TEXT: Financial Management: principles and applications, 10th Ed., by Keown, Martin, Petty and Scott, Prentice Hall, 2005

Prerequisites: Completion of pre-business requirements, including ACCT 2010 and 2020 or equivalent with grades of C or better, or consent of department.

Catalog Description: Overview of money and the banking system; interest and present value calculations; financial information; analysis and financial decision making; security markets.

Course Objective: As the course title indicates this is a broad introduction to methodologies used in finance along with the different financial markets. The design of the class is directed at the student who does not have a business background or an undergraduate degree. Although students familiar with business will also find the course to be of value. To a certain extent this course will follow two streams of thought: 1) The elements of Financial Management including the theory of value, decision-making, and the components of capital and their costs and 2) the markets where financial assets are traded and prices are discovered. The approach in the class will be quantitatively theoretical.

Tests: There will be 2 exams a mid-term and a final exam. The mid-term accounts for 45% of the course grade and the final exam accounts for 55% of the course grade. The final is not comprehensive and, thus, will pertain,only, to class material covered after the mid-term. All Tests are True/False or multiple choice questions. Please bring a calculator and a #2 pencil. I will provide the Scantron. Both sides of an 8 ½ X 11" reference sheet are allowed when taking the mid-term and the final.

Any student late for an exam will not be given extra time to complete the exam. Once an exam has started, no student may leave the examination room without the proctor’s permission and/or until he or she has finished the exam and turned it in to the exam proctor.

Exams are graded without my knowledge of whose exam is being graded. Please bring obvious math errors to my attention at the time exams are returned. Other differences over how an exam was scored will not be discussed in class. Please write your comments regarding possible discrepancies on the exam and return it to me for further consideration. If this does not resolve the difference, please see me in my office.

In general, exams will not be reviewed in class. You may meet with me during office hours (or by appointment), if you wish to discuss your test.

Reference Sheets: These can be handwritten or computer generated hard copies. You can not staple, or attach pieces of paper together to create this reference sheet. You can use any size font to create this sheet. DO NOT COPY ANOTHER PERSON’S REFERENCE SHEET. Create your own. Start now, identify each area that you think you are weak in, and keep a folder in which you write these down to make up your reference sheet. A properly prepared reference sheet is an excellent study tool.

Incomplete: I will adhere to University policy as stated in the Undergraduate Catalog under the heading of Grading System regarding the assignment of a grade of Incomplete. Unless you are in compliance with University policy do not ask me to assign a grade of incomplete.

Lecture Structure: The comprehensive source of information about finance is your textbook. My teaching goal for the lectures is to ensure that you learn enough during the lectures to be able to master the chapter reading. It is my intent to enhance and amplify the chapter reading but not to replace it as a comprehensive source of knowledge.

Frequently, I will take a problem-solving approach in introductory courses by solving end-of-chapter problems and developing the underlying theory while arriving at the solution. Attending class is very important to develop your understanding of finance and your mastery of the chapter material. Finance is a contact sport and it is nearly impossible to grasp concepts without solving problems. In my years of teaching experience students who struggle with Finance, typically, do not attend class regularly and do not spend enough time with problem solving – what I call, getting their hands dirty.

Class Attendance: Class attendance is very important. Most of the questions/problems for the tests will come from the lecture notes and handouts. If you miss class without an excused absence, please do not come to me to get the handout material. Please get handouts from someone else in the class.

Students with Disabilities: If you have any sort of learning disability or you think you may have, please go to the Testing Center now, have yourself tested and if you need more time etc. to complete the test, have the Testing Center give you official authorization to have the test taken in their facility. You need to bring me proof of such authorization and have me sign the document at least two days before each exam.

The College of Business Administration complies with the Americans with Disabilities Act in making reasonable accommodations for qualified students with disability. If you have an established disability as defined by the Americans with Disabilities Act and would like to request accommodation, please see me as soon as possible. My office hours and office number are shown on this syllabus. The University policy requires students to notify instructors within the first week of class about special accommodation needs.

