San José State University College of Business/Department of Accounting & Finance BUS1 170, Fundamentals of Finance, Sections 2 and 4, Spring 2016

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1 San José State University College of Business/Department of Accounting & Finance BUS1 170, Fundamentals of Finance, Sections 2 and 4, Spring 2016 Course and Contact Information Instructor: Laura Roden Office Location: BT 856 Telephone: (415) Office Hours: Class Days/Time: Classroom: BBC 108 Laura.Roden@SJSU.edu MW 8:00-8:45am DROP-IN MW 12:00-2:45pm BY APPOINTMENT Section 2 MW from 9:00-10:15am Section 4 MW from 10:30-11:45am Prerequisites: BUS 21 or BUS 122A, ECON 1A, ECON 1B and BUS 90 Course Format This course will utilize a standard classroom lecture and textbook format. Lectures will typically be supported by powerpoint slides which are for presentation support only; slides may or may not be posted and should not be considered replacements for the textbook material. All students are required to access the Canvas system on a regular basis for homework assignment details and submissions, announcements, and grading information. Additionally, students are requested to download the Canvas Lock Down Browser on a wireless network enabled device of their choosing (tablet or laptop) that can access Canvas from the classroom, and bring the device to every class session in order to take quizzes and tests. Paper versions of quizzes and tests will be available for students without enabled devices but students using paper tests must come to office hours to review corrected tests. Faculty Web Page and MYSJSU Messaging Course materials such as syllabus, handouts, notes, assignment instructions, etc. can be found on the Canvas learning management system course website at You are responsible for regularly checking with the messaging system through MySJSU at to learn of any updates. BUS 170 Sections 2 and 4, spring 201 Page 1 of 16

2 Course Description The finance function and its relationship to other decision-making areas in the firm; the study of theory and techniques in acquisition and allocation of financial resources from an internal management perspective. Course Goals BS/BA Program Learning Goals Goal One: Business Knowledge Understand basic business principles and demonstrate discipline-specific competencies as applied to local and global environments. Goal Two: Communication Communicate ideas clearly, logically, and persuasively in oral and written format, using technology appropriately. Goal Three: Ethical Awareness Recognize, analyze, and articulate solutions to ethical issues that arise in business. Goal Four: Leadership, Teams and Diversity Comprehend the challenges and opportunities of leading and working in diverse teams and environments. Goal Five: Critical Thinking Comprehend, analyze, and critically evaluate complex and unstructured qualitative and quantitative business problems, using appropriate tools and technology. Goal Six: Innovation Recognize, analyze, and articulate strategies for promoting creativity and innovation. Learning Outcomes Course Learning Outcomes (CLO) Upon successful completion of this course, students will be able to: LO1 Demonstrate an understanding of financial analysis CBPG #5. Critical Thinking LO2 Demonstrate an understanding of time value of money - CBPG #5. Critical Thinking LO3 Demonstrate an understanding of financial valuation - CBPG #5. Critical Thinking LO4 Demonstrate an understanding of real asset valuation - CBPG #5. Critical Thinking LO5 Demonstrate an understanding of risk & return - CBPG #5. Critical Thinking BUS 170 Sections 2 and 4, spring 201 Page 2 of 16

3 This course is very data intensive: it is packed with business vocabulary and calculations, many of which will be new to you. It requires a disciplined study approach from the beginning, since each concept builds on the previous one. The importance of all this information is that it is relevant to all business professionals, whether you specialize in finance, accounting, marketing, operations, human resources, engineering, or general management. At the minimum, it will enable you to understand the role of the finance discipline in a corporation, with emphasis on the theory and tools that are used to help company leaders make sound financial decisions; learn how to ensure that the company has sufficient capital for operations, growth, and maximization of shareholder wealth; and demonstrate how time value of money, risk, and diversification can contribute to good decision-making in business and to your own accumulation of wealth and financial security. You will also learn how to use finance in many practical applications of everyday life. If you choose to study finance at an advanced level, this course will provide you with important foundational knowledge to build on. If you choose to focus on other areas, this course will enable you to understand the relevance of finance concepts to your field and to interface effectively with the finance function. Required Texts/Readings Textbook Fundamentals of Financial Management, Concise Edition, 8th Edition Author: Eugene F. Brigham, Joel F. Houston ISBN: Publisher: Cengage Learning The book is available at the bookstore and from online sellers such as Amazon. You may buy a used/earlier edition (you do NOT need the online Access Code) but you will be responsible for figuring out differences in page numbers, chapter numbers, or homework problem details. The concepts do not change from edition to edition and the homework problems only change slightly.. Other Readings Internet Research: several assignments require internet research using search engines and websites such as Google and Yahoo Finance; none require purchase of paid content. Bloomberg Certifications: some assignments require use of the Bloomberg Terminals which are provided free of charge at various SJSU locations, which have broad but specific hours of operation: students are responsible for arranging their schedules to ensure completion of these assignments by the due dates indicated on the syllabus. A Vocabulary/Concept Outline will be posted online in Canvas Files for this course before the start of the semester which lists all the topics that may appear on tests. Students should print this outline, bring it to every class, make notes on it to ensure understanding of each item as we cover it, and ask questions immediately if unclear It should also be used to take notes while reading homework assignments. If this practice is followed, at the end of each course segment students will have a complete knowledge of the material to be tested. Other equipment / material Financial Calculator: every student must bring an approved, non-networked financial calculator to every class and exam session: the approved calculator models are HP10bii (recommended for ease of use), the TI BAIIplus, and the HP 12c. No networked (phone or other) calculators will be permitted to be used during class and exams. Some instruction will be given regarding the class-specific use of these calculators, but students are responsible for familiarizing themselves with basic operations. These calculators are widely available at book stores, office supply stores, and online, where used calculators may be found for less than $20. BUS 170 Sections 2 and 4, spring 201 Page 3 of 16

