CALIFORNIA STATE UNIVERSITY, CHICO

COLLEGE OF BUSINESS

Department of Finance and Marketing

______________________________________________________________________

Finance 150 Phone: 894-6188

Professor Troughton Office: Tehama 463

Fall 2004 email: gtroughton@csuchico.edu

COURSE SYLLABUS

REQUIRED READING: Fundamentals of Corporate Finance. 4^th ed. By Richard Brealey, Stewart Myers, and Alan Marcus

RECOMMENDED READING: The Wall Street Journal. Your in class subscription includes the WSJ Interactive Edition which is available over the Internet.

“You don’t have to be evil to make money”…..Goggle motto

Course Objective: This course is intended to provide the student with the fundamental concepts and analytical techniques used in the field of finance. You will be introduced to the institutions, instruments, and markets associated with the financial function of the firm. Familiarity with this material is essential for anyone who will be making personal financial and investment decisions throughout their lifetime.

Course Format: The course will be conducted in a lecture-discussion format with emphasis on class interaction. You should be prepared to participate in the discussion by keeping up with the readings and assigned problems.

Many of the concepts are presented within a problem context. You should be aware that some of the material on quizzes and tests will be similar to the homework problems assigned.

Grading: There will be two tests plus a final exam. There will also be five quizzes. The quizzes will be linked to the text, selected cases and problem assignments, so you should be motivated to keep up to date with the assignments. There are no "makeups" for missing quizzes. However, there will be an optional sixth quiz, an especially useful option if you miss a quiz.

Only medical excuses are accepted for missing a test. If you have a medical excuse for either Test 1 or Test 2, you will not be able to take a make-up test, but instead your grade will be based on weighting the other parts of the course by one third.

Academic Honesty

Following University policy, I expect you to maintain a high standard of academic integrity. Cheating in any form will not be tolerated.

The weights of the exams and quizzes in determining your grade will be as follows:

Test 1 25%

Test 2 25%

Quizzes 25%

Final 25%

100%

PROPOSED COURSE SCHEDULE

Week TOPIC & READING PROBLEMS

Aug 23 Financial Management, Financial Markets

And The Firm

Ch. 1 and 2

Aug 30 Accounting Review and

Ratio Analysis

Ch 3 and 17

Sept 08 Time Value of Money

Ch. 4

Sept 13 Valuing Bonds

Ch. 5

Sept 20 Valuing Stocks

Ch. 6

Test 1 (Date to be determined)

Sept 27 Net Present Value, Internal rate of return,

And Payback

Ch. 7

Oct 04 Discounted Cash Flow

Oct 11 Ch. 8

WEEK TOPIC & READING PROBLEMS

Oct 18 Breakeven Analysis

And Operating Leverage

Ch. 9 pgs. 249-253

Oct. 25 Risk, Return and

Nov 01 The Cost of Capital

Ch. 10, 11, 12

Note: these are the most complex chapters assigned. Pay close attention to how ` you instructor covers this material. You are only responsible for how he covers it

in lectures and assigned problems.

TEST 2 (Date to be determined)

Nov 08 Common Stock, Preferred Stock

And Debt

Ch. 13 (omit Section 13.5)

Nov 15 Public Offerings and

Private Placements

Ch. 14

Nov 29 Debt Policy, Financial Leverage

And Bankruptcy; Dividend Policy

Ch. 15 and 16

Dec 06 Working Capital Management;

Current Assets and Credit Policy

Ch. 20 and 21

FINAL EXAM