.
Students may then exit the session, but they should ensure they have access to their email for
an additional 10 minutes to allow the instructor the opportunity to provide updated
communication and direction on how the class will continue. If the instructor does not return
or provide updated communication after 15 minutes, the remainder of the class will be
canceled then later completed asynchronously via a recording that will be posted on Canvas.
What should I do if I have been disconnected from Zoom?
Students who have been unexpectedly disconnected from Zoom should work to reconnect
utilizing the technology available to them at the time. If the student is unable to reconnect,
the student should notify the instructor via their preferred method of communication and then
use the class recording to make up for the lost material.
Syllabi Resources and Template Language - Danforth Campus
Reporting Sexual Harassment:
If a student discusses or discloses an instance of sexual assault, sex discrimination, sexual
harassment, dating violence, domestic violence or stalking, or if a faculty member otherwise
observes or becomes aware of such an allegation, the faculty member will keep the information
as private as possible, but as a faculty member of Washington University, they are required to
immediately report it to the Department Chair or Dean or directly to Ms. Jessica Kennedy, the
University’s Title IX Director, at (314) 935-3118, jwkennedy@wustl.edu. Additionally, you can
report incidents or complaints to the Office of Student Conduct and Community Standards or by
contacting WUPD at (314) 935-5555 or your local law enforcement agency. See: Title IX
Confidential Resources for Instances of Sexual Assault, Sex Discrimination, Sexual Harassment,
Dating Violence, Domestic Violence, or Stalking:
If a student needs to explore options for medical care, protections, or reporting, there are free,
confidential support resources and professional counseling services are available through the
Relationship and Sexual Violence Prevention (RSVP) Center in Seigle Hall, Suite 435,
rsvpcenter@wustl.edu, 314-935-3445. For after-hours emergency response services, call 314-
935-6666 or 314-935-5555 and ask to speak with an RSVP Counselor on call.
Academic Accommodations:
Reasonable Accommodations for Disabled Students
Washington University in St. Louis supports the rights of enrolled students to a full and equal
educational opportunity and, in compliance with federal, state, and local requirements, is
committed to reasonable accommodations for individuals with documented disabilities. Disabled
students for whom accommodations may be necessary must be registered with, and provide their
instructors official notification through, WUSTL’s Disability Resources
(https://students.wustl.edu/disability- resources/). Once established, responsibility for disability-
related accommodations and access is shared by DR, faculty, and the student. Please contact
Disability Resources at 314.935.5970 or disabilityresources@wustl.edu.
Sexual Assault Resources
The University is committed to offering reasonable academic accommodations (e.g., a no-contact
order, course changes) to students who are victims of relationship or sexual violence, regardless
of whether they seek criminal or disciplinary action. If you need to request such
accommodations, please contact RSVP (information above) to schedule an appointment with an
RSVP confidential and licensed counselor. Although information shared with counselors is
confidential, requests for accommodations will be coordinated with the appropriate University
administrators and faculty. See: RSVP Center
Bias Reporting:
The University has a process through which students, faculty, staff, and community members
who have experienced or witnessed incidents of bias, prejudice, or discrimination against a
student can report their experiences to the University’s Bias Report and Support System (BRSS)
team. See: brss.wustl.edu.
Mental Health:
Mental Health Services’ professional staff members work with students to resolve personal and
interpersonal difficulties, many of which can affect a student’s academic experience. These
include conflicts with or worry about friends or family, concerns about eating or drinking
patterns, and feelings of anxiety, depression, and thoughts of suicide. See:
https://students.wustl.edu/mental- health-services/ Additionally, see the mental health services
offered through the RSVP Center listed above.
WashU Cares:
WashU Cares, within the Health and Wellness Unit, provides resources to all students on the
Danforth Campus who may be having a hard time. WashU Cares is committed to helping create
a culture of caring. Through proactive, collaborative, and systemic approaches, WashU Cares
works with students to identify interventions, resources, and supports that allow them to be
successful. If there is a concern about the physical or mental well-being of a student, please file a
report on the WashU Cares website. See: https://washucares.wustl.edu/.