4 Canvas Lock Down Browser: students are requested to download the Canvas Lock Down Browser on a wireless network enabled device of their choosing (tablet or laptop) that can access Canvas from the classroom, and bring the device to every class session in order to take quizzes and exams. Paper versions of quizzes and exams will be available for students without enabled devices, but exam results may only be reviewed during office hours. Scantrons: each student should bring at least 1 form 882 (narrow, 100 question) Scantron to each class in case they choose to elect to take paper-based quizzes and exams, or have trouble accessing Canvas online. Course Requirements and Assignments SJSU classes are designed such that in order to be successful, it is expected that students will spend a minimum of forty-five hours for each unit of credit (normally three hours per unit per week), including preparing for class, participating in course activities, completing assignments, and so on. More details about student workload can be found in University Policy S12-3 at SEGMENT EXAMS: A Segment Exam with available points will be given in class at the completion of each Segment, targeted at testing your learning of the following topics: Segment I: General Finance Topics Forms of Organization; Organizational Accountability; Stakeholder vs. Agency Conflicts; Ethics; Financial Markets; Financial Institutions; Careers in Finance. Segment II: Financial Reporting & Analysis Reading, Understanding and Evaluating Financial Statements; Understanding and Calculating Cash Flows; Ratio Analysis. Segment III: Risk & Return Risk/Return Trade-off; Time Value of Money; Net Present Value and Internal Rate of Return; Interest Rates and Yields; the Yield Curve; Bond Valuation. Segment IV: Equity and Capital Structure Capital Asset Pricing Model; Stock Valuation using CAPM; Stock Valuation using Comparables; Weighted Average Cost of Capital; Optimal Capital Structure; Capital Budgeting; Sunk Costs. Segment V: Working Capital and Cash Flow Forecasting (no separate Segment Exam but this information will be included on the Final Exam) Impact of Working Capital on Cash Flow; Forecasting Cash Flow Elements; Relationship between Cash Flow and Shareholder Value HOMEWORK and HOMEWORK CHECK QUIZZES: Homework is assigned for every class, in advance of the lecture on the respective topic: the lecture is designed to highlight and elaborate on the reading and homework material, not replace it. Some homework assignments requires submission and are graded (from 5-15 points available per assignment, depending on assignment); most is not submitted but will be tested in Homework Check quizzes in class on the date it is due, with 3-5 available points each. Homework solutions to calculation problems will be posted so that you can self-check your work: you are responsible for attempting solutions, and seeing me promptly in office hours if you have questions. Homework assignments that require submission must be submitted in the format and by the due date indicated in Canvas. If there is a technical problem submitting homework through Canvas, homework must be submitted in paper form at the start of class. No ed homeworks will be accepted. ALL LATE homeworks must be submitted in paper form, and will be subject to a 50% point deduction. Homework requiring an essay or write-up will be graded primarily on content, specifically focusing on a) what you learned and b) how it is relevant to the concepts you are studying in this course. Write-ups must be spell- and grammar-checked and proofread as you would business correspondence being submitted to management or a client: write-ups that contain spelling, grammar, vocabulary usage, or other errors will be subject to a point deduction ranging from % depending on severity of the issues. Writing help is available from several University resources as described below; if you wish to learn more about BUS 170 Sections 2 and 4, spring 201 Page 4 of 16

