Course Syllabus

JOHN CABOT UNIVERSITY

COURSE CODE: "FIN 301-2"
COURSE NAME: "Finance"
SEMESTER & YEAR: Spring 2014

SYLLABUS

INSTRUCTOR: Silvia Pulino
EMAIL: [email protected]
HOURS: TTH 3:00 PM 4:15 PM
TOTAL NO. OF CONTACT HOURS: 45
CREDITS: 3
PREREQUISITES: Prerequisites: FIN 201, FIN 202, EC 202, MA 208
OFFICE HOURS: Wednesdays 9.30am to 3.00pm or by appointment

COURSE DESCRIPTION:

This course covers the basic topics in financial management.

Course prerequisites: FIN 201, FIN 202, EC202, MA208 (financial and managerial accounting, economics, and basic statistics).

SUMMARY OF COURSE CONTENT:
The operations of financial markets and their efficiency, financial statement analysis, international financial transactions, 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:

Overall: ability to see the potential meanings and relationships of facts, capacity to make sound judgements based on these perceptions, skill in communicating such judgements to others so as to lead to good implementation (from HBS)
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.
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 Title	Author	Publisher	ISBN number	Library Call Number	Comments	Format	Local Bookstore	Online Purchase
Corporate Finance	Michael C. Erhardt, Eugene F. Brigham	South-Western Cengage Learning	9781439078112

REQUIRED RESERVED READING:

NONE

RECOMMENDED RESERVED READING:

NONE

GRADING POLICY
-ASSESSMENT METHODS:

Assignment	Guidelines	Weight
Class preparation and participation		10%
Excel work		10%
Midterm exam I		10%
Midterm Exam II		20%
Group project		20%
Comprehensive final 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
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 is mandatory and part of class preparation and participation grade.

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

The following schedule is tentative and subject to change. Any changes will be announced in class and posted on the MyJCU page.

Class	Topic / Class	Readings and Assignments (additional details on assignments follow at the end)
1	Introduction and Overview Lecture
2	Financial Statements, Cash Flow and Taxes Student presentation Lecture	Read Chapter 2 and be prepared to present the topic
3	Analysis of Financial Statements Student presentation of MicroDrive Discuss Group Composition Memorandum	Read Chapter 3 and be prepared to present the topic Prepare MicroDrive Presentation Submit Excel Exercise on Income Taxes Review Chapter 2: Mini-Case page 84
4	Analysis of Financial Statements (cont’d) HBS Case – in-class work	Bring to class: HBS Case “Drivers of Industry Financial Structure” (downloadable from HBS website ) Memorandum about Group Composition due, Thursday 26 January
5	Financial Planning and Forecasting Financial Statements Student presentation Lecture	Read Chapter 12 and be prepared to present the topic Review: Chapter 3, Problems 3-13, 3-14, 3-15 pages 113 to 116; Mini-Case page 118; Multiple Choice 03 (MyJCU)
6	Financial Planning and Forecasting Financial Statements Chapter 12 Mini-Case – in-class work COMPUTER LAB	Prepare Chapter 12 mini-case questions (a) to (e)
7	Financial Planning and Forecasting Financial Statements COMPUTER LAB	tba
8	Time Value of Money Student presentation Lecture	Read Chapter 4 and be prepared to present the topic Review: Chapter 12, Problems 12-7, 12-8, 12-9 pages 504-506; Mini-case page 508
9	Time Value of Money Lecture
10	Time Value of Money In-class work
11	Bonds, Bond Valuation and Interest Rates Student presentation Lecture	Read Chapter 5 and be prepared to present the topic Review: Chapter 4, Problems 4-9 through 4-34, pages 166-170
12	Bonds, Bond Valuation and Interest Rates Lecture
13	Bonds, Bond Valuation and Interest Rates In-class work	Review: Chapter 5, Problems 5-7 through 5-24, pages 210-213, mini-case page 213-214
14	Mid-Term Review	Review material indicated in red above
15	MID-TERM EXAM Wednesday, February 29th Chapters 1, 2, 3, 4, 5, 12 Calculators and one page of formulae allowed
16	Risk, Return and the Capital Asset Pricing Model	Read Chapter 6 and be prepared to present the topic
17	Risk, Return and the Capital Asset Pricing Model
18	Risk, Return and the Capital Asset Pricing Model
19	Stocks, Stock Valuation and Stock Market Equilibrium	Read Chapter 7 and be prepared to present the topic Review: Chapter 5, Problems 5-7 through 5-24, pages 210-213, mini-case page 213-214
20	Stocks, Stock Valuation and Stock Market Equilibrium
21	Stocks, Stock Valuation and Stock Market Equilibrium
22	Cost of Capital	Read Chapter 9 and be prepared to present the topic Review: Chapter 5, Problems 5-7 through 5-24, pages 210-213, mini-case page 213-214
23	Cost of Capital
24	Cost of Capital
25	The Basics of Capital Budgeting	Read Chapter 10 and be prepared to present the topic Review: Chapter 5, Problems 5-7 through 5-24, pages 210-213, mini-case page 213-214
26	The Basics of Capital Budgeting
27	Cash Flow Estimation and Risk Analysis	Read Chapter 11 and be prepared to present the topic
28	Cash Flow Estimation and Risk Analysis	Review: Chapter 5, Problems 5-7 through 5-24, pages 210-213, mini-case page 213-214
28	Review	Review material indicated in red above
	FINAL COMPREHENSIVE EXAM Chapters 1, 2, 3, 4, 5, 6, 7, 9, 10, 11, 12 Calculators and one page of formulae allowed