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JOHN CABOT UNIVERSITY

COURSE CODE: "FIN 301-2"
COURSE NAME: "Finance"
SEMESTER & YEAR: Spring Semester 2012
SYLLABUS

INSTRUCTOR: Pulino Silvia
EMAIL: [email protected]
HOURS: MW 11:30-12:45
TOTAL NO. OF CONTACT HOURS: 45
CREDITS: 3
PREREQUISITES: Prerequisites: FIN 201, FIN 202, EC 202, MA 208
OFFICE HOURS: Mt 2-4pm or by appointment

COURSE DESCRIPTION:
 Provide a broad survey of major areas of corporate finance and an in-depth study of specific tools such as time value of money, bond valuation and stock valuation.
SUMMARY OF COURSE CONTENT:
 This course covers the basic topics in financial management. These topics include: the operations of financial markets and their efficiency, financial statement analysis, time value of money, analysis of risk and return, valuation of financial assets (stocks and bonds), capital budgeting, and capital structure. Emphasis is given to both theory and application with particular attention on using spreadsheets for analysis of real world financial data and the preparation of brief financial reports.

LEARNING OUTCOMES:
 

· Provide a broad survey of major areas of finance: corporate finance, investments, and financial markets,

· Provide a strong background to major financial decision making tools: financial statement analysis, time value of money, risk and return,

· Introduce students to concepts and techniques in financial management and securities’ valuation.

· Develop students’ ability to use economics to analyze capital market behavior.

· Introduce students to capital budgeting and project evaluation.

· Introduce students to concepts and techniques in international finance.

· Improve the ability to communicate financial topics in short reports and presentations.

· Develop spreadsheet skills.

Understand the importance of ethical issues in finance.

TEXTBOOK:
Book TitleAuthorPublisherISBN numberLibrary Call NumberCommentsFormatLocal BookstoreOnline Purchase
Corporate Finance Michael C. Ehrhardt, Eugene F. BrighamSouth Western Cengage Learning9781439078112 Preferrably ordered through Not The Corner Book Store   
REQUIRED RESERVED READING:
NONE

RECOMMENDED RESERVED READING:
NONE
GRADING POLICY
-ASSESSMENT METHODS:
AssignmentGuidelinesWeight
Class Participation 10%
Written assignments 30%
Mid-term Exam 30%
Comprehensive Final Exam 30%

-ASSESSMENT CRITERIA:

Assessment Guidelines for assigning main letter grades: A, B, C,D, and F.

A:  Work of this quality directly addresses the question or problem raised and provides a coherent argument displaying an extensiveknowledge 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.

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 evaluate theory 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.

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.

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.

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.


-ATTENDANCE REQUIREMENTS:
Absences: no more than 3 absences allowed. Students who miss classes are responsible for the material covered and any handouts given.

Tardiness: students who are more than 10 minutes late will not be allowed in the class and will be marked absent.
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

Chapter 1: An Overview
Chapter 2: Financial Statements and Cash Flows (2.1 – 2.7)
Chapter 3: Analysis of Financial Statements – focus on commercial banks
Economics of a financial crisis – see additional readings 
Chapter 12: Financial Planning and Forecasting Financial Statements: Sales Forecasts and Additional Funds Needed (sections 12.1, 12.2, 12.3) 
Chapter  4: Time Value of Money 

Exam 1: Chapters 1, 2, 3, 4, 12

Chapter 5: Bonds, Bond Valuation, and Interest Rates
 Chapter 6: Risk, Return, and the Capital Asset Pricing Model
Chapter 7: Stocks, Stock Valuation, and Stock Market Equilibrium

Exam 2:  Chapters 5, 6, 7

Chapter 9: The Cost of Capital
Chapter 10: The Basics of Capital Budgeting
Chapter 11: Cash Flow Estimation and Risk Analysis 
Chapter 17: Multinational Financial Management
Introduction to Derivatives: hedging with foreign exchange risk with futures