CALIFORNIA STATE UNIVERSITY, CHICO

DEPARTMENT OF FINANCE & MARKETING

 

FINANCE 155 - 01 & 02: FINANCIAL MANAGEMENT - Intermediate Theory

FALL 2004

 

Instructor:

H. Christine Hsu, Ph.D.

Professor of Finance
 
Office Hours:

TR 10:00 - 11:00 am & 3:15 - 4:45 pm
Office: Tehama 459

Phone: 898-6387

 

 

Course Description

This class adopts an integrated approach to financial management, including study of financial theory and its application to financial decision-making.

Course Requirements

·  Prerequisite: Survey of Finance (FIN 150), required. You should not enroll in this class if you have not completed the prerequisite.

·  Working knowledge of EXCEL, PowerPoint 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. Texas Instruments BAII PLUS is recommended. Calculators are used to work the exams/assignments.

Course Materials

·  Financial Management: Theory and Practice, 11th edition, Brigham and Ehrhardt, 2005 Thomson Learning, Inc., required.

·  http://www.swlearning.com/finance/brigham/theory11e/theory11e.html

features the online interactive study session. Also available are video clips, downloadable supplements, and articles on current topics in finance.

·  WebCT. Important class information and your grades in progress are available in our course WebCT at https://online2.csuchico.edu

Case Presentation

To reinforce the concepts covered in this course and to strengthen the communication skills, students are required to make oral PowerPoint presentations. Students will work on the case collaboratively in the groups of four or five. The presentation should be approximately 15 minutes and the presenters should be prepared to respond to specific questions from the class. Case instructions and presentation schedule will be posted in our course WebCT.

Exams

There will be two mid-term exams and a final exam (see course calendar for exam dates). The final exam is comprehensive covering the course material for the entire semester. Online sample test questions are available at http://www.swlearning.com/finance/brigham/theory11e/theory11e.html

No make-up exam is allowed unless you present a serious compelling reason. If you miss an exam and cannot demonstrate extreme hardship, you will receive a score of "0".

Course Goals

The objectives are to reinforce and to extend the concepts and techniques covered in FIN 150: Survey of Finance. In FIN 150 you were exposed to the key financial topics but you probably did not learn enough to actually “do finance”. After FIN 155, however, you should be able to analyze a variety of financial problems and actually make financial decisions.

Class Attendance and Participation

Since learning is enhanced by discussion, regular attendance is required and active class participation is encouraged. Class roll will be taken on a regular basis. It is your responsibility to obtain class notes and assignments from other members of the class whenever you are absent.

Dropping the Class

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.

Academic Honesty

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.

Grading Policy

You will earn points from the following:

2 Mid-Semester Exams @25 points each = 50 points
Case Presentation = 10 points
Final exam = 40 points

Your grade will be determined based upon the total points earned from the required activities.

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.

Students with good attendance and active class participation will be rewarded in terms of grade enhancement (e.g., from C- to C, from B+ to A-, etc.) No extra credit assignment will be allowed to make up for missed assignments and/or poor exams. Such assignments usually lead to perceptions of unequal treatment and endless conflict.

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.

Sessions:

Chapter 1. An Overview of Financial Management and the Financial Environment
From
August 24, 2004 To August 24, 2004

Chapter 3. Financial Statements, Cash Flow, and Taxes
From
August 26, 2004 To August 31, 2004

Chapter 13. Analysis of Financial Statements
From
August 31, 2004 To September 09, 2004

Chapter 2: The Time Value of Money
From
September 14, 2004 To September 21, 2004

Exam #1
From
September 23, 2004 To September 23, 2004

Chapter 6: Bonds and Their Valuation
From
September 28, 2004 To October 05, 2004

Chapter 7: Stocks and Their Valuation
From
October 05, 2004 To October 12, 2004

Chapter 4. Risk and Return: The Basics
From
October 14, 2004 To October 19, 2004

Chapter 5. Risk and Return: Portfolio Theory and Asset Pricing Models
From
October 21, 2004 To October 28, 2004

Exam #2
From
November 02, 2004 To November 02, 2004

Chapter 9: The Cost of Capital
From
November 04, 2004 To November 11, 2004

Chapter 10. Capital Budgeting Decisions
From
November 11, 2004 To November 18, 2004

Thanksgiving Break
From
November 22, 2004 To November 26, 2004

Chapter 16. Capital Structure Decisions
From
November 30, 2004 To December 09, 2004

FIN 155 Common Final Exam in Tehama 106 @ 8:00 - 9:50am
From
December 14, 2004 To December 14, 2004