CALIFORNIA STATE UNIVERSITY
College of Business
Department of Finance and Marketing

Finance 150                                                                                                                            Office: 466 Tehama

Fall 2002                                                                                                                                 Phone: 898-6242

Richard PonArul                                                                                                                      Fax: 898-4584

E-mail: rponarul@csuchico.edu                                                                                             Hours: 11:00 – 12:30 MW

                                                                                                                                                            9:00 – 11:00 T

                                                                                                                                                and by appointment


SURVEY OF FINANCE

Scope: This course introduces the basics of corporate finance and the tools of financial analysis. The areas of focus will be financial statement analysis, time value of money, capital budgeting, financial structure of firms and working capital management. The objective will be to understand financial decision making in corporations and the financial environment (institutions and markets) of business.


Prerequisites: Accounting 15 (not being taken concurrently)

 

Required text: FUNDAMENTALS OF CORPORATE FINANCE by Brealey, Myers and Marcus.  3rd Edition.

 

Format: Lecture/discussion with opportunities for questions and clarifications. The students are expected to have read the assigned chapters in advance.  If there are questions that you could not raise during the class period you could give them to me in writing at the end of the class or send them to me via e-mail.  I will answer the questions I collect each week via a single e-mail that will be sent to all.

 

I will also use e-mail to send announcements. Every one is required to get an e-mail account. If you do not use your campus e-mail address, you need to send me email from your account so that I can add your address to my mailing list. 

 

I will make available any course material I prepare, including the course outline, through my web site.  Announcements will also be posted in the web site. (http://www.csuchico.edu/~rponarul).

 

Certain number of questions and problems will be assigned each week.  Students are expected to work on these on a timely manner.  Solutions will be posted in my web site with a lag of approximately one week.

 

The CD that comes with the textbook has PowerPoint slides and practice quizzes for each chapter.  There is an on-line learning center at www.mhhe.com/bmm3e.  You should make the best use of these resources.

 

Exams: There will be four mid term exams and an optional final. Total points = 200.  Each exam is worth 50 points and the final exam is worth 100 points.  The final exam can replace two of the midterms. There will be no makeup exams or any other remedial measures.    

 

 

 

The overall grade will be based on the following scheme.

 

90% and above A and A minus
75% to 90%                  B plus, B and B minus
60% to 75%                  C plus, C and C minus
50% to 60%                  D plus and D

 

                       

 

 

Schedule

 

Aug 27, 29

Introduction and overview

Chapter 1

Sep 3, 5

Financial statements

Chapter 17

Sep 10, 12

Accounting and finance

Chapter 2

Sep 17, 19

Exam 1 on Sep 24

 

Sep 24, 26

Time value of money

Chapter 3

Oct  1, 3

Bonds

Chapter 4

Oct 8, 10

Stock valuation

Chapter 5

Oct 15, 17

Project evaluation

Chapter 6

Oct 22, 24

Project cash flows

Chapter 7

Oct 29, 31

Exam 2 on Oct 29

 

Nov 5, 7

Project analysis

Chapter 8

Nov 12, 14

Exam 3 on Nov 14

 

Nov 19, 21

Risk and return

Chapter 9

Dec 3, 5

CAPM and beta

Chapter 10

Dec 10, 12

Exam 4 on Dec 12

 

Finals Week

Final exam on Dec 17 8:00 pm