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JOHN CABOT UNIVERSITY

COURSE CODE: "FIN 301"
COURSE NAME: "Finance"
SEMESTER & YEAR: Spring 2023
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 MW and 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/ .

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
Fundamentals of Corporate Finance 12th EditionRoss, Westerfield, Jaffe, and JordanMcGraw Hill9781260091908 Any edition will do. You need the book for the class.   
REQUIRED RESERVED READING:
NONE

RECOMMENDED RESERVED READING:
NONE
GRADING POLICY
-ASSESSMENT METHODS:
AssignmentGuidelinesWeight
Exam 1Problem-solving, short answers.15%
Exam 2Problem-solving, short answers15%
Exam 3Problem solving, short answers.15%
Exam 4Case study write up plus short in class problem-solving exam.15%
Project on External FinancingBuild a financial model on external financing needed and submit. 5%
Final ExamComprehensive final exam: problem-solving, short answers.35%

-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+; 65 to 74 C; 60-64 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. 55-59 D+; 50to 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. Students may miss up to 6 classes without an excuse.  The final exam is comprehensive so students who meet the attendance requirement will have the option of dropping TWO of the lowest grades of Exams 1, 2, or 3 (Exam 4 cannot be dropped) and shifting the weights to the comprehensive final exam.  The instructor will automatically do this when assigning the final grade.

Students who miss an 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 it will be informally assess should you wish to check on the progress of your studies.  No make-up exams will be given.  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 or if using a tablet to take notes.   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 (including Exam Dates) may be subject to changes.  

 Week 1: January 16, 18

Chapter 1: Introduction to Corporate Finance
Chapter 2: Financial Statements and Cash Flows


Week 2: January 23, 25
Chapter 3: Working with Financial Statements

Chapter 4:  Long-term Financial Planning and Growth


Week 3:  January 30, February 1

Chapter 4: (cont).


Week 4: February 6, 8, 10

Exam 1:  Wednesday, February 8:  Chapters 1, 2, 3, and 4.

Project 1 due Wednesday, February 8 beginning of class: upload to Moodle.

Chapters 5 and 6:  Introduction to the Time Value of Money & Discounted Cash Flow Valuation

Week 5: February 13, 15

Chapters 5 & 6 cont.


Week 6: February 20, 22

Chapter 7: Interest Rates and Bond Valuations

 

Spring break


Week 7: March 6, 8

Chapter 8: Stock Valuation

Wednesday, March 8: Exam 2:  Chapters 5, 6, 7


Week 8:  March 13, 15

Chapter 12: Some Lessons from Capital Market History

Chapter 13: Return and Risk and the Security Market Line

 

Week 9: March 20, 22

Chapter 13: (cont.)


Week 10: March 27, 29, 31 (class make-up on Friday March 31 for class cancelled on Monday, March 27).

Class cancelled Monday, March 27; Make-up Friday, March 31.

Exam 3:  Wednesday, March 29 Chapters 8, 12, 13

 

Week 11: April 3, 5

Begin Capital Budgeting Case

Chapter 9: Net Present Value and Other Investment Rules; Chapter 10: Making Capital Investment Decisions; Chapter 11: Project Analysis and Evaluation

 

Week 12: April 12

Continue capital budgeting case.


Week 13:  April 17, 19

Continue capital budget case.

Capital Budgeting Case Due at 23:59 Wednesday, April 19.

Exam 4:  Wednesday, April 12. Short quiz on capital budgeting case and basic problems.

 

Week 14: April 24, 26

Chapter 31: International Corporate Finance

Chapter 23:  Section 23.4 Hedging with Future Contracts


Week 15: Final Exam week May 2 to 5.  Chapters 2, 3, 4, 5, 6, 7, 8, 12, 13, 31. See University schedule for day and time.