DEPARTMENT OF FINANCE & MARKETING
FINANCE 150 - 10: SURVEY OF FINANCE
FALL 2004
Professor
of Finance
Office Hours:
TR
Office: Tehama 459
Phone:
898-6387
Course Description
This course will provide
the student a working ability to make financial decisions. The focus will be on
how companies invest in real assets and how they raise money to pay for these
investments. The course will provide a framework for financial management and
how to apply them to the main decisions made by a financial manager.
Course Requirements
· Prerequisite: Intro to Financial
Accounting (ACCT 015), required. You should not enroll in this class if you
have not completed the prerequisite.
· Working knowledge of EXCEL and
WORD
· Calculator: A financial calculator
is required. Your calculator must have net present value (NPV), internal rate
of return (IRR) and cash flow (CF) functions.
Course Materials
· Fundamentals of Corporate Finance, Brealey,
McGraw-Hill/Irwin, 4th ed., 2004, required.
· Study Guide to Fundamentals
of Corporate Finance, Will, McGraw-Hill/Irwin, 4 th
ed., 2004, optional.
· http://www.mhhe.com/bmm4e
features the new eLearning Sessions, a fully
interactive study session. Also available are video clips, downloadable
supplements, and articles on current topics in finance.
· Written assignment instructions
and end of chapter problem solutions will be available in our class WebCT (https://online2.csuchico.edu). Important class
information will be posted in the Calendar/Class Mail,
You should check them at least twice a week.
Course Goals
The
objective of this course is to provide knowledge about the basic issues in
corporate finance. The course is designed primarily for the student who has had
no previous course work in finance and will provide satisfactory background for
students who elect to study Business in more advanced courses.
At the end
of this class, you should …
Course Policies
There will be two mid-semester exams and a comprehensive final
exam (see Course Content for exam dates). There are two parts in each exam:
Part I Problems and Part II Questions. The problem part is open book and the
question part is not. No notes are allowed during the exam. Bring your
financial calculator and a Scantron form 882 to each
exam. If you miss an exam and cannot demonstrate extreme hardship, you will
receive a score of "0". A make-up for any of the missed exam is
allowed only if you present a serious compelling reason (e.g., a doctor's
note).
Two written reports will be assigned randomly throughout the
semester. Instructions and due dates will be announced in class. Absolutely no
late work will be accepted.
You are expected to maintain a high standard of academic honesty.
Dishonesty may bring grade reduction or other sanctions as provided in Section
IV-A of the University Code. Copies of the University Code are available from
the Office of the Coordinator for Student Judicial Affairs, Kendall Hall 110.
Also see the chapter titled "Student Judicial Affairs" in the
University Catalog.
If you want to drop the class, it is your responsibility to
initiate and follow through on the action. Do not assume the instructor will
drop you from a course if you quit attending class. University regulations
specify several conditions for dropping a class and the relevant cutoff dates.
If you intend to drop a course, do it right away, or
you may miss a critical cutoff date.
Since learning is enhanced by discussion, regular attendance is
required and participation is encouraged. Class roll will be taken on a regular
basis. Students with good attendance and active class participation records
will be rewarded in terms of grade enhancement (e.g., from B- to B, from B+ to
A-; and so on). It is your responsibility to obtain class notes and assignments
from other members of the class whenever you are absent.
You will earn points from the following:
2 mid-semester exams @20 points each = 40 points
2 written reports @10 points each = 20 points
Final exam = 40 points
Your grade will be determined based upon the total points earned
from exams and reports:
94 points and above = A
90 to below 94 points = A-
87 to below 90 points = B+
83 to below 87 points = B
80 to below 83 points = B- etc.
No extra credit assignment will be allowed to make up for poor
performance in any of the above activities.
Course Schedule and Assignments
The following schedule
gives the chapter coverage/assignments. The lectures will stress the most
important and/or most difficult material. Your comprehension of the material
will be enhanced if you read the chapters before they are covered in class.
Chapter 1: The Firm and the Financial Manager
From
Chapter 2. The Financial Environment
From
Chapter 3: Accounting and Finance
From
Chapter 17: Financial Statement Analysis
From
Chapter 19: Working Capital Management and Short-Term
Planning
From
Exam #1
From
Chapter 4: The Time Value of Money
From
Chapter 5: Valuing Bonds
From
Chapter 6: Valuing Stocks
From
Chapter 13: An Overview of Corporate Financing
From
Chapter 7: Net Present Value and Other Investment Criteria
From
Exam #2
From
Chapter 10: Introduction to Risk, Return, and the
Opportunity Cost of Capital
From
Thanksgiving Break
From
Chapter 11: Risk, Return, and Capital Budgeting
From
Chapter 12: The Cost of Capital
From
Final Exam (12:00 - 1:50 pm on 12/16/04)
From