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JOHN CABOT UNIVERSITY

COURSE CODE: "FIN 301-1"
COURSE NAME: "Finance"
SEMESTER & YEAR: Spring 2015
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 before class by appointment
COURSE DESCRIPTION:
This course examines both the theoretical and applied foundations required to make decisions in financial management. The main areas covered include an  overview of the financial system and the efficiency of capital markets, evaluation of financial performance, time value of money, analysis of risk and return, basic portfolio theory, valuation of stocks and bonds, capital budgeting, international financial management, capital structure management, and the CFA Institute Code of Ethics and Standards of Professional Conduct.
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 an 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 ApproachBrigham and ErhardtSouth Western Cengage978439078112 Any edition of this text will do. Try to find a used copy.   
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
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 83 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.

Policies:

1. The final exam is comprehensive so students who miss four classes or less (excused or unexcused) will have the option of dropping a low midterm grades 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. 

2. Students who miss a midterm exam (with a formal excuse from the Dean's Office) will shift the weight to the final exam; you will be given the midterm to take on your own time under exam conditions and I will assess it so that you can check on the progress of your studies.  No make-up exams will be given.

3. I will have to be out of Rome for two classes so instead of scheduling make-up classes for a Friday, we will begin class 15 minutes early beginning Week 3 through Week 8. 











4. 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.   Cell phones and other electronic devices may not be used during an exam.

 
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: January 19, 21

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: January 26, 28

Project 1 handed out 

Chapter 12: Corporate Valuation and Financial Planning - Additional Funds Needed -12-1, 12-6, 12-7 

Week 3:  February 2, 4

Chapter 4: Time Value of Money 

Week 4:  February 9, 11

Chapter 4: (Cont.)

Wednesday, February 11th: Project 1 due plus short quiz at the beginning of class.

Week 5: February 16, 18

Monday, February 16th:  no class

Wednesday, February 18th: First Exam: Chapters 1, 2, 3, 4

Week 6: February 23, 25

Chapter 5: Bonds, Bond Valuation, and Interest Rates

Week 7: March 2, 4

Chapter 5: (Cont.)

Week 8: March 9, 11

Chapter 6: Risk and Return

Week 9: March 16, 18

Begin Case Study on International Capital Budgeting

Chapter 9: The Cost of Capital



Chapter 10: The Basics of Capital Budgeting



Chapter 11: Cash Flow Estimation and Risk Analysis

Wednesday, March 18th Exam 2: Chapters 5 and 6

Week 10:  March 23, 25

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

Read Chapter 7 on price-earnings multiples; Read Chapter 17 on Purchasing Power Parity

Week 11: March 30, April 1

Monday, March 30th, no class

Wednesday, April 1st: Exam 3 on Capital Budgeting  and Chapters 9, 10 - follow the problems done in class

Week 12: April 13, 15

Continue Case Study of Chapter 9, 10, 11

Chapter 7: Stock Valuation

Week 13: April 20, 22

Chapter 17: Multinational Financial Management

Wednesday, April 22nd -- Case Study Due - in class short quiz

Week 14: April 27, 29

Introduction to Derivatives: hedging foreign exchange risk with futures

Course Review







Week 15: Final Exam Comprehensive: See University schedule for date and time.