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JOHN CABOT UNIVERSITY

COURSE CODE: "FIN 301-2"
COURSE NAME: "Finance "
SEMESTER & YEAR: Fall 2019
SYLLABUS

INSTRUCTOR: Sathya Mellina
EMAIL: [email protected]
HOURS: TTH 6:00-7:15 PM
TOTAL NO. OF CONTACT HOURS: 45
CREDITS: 3
PREREQUISITES: Prerequisites: FIN 201, FIN 202, EC 202, MA 208
OFFICE HOURS: 7:15-7:45PM after class by appointment.

COURSE DESCRIPTION:
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.
SUMMARY OF COURSE CONTENT:

Note: This is just a preliminary draft of the syllabus. At the start of the semester I will post on MYJCU and hand out in class the official syllabus (spelling out all of my policies, examination dates etc.).

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 - it is not an "introductory" class.  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-students.  The course id is FIN 301-2 FA 19.

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].

LEARNING OUTCOMES:

Understand the measurement of cash flow and its central role in financial analysis.

Learn how to evaluate firms' decision with simple financial models.

Learn time value of money concepts and their application to financial problems.

Learn how to value bonds and make investment decisions analyzing interest rate risk, yield curves, and reinvestment options.

Understand how to value stocks using the dividend growth models and methods of comparables.

Undertake a captial budeting case to learn capital budgeting concepts – NPV, IRR, MIRR, WACC - and learn to apply risk analysis to capital budgeting decisions using a financial model.

Review capital market history, understand the risk-return relationship (the CAPM) and the efficient markets hypothesis.

Learn the basics of portfolio theory and the risk-return tradeoff.

Learn about international finance to include interest rate parity, purchasing power parity, and international capital budgeting risks.

Learn about the basics of hedging to include forwards, futures, and options.

Understand the importance of ethical issues in finance and develop an awareness of the CFA Code of Ethics and Standards of Professional Conduct.

Develop stronger analytical skills that allow for the evaluation of financial decisions that include understanding their role of the overall economic environment.
TEXTBOOK:
Book TitleAuthorPublisherISBN numberLibrary Call NumberComments
Corporate Finance, 11th EditionRoss, Westerfield, and JordanMcGraw Hill978-0077861759 Any edition by the same authors will do.
REQUIRED RESERVED READING:
NONE

RECOMMENDED RESERVED READING:
NONE
GRADING POLICY
-ASSESSMENT METHODS:
AssignmentGuidelinesWeight
Exam 1Problem-solving, short answers.20%
Exam 2Problem-solving, short answers.20%
Exam 3Case study on international capital budgeting: 3 to 4 page financial report plus in-class exam.20%
Final ExamComprehensive problem-solving exam.35%
External Funding Needed AssignmentGuideline provided in class. This assignment includes a short inclass quiz.5%

-ASSESSMENT CRITERIA:
A Work 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-
B This 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-
C This 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-
D This 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-
F This 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 REQUIREMENTS:

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 shifting 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 informally assess it should you wish 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.

ACADEMIC HONESTY
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.
STUDENTS WITH LEARNING OR OTHER DISABILITIES
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.

SCHEDULE

This syllabus may be subject to changes.

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, 20
Chapter 4: Discounted Cash Flow Valuation
Friday: Make-up for Thursday, November 28

Week 4: September 24, 26
Project 1 due Tuesday; Short in-class quiz
Chapter 4: (cont.)
Chapter 10: Risk and Return: Lessons from Market History

Week 5: October 1, 3
Tuesday: Exam 1: Chapters 2, 3, 4, 10
Chapter 8: Interest Rates and Bond Valuations (include the brief discussion long-term debt basics in Chapter 15: pp. 476-481)

Week 6: October 8, 10
Chapter 8: (cont.)

Week 7: October 15, 17
Tuesday, Exam 2: Chapters 4, 8, 10
Chapter 11: Return and Risk: The Capital Asset Pricing Model (CAPM) (leave out sections 11.7 and 11.8)

Week 8: October 22, 24
Chapter 11 (cont.)
Begin Capital Budgeting Case
Chapter 5: Net Present Value and Other Investment Rules

Week 9: October 29, 31
Chapter 6: Making Capital Investment Decisions

Week 10: November 5, 7
Chapter 13: Risk, Cost of Capital and Valuation (sections 13.8, 13.9)
Chapter 7: Risk Analysis, Real Options, and Capital Budgeting

Week 11: November 12, 14
Chapter 7: (cont.)
Thursday, Exam 3: Capital Budgeting Case Due; Exam Chapter 5 and problems from case spreadsheet.

Week 12: November 19, 21
Chapter 9: Stock Valuation (cont.)
Chapter 14: Efficient Capital Markets and Behavioural Challenges

Week 13: November 26, 28
Chapter 31: International Corporate Finance

Week 14: December 3, 5
Chapter 25: Derivatives and Hedging Risk

Week 15: Final Exam Chapters 2, 3, 4, 8, 9, 10, 11, 14, 25, 31
See University schedule for day and time