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COURSE NAME: "Finance "
SEMESTER & YEAR: Fall 2018

EMAIL: [email protected]
HOURS: MW 8:30-9:45 AM
PREREQUISITES: Prerequisites: FIN 201, FIN 202, EC 202, MA 208
OFFICE HOURS: 8:00-8:30 before class by appointment

This course examines both the theoretical and applied foundations required to make decisions in financial management. The main areas covered include an  overview of the financial system and the efficiency of capital markets, evaluation of financial performance, time value of money, analysis of risk and return, basic portfolio theory, valuation of stocks and bonds, capital budgeting, international financial management, capital structure management, and the CFA Institute Code of Ethics and Standards of Professional Conduct.
This course covers topics in finance: financial statement analysis, the operations of financial markets and their efficiency, international financial transactions, time value of money, diversification and analysis of risk, valuation of financial assets (stocks and bonds), capital budgeting, capital structure, and an introduction to derivatives. Emphasis is given to both theory and application with particular attention paid to using spreadsheets for building simple financial models, working with a case study, and the writing of brief reports.

Please note that the course is a 300-level course in finance with a prerequisite of one year of accounting (financial and managerial), and a semester each of statistics and macroeconomics which includes college algebra.  Students should be prepared to review some of this material as part of the course.

The course materials are posted on Moodle, our leaning management system, available at http://moodle.johncabot.edu/ .

You have to create your own account, unless you already have one. Information on creating moodle accounts can be found at https://johncabot.libguides.com/moodle.  The course id is Finance301

Once you are logged in, search for the course (pay attention to the right section, if necessary). You will then be prompted to enter an enrollment key to access the course. For this course the enrollment key will be given in class.


If you have technical problems at any stage of this process, get in touch with [email protected].


· Develop critical analysis with respect to finance and economic decisions

· Learn to use quantitative methods to assist in critical analysis of investment decisions

· Analyze financial statements with Excel

· Write up financial reports

· Use the Internet to find and interpret basic financial data

· Gain competency in financial tools to promote continuous learning including a clear understanding of time value of money, valuation, and measures of risk and return

· Analyze financial situations to improve decision-making skills

· Apply economic concepts to financial decision-making

· Develop an awareness of ethical issues in finance based on the CFA Institute's Code of Ethics and Standards of Professional Conduct

Book TitleAuthorPublisherISBN numberLibrary Call NumberComments
Corporate Finance, 11th EditionRoss, Westerfield, and JordanMcGraw Hill978-0077861759 A new book is expensive; students can use an earlier edition (8th, 9th, 10th) and purchase it used.

Exam 1Problem-solving, short answers.20%
Exam 2Problem-solving, short answers25%
Exam 3Case study on international capital budgeting: 3 to 4 page financial report plus in-class exam.25%
Final ExamComprehensive problem-solving exam.25%
External Funding Needed AssignmentGuideline provided in class. This assignment includes a short inclass quiz.5%

AWork of this quality directly addresses the question or problem raised and provides a coherent argument displaying an extensive knowledge of relevant information or content. This type of work demonstrates the ability to critically evaluate concepts and theory and has an element of novelty and originality. There is clear evidence of a significant amount of reading beyond that required for the course. 94 to 100 A; 90 to 93 A-
BThis is highly competent level of performance and directly addresses the question or problem raised.There is a demonstration of some ability to critically evaluatetheory and concepts and relate them to practice. Discussions reflect the student’s own arguments and are not simply a repetition of standard lecture andreference material. The work does not suffer from any major errors or omissions and provides evidence of reading beyond the required assignments. 87 to 89 B+; 84 to 86 B; 80 to 83 B-
CThis is an acceptable level of performance and provides answers that are clear but limited, reflecting the information offered in the lectures and reference readings. 75 to 79 C+; 70 to 74 C; 65-69 C-
DThis level of performances demonstrates that the student lacks a coherent grasp of the material.Important information is omitted and irrelevant points included.In effect, the student has barely done enough to persuade the instructor that s/he should not fail. 60 to 65 D+; 55 to 59 D; 50 to 54 D-
FThis work fails to show any knowledge or understanding of the issues raised in the question. Most of the material in the answer is irrelevant. Below 50.


Attendance at lectures and participation in class discussion is strongly encouraged. The final exam is comprehensive so students who miss four classes or less (excused or unexcused) will have the option of dropping the lowest grades of  Exams 1, 2, or both and shift the weights to the comprehensive final exam. Students who arrive after the roll-call will be counted as absent. 

Students who miss a midterm exam (with a formal excuse from the Dean's Office) will shift the weight to the final exam; you will be given the midterm to take on your own time under exam conditions and I will assess it so that you can check on the progress of your studies.  No make-up exams will be given unless approved by the Dean's Office: see the University's policies for missed exams and refer to the Associate Dean.

Students must bring (and use) a basic calculator to class that includes the exponential function. During class no electronic devices are allowed unless there is a specific project we are working on which will be indicated by the instructor.   Cell phones and other electronic devices may not be used during an exam.  No eating in class.


As stated in the university catalog, any student who commits an act of academic dishonesty will receive a failing grade on the work in which the dishonesty occurred. In addition, acts of academic dishonesty, irrespective of the weight of the assignment, may result in the student receiving a failing grade in the course. Instances of academic dishonesty will be reported to the Dean of Academic Affairs. A student who is reported twice for academic dishonesty is subject to summary dismissal from the University. In such a case, the Academic Council will then make a recommendation to the President, who will make the final decision.
John Cabot University does not discriminate on the basis of disability or handicap. Students with approved accommodations must inform their professors at the beginning of the term. Please see the website for the complete policy.


Week 1: September 3, 5
Chapter 1: Introduction to Corporate Finance
Chapter 2: Financial Statements and Cash Flows

Week 2: September 10, 12
Chapter 3: Financial Statement Analysis and Financial Models

Week 3:  September 17, 19
Chapter 4: Discounted Cash Flow Valuation

Week 4: September 24, 26
Chapter 4: (cont.)
Monday, Quiz on Assignment 1 (EFN).
Wednesday, Exam 1: Chapters 2, 3, 4. 

Week 5: October 1, 3
Chapter 8: Interest Rates and Bond Valuations

Week 6: October 8, 10
Chapter 10: Risk and Return: Lessons from Market History
Chapter 11: Return and Risk: The Capital Asset Pricing Model (CAPM)

Week 7: October 15, 17
Chapter 9: Stock Valuation

Week 8:  October 22, 24
Wednesday: Exam 2: Chapters 8, 9, 10, 11

Week 9: October 29, 31
Being Capital Budgeting Case
Chapter 5: Net Present Value and Other Investment Rules
Chapter 6: Making Capital Investment Decisions
Chapter 7: Risk Analysis, Real Options, and Capital Budgeting

Week 10: November 5, 7
Capital Budgeting Case (cont.)

Week 11: November 12, 14
Capital Budgeting (cont)
Chapter 31: International Corporate Finance

Week 12: November 19, 21
Capital Budgeting (cont.)
Wednesday: Capital Budgeting Case Project Due with in-class quiz.

Week 13:  November 26, 28
Chapter 31:  (cont.)
Chapter 25: Derivatives and Hedging Risk

Week 14: December 3, 5
Chapter 25: (cont.)

Week 15: Final Exam:  See University schedule for day and time.