Center for Diversity and Inclusion (CDI):
The Center for Diversity and Inclusion (CDI) supports and advocates for undergraduate,
graduate, and professional school students from underrepresented and/or marginalized
populations, collaborates with campus and community partners, and promotes dialogue and
social change to cultivate and foster a supportive campus climate for students of all backgrounds,
cultures, and identities. See: https://diversityinclusion.wustl.edu/.
Preferred Name and Gender Inclusive Pronouns:
In order to affirm each person’s gender identity and lived experiences, it is important that we ask
and check in with others about pronouns. This simple effort can make a profound difference in a
person’s experience of safety, respect, and support. See: https://students.wustl.edu/gender-
pronouns- information/, https://registrar.wustl.edu/student-records/ssn-name-changes/preferred-
name/.
Military Service Leave:
Washington University recognizes that students serving in the U.S. Armed Forces and their
family members may encounter situations where military service forces them to withdraw from a
course of study, sometimes with little notice. Students may contact the Office of Military and
Veteran Services at (314) 935-2609 or veterans@wustl.edu and their academic dean for guidance
and assistance. See: https://veterans.wustl.edu/policies/policy-for-military-students/.
Olin Business School
FIN 534 – Advanced Corporate Finance II: Financing
Meeting:
Section 03: Wednesdays 6:15 - 9:15pm in Simon 106 + Zoom
Section 04: Thursday 6:15 - 9:15pm in Bauer 160 + Zoom
Office Hours:
By Appointment
See Canvas under Syllabus for a Zoom link
Teaching Assistant: TBA
Professor John Dooley
Office: Simon Hall 224
Email: dooley@wustl.edu
*Please lead Subject Line
with FIN 534B and section.
Olin’s Pillars of Excellence:
Olin students will:
1. Embody a values-based and data-driven ethos in their approach to all business situations
2. Understand the global opportunities and challenges facing businesses
3. Engage with business issues through the application of experiential knowledge, in addition to
the rigorous technical skills acquired in the classroom
4. Pursue world-changing initiatives with an entrepreneurial and innovative mindset and skillset
Course Objectives:
The purpose of this course is to provide an understanding of the financing decisions made by
corporations. While ACF I focused on firms' investment decisions, this course focuses on how
firms fund those investments, how they raise capital, and how they return capital to investors. By
the end of the course, you should be able to articulate how a variety of market frictions,
including taxes, financial distress costs, asymmetric information, and agency conflicts, affect
firms' financing decisions, and how these financing decisions interact with investment decisions.
The course content is designed to balance theories, computations, and applications through a
combination of lectures, case discussions, and practice problems. PMBA Prerequisites: FIN core
and 534. MBA Prerequisites: FIN 5200 and 534.
Course Material
Course packet: The course packet includes copies of the case studies we will discuss in class,
and should be available in the book store.
Textbook: I highly recommend using whichever Corporate Finance text you already own from
Fin 5203 (finance core) or equivalent. In the schedule below, I have included the relevant
chapters for each class session from the following textbook: Corporate Finance, 3rd Edition, by
Jonathan Berk and Peter DeMarzo, Pearson. This book serves as a useful reference not only for
this course but also for a finance profession. One copy of the book is available on reserve in the
Business (Kopolow) Library. The older editions (1st and 2nd) of the book are fine to use, too. An
alternative book is Principles of Corporate Finance by Richard Brealey, Steward Myers, and
Fanklin Allen (BMA). Its 8th-11th editions are all fine. While our lectures present topics in a
self-contained manner, reading assigned chapters from the textbook or relevant chapters from
BMA will reinforce your learning from the lectures.
Lecture notes: At each class session I will hand out copies of lecture slides. Note that, in order to
facilitate engagement in class, these notes will not contain answers to all the questions we will
discuss, or examples we will work out in class. However, if you miss something, “filled-in”
versions of the notes will be posted to Blackboard following each class.
