FIN 311 Syllabus for Fall ’09 B
Written on September 15, 2009 – 2:36 pm | by Blogmaster
SYLLABUS
FALL(B) 2009
COURSE FIN311 Celebration Basic Finance
INSTRUCTOR Dr. J. Foo
Phone: 822-7424; Email: jfoo@stetson.edu
TEXT Principles of Managerial Finance by Lawrence Gitman, 12th ed. 2009, Pearson-Prentice Hall.
WELCOME to Business Finance. The objective of this course is to provide you with a basic knowledge of corporate finance and how companies invest and manage real assets and how they raise money to pay for these investments. This course focuses on how financial managers make financial decisions and how the firm’s owners would like the managers to increases the firm value.
MY TEACHING PHILOSOPHY is that an educated person is one who maximizes the value of his/her education through active participation in the learning process and who can think critically. A successful, educated person can apply and explain a complex concept he/she has learned in a new environment simply and accurately. To be successful, you should (1) participate actively in the classroom learning process, (2) ask questions when you are unsure of the material, (3) take responsibility and consequences for your actions. You receive the most benefit from active participation in the classroom and attempt to complete the assignments.
YOU ARE RESPONSIBLE for all materials covered in class and for all reading assignments. All reading assignments should be completed prior to the lecture. If you miss a lecture, it is your responsibility to obtain the materials covered from other students in class.
STETSON HONOR SYSTEM is in place. The student governing body has agreed to this Honor Pledge. My classes will be taught under the auspices of the Stetson University Honor System and students in my class will agree to abide by the policies and consequences as specified in my syllabus and the Honor System.
IMPORTANT POLICIES AND PROCEDURES. PLEASE READ CAREFULLY.
- 1. NO MAKEUP QUIZ OR EXAM. I do not give makeup exams and quizzes because it is impossible to make up a similar quiz or exam without placing a student at either an advantage or disadvantage.
- 2. I must be informed before the missed quiz or exam to count as an excused absence. If you cannot reach me, leave a message on my voice mail (INDICATE THE TIME), email or notify the department secretary and leave a message for me. If I am notified after the exam or quiz you will receive a grade of zero. Your excuse must then be submitted to me in writing within one class period and it must contain a telephone number so that I can verify your absence. Failure to follow the guidelines will mean that you forfeit the excused absence option.
- 3. NO ADDITIONAL WORK OR PROJECTS. I do not give additional work or projects for extra credit to increase your grade before or after a quiz or exam without being unfair to other students.
- 4. Although I will try to follow the class syllabus and objectives closely, adjustment may be necessary depending on time constraint. Supplementary material, assignments or cases may be handed out and discussed in class.
- 5. ABSENCES count towards a subjective evaluation of your final grade. It is your responsibility to obtain material and announcements covered in class that you missed from your classmates.
- 6. CUMULATIVE QUIZZES AND EXAMS. The final grade composition is given below. Note that all quizzes and exams are cumulative. Excessive argumentation over points, grades or partial credits will not necessarily improve your grade. Do not presume that partial credits will be given for incomplete or wrong answers.
- 7. GRADES.
The final grade is based on the following weights:
Exam 1 …… 20% = 50 points
Exam 2 …… 20% = 50 points
Group Project/Class Presentation …… 10% = 20 points
Class/Group Assignments …… 10% = (TBA)
Final Exam …… 40% = 60 points
Total 100%
Grades represent the instructor’s final evaluation of the student’s performance in a course. The grade of A may be interpreted to mean that the instructor recognizes exceptional capacity and exceptional performance in a student. The grade of B signifies that the student has gained a significantly effective command of the material than is generally expected in a course. The grade of C is the instructor’s certification that the student has demonstrated the average knowledge of the material. A student is graded C- or D when a student’s grasp of the course essentials is minimal. The F grade indicates failure to master the essentials and the necessity for repeating the course before credit may be earned. Exams are “difficult” only if you do grasp the material or you do not know how to apply the material.
Grades: If you have any questions regarding grading, you must bring it to my attention as soon as possible once the grade is communicated to the class. Failure to do so may result in my refusal to reconsider any changes to your grade.
Final grades are based on the student’s demonstrated performance in this course. Personal, professional and athletic circumstances which occurred during the semester and which precluded the student from performing at a satisfactory level cannot be considered in the determination of the final grade.
QUIZZES AND EXAMS SCHEDULE
Exam 1 Oct 31
Exam 2 Nov 21
Project Presentation Dec 12
Final Exam Dec 12
- 8. GROUP PROJECT
A group project is required. Each group will select a current topic of their choice related to finance at the beginning of the term and work on it as a group. Eg. A corporation and its operations or strategies, corporate financial problems, financial market trends or problems, current financial news, etc. The list is by no means exhaustive. A cursory look at any financial publications like the Wall Street Journal, Businessweek, Forbes, will give you some ideas of current topics.
