FIN 3500 FINANCIAL MANAGEMENT V SYLLABUS Connect

U of Missouri-St. Louis
FIN 3500 Financial Management FALL 2011 Syllabus
FIN 3500 FINANCIAL MANAGEMENT V
SYLLABUS
Reference # 10363 Time: MW 9:30 AM – 10:45 AM
Reference # 10364 Time: MW 11:00 AM – 12:15 PM
Location: 202 SSB (Social Science Business Hall)
Credits: 3
Course Description: The study of a firm’s need for funds; the institutions, instruments,
and markets concerned with raising funds; and the techniques of analysis used to
determine how effectively these funds, once raised, are invested within the firm.
Course Objectives:
The student should gain familiarity with:
• much of the language of finance
• the practice and problems of corporate governance
• the time value of money as it relates to security pricing and capital budgeting
• the markets for securities and their valuation
• the ability to calculate a firm’s cost of capital
• the basics of capital budgeting
• utilizing and interpreting financial statements to evaluate performance, make
business decisions and forecast financing requirements
• capital structure and its interaction with financial policy decisions
Instructor: James Pandjiris, CFA Office: 1110 Tower
Office Hours: Mondays/Wednesdays 1:15 to 2:30 pm and Tuesdays/Thursdays 3:30 to
5:00 pm
Phone: 314-516-6642 E-mail: [email protected] I am easier to reach by e-mail.
Required Texts:
Ross, Westerfield, Jordan. Fundamentals of Corporate Finance, 9th Edition, McGrawHill Irwin. This text is sold in the bookstore as a package along with an e-book and
Connect Registration ID. ISBN for the new text packaged with the Connect Code is
9780078014239. Alternatively, you may buy a used version of Fundamentals of
Corporate Finance, 9th Edition from the bookstore or used book websites, and a Connect
Registration ID online at the URL below. The Connect Registration by itself is about $40.
A third option is to purchase online at the URL below ConnectPlus (ebook) and Connect
Registration for about $90.
You must have the 9th edition (paper bound or electronic) and the Connect
Registration ID in order to prepare and submit assignments.
Connect Finance is an electronic platform associated with the course’s text to provide
for homework assignments and other learning aids. To go directly to the site for
Connect Finance click on the following URL:
9:30 – 10:45: http://connect.mcgraw-hill.com/class/j_pandjiris_2011__930_mw
11:00 – 12:15 http://connect.mcgraw-hill.com/class/j_pandjiris_fall_2011_1100_mw_1
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U of Missouri-St. Louis
FIN 3500 Financial Management FALL 2011 Syllabus
At the above URLs (based on your enrolled section) you can register yourself into
Connect Finance with the Registration ID that came with your new text.
If you purchased a used textbook from the bookstore, use this URL to purchase an access
code to Connect Finance. You will need a credit card to purchase the access code:
approximate cost for access code alone is $40.
If you seek to buy an access code and an e-book, go to this URL and follow directions for
purchase of Connect Plus.
Connect Finance has excellent study aids for each chapter. I strongly recommend your
use of the site on a regular basis.
Supplementary Materials:
A financial calculator is required. This should have PV, FV, and PMT functions.
The TI-BAII Plus model or HP-10B model is a good calculator (at about $32 at
Wal-mart) for this and more advanced finance courses. Note: the Texas Instruments
TI-83 is not particularly friendly for financial calculations. This is primarily a
scientific calculator; many of my former students have found the TI-83 somewhat
difficult to apply to financial problems. If you already have a TI-83, do not buy
another calculator.
• Please get familiar with the operation of your calculator; read the handbook or go
to the manufacturer’s website for guidance. You (yeah, you) are responsible for
knowing how to operate your calculator.
• Reading the Wall Street Journal, (hard copy available at Main Library) is
recommended. I will bring a subscription form to class if you wish to purchase
WSJ at a discounted price.
