Associate Professor George Heberton Evans, Jr. taught the undergraduate course in corporation finance and investments at Johns Hopkins in the 1937-1938 academic year. Economics in the Rear-view Mirror has already posted some background information about him: Ph.D. from Johns Hopkins University, 1925.
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Course Description
6 B. Corporation Finance and Investments. Associate Professor Evans. Three hours weekly, through the year. Th., F., S., 10.30. Gilman Hall 314.
In the first part of this course the theory and practice of corporation finance will be considered with particular reference to the problems presented in the United States. The more important topics taken up include: advantages and disadvantages of corporate organization; classification and examination of the characteristics of stocks and bonds; the choice of different types of securities to be issued; methods by which these securities are floated; the methods and forms of syndicate underwriting; policy with reference to dividends and surplus; refunding of debt and provisions for amortization; receivership and reorganization.
The second part of the course will be devoted to the study of investments. The more important topics covered include: an analysis of the essentials of a good investment; an historical study of the rate of interest and of periodic fluctuations in the rate; definition of the essential legal characteristics of the various debt instruments and especially of the mortgage; historical and analytical description of the more important forms of investment, such as Government, State and municipal bonds, securities of private corporations, and real estate mortgages; theories of valuation and amortization.
Prerequisites: Political Economy 1 C, 2 C and 11 B.
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Course Examinations
THE JOHNS HOPKINS UNIVERSITY
MID-YEAR EXAMINATION
POLITICAL ECONOMY 6 B
Dr. Evans
February 4, 1938
9 a.m.
- Discuss the risks peculiar to the ownership of holding company securities.
- Discuss the trust as a method for effecting combination.
- What is the law of balanced return and how is it employed in corporation finance?
- What factors determine how much of a corporation’s earnings should be distributed to the stockholders?
- List the factors which are to be considered when drawing up a financial plan. Comment at some length upon two of the factors which you have listed.
- What is meant by trading on the equity? What principles may be set forth concerning trading on the equity?
- What is the chief advantage of the corporate form of enterprise?
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THE JOHNS HOPKINS UNIVERSITY
FINAL EXAMINATION
IN
POLITICAL ECONOMY 6 B
Dr. Evans
May 31, 1938
1 p.m.
- What advantages arise out of timing bond investments? Answer in terms of the concepts employed in the course.
- When can an investor afford to overlook the possibility that a loan will not be paid at maturity? Discuss fully.
- What has been the relationship between the changes in the prices of goods and capital? How do you explain the relationship?
- When are the market forecasts of the probabilities with respect to the payment of principal and interest of bonds more likely to be consistent with the results?
- Discuss the investment trust or company as an investment mechanism.
- What seems to you to be the prospect with respect to the rate of interest? Give the bases for your opinion.
Source: Johns Hopkins University, Eisenhower Library. Ferdinand Hamburger, Jr. Archives. Department of Political Economy. Curricular Materials. Series 6. Box 2. Folder “Department of Political Economy — Exams, 1936-1940”.
Image Source: Johns Hopkins University, Sheridan Libraries, Graphic and Pictorial Collection. George Heberton Evans at approximately 40 years old. The portrait was colorized by Economics in the Rear-view Mirror.