Evaluation
Group Assignments (4)
Individual Assignment
Final Exam
Class Participation
Peer Evaluation
40%
10%
40%
5%
5%
How to prepare for class
We will rely on four primary learning tools:
o Interactive lectures
o Case discussions
o Assignments and practice problems
o Textbook readings
These are designed to complement one another. While some students may wish to emphasize
some tools more than others, depending on your learning style, I would not recommend
neglecting any of them.
It is important that you come to class prepared on case discussion days. The better prepared
you are, the better will be the classroom experience and the more we will all learn.
Lectures:
In our lectures, we will try to address three broad types of questions for each topic.
1. What does financial theory say about a given market friction?
Why is it costly to the firm? How can financial policy mitigate these costs?
2. Do firms actually behave this way?
Is there evidence from case examples, manager surveys or empirical studies that firms follow
the predictions of the theory?
3. How then should I manage my firm?
Which types of firms does the theory apply to most? What are the relationships between firm
characteristics and optimal financial policy?
How to do well on the assignments
The assignments are designed to help reinforce the material, apply concepts we’ve learned to
actual firm data, and prepare for the exams. They will include a combination of analytical
problems and questions pertaining to the cases we will discuss in class.
Assignment groups consisting of 4-5 people will be randomly formed at the end of the first
week and will be stable throughout the semester. If you object to being in a group a peer
please contact the instructor with the reason for your objection to request reassignment.
The assignments are due before the start of the class. You should submit them electronically.
Late assignments will not be accepted without prior permission.
Any re-grade requests must be submitted in writing, with an explanation of the proposed
discrepancy. Requests must be submitted within 2-weeks after the assignment is returned.
How to do well on the exam
The exam will contain both qualitative and quantitative questions.
In order to do well on the qualitative portion, you need to understand the concepts. For some
of the questions, there might be a “common sense” answer. Don’t be fooled. Think through
the issues we have studied and apply them to the questions.
For questions with calculations, it is the justifications, logic and interpretations which are
important and not the actual number. Bring a calculator but it need not be a fancy one. Show
all your work.
The final exam will be closed books and closed notes, but you may bring a one-page “cheat
sheet”.
The final exam covers the entire course.
How to do well on class participation
My evaluation of class participation is based on the quality as well as quantity of your
participation.
Answering questions, asking thoughtful questions and contributing comments that enhance
our class discussion are all valid ways to participate.
Communication
Please make use of the office hours or make an appointment to see me. I am usually on campus
prior to lectures and more than happy to find some time to meet with you. Your feedback on
what is interesting or difficult is important. Finally, the course is short. If you find yourself lost,
come see me as soon as possible. Do not wait for the exam before coming for help.
Tentative Schedule
A tentative schedule appears below. The chapter numbers listed are guidelines. Since this is a 6-
week course, not everything in each chapter will be covered in class.
Week Topic / Assignment / Exam B&D
1 Course Overview
1 Capital Structure
Modigliani-Miller in Perfect Markets
Ch 14
2 Capital Structure Decisions and Taxes Ch15
2 Group Assignment 1 and UST Case
3 Capital Structure Decisions and Bankruptcy Costs Ch 16
3 Tax-Bankruptcy Tradeoff Theory Ch 16
3 Information Asymmetry and Capital Structure Ch 16
3 Group Assignment 2
4 Moral Hazard, Agency Costs & Capital Structure Ch 16
4 IPOs, Raising Capital & Security Design Ch 23
4 Individual Assignment and Google IPO Case
5 LBOs and ABS Financing Ch 24.1, 24.4, 25, 28.6
5 Group Assignment 3 and Hertz Case
6 Payout and Cash Policy Ch 17
6 Group Assignment 4 and FPL Dividend Case
7 Final Exam
Academic Integrity
The Olin Business School is a community of individuals with diverse backgrounds and interests
who share certain fundamental goals. Primary among these goals is the creation and maintenance
of an atmosphere conducive to learning and personal growth for everyone in the community.
Becoming a member of the Olin community is a privilege that brings certain responsibilities and
expectations. The success of Olin in attaining its goals and in maintaining its reputation of
academic excellence depends on the willingness of its members, both collectively and individually,
to meet their responsibilities. All individuals associated with Olin should conduct themselves with
the utmost integrity in all aspects of their life, both on and off campus.