Course Requirements and Procedures:
Instruction Method: Classes are a combination of lecture and discussion of
problems/issues. Homework problems will be assigned frequently; most homework will
be required to be submitted for grading. Successful students attempt the problems before
class and then review answers discussed in class. If you don’t understand a concept or a
problem, see me or e-mail me. Don’t let that concept fester. The subject matter builds on
prior concepts.
My Gateway
I utilize My Gateway extensively during the semester. I may post articles, list future
assignments, provide answers to homework problems, provide access to Powerpoint
presentations, and advise on studying for exams. You may send me questions or
comments (I encourage this activity) via e-mail on My Gateway. If you do not have
access to My Gateway at your home, I strongly recommend you arrange to access My
Gateway two to three times weekly while on campus.
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U of Missouri-St. Louis
FIN 3500 Financial Management FALL 2011 Syllabus
Attendance/Participation:
Attendance will be taken and will have an effect on your grade. If your attendance is
below 80% on the days on which attendance is taken, you will not receive 2% attendance
extra credit in grading. The material is cumulative and missing any class will make it
difficult for the student to follow subsequent classes. Make sure you sign attendance
sheet! If you are sick, do NOT come to class. E-mail me regarding your estimated return
to class. If you have a serious family emergency or a death in the family, E-mail me to
let me know of your absence and your expected return.
If you will be absent from class more than one time due to religious observance or the
effects of religious observance (e.g. weakness from fasting), please contact me BEFORE
the observance so that we can work out a schedule for you to complete assignments in a
timely manner. It is the student’s responsibility to contact me in a timely manner.
Assignments:
Students are encouraged to complete readings and do homework problems prior to class
meetings. Homework which is assigned for credit will have to be submitted through
Connect Finance before class begins. The solutions to assignments will be displayed in
Connect Finance after submission of Homework assignment. Homework submitted late
will NOT be counted for grading purposes.
Disability
Students with disabilities who believe that they may need accommodations in order to
effectively participate in this class, please contact the Disability Access Services Office
in 144 Millenium Student Center at 516-6554 as soon as possible to ensure that such
accommodations are arranged in a timely fashion. Information about your disability will
be regarded as confidential.
Self Quizzes
Connect Finance website provides self-quizzes for virtually every chapter. I recommend
you review these before/after each chapter. Some exam questions will be based on selfquizzes.
Quizzes
There will be about 5 quizzes in class or electronically offered during the semester.
These will be relatively short and will test your grasp of the material. Electronic quizzes
through My Gateway can be sensitive to home computers; consider taking electronic
quizzes through My Gateway on campus with University computers or access My
Gateway off-campus using Mozilla Foxfire search engine.
Powerpoint Presentations
On My Gateway, I will provide access to Powerpoint presentations related to most
chapters discussed in class. While I may not present each presentation in the classroom,
you will be responsible for the materials contained therein. Please review these
presentations for quiz and exam preparation.
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U of Missouri-St. Louis
FIN 3500 Financial Management FALL 2011 Syllabus
Exams:
Four exams will be given and approximate dates are listed herein. The date of an exam
will be announced in class at least one class period in advance. The final exam will be
necessarily comprehensive but with greater emphasis on the chapters covered since exam
three. The exams will be objective, multiple-choice on a closed-book basis. Finance
encompasses a fair amount of math. In the “real world”, no one carries the exact
calculations around in his/her head. I don’t expect you to memorize shopping lists of
formulae, but I do want you to understand finance principles and their implications on
decision making. For an exam, you will be allowed a “helping page” on which you can
write notes/formulae. Note that exams comprise about 69% of your total grade; treat
them with great importance.
Extra Credit Assignments
From time to time, assignments may be offered which can be completed on a voluntary
basis for extra credit up to an additional 3%. If extra credit assignments are made
available, I recommend students do them; one never knows how many points are enough.
Grades:
Grades will be based on the following weightings:
Points:
Quizzes
85 estimated 5 quizzes @ 17 pts each
Assigned Problems (Homework)
72 estimated 12 HW @ 6 pts each
First Exam
75
Second Exam
85
Third Exam
80
Fourth Exam
103
Total
500 Points
Note that “plus” and “minus” grades will be used in this course.
