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JOHN CABOT UNIVERSITY

COURSE CODE: "FIN 301"
COURSE NAME: "Finance"
SEMESTER & YEAR: Fall Semester 2012
SYLLABUS

INSTRUCTOR: Merva Mary
HOURS: TTH 8:30-9:45
TOTAL NO. OF CONTACT HOURS: 45
CREDITS: 3
PREREQUISITES: Prerequisites: FIN 201, FIN 202, EC 202, MA 208
OFFICE HOURS:

COURSE DESCRIPTION:

The aim of this course is to first provide students with an in-depth understand of the main financial theories and tools that are used as a basis to analyze more complex financial situations.  The major topics include 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 critical-thinking, use of spreadsheets to build simple financial models, working with a case study, understanding how banks operate and the role of central banks in financial markets, and writing of brief reports. The course provides a foundation for students who may consider the Chartered Financial Analysis (CFA) Level I exam but is also relevant for all business and international affairs majors who require an  understand of finance to follow some of the major events in the world economy.

Students are strongly encouraged to review the prerequisites in accounting, macroeconomics, and statistics before and during the course as necessary.

High ethical standards are expected of every student.

SUMMARY OF COURSE CONTENT:
 

OVERVIEW 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 write-up of brief reports.

LEARNING OUTCOMES:
 

· Develop critical analysis with respect to finance and economic decisions

· Learn to use quantitative methods to assist in critical analysis

· Analyze financial statements with Excel

· Write up financial reports

· Use the Internet to find and interpret basic financial data.

· Develop basic financial tools to promote continuous learning

· Analyze financial situations to improve decision-making skills

· Apply economic concepts

· Develop an awareness of ethical issues in finance.

TEXTBOOK:
Book TitleAuthorPublisherISBN numberLibrary Call NumberCommentsFormatLocal BookstoreOnline Purchase
Corporate FinanceMichael Ehrhardt and Eugene BrighamSouthwestern Cengage13-978-1-4390-7811-2     
REQUIRED RESERVED READING:
NONE

RECOMMENDED RESERVED READING:
NONE
GRADING POLICY
-ASSESSMENT METHODS:
AssignmentGuidelinesWeight
Exam 1Problem set exam.20%
Exam 2Problem set exam20%
Exam 3Case study.15%
ProjectsShort projects10%
Final ExamComprehensive final exam35%

-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 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.

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.

The final exam is comprehensive and requires an analysis applying the material learned throughout the course. Students may demonstratve accerlaration in their understanding of the material after reviewing their midterm exams and reflecting on how to undertake a more systematic financial anaylsis.  Following the assessment guidelines above, students who demonstrate a strong understanding of the material on the comprehensive final at the end of the course may have the weight of their final increased relative to their midterms to reflect the learning process in this course.

A/A-  90-100; B+/B/B-  80-89; C+/C 70-79; C-  65-69; D+/D/D- 50-64; Below 50: F


-ATTENDANCE REQUIREMENTS:
Students are expected to come to class prepared with the readings so that they may participate in the lectures.  Students must bring 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.
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

Week 1:  Sept 4, 6
Chapter 1: An Overview
Chapter 2: Financial Statements and Cash Flows (2.1 – 2.7)

Week 2: Sept 11, 13
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) 

Week 3:  Sept. 18, 20, 21
Chapter  4: Time Value of Money 

Week 4: Sept. 25, 27
Chapter 4: (cont.)

Week 5: Oct. 2, 4
Exam 1: Chapters 1, 2, 3, 4, 12
Chapter 5: Bonds, Bond Valuation, and Interest Rates

Week 6:  Oct. 9, 11, 12
Chapter 5: (cont.)
Chapter 6: Risk, Return, and the Capital Asset Pricing Model

Week 7:  Oct. 16, 18
Chapter 6: Risk, Return, and the Capital Asset Pricing Model

Week 8: Oct. 23, 25
Tuesday, Exam 2: Chapters 5 and 6.
Chapter 7: Stocks, Stock Valuation, and Stock Market Equilibrium

Week 9: Oct. 30
Begin case study on capital Budgeting
Chapter 9: The Cost of Capital
Chapter 10: The Basics of Capital Budgeting
Chappter 11: Cash Flow Estimation and Risk Analysis

Week 10:  Nov. 6, 8
Chapter 9, 10, and 11 (cont.)
Continue case study on capital budgeting.

Week 11:  Nov. 13, 15
Tuesday, Exam 3: Case study on capital budgeting - project due plus in-class exam.
Chapter 17: Multinational Financial Management

Week 12: Nov. 20
Chapter 17 (cont.)

Week 13:  Nov. 27, 29
Introduction to Derivatives: hedging with foreign exchange risk with futures

Week 14:  December 4, 6
Comprehensive course review


Final Exam: Comprehensive following the University’s Final Exam schedule.