The written report is to be a maximum of 5 pages, double spaced, 12-font with references. Each group will present their chosen finance topic to the class on the date assigned and the completed paper and an electronic copy of the powerpoint, if used, is due and must be submitted (or emailed) to me on the same day. The benefit is to build up your oral presentation skills. Each group has 20-25 minutes to present their paper. Be sure to start on your research topic early. If you have any questions, feel free to come and discuss it with me.
Topic Chapter Assignment
I. Introduction to Managerial Finance
The Role and Environment of Managerial Finance 1
What is Finance
Legal forms of Business organization
Business Taxes
Financial Statement Analysis
The Balance Sheet 2
The Income Statement
Financial Ratio Analysis
Cash Flow and Financial Planning (READ) 3
Analyzing Cash Flow
Cash Planning
II. Important Financial Concepts
The Role of Time Value in Finance 4
Future Values and Compound Interest
Present Value and Discounting
Perpetuities and Annuities
Risk and Return 5
Risk and Diversification
Measuring Market Risk
Measuring a Portfolio’s Beta
The Investor’s Required Rate of Return
Valuation and Characteristics of Bonds 6
Bond Characteristics
Bond Prices and Yields
Stock Valuation 7
Stocks and the Stock Market
Valuing Common Stocks
Simplifying the Dividend Discount Model
III. Long-Term Investment Decisions
Capital Budgeting Cash Flows 8
Capital Decision Process
Operating Cash Flows
Capital Budgeting Techniques 9
Net Present Value
Internal Rate of Return
Risk and Refinements in Capital Budgeting (READ) 10
Behavioral Approaches for Dealing with risk
Capital Budgeting Refinements
IV: Long Term Financial Decisions
The Cost of Capital 11
The Cost of Capital
The Weighted Average Cost of Capital
Measuring Capital Structure
Calculating Required Rates of Return
LEARNING OBJECTIVES
By course completion, students will be able to define:
- The Role of the Financial Manager
- Goals of the Corporation
- The Compounding of Interest
- Future Value and Present Value of Cash Flows
- Valuing Stocks and Bonds
- The Discounting of Dividends
- The Net Present Value of Cash Flows and other Investment Criteria
- The Risk and Return from Investments
- The Risk and Portfolio Diversification
- Measurement of Market Risk
- The Cost of Capital
STUDY HINTS FOR THE COURSE
Each Chapter session is posted up on the Blackboard. Review these chapter outlines. Print a copy and bring it to class for note taking if you wish. My outlines are provided to aid you in your learning experience, so that you can follow and listen more to the material being presented in class rather than being busy copying notes. Half the studying is done for the course if you come to class and listened and learned.
- NOTE TAKING. Input more space in the outline for each chapter to take notes during class. REVIEW your notes for each item after class as soon as possible and do the following:
Read the corresponding material for each item in the textbook and fill in the gaps in your notes. Spend more time going over your notes and add and translate the material in your own words. Be sure to read the Chapters in the book. My handouts are not substitutes for the textbook. They are to be used to complement the textbook.
- Ask questions at the beginning of the next class if you don’t understand the material.
- Summarize the key concepts and points at the end of each review session.
- Link the material to the previous material covered in class.
2 Each review and translation session should take you about 1½ hours. This active learning process does more for your understanding and retention of the material than just simply reading and memorizing the texts. Just memorization does not promote critical thinking and understanding and application of the material learned.
3 Please ask questions in class if you don’t understand something. There may be others in class who may also benefit from your questions. Remaining silent if you don’t understand will not promote your knowledge.
4 Complete problem set assignments if they are handed out to practice applying the concepts you have learned.
Five Steps Toward Good Grades
- Good note-taking skills – develop a set of abbreviations for common words, write down the facts you don’t already know, don’t write in complete sentences (this takes time, keep focused on your professor (looking him or her in the face will help).
- Devotion to daily homework – keeping up is essential, do your assignments when they are assigned rather than wait until the night before, read your textbook and highlight the main ideas or jot them down in your notes.
- Review notes and assignments daily – go back over your notes each night, pace yourself by reviewing each day instead of cramming before a test, write down any questions you have and bring them to class.
- Manage your time – plan at least two hours of study time for each hour of class, make a schedule of all the things you need to do and stick to it.
- Prior to a test – start studying early (even as soon as the test is announced), do not cram, use learning aids like flash cards or mnemonic devices, take study breaks to relieve tension, get rest the night before the exam, write down key words or lists when you receive your test.