Below, I discuss three aspects of academic integrity. First, I present my commitment to matters of
integrity. Second, I provide an overview of Olin’s Code of Conduct as it relates to Academic
matters, and third, I discuss matters of Olin’s conduct of Conduct as it relate to Professional
behavior.
My commitment to Integrity as the instructor of this course
The purpose of Olin’s Code of Conduct is to clarify expectations about academic and
Professional behavior. The Code is meant to encourage and clarify appropriate academic,
classroom, interpersonal, and extra-curricular etiquette that is expected of each individual by
their peers, the faculty and the institution. It is also intended to help describe the overall
environment of excellence and professionalism that members of the Olin community seek to
establish and to continually enhance. It is the responsibility of each member of the Olin
community to uphold the spirit, as well as the principles, of the Code.
As an instructor, I will consistently and fully support Olin’s Academic Code of Conduct and
Olin’s Code of Professional Conduct. I take the matters of academic integrity and professional
conduct seriously and expect that you do, too. I encourage you to ask if you have any questions
about academic integrity in this course.
Please refer to the publication Integrity Matters: Olin Business School Code of Conduct for
specific responsibilities, guidelines and procedures regarding academic integrity. You may also
consult with MBA Program Dean Joe Fox or BSBA Program Dean Jeff Cannon if you have
questions or concerns.
Olin’s Code of Conduct as it relates to Academic matters
Student Academic Violations. It is dishonest and a violation of student academic integrity if
you:
1. Plagiarize – You commit plagiarism by taking someone else’s ideas, words or other types of
product and presenting them as your own. You can avoid plagiarism by using proper methods of
documentation and acknowledgement.
2. Cheat on an examination – You must not receive or provide any unauthorized assistance on
an examination. During an examination you may use only material authorized by the faculty.
3. Copy or collaborate on assignments without permission – It is dishonest to collaborate with
others when completing graded assignments or tests, performing laboratory experiments, writing
and/or documenting computer programs, writing papers or reports and completing problem sets
(unless expressly discussed in class). If you have any questions regarding the definition of
allowable behavior, it is your responsibility to ask for clarification prior to engaging in the
collaboration.
4. Fabricate or falsify data or records – It is dishonest to fabricate or falsify data in laboratory
experiments, research papers, reports or other circumstances; fabricate source material in a
bibliography or “works cited” list; or provide false information on a resume or other document in
connection with academic efforts. It is also dishonest to take data developed by someone else and
present them as your own.
5. Engage in other forms of deceit or dishonesty that violate the spirit of the Code
For details, please refer to Integrity Matters: Olin Business School Code of Conduct
Olin’s conduct of Conduct as it relate to Professional behavior
Expectations – Professional Standards of Conduct
Olin students are expected to conduct themselves at all times in a professional manner.
Professional behavior includes, but is not limited to, the following:
In the classroom
Attendance: Students are expected to attend each class session. Students who must miss a
session for any reason should make every effort to notify the instructor prior to the class
meeting. Students should never register for courses scheduled in conflict with one another.
Punctuality: Students are expected to arrive and be seated prior to the start of each class
session. They should display their name cards in all classes at all times.
Behavior: Classroom interaction will be conducted in a spirited manner but always while
displaying professional courtesy and personal respect.
Preparation: Students are expected to complete the readings, case preparations and other
assignments prior to each class session and be prepared to actively participate in class
discussion.
Distractions:
o Exiting and Entering: Students are expected to remain in the classroom for the
duration of the class session unless an urgent need arises or prior arrangements have
been made with the professor.
o o Laptop, PDA, and Other Electronic Device Usage: Students are expected to not use
laptops, PDAs, and other electronic devices in classrooms unless with the instructor’s
consent and for activities directly related to the class session. Accessing email or the
Internet during class is not permitted as they can be distracting for peers and faculty.
o Cellular Phone and Pager Usage: Students are expected to keep their mobile phones
and pagers turned off or have them set on silent/vibrate during class. Answering
phones or pagers while class is in session is not permitted.
o Other distractions: Those identified by individual instructors, such as eating in the
classroom.
