Corporate Finance

Course Code

CORPFIN802

Program or Programs for which course is part

Master in Real Estate (MRE) Executive Master in Real Estate (E-MRE) Master in Real Estate and Finance (MRE(Fin)) Executive Master in Real Estate and Finance (E-MRE(Fin))

Level (UG, PG or D)

PG

Stage (I or II, where applicable)

Stage I

Is this Course Core, Specialist or Elective

Elective for the MRE and E-MRE Specialist for the MRE(Fin) and the E-MRE(Fin)

Courses that are pre-requisite or co-requisite

None

Name of Course Convenor

Dr. Tom G Geurts, FRICS

Position

Adjunct Professor of Real Estate

Phone No.

+1 (202) 994-7542 Fax No. +1 (202) 994-5014

Mobile no.

+1 (917) 309-0416

Email address

dr.tom.geurts@homburguniversity.com

Course Objectives (Intended Learning Outcomes) This course is about corporate finance as it relates to the Real Estate firm. It guides students through an analysis of concepts, methodologies and techniques in corporate finance, which are general to different types of firms. These include:

Financing decisions

Dividend decisions

Long-term investment decisions

The interaction between investment and financing decisions.

The course then moves on the explore the issues in corporate finance that are specific to the Real Estate firm, namely:

REITs

Sale lease-back transactions

Advanced RE investment analysis. In doing this, the main objective of this course is to enable students to:

Gain a thorough knowledge and understanding of corporate finance options and decisions for the Real Estate firm, appropriate to the level of Executive Master of Real Estate and Master of Real Estate.

These specific learning outcomes contribute to achieving the learning outcomes of the relevant programs by demonstrating knowledge of the following (mapped to the Program Specification): A. Advanced knowledge and understanding of: 12.A.4: How to apply general theoretical and conceptual frameworks to the analysis of specific issues; B. Intellectual skills: 12.B.1: Develop general research skills, especially bibliographic and computing skills; 12.B.2: Learn to gather, organise and deploy evidence, data and information from a variety of secondary and some primary sources; 12.B.4: Learn to identify, investigate, analyse, formulate and advocate solutions to problems; 12.B.5: Develop problem solving skills, including the ability to identify and define problems, and to establish strategies for dealing with them including criteria for success, mapping optimum and alternative solutions, and exercising critical judgement to discriminate between the ranges of alternatives; 12.B.6: Synthesise relevant information and exercise critical judgement in the development of reasoned arguments; 12.B.7: Enable students to reflect upon and manage their own learning, and seek to make use of constructive feedback from staff and peers to enhance their performance and personal skills. C. Subject-Specific Skills 12.C.8: Understand managerial and financial accounting as these relate specifically to real estate and how to use this knowledge in business decisions.

D. Transferable skills: 12.D.1: Develop autonomy in learning, work independently demonstrating initiative and self organisation; 12.D.2:. Work co-operatively on group tasks, understand how groups function, collaborate with others and contribute effectively to the achievement of common goals; 12.D.3: Use communication and information technology for the retrieval and presentation of information, in the form of prose or numeracy as appropriate; 12.D.4: Develop communication skills, both orally and in writing. Communicate clear, succinct, analytical ideas; 12.D.5: Prepare and deliver oral presentations individually and as part of a group.

List of Lecture Topics

1. Introduction and Basic Accounting plus Finance Review. 2. The Cost of Capital. 3. Financial Planning and Forecasting. 4. Capital Structure Decisions. 5. Lease Financing. 6. Hybrid Financing. 7. Distributions to Shareholders: Dividends and Repurchases. 8. Evaluating Cash Flows. 9. IPOs, Mergers, LBOs, Divestitures, and the Role of Investment Banks. 10. Multinational Financial Management

Learning and Teaching Methods Achievement of learning outcomes: the learning outcomes for this course are achieved through student participation in lectures (compulsory), in their active participation in seminars (compulsory), and in their fulfilment of the assessed elements (compulsory). This is a ten week course that is offered entirely online. In each week there is a lecture presentation for approximately one hour, plus an interactive seminar discussion for approximately one hour. Lecture presentations led by the course professor. The lectures are designed to introduce key theories, practices, and methods in corporate finance, and to guide students through an understanding of their rationale, their uses, and their limitations, so that students may both understand and reflect critically

upon the techniques of corporate finance in general, as well as the specific practices in relation to the real estate firm. The lectures contribute to the achievement of learning outcomes by guiding students through the main theories, concepts, and debates in the scholarly literature, as well as the contested concepts and methods. Seminar Discussions are led by students under guidance of the course professor. The seminar is the opportunity for students to gain clarification of the lecture material and the reading materials. Also, through these guided discussions, it is intended that students will gain a comprehensive understanding by linking lectures, independent reading and class discussion, enabling students to apply concepts, theories, and methods to the practice of corporate finance. Through dialogue, interaction, cooperation, and confrontation, students learn to formulate, structure, and defend their perspectives. Independent Study: students are expected to read the stipulated text for each lecture and seminar session, as well as to read more widely in recommended texts for this course. Additionally, students are expected to conduct independent research for their contribution to seminar discussions, and for their research project. Learning outcomes for independent study are achieved through students’ own reading, research and preparation, seminar presentations, and in their research project.

Indicative Reading List Brigham, E.F. and M.C. Ehrhardt, Financial Management, Theory and Practice, latest edition.

Method of Assessment (and how the chosen method of assessment is related to learning outcomes) Students will be assessed on the basis of Exams, Assignments, and Class Group Case Study. The unseen timed examinations provide students with the opportunity to demonstrate their ability to retain and call upon specific knowledge in response to targeted questions, under the time strictures that replicate life in the professional world. Examinations test the student’s ability to reflect upon issues quickly, and to use reasoned judgement in response to questions. The Class Group Project provides students with an opportunity to work in groups and to focus in depth on the structured investigation of a case study. This enables students to demonstrate acquired knowledge and understanding of the key concepts, display an ability to find organise and use information, and interpret this material in a creative fashion, as well as to gain the key transferrable skills of working in groups and cooperating with others. Assignments enable students to work independently on specific issues and questions in corporate finance, and to demonstrate their skills in finding and analysing materials appropriate to answering a question, as well as using their judgement, analytical skills in formulating reasoned argumentations, and the skills in presenting their work in an appropriate format using academic conventions.

Contributions to class discussions (participation) provides students with an opportunity to demonstrate their preparation for class, through presentations designed to lead discussion and to engage debates and other issues in a scholarly manner. Contributions to class discussions are not formally assessed in this class, but student interventions in the discussion contribute to the achievement of the intended learning outcomes.

Summary of Assessed Elements, and Percentage Weight of Each Element Mid Term Exam 25% Final Exam 25% Assignments 20% Case Study 30%