JCU Logo
JOHN CABOT UNIVERSITY

COURSE CODE: "FIN 301-1"
COURSE NAME: "Finance"
SEMESTER & YEAR: Spring 2020
SYLLABUS

INSTRUCTOR: Mary Merva
EMAIL: [email protected]
 HOURS: MW 8:30 AM 9:45 AM
TOTAL NO. OF CONTACT HOURS: 45
CREDITS: 3
PREREQUISITES: Prerequisites: FIN 201, FIN 202, EC 202, MA 208
OFFICE HOURS: 8:00-8:30 before 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:
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.  The course id is FIN301-1SP20

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 NumberCommentsFormatLocal BookstoreOnline Purchase
Corporate Finance, 11th EditionRoss, Westerfield, and JordanMcGraw Hill9780077861759 Any previous edition by the 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 answers20%
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:
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 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.

Due to professional committments of the instructor, classes are cancelled Monday, March 30 and Wednesday, April 1.  The Make-up class is will be held Friday, April 3 and classes will begin at 8:15 instead of 8:30 for weeks 4 and 5.

 


 
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 (including Exam Dates) may be subject to changes.  

SCHEDULE

This syllabus may be subject to changes.

Week 1: January 20, 22
Chapter 1: Introduction to Corporate Finance
Chapter 2: Financial Statements and Cash Flows

 Week 2: January 27, 29
Chapter 3: Financial Statement Analysis and Financial Models 

Week 3:  February 3, 5 
Chapter 4: Discounted Cash Flow Valuation

 Week 4: February 10, 12, 14 – meet at 8:15am
Project 1 due Wednesday; Short in-class quiz Project and Chapter 3 EFN.
Chapter 4: (cont.)
Chapter 8: Interest Rates and Bond Valuations (include the brief discussion long-term debt basics in Chapter 15: pp. 476-481)

Week 5: February 17, 19 – meet at 8:15am
Chapter 8: (cont.)

Week 6: February 24, 26
Review
Wednesday: Exam 1: Chapters 2, 4, 8

Week 7: March 2, 4
Chapter 10: Risk and Return: Lessons from Market History
Chapter 11: Return and Risk: The Capital Asset Pricing Model (CAPM) (leave out sections 11.7 and 11.8)

 

Spring Break

Week 8:  March 16, 18
Chapter 9: Stock Valuation
Chapter 14: Efficient Capital Markets and Behavioral Challenges

Week 9: March 23, 25
Begin Capital Budgeting Case
Review
Wednesday, March 25:  Exam 2: Chapters 9, 10, 11, 14.

Week 10: March 30, April 1; MAKE-UP class Friday, April 3rd.
Class cancelled Monday, March 30th and Wednesday, April 1st

Make-up:  Friday, April 3rd (plus class begins 8:15 for Weeks 4 and 5).

Chapter 5: Net Present Value and Other Investment Rules
Capital Budgeting Case Study 

 

Week 11: April 6, 8

Chapter 6: Making Capital Investment Decisions
Chapter 13: Risk, Cost of Capital and Valuation (sections 13.8, 13.9)
Chapter 7: Risk Analysis, Real Options, and Capital Budgeting

 Week 12: April 15
Capital Budgeting Case Study (Chapters 6, 7, 13)
Chapter 31: International Corporate Finance

 Week 13: April 20, 22 
Monday, April 20: Exam 3: Capital Budgeting Project due plus short test on capital budgeting problems.
Chapter 31: (cont)

 Week 14: April 27, 29
Chapter 25: Derivatives and Hedging Risk: Introduction.
Review

 Week 15: Final Exam Chapters 2, 3, 4, 8, 9, 10, 11, 14, 25, 31

See University schedule for day and time.