For details, please refer to Integrity Matters: Olin Business School Code of Conduct
Policy on Missing Classes and Exams for Interviews
We strongly advise that students schedule job and internship interviews around their class times
and exam schedules. Employers understand that academics are your top priority. For off-campus
interviews at the employer’s site, most will accommodate a student who needs to schedule an
interview around a class or exam. For on-campus interviews, you should sign up quickly- as
soon as possible- since these timeslots are fixed and are available on a first-come first-served
basis only. In the event that an interview conflicts with a scheduled class, you must notify the
professor in advance; the sooner you do that you demonstrate professional courtesy and a sense
of commitment to the professor. How the professor treats the absence is at the professor’s
discretion in accordance with the course syllabus or other means of communication. An
interview conflict is not a valid reason for missing an exam. If you experience or anticipate
problems, you should seek advice from Weston Career Center advisors.
Disabilities
Reasonable accommodations will be made for students with verifiable disabilities. Students who
qualify for accommodations must register through Washington University’s Center for Advanced
Learning Disability Resources (DR) in Cornerstone. Their staff members will assist me in
arranging appropriate accommodations.
Management Communication Lab
The Management Communication Lab, located in Simon 118C, is a school-wide resource that
supports Olin's mission to prepare students to communicate effectively in the business world.
Staffed by graduate consultants with strong communication skills, the Lab offers free one-on-one
and group consultations to address both written and oral communication.
The lab consultants can help you improve your skills for:
Class and job presentations (individual and team)
Case competitions
Business-style writing for class assignments
English spoken and written as a second language
The Weston Career Center advisers also refer students to the Lab for extra assistance with job-
search related communication skills.
To schedule an appointment, use the online system at the Lab's website. You can access the
appointment system from the Intranet on the Management Communication Lab home page or by
going directly to: http://rich65.com/wustl/. (You’ll need to enter login information the first time
you visit the site.) Dr. Sharon McMillen Cannon directs the Lab and can answer any questions
you may have about this resource.
Olin’s COVID Policies
Public health
You are expected to follow WashU and Olin COVID-related public health protocols including:
1. Complete daily self-screening.
2. Wear a mask that fully covers your mouth and nose.
3. Practice physical distancing.
4. Wash your hands and practice good hygiene.
5. Sanitize personal and shared spaces.
For complete details visit: https://olincovidresponse.wustl.edu/health-safety-at-olin/
Course modality
This course will be offered hybrid (at least initially).
Office hours
Office hours will be held online via Zoom.
My office hour times: see first page.
Student Rotation (for hybrid courses)
You can find student rotation assignment on Canvas under Syllabus.
Session length, and entry/exit protocols
For spring 2022, passing times between classes are extended to 15 minutes. Entry and exit
to/from class will be carried out as follows:
When and where possible, students arriving to class should utilize outside waiting areas, such
as courtyards, until five minutes prior to the start of class in order to avoid congregating in
close proximity of exiting students.
At the end of class, students should exit the room while keeping physical distance. Students
closest to the doors should proceed out first, with those farthest from the exit leaving last.
The instructor will be the last to leave and facilitate an orderly transition between classes.
Students should avoid loitering in areas where congestion may occur (i.e. faculty podiums,
narrow hallways or at the entrance and exits of buildings).
Student illness or quarantine:
To accommodate the needs of remote students at different time zones, all Olin class sessions
in Spring 2020 are being livestreamed and recorded. This includes the chat and video.
If you are ill or experiencing symptoms, please take care of yourself and follow the
university guidelines related to COVID-19 and contact Habif Health and Wellness:
https://students.wustl.edu/habif-health-wellness-center/.Sick students should not come to
class under any circumstances.
You may find yourself well but in quarantine due to possible exposure, diagnosed with
COVID-19 but not experiencing symptoms, or ill but still able to participate. If you are well
enough to participate, it is expected that you will attend and participate in the course
remotely over Zoom and promptly communicate any additional requests or needs with me.
