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JOHN CABOT UNIVERSITY

COURSE CODE: "FIN 301-1"
COURSE NAME: "Finance"
SEMESTER & YEAR: Spring 2014
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: Monday and Wednesday 8:00 to 8:30am

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. The course also covers the CFA Institute Code of Ethics and Standards of Professional Conduct.



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:
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 upper-level undergraduate 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. 
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 including a clear understanding of time value of money

· Analyze financial situations to improve decision-making skills

· Apply economic concepts to financial decision-making

· Develop an awareness of ethical issues in finance based on the CFA Institute's Code of Ethics and Standards of Professional Conduct

TEXTBOOK:
Book TitleAuthorPublisherISBN numberLibrary Call NumberCommentsFormatLocal BookstoreOnline Purchase
Corporate Finance: A Focused Approach, 5th EditionEhrhardt and BrighamSouth-Western Cengage Learning13 978 1 133 94756 Students may use the 4th Edition and are encouraged to purchase the book as a used copy when possible.   
REQUIRED RESERVED READING:
NONE

RECOMMENDED RESERVED READING:
NONE
GRADING POLICY
-ASSESSMENT METHODS:
AssignmentGuidelinesWeight
Exam 1Problem set exam.20%
Exam 2Problem set exam.20%
Exam 3Case study on capital budgeting plus short quiz.20%
Financial model exerciseBuild a financial model to analyze external financing required by a firm.10%
Final ExamComprehensive problem-solving exam.30%

-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 84 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. Students who miss more than four classes (excused or unexcused) will not have a chance to drop a poor midterm exam grade  on 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 (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. Students who are asked to compute a number for the class but do not have a calculator will be counted as absent for that 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

Please note that class will begin at 8:15 during the weeks as noted. In this way we can recuperate time to avoid make-up classes for the days of Wednesday, February 19, Monday, March 31st, and Friday, April 4th when the instructor will be at a professional conference. 

Week 1:  Jan 13, 15

Chapter 1: An Overview of Financial Management and the Financial Environment

Introduction to the CFA Code of Ethics and Standards of Professional Practice (covered throughout the course).

Chapter 2: Financial Statements and Cash Flows



Week 2:  Jan. 20, 22 – class begins at 8:15

Chapter 3: Analysis of Financial Statements

Chapter 12: Corporate Valuation and Financial Planning - Additional Funds Needed - Project 1 handed out.



Week 3:  Jan 27, 29 – class begins at 8:15

Chapter 4: Time Value of Money

Project 1 due Wednesday, January 29 at the beginning of class; short in-class quiz.



Week 4: Feb 3, 5 – class begins at 8:15

Class Cancelled Monday, February 3
Chapter 4: (cont.)



Week 5: Feb 10, 12 – class begins at 8:15

Chapter 5: Bonds, Bond Valuation, and Interest Rates





Week 6: Feb 17, 

Chapter 5 (cont.)
Wednesday, February 19: Exam 1 Chapters 1, 2, 3, 4, and 12; Chapter 5 materials covered in Week 5

Week 7: Feb 24, 26 – class begins at 8:15

Chapter 5 (cont.)

Chapter 6: Risk and Return



Week 8:  March 3, 5 - class begins at 8:15

Chapter 6: (cont.)

Chapter 7: Stock, Stock Valuation



Week 9: March 10, 12 – class begins at 8:15

Monday, March 2 Exam 2: Chapters 5, 6

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

Spring Break March 17 to 21

Week 10: March 24, 26 - class begins at 8:15

Chapter 9, 10, and 11 (cont.)

Continue case study on capital budgeting

Week 11:  Exam Wednesday, April 2nd and no class Monday, March 31st and Friday, April 4th

Exam Wednesday April 2: Case Study Due at the beginning of class; Chapters 9, 10, 11





Week 12:  April 7, 9

Chapter 17: Multinational Financial Management

CFA Code of Ethics



Week 13: April 14, 16

Introduction to Derivatives: hedging foreign exchange risk with futures

Chapter 8: Financial Options and Applications in Corporate Finance (sections 8.1, 8.5)



Week 14: April 23 (Wednesday)

Comprehensive course review

 

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