Scholastic Dishonesty/Cheating Policy: Student scholastic dishonesty, including cheating and plagiarism, in any form, will result in an automatic grade of “F” in the course, and immediate reporting of the student’s actions to the Office of the Dean of Students and to the Office of the Dean of the College of Business Administration.

The term “cheating” includes, but is not limited to, (1) use of any unauthorized assistance in taking quizzes, tests or examinations; (2) dependence upon the aid of sources beyond those authorized by the instructor in writing papers, preparing reports, solving problems, or carrying out other assignments; or (3) the acquisition, without permission, of tests of other academic material belonging to a faculty member or staff of the university. It also includes the unauthorized preparation of notes for use on examinations, use of such notes during an examination, looking at another student’s examination answers, allowing another student to look at your own examination answers, or the requesting or passing of information during an examination.

This policy is intended to protect the honest student from unfair competition with unscrupulous individuals who might attempt to gain an advantage through cheating.

General Information: Learning is a two way street. Both the instructor and the student are responsible for the knowledge acquired by the student in a particular course. However, no matter how hard an instructor works to teach and explain, stimulate interest in, or work with students, learning is still a personal thing. You must take responsibility and put forth the time and effort necessary to digest and learn the material.

Objectives: Understand the following topics: What is financial management; What is the appropriate goal of the Firm; Forms of businesses, and the Corporate Tax Structure; The Major foundations of Finance such as: Money has Time value, Efficient Capital Markets; Agency Problem; Diversification; Cash Flow and Taxes and their implications for financial managers.

Objectives: Understand the following topics: Types of Financing used by firm; Why do financial markets exist; What are the key components of financial market system; role of investment bankers; inflation and interest rates and their relationship; theories of interest rates.

Objectives: Understand the following concepts: Present and Future value, annuity, lump sum,

Objectives: Understand the following concepts: Risk of an individual asset and that of a

portfolio. How is risk-return tradeoff affected by diversification principles. Market risk,

diversifiable risk. Relation between risk and return; beta and its implications for investors.

Objectives: Understand the following concepts: Different kinds of bonds in the market. How to read and understand market quotations from The Wall Street Journal. Basic process used to value bonds, find their yield to maturity, yield to call. What are some of the important relationships that exist in bond valuation and its implication for investors.

Objectives: Understand the following concepts: Basic characteristics of stocks; Value preferred and common stock. Calculate expected and required rate of return for stocks. Assumptions behind models and their limitations. How to read and interpret stock market quotations.

Objectives: Understand the following concepts: WHY is it so hard for firms to find profitable investment opportunities. The process of evaluating capital budgeting projects such as Net Present Value, Internal Rate of Return, Profitability Index, Pay Back Period, conflict between NPV and IRR and how to resolve these conflicts. How do you tie the capital budgeting decision to the overall goal of shareholder wealth maximization.

Objectives: Understand the following concepts: What is the cost of capital and how does it play a role in various decisions made by financial managers. What factors determine the cost of capital and how to compute cost of debt, preferred and common stock capital and put them together to develop the overall cost of capital for the firm. What assumptions are made in such computations. Role of tax laws in computing cost of capital.

Objectives: Understand the following concepts: What is the difference between business and financial risk; Break even analysis. Determine break even point and understand the assumptions and implications; Differences between operating, financial and combined leverage. Compute these and understand their implications for decision making.

Other than the scheduled exam dates, the following schedule may change at my discretion.

WEEKDATESCHAPTER & ASSIGNMENTS There is a solutions manual in the tutor lab and one on reserve in Willis Library. The call number is GRW 07037 .