Letter grades will be awarded as follows:
A/A- ≥ 447.6 pts
B+/B- 398 to 447.5 points
C+/C- 348 to 397.5
D+/D- 298 to 347.5 points
F
< 297.5 points
A letter grade of A is typically 458 points or higher. Note that a grade of A/A- is not
easy to achieve.
In the Grade Center, the column “TOTAL” is important. That is your cumulative points
earned semester-to-date and this columns value changes as your assignments are graded.
Each category of assignments is worth points as shown above.
Courtesy and Collegiality:
Please turn off all electronic communication devices during class as a courtesy to all. I
hope to encourage discussion, questions, and comments. While we may have differing
opinions, let’s respect each other’s views. Please be respectful in language and behavior.
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U of Missouri-St. Louis
FIN 3500 Financial Management FALL 2011 Syllabus
Academic Honesty:
The University 0f Missouri-St. Louis encourages students to pursue excellence within a
respectful and collegial environment and to assume responsibility for consequences of
personal actions. The University requires students to reject any type of dishonest
behavior. Honesty precludes seeking, providing, or receiving any form of unauthorized
assistance on tests or any type of assignment. Any form of cheating on exams/exercises
will result in “0” points for that exam or exercise. In addition, the offending student’s
semester grade will be calculated and then lowered by one letter grade (e.g. if you had an
A-, your final grade would be a B-). Academic dishonesty is a serious offense and is not
worth it. The code of student conduct is available in the Student Handbook.
Assignment Outline & Schedule *
Date Topic
8/22
Introduction to Corporate Finance and Ch. 1
8/24
Ch. 1 (continued) and Ch. 2 Financial Statements
8/29
Ch 2 Financial Statements
8/31
Ch. 3 Working with Financial Statements
9/5
No class! Labor Day Holiday
9/7
Ch. 3 Working with Financial Statements
9/12
Ch. 4 Long Term Financial Planning
9/14
Ch. 4 Long Term Financial Planning
9/19
First Exam (covers chapters 1 to 4)
9/21
Ch. 5 Time Value of Money
9/22
Ch. 5 Time Value of Money
9/26
Ch 6 DCF Valuation
9/28
Ch 6 DCF Valuation
10/3
Ch. 7 Interest Rates and Bond Valuation
10/5
Ch. 7 Interest Rates and Bond Valuation
10/10 Ch. 8 Stock Valuation
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U of Missouri-St. Louis
FIN 3500 Financial Management FALL 2011 Syllabus
10/12 Catch up
10/17 Second Exam (covers chapters 5 to 8)
10/19 Ch. 9 NPV
10/24 Ch. 9 NPV
10/26 Ch 10 Project Cash Flows
10/31 Ch 10 Project Cash Flows
11/2
Third Exam (covers chapters 9 and 10)
11/7
Ch. 12 (partial) Some Lessons from Capital Markets History and
Ch. 13 Return/Risk
11/9
Ch. 13 Return/Risk and Ch 14 Cost of Capital
11/14 Ch 14 Cost of Capital
Last Day a student may drop or withdraw without receiving a grade
11/16 Ch 16 Financial Leverage and Capital Structure
11/21
and 11/23 NO CLASSES – Thanksgiving Break
11/28
Ch 16 Financial Leverage and Capital Structure
11/30 Ch 16 continued and Ch 17 Dividends
12/5
Ch 17 Dividends
12/7
Last Day of Class – Catch up
12/12 Final Exam for Section 2 (normally meets 11:00 – 12:15) 10:00 a.m. – Noon
12/14 Final Exam for Section 1 (normally meets 9:30 – 10:45 a.m.) 7:45 – 9:45 a.m.
* This syllabus is subject to change at the discretion of the instructor to accommodate
instructional and/or student needs. It is the student’s responsibility to keep abreast of
such changes.
Dated: 8/15/2011
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