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JOHN CABOT UNIVERSITY
COURSE CODE: "FIN 301-2"
COURSE NAME: "Finance"
SEMESTER & YEAR:
Summer Session I 2016
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SYLLABUS
INSTRUCTOR:
Mary Merva
EMAIL: [email protected]
HOURS:
MTWTH 2:00PM 3:45PM
TOTAL NO. OF CONTACT HOURS:
45
CREDITS:
3
PREREQUISITES:
Prerequisites: FIN 201, FIN 202, EC 202, MA 208
OFFICE HOURS:
by appointment
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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.
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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.
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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
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TEXTBOOK:
| Book Title | Author | Publisher | ISBN number | Library Call Number | Comments | Format | Local Bookstore | Online Purchase |
| Corporate Finance: A Focused Approach 5th Edition | Ehrhardt and Brigham | South-western Cengage | 13-978-1-133-94756-1 | | Any edition of this textbook will do; try to find a used one if possible. | | | |
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REQUIRED RESERVED READING:
RECOMMENDED RESERVED READING:
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GRADING POLICY
-ASSESSMENT METHODS:
| Assignment | Guidelines | Weight |
| Exam 1 | Problem-solving, short answers | 20% |
| Exam 2 | Problem-solving, short answers | 20% |
| Exam 3 | Case study on international capital budgeting: 2 to 3 page financial report plus in-class exam. | 20% |
| Financial model and in-class test | Build a financial model to analyze external financing required by a firm and prepare a business report (one page). | 10% |
| Final Exam | Comprehensive 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 9
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 two 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.
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.
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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.
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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.
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SCHEDULE
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Week 1: May 23 to May 26
Chapter 1: An Overview of Financial Management and the Financial Environment
Chapter 2: Financial Statements and Cash Flows
Chapter 3: Analysis of Financial Statement
Project 1 handed out
Chapter 12: Corporate Valuation and Financial Planning - Additional Funds Needed
Chapter 4: Time Value of Money
Week 2: May 30 to June 1 (June 2nd is a holiday – make up Friday, June 10)
Monday, May 30: Exam 1 on Project 1 and Chapters 1, 2, 3, and 4. Project 1 due the beginning of class. (Only the material on Chapter 4 covered to date will be on this exam).
Chapter 4: Time Value of Money (cont)
Chapter 5: Bonds, Bond Valuation and Interest Rates
Week 3: June 6 to June 10
Chapter 5: (Cont.)
Chapter 6: Risk and Return
Begin case study on capital budgeting: Exam 3
Chapter 9: The Cost of Capital
Chapter 10: The Basics of Capital Budgeting
Chapter 11: Cash Flow Estimation and Risk Analysis
Week 4: June 13 to June 16
Monday, June 13: Exam 2: Chapters 4, 5, and 6
Chapter 9, 10, 11 (cont)
Chapter 7: Stock Valuation
Thursday, June 16: in class test on capital budgeting as part of Exam 3
Week 5: June 20 to 24
Monday June 20: Exam 3: Case study on capital budgeting due beginning of class
Chapter 17: Multinational Financial Management
Introduction to Derivatives: hedging foreign exchange risk
Friday, June 24th, Final Exam Comprehensive
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