1	June 2 - June 5	Introduction to Financial Management Ch 1. Raising Capital in the Financial Markets Ch. 14. Time Value of Money Ch. 5.
2	June 9 - June 12	Time Value of Money (Con’t.) Risk and Rates of Return Ch. 6 Bond Valuation Ch. 7
3	June 16 - June 19	Bond Valuation (Con’t.) Stock Valuation Ch. 8 Mid-Term exam June 19
4	June 23 - June 26	Capital Budgeting Decision Criteria Ch. 9 Cost of Capital Ch. 12
5	June 30 - July 3	Cost of Capital (Con’t.) Analysis and Impact of Leverage Ch. 15 Final exam July 3

NOTE: Work problems at the end of the chapter. If you have difficulty with them use the Free Lab in Curry Hall, 3^rd Floor (Finance Tutor Labs.) I will work selected problems in class as a part of my lecture.

(CPP 1) We will have a midterm exam and a final exam. During the exams, you may use a financial calculator. No programmable calculators may be used during exams. You may also use one 8½ X 11 reference sheet during each of the exams. Both sides of this reference sheet may be used with no attachments. No other information may be used on exams. All cell phones, pagers, two-way communication devices, etc. must be turned off during exams. No caps may be worn during exams.

(CPP 2) The mid-term exam will be returned in class. Grade appeals must be submitted to me within one week from the date that the exam is returned in class. If you have a grade appeal for a question on your exam, you must write your appeal as a memorandum detailing why you believe that your question should be graded again. Upon receiving a grade appeal, I will review and re-grade you entire exam within one week. I will correct arithmetic errors without regrading the entire exam, but I will still need a written message to explain the problem. The message may be written on the top of the page of the exam.

(CPP 3) You are welcome to discuss class issues with me at any time during my office hours or by e-mail with the following exception: On the day of the exam. I will not answer questions about that exam’s material. I, also, will not answer questions during the exam. When I hand back an exam in class, I will discuss individual exams only in my office. See CPP 2 above for more information.

(CPP 4) Due to the brevity of summer sessions, no make-up exams will be given. Exams must be taken with the class as scheduled above. If you are unable to comply with this, please consider dropping the class and taking it during a more convenient semester.

(CPP 5) Although I do not expect academic dishonesty such as cheating or plagiarism in my classroom, the penalty for cheating or plagiarism is an F for the course. Cheating occurs when a student looks at other students’ papers during an exam or quiz, allows another student to look at their paper during an exam or quiz or uses material other than those listed in CPP 1 during an exam or quiz.

(CPP 6) The College of Business Administration complies with the Americans with Disabilities Act in making reasonable accommodation for qualified students with disability. If you have an established disability as defined in the Americans with Disabilities Act and would like to request accommodation, please see me s soon as possible. My office hours and office number are shown on this syllabus.

(CPP 7) While my grading system does not include an attendance policy, I strongly urge students to attend class in accordance with the University policy which states regular and punctual class attendance is expected.

Tardiness: Please try to arrive on time. If you are later than five minutes after the start of class, please enter quietly. Be aware that entering the room disturbs the concentration of the your classmates that are actively learning the material. Remember the University policy states regular and punctual class attendance is expected.

Side Conversations: Side conversations make it difficult for your classmates to actively listen and learn. Besides I am capable of creating enough confusion without assistance.

Sleeping: Get a good night’s rest before coming to class. Falling asleep during class is not considered professional behavior.

Cell phones should be placed on silent. Please restrict conversations to outside the classroom (this includes text messaging.)

While in class, focus and actively listen to the material being presented in class. Do not be involved with other material unrelated to this class and the current lecture.

Laptop computers may be used in my class only for the purpose of taking lecture notes (this excludes the use of wi-fi during the class.)

(CPP 10) I do not assign additional projects to increase one’s grade before or after the final exam. Grades in this class are determine within the guidelines and policies expressed in this syllabus.

(CPP 11) You may audio-tape my lecture only for your exclusive use in this course. My lectures and lecture notes are part of my intellectual property and should be respected as such.