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JOHN CABOT UNIVERSITY

COURSE CODE: "FIN 301-2"
COURSE NAME: "Finance"
SEMESTER & YEAR: Fall 2016
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 11.00am to 1.00pm or 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:
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: to develop the qualities of understanding, judgement and communication leading to action.
  • 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.
  • 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.

 

Key skills taught

-          Communication: effectively communicate own thoughts in class; clearly present numerical work; persuasively recommend the chosen solution

-          Numeracy: understand the relationship between variables such as cost of capital, capital structure and dividend policy; prepare budgets and forecasts; appropriately apply formulae and navigate the intricacies of real-life calculations

-          Information Technology: use Excel to create working financial models

-          Interpersonal skills: collaborate when working as a team to arrive at the desired end product (primarily case preparation and presentation)

-          Individual skills: monitor and review own progress, seek feedback and/or special coaching from instructor if needed, meet a challenging course with determination

TEXTBOOK:
Book TitleAuthorPublisherISBN numberLibrary Call NumberCommentsFormatLocal BookstoreOnline Purchase
Corporate FinanceMichael C. Erhardt, Eugene F. BrighamSouth-Western Cengage Learning, 4th edition 9781439078112      
REQUIRED RESERVED READING:
NONE

RECOMMENDED RESERVED READING:
NONE
GRADING POLICY
-ASSESSMENT METHODS:
AssignmentGuidelinesWeight
Class preparation and participationThe class participation grade will reflect preparation, attendance and quality and frequency of participation. Class preparation will require students to read all the assigned material and, at the end of each unit, to practice problems at home for further discussion in class. Class participation will help students understand the material better and build confidence in public speaking. In each class, I will ask a student to make a brief presentation of the material s/he prepared, but all students are encouraged to participate in almost every class at least once and if possible more than once, actively engaging in the debate. The instructor may also indicate university open lectures that are relevant to the course; students are expected to attend such lectures (unless there is a scheduling clash with another course) as part of their class participation activities. Assignments and deadlines will be posted on Moodle. Students are required to sign up and keep up to date with all Moodle postings for the course.17%
Topic Mini-Tests (8 in total, 6% each)At the conclusion of each topic there will be a one-question, 20-minute test in class. The test will consist of one problem or qualitative question. This portion of the grade will consist of the simple average of these tests. The dates of the tests will be posted on Moodle. A missed test will count as zero; there will be no make-up for the tests.48%
Comprehensive final examThe final examination is comprehensive and will test students on all the topics covered throughout the course. The exam will require the use of a financial calculator.35%
Writing LabUse of proper and correct English is deemed essential in today’s business world. For this reason, work where the thought process behind calculations is not explained in clear and precise language will be penalised, even if the calculations themselves are correct. Students may avail themselves of the JCU Writing Centre ([email protected]) to review their work before a submission. This programme is designed to enhance students’ writing skills, with particular attention to grammar, spelling, vocabulary, language register, and organisation of ideas. Historically, participating students have shown marked improvement in their writing skills, which has also reflected upon their course grades. Poorly written work will be heavily penalized.0%
Finance LabStudents may also avail themselves of a Finance Tutor at the Math Lab ([email protected]) to practice or review the topics that require reinforcement. Historically, participating students have shown marked improvement in their skills, which has also reflected upon their course grades. Attending the Finance Lab will contribute to the student’s Class Preparation and Participation grade. 0%

-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
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:

Students are expected to come to class and to arrive on time.

Absences: Students are encouraged to attend and participate in class as part of their learning.  As the final is comprehensive, students who miss 3 classes or less will have the option of dropping TWO of the grades obtained in the topic tests (i.e. only the top three grades will be averaged for that portion of the grade).

Tardiness: students arriving more than 5 minutes late for class will be marked as absence (though they may stay and follow the lesson).

Persistent absence or tardiness usually precludes satisfactory performance in the course, and will result in a lower class participation grade. In any case, students are responsible for all material covered by the syllabus and/or discussed in class, whether or not they are actually present.

Late submission of work:

All assignments should be completed and handed in to the professor no later than the beginning of the specific class meeting.  Papers received after this deadline will not be accepted, and consequently will be recorded as ZERO, unless prior arrangements are made with the professor. In any case, should the professor accept late work, 5 percentage points will be detracted from the assignment’s grade as a late penalty.

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.  The up-to-date schedule and assignments will be posted on Moodle.

Class

 

Date

Topic

Activities

Assignments

1

Introduction and review of Financial and Managerial Accounting

Assessment test (ungraded)

 

2

Financial Statements, Cash Flow and Taxes

 

Chapter 2

3

Analysis of Financial Statements

 

 Chapter 3

4

(continued)

 

5

(continued)

 

 

6

Financial Planning and Forecasting Financial Statements

 

 Chapter 12

7

(continued)

Topic Test 1 - FSA

8

(continued)

 

 

9

Time Value of Money

 

 Chapter 4

10

(continued)

Topic Test 2 – Financial Planning and Forecasting Financial Statements

11

(continued)

 

 

12

Bonds, Bond Valuation and Interest Rates

Topic Test 3 –TVM

 Chapter 5

13

(continued)

 

14

(continued)

 

 

15

Risk, Return and the Capital Asset Pricing Model

 

 Chapter 6

16

(continued)

Topic Test 4 – Bonds, Bond Valuation and Interest Rates

17

(continued)

 

 

18

Stocks, Stock Valuation and Stock Market Equilibrium

Topic Test 5 – Risk, Return and CAPM

 Chapter 7

19

(continued)

 

20

(continued)

 

 

21

Cost of Capital

 

 Chapter 9

22

(continued)

Topic Test 6 – Stocks, Stock Valuation and Stock Market Equilibrium

23

(continued)

 

 

24

Capital Budgeting

Topic Test 7 – Cost of Capital

 Chapter 10

25

(continued)

 

26

Cash Flow Estimation and Risk Analysis

 Topic Test 8 – Capital Budgeting

 Chapter 11



27

(continued)

 

 

28

REVIEW

 

 

 

TBD

FINAL EXAM