If you are sick and unable to participate in class due to illness, you should reach out to me
directly to discuss your situation. We will work together to determine how you may make up
missed materials and in what time-frame, how I can support you in learning the material, and
how you will participate in or manage team assignments, among other course logistics.
In both scenarios, it is important that you take care of your health. I expect that you will
communicate with me as soon as you realize that you will be unable to attend class.
Alternate operations (shutdown) contingency
We must be prepared to move to fully online instruction, should the university move to alternate
operations. Should that be the case, I will teach the class fully online over Zoom.
Guidelines for attending online/hybrid class sessions
What is expected of me when attending class virtually via Zoom?
Remote students are strongly encouraged to have their device camera enabled during class. A
virtual background is also encouraged. Adjust lighting in your learning environment to
ensure you are visible on camera. For example, you can place a lighting source behind your
PC (the lighting in front of the camera should be brighter than any lighting behind the
camera).
To ensure proper Zoom functionality, students must sign in to Zoom with their WUSTL key.
Remote students should add “-ONL” to the end of their profile name so that the instructor
and fellow students know who is attending class virtually. Students on Zoom who are
attending in-person should add “-IP” to their profile names.
Remote students should utilize headphones or another secondary microphone source for
communicating during class. Doing so will ensure that the instructor, and other students, are
able to hear each student clearly as well as minimize audio feedback.
Privacy concerns should be taken into account before joining the video and using the chat.
If I have a question or comment, how do I notify my instructor and communicate?
Remote students should raise their hand virtually using the “Raise Hand” functionality within
Zoom. This “raised hand” will be acknowledged by either the instructor or the Classroom
Engagement Moderator. Once notified, the instructor will call on the remote student or
address the question/comment.
Students may also utilize the Chat functionality within Zoom. For this option, students
should type either “COMMENT” or “QUESTION” at the beginning of the chat box entry.
This will be identified by either the instructor or Classroom Engagement Moderator. Once
notified, the instructor will call on the remote student.
When a student (in the classroom or remote) is called upon, it is recommended that the
student state their name prior to addressing the instructor with a question or comment. This
will ensure students know which of their peers is speaking.
It is recommended that remote students DO NOT raise their actual hand on camera. It is also
recommended that students DO NOT begin speaking unless called upon.
Distractions
Students are expected to remain in the virtual classroom for the duration of the class session
unless an urgent need arises, or prior arrangements have been made with the instructor.
Students are expected to focus on the class session and not multi-task.
Students are expected to keep their mobile phones turned off or have them set on
silent/vibrate during class. Answering phones while class is in session is not permitted.
What should I do if my instructor has been disconnected from Zoom?
If we are in a hybrid or in-person format, the instructor (or the Classroom Engagement
Moderator) will contact AV support to get the classroom logged back in as quickly as
possible. Stay on the Zoom link and monitor your email for additional instructions.
If we are in a fully virtual format, students should remain on Zoom for at least 5 minutes.
Students may then exit the session, but they should ensure they have access to their email for
an additional 10 minutes to allow the instructor the opportunity to provide updated
communication and direction on how the class will continue. If the instructor does not return
or provide updated communication after 15 minutes, the remainder of the class will be
canceled then later completed asynchronously via a recording that will be posted on Canvas.
What should I do if I have been disconnected from Zoom?
Students who have been unexpectedly disconnected from Zoom should work to reconnect
utilizing the technology available to them at the time. If the student is unable to reconnect,
the student should notify the instructor via their preferred method of communication and then
use the class recording to make up for the lost material.
