(the best way to reach me is to use e-mail; I check e-mails frequently)

Prerequisites

ECO 202, ACC 202

Objectives

Fin300 is designed to give students a working knowledge of the tools and analytical conventions used in corporate finance. It is intended primarily for those with no prior finance background. The course’s content emphasizes the basic elements of financial theory which enable students to apply sound analytical reasoning to a wide range of business problems. A variety of problem sets will be discussed to help students understand the materials covered in class. Since this course is critical for providing the foundation of further work in Finance, students successfully completing this course will have the necessary tools and understanding of the subsequent Finance courses.

Required Materials

Ross, Westerfield, and Jordan, Essentials of Corporate Finance, Second Edition.

It is important that you read the assigned chapters and become acquainted with how to solve the assigned problems before it is discussed in class. The assigned problems are subject to change depending on the progress of the course. A calculator will be required for the quizzes and the exams; financial calculator is recommended but not required.

Copies of slides used for lecture will be available on my office wall; make sure to return them after you copy.

Exams

There will be three noncumulative regular exams (100 points each) and an optional cumulative final exam (125 points); the exams will be multiple choice and problems.

No student is required to take the final exam except those who have missed any of the three regular exams. Thus, the final exam is optional only for the students who have taken the three regular exams. If students have missed any of them, the final exam is required. Because of this accommodation, no make-ups will be given.

Quizzes

There will be 10 quizzes on a scheduled date; the quizzes will be multiple choice and/or problems. Anyone not in attendance will receive a zero unless it is a proper excuse as defined in the Student Rights and Responsibilities; you must notify me of your excuse in advance and present proof, if possible. However, your one lowest quiz will be dropped during the semester for any reason (that is, I will count only nine out of ten). The quizzes will cover the most important topics covered in class including previous classes. If you are unprepared, then may be difficult.

Total points for the semesters are:

If the final exam is taken,

3 Regular Exams @100 pts. Each = 300

9 Weekly Quizzes @10 pts. Each = 90

1 Final Exam @125 pts. = 125

Total 515

If the final exam is not taken,

3 Regular Exams @100 pts. Each = 300

9 Weekly Quizzes @10 pts. Each = 90

Total 390

Grading

If the final exam is taken,

Points Grade

463 – 515 (90%) A

412 – 462 (80%) B

360 – 411 (70%) C

309 – 359 (60%) D

below 308 E

If the final exam is not taken,

Points Grade

351 – 390 (90%) A

312 – 350 (80%) B

273 – 311 (70%) C

234 – 272 (60%) D

below 223 E

Academic dishonesty

Cheating is a serious academic offense. The minimum penalty for a confirmed cheating offense is an “F” grade for the course. However, the Finance department will seek more severe sanctions, including suspension from the university for at least one semester.

ADA

If you have special needs as addressed by the Americans with Disabilities Act, you should notify me immediately.

Tentative Schedule

Date Topic Comments

8/26 Ch.1 Introduction to corporate finance

8/31 Ch.2 Financial statements

Problems Ch2-1,2

9/2 Ch.2 Financial statements

Problems Ch2- 8,11,12,13 and Quiz #1

9/7 Ch.3 Working with financial statements

9/9 Ch.3 Working with financial statements

Problems Ch3- 4,5,6,7,15 and Quiz #2

9/14 Ch.4 Time value of money

9/16 Ch.4 Time value of money

Problems Ch4- 6,7,8,9,10 and Quiz #3

9/21 Ch.5 Discounted cash flow valuation

9/23 Ch.5 Discounted cash flow valuation

Problems Ch5- 3,7,25,33 and Quiz #4

9/28 Ch1-5 Wrap-up and review

9/30 EXAM #1 Chs.1,2,3,4,5

10/5 Ch.6 Interest rates and bond valuation

10/7 Ch.6 Interest rates and bond valuation

Problems Ch6-3,4,5,6 and Quiz #5

10/12 Ch.7 Equity markets and stock valuation

10/14 Ch.7 Equity markets and stock valuation

Problems Ch7-1,2,3,4 and Quiz #6

10/19 Ch.8 Net present value and other investment criteria

10/21 Ch.8 Net present value and other investment criteria

Problems Ch8-2,5,6 and Quiz #7

10/26 Ch.6-8 Wrap-up and review

10/29 EXAM #2 Chs. 6,7,8

11/2 Ch.10 Capital market history

Ch.11 Risk and return

11/4 Ch.11 Risk and return

Problems Ch11-7 and Quiz #8

11/9 Ch.12 Cost of capital

11/11 Ch.12 Cost of capital

Problems Ch12-1,2,7,10 and Quiz #9

11/16 Ch.14 Dividends and dividend policy

11/18 Ch.14 Dividends and dividend policy

Ch.16 Short-term financial planning

11/23 Ch.16 Short-term financial planning and Quiz #10

11/25 Thanksgiving break

11/30 Chs.10,11,12,14,16 Wrap-up and review

12/2 EXAM #3 Chs. 10,11,12,14,16

12/7 Review Return Exam #3 and review Chs. 1,2,3,4,5

12/9 Review Chs. 6,7,8,10,11,12,14,16

12/16 Final Exam Thursday, 3:30 PM – 5:30 PM