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JOHN CABOT UNIVERSITY

COURSE CODE: "FIN 301-1"
COURSE NAME: "Finance"
SEMESTER & YEAR: Fall 2014
SYLLABUS

INSTRUCTOR: Mary Merva
EMAIL: [email protected]
 HOURS: TTH 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: Tuesday and Thursday 8:00 to 8:30am and by appointment
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 especially if you have taken them awhile ago. 

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, 5th EditionEhrhardt and BrighamSouthwestern Cengage13-978-1-133-94756-1 Students my use the 4th Edition.   
REQUIRED RESERVED READING:
NONE

RECOMMENDED RESERVED READING:
NONE
GRADING POLICY
-ASSESSMENT METHODS:
AssignmentGuidelinesWeight
Exam 1Problem-solving, short answers20%
Exam 2Problem-solving, short answers20%
Exam 3Case study on international capital budgeting: 2 to 3 page financial report plus in-class exam.20%
Financial model and in-class testBuild a financial model to analyze external financing required by a firm and prepare a business report (one page).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.  Office hours are not a substitute for missed lectures.







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

Week 1: September 2, 4

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



Chapter 2: Financial Statements and Cash Flows



Chapter 3: Analysis of Financial Statements

Week 2: September 2, 11

Chapter 3: Cont.

Chapter 12: Corporate Valuation and Financial Planning - Additional Funds Needed -12-1, 12-6, 12-7 Project 1 handed out - due Tuesday, September 23.

Week 3: September 16, 18

Chapter 12: (Cont.)

Chapter 4: Time Value of Money 

Week 4: September 23, 25, 26

Chapter 4: (Cont.)

Project 1 due Tuesday, September 23; in-class test on Chapter 12-1, 12-6, 12-7

Week 5: September 30, October 2

Exam 1: Tuesday, September 30: Chapters 1, 2, 3, and 4

Chapter 5: Bonds, Bond Valuation, and Interest Rates

Week 6: October 7, 9

Chapter 5: (Cont.)

Chapter 6: Risk and Return

Week 7: October 14, 16

Chapter 6: (Cont.)

Chapter 7: Valuation of Stocks and Corporations

CFA Code of Ethics - Introduction

Week 8: October 21, 23

Chapter 7: (Cont.)

Week 9: October 28, 30

Review material to date

Exam 2: Thursday, October 30 Chapters 5, 6 and 7

Week 10: November 4, 6

Begin Case Study for Exam 3







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 (first parts on PPP, international capital budgeting)

Week 11: November 11, 13

Chapters 9, 10, 11, and 17 (Cont.)

Week 12: November 18, 20

Chapters 9, 10, 11, and 17 (Cont.)

Exam 3: Thursday, November 20 Chapters 9, 10, and 11 and Case Study

Week 13: November 25

Introduction to Derivatives: hedging foreign exchange risk with futures

Chapter 17: Multinational Financial Management (parts on IRP, foreign exchange risk)

Chapter 8: Financial Options and Applications in Corporate Finance (sections 8.1, 8.2, 8.3, 8.5a,8.7)

Week 14: December 2, 4

Chapter 17, 8 (Cont.)

Course Review

































































































































































































































































Final exam is comprehensive.  See the University’s schedule for the date and time.