Syllabi Resources and Template Language - Danforth Campus
Reporting Sexual Harassment:
If a student discusses or discloses an instance of sexual assault, sex discrimination, sexual
harassment, dating violence, domestic violence or stalking, or if a faculty member otherwise
observes or becomes aware of such an allegation, the faculty member will keep the information
as private as possible, but as a faculty member of Washington University, they are required to
immediately report it to the Department Chair or Dean or directly to Ms. Jessica Kennedy, the
University’s Title IX Director, at (314) 935-3118, jwkennedy@wustl.edu. Additionally, you can
report incidents or complaints to the Office of Student Conduct and Community Standards or by
contacting WUPD at (314) 935-5555 or your local law enforcement agency. See: Title IX
Confidential Resources for Instances of Sexual Assault, Sex Discrimination, Sexual Harassment,
Dating Violence, Domestic Violence, or Stalking:
If a student needs to explore options for medical care, protections, or reporting, there are free,
confidential support resources and professional counseling services are available through the
Relationship and Sexual Violence Prevention (RSVP) Center in Seigle Hall, Suite 435,
rsvpcenter@wustl.edu, 314-935-3445. For after-hours emergency response services, call 314-
935-6666 or 314-935-5555 and ask to speak with an RSVP Counselor on call.
Academic Accommodations:
Reasonable Accommodations for Disabled Students
Washington University in St. Louis supports the rights of enrolled students to a full and equal
educational opportunity and, in compliance with federal, state, and local requirements, is
committed to reasonable accommodations for individuals with documented disabilities. Disabled
students for whom accommodations may be necessary must be registered with, and provide their
instructors official notification through, WUSTL’s Disability Resources
(https://students.wustl.edu/disability- resources/). Once established, responsibility for disability-
related accommodations and access is shared by DR, faculty, and the student. Please contact
Disability Resources at 314.935.5970 or disabilityresources@wustl.edu.
Sexual Assault Resources
The University is committed to offering reasonable academic accommodations (e.g., a no-contact
order, course changes) to students who are victims of relationship or sexual violence, regardless
of whether they seek criminal or disciplinary action. If you need to request such
accommodations, please contact RSVP (information above) to schedule an appointment with an
RSVP confidential and licensed counselor. Although information shared with counselors is
confidential, requests for accommodations will be coordinated with the appropriate University
administrators and faculty. See: RSVP Center
Bias Reporting:
The University has a process through which students, faculty, staff, and community members
who have experienced or witnessed incidents of bias, prejudice, or discrimination against a
student can report their experiences to the University’s Bias Report and Support System (BRSS)
team. See: brss.wustl.edu.
Mental Health:
Mental Health Services’ professional staff members work with students to resolve personal and
interpersonal difficulties, many of which can affect a student’s academic experience. These
include conflicts with or worry about friends or family, concerns about eating or drinking
patterns, and feelings of anxiety, depression, and thoughts of suicide. See:
https://students.wustl.edu/mental- health-services/ Additionally, see the mental health services
offered through the RSVP Center listed above.
WashU Cares:
WashU Cares, within the Health and Wellness Unit, provides resources to all students on the
Danforth Campus who may be having a hard time. WashU Cares is committed to helping create
a culture of caring. Through proactive, collaborative, and systemic approaches, WashU Cares
works with students to identify interventions, resources, and supports that allow them to be
successful. If there is a concern about the physical or mental well-being of a student, please file a
report on the WashU Cares website. See: https://washucares.wustl.edu/.
Center for Diversity and Inclusion (CDI):
The Center for Diversity and Inclusion (CDI) supports and advocates for undergraduate,
graduate, and professional school students from underrepresented and/or marginalized
populations, collaborates with campus and community partners, and promotes dialogue and
social change to cultivate and foster a supportive campus climate for students of all backgrounds,
cultures, and identities. See: https://diversityinclusion.wustl.edu/.
Preferred Name and Gender Inclusive Pronouns:
In order to affirm each person’s gender identity and lived experiences, it is important that we ask
and check in with others about pronouns. This simple effort can make a profound difference in a
person’s experience of safety, respect, and support. See: https://students.wustl.edu/gender-
pronouns- information/, https://registrar.wustl.edu/student-records/ssn-name-changes/preferred-
name/.
Military Service Leave:
Washington University recognizes that students serving in the U.S. Armed Forces and their
family members may encounter situations where military service forces them to withdraw from a
course of study, sometimes with little notice. Students may contact the Office of Military and
Veteran Services at (314) 935-2609 or veterans@wustl.edu and their academic dean for guidance
and assistance. See: https://veterans.wustl.edu/policies/policy-for-military-students/.
