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JOHN CABOT UNIVERSITY
COURSE CODE: "FIN 301"
COURSE NAME: "Finance"
SEMESTER & YEAR:
Summer Session I 2013
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SYLLABUS
INSTRUCTOR:
Merva Mary
EMAIL: [email protected]
HOURS:
MTWTH 14:00-16:00
TOTAL NO. OF CONTACT HOURS:
45
CREDITS:
3
PREREQUISITES:
Prerequisites: FIN 201, FIN 202, EC 202, MA 208
OFFICE HOURS:
Before class 8:00-8:30
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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.
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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 write-up of brief reports.
Please note that the course is a foundation course in finance for students with one year of accounting (financial and managerial), and a semester each of statistics and macroeconomics which includes college algebra.
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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.
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TEXTBOOK:
| Book Title | Author | Publisher | ISBN number | Library Call Number | Comments | Format | Local Bookstore | Online Purchase |
| Corporate Finance | Michael Ehrhardt and Eugene Brigham | Southwestern Cengage | 13-978-1-4390-7811-2 | | | | | |
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REQUIRED RESERVED READING:
RECOMMENDED RESERVED READING:
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GRADING POLICY
-ASSESSMENT METHODS:
| Assignment | Guidelines | Weight |
| Exam 1 | Problems | 20% |
| Exam 2 | Problems | 20% |
| Exam 3 | Case study | 20% |
| Short projects | Short projects to provide experience working with financial statements from 10-K reports and Excel modeling. | 5% |
| Final Exam - Comprehensive | | 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
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.
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.
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.
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.
-ATTENDANCE REQUIREMENTS:
Attendance at lectures and participation in class discussion is strongly encouraged. Students who miss more than four classes (excused or unexcused) will not have a chance to drop a poor midterm exam grade (Exams 1 and 2) and shift the weight to the comprehensive final exam. Students who arrive after the roll-call will be counted as absent.
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. Students who are asked to compute a number for the class but did not bring a calculator will be counted as absent for that class.
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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.
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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.
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SCHEDULE
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Preliminary. The professor may change exam dates and the schedule; information will be given at the class lectures.
Week 1:
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
Chapter 12: Financial Planning and Forecasting Financial Statements: Sales Forecasts and Additional Funds Needed - Project 1 handed out.
Chapter 4: Time Value of Money
Week 2:
Chapter 4: (cont.)
Exam 1 Chapters 1, 2, 3, 4, and 12
Chapter 5: Bonds, Bond Valuation, and Interest Rates
Week 3:
Chapter 5: (cont.)
Chapter 6: Risk, Return, and the Capital Asset Pricing Model
Exam 2: Chapters 4, 5, and 6
Week 4:
Begin case study on capital budgeting
Chapter 9: The Cost of Capital
Chapter 10: The Basics of Capital Budgeting
Chapter 11: Cash Flow Estimation and Risk Analysis
Chapter 7: Stocks, Stock Valuation, and Stock Market Equilibrium - students should read the short section on price multiples for the Case Study and the remainder of the material will be covered in the last week of class.
Week 5:
Exam 3 and Case Study Due
Introduction to Derivatives: hedging foreign exchange risk with futures
Comprehensive course review
Final Exam: Comprehensive following the University’s Final Exam schedule.
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