5 these, see me immediately, do not wait to lose points. ANY form of plagiarism on write-ups will result in a NEGATIVE point score (it will hurt your total course grade) AND it will be reported to the University. University policy F69-24 at states, Students should attend all meetings of their classes, not only because they are responsible for material discussed therein, but because active participation is frequently essential to insure maximum benefit for all members of the class. Attendance per se shall not be used as a criterion for grading. Grading Policy Grading will be based on the following, subject to any announced changes: 4 Segment Quizzes x average points each = points 2 Bloomberg Certifications and write-ups = 30 points total 10 points for prep/review of a guest speaker, if scheduled Approximately 20 Homework Check quizzes x 3-5 points each = points 1 comprehensive Final Exam x 50 points = 50 points Total available points approximately 250 Additional quizzes/points may be added if needed to focus attention on sub-topics, which may change the relative assignment weights. No extra credit opportunities will be offered to make up for poor performance. Quiz dates shown on the syllabus schedule are approximate: they may be adjusted depending on quickly we get through each Segment s materials. No make-ups will be offered for Homework Check quizzes or Guest Speak write-ups. Makeups on Segment Quizzes and Final Exam will ONLY be offered in the documented event of an unforeseen emergency which physically prevented the student from taking the test. Results and correct answers for tests taken on Canvas are available immediately after the last section completes the test. Paper quizzes and exams as well as written assignments are generally graded within 2-5 days and not handed back but may be reviewed at any time during office hours. Grades will be curved based on the performance of all students in my sections of this course this semester. The curve will be published periodically, usually within a week after each Segment Quiz. Passage of the Writing Skills Test (WST) or ENGL/LLD 100A with a C or better (C not accepted), and completion of Core General Education are prerequisite to all SJSU Studies courses. Completion of, or coregistration in, 100W is strongly recommended. A minimum aggregate GPA of 2.0 in GE Areas R, S, & V shall be required of all students. Note that All students have the right, within a reasonable time, to know their academic scores, to review their grade-dependent work, and to be provided with explanations for the determination of their course grades. See University Policy F13-1 at for more details. BUS 170 Sections 2 and 4, spring 201 Page 5 of 16

6 Classroom Protocol Class will be conducted in accordance with professional business meeting protocol. Disruptive, distracting, disrespectful, or unsafe activity will not be tolerated, and will result in expulsion from the classroom, grade point deduction, or both. University Policies General Expectations, Rights and Responsibilities of the Student As members of the academic community, students accept both the rights and responsibilities incumbent upon all members of the institution. Students are encouraged to familiarize themselves with SJSU s policies and practices pertaining to the procedures to follow if and when questions or concerns about a class arises. To learn important campus information, view University Policy S90 5 at and SJSU current semester s Policies and Procedures, at In general, it is recommended that students begin by seeking clarification or discussing concerns with their instructor. If such conversation is not possible, or if it does not address the issue, it is recommended that the student contact the Department Chair as the next step. Dropping and Adding Students are responsible for understanding the policies and procedures about add/drop, grade forgiveness, etc. Add/drop deadlines can be found on the current academic year calendars document on the Academic Calendars webpage at The Late Drop Policy is available at Students should be aware of the current deadlines and penalties for dropping classes. Information about the latest changes and news is available at the Advising Hub at Consent for Recording of Class and Public Sharing of Instructor Material University Policy S12-7, requires students to obtain instructor s permission to record the course and the following items to be included in the syllabus: Common courtesy and professional behavior dictate that you notify someone when you are recording him/her. You must obtain the instructor s permission to make audio or video recordings in this class. Such permission allows the recordings to be used for your private, study purposes only. The recordings are the intellectual property of the instructor; you have not been given any rights to reproduce or distribute the material. o It is suggested that the greensheet include the instructor s process for granting permission, whether in writing or orally and whether for the whole semester or on a class by class basis. o In classes where active participation of students or guests may be on the recording, permission of those students or guests should be obtained as well. Course material developed by the instructor is the intellectual property of the instructor and cannot be shared publicly without his/her approval. You may not publicly share or upload instructor generated material for this course such as exam questions, lecture notes, or homework solutions without instructor consent. BUS 170 Sections 2 and 4, spring 201 Page 6 of 16

7 Academic integrity Your commitment, as a student, to learning is evidenced by your enrollment at San Jose State University. The University Academic Integrity Policy S07-2 at requires you to be honest in all your academic course work. Faculty members are required to report all infractions to the office of Student Conduct and Ethical Development. The Student Conduct and Ethical Development website is available at Campus Policy in Compliance with the American Disabilities Act If you need course adaptations or accommodations because of a disability, or if you need to make special arrangements in case the building must be evacuated, please make an appointment with me as soon as possible, or see me during office hours. Presidential Directive at requires that students with disabilities requesting accommodations must register with the Accessible Education Center (AEC) at to establish a record of their disability. Accommodation to Students' Religious Holidays San José State University shall provide accommodation on any graded class work or activities for students wishing to observe religious holidays when such observances require students to be absent from class. It is the responsibility of the student to inform the instructor, in writing, about such holidays before the add deadline at the start of each semester. If such holidays occur before the add deadline, the student must notify the instructor, in writing, at least three days before the date that he/she will be absent. It is the responsibility of the instructor to make every reasonable effort to honor the student request without penalty, and of the student to make up the work missed. See University Policy S14-7 at Student Technology Resources Computer labs for student use are available in the Academic Success Center at located on the 1st floor of Clark Hall and in the Associated Students Lab on the 2nd floor of the Student Union. Additional computer labs may be available in your department/college. Computers are also available in the Martin Luther King Library. A wide variety of audio-visual equipment is available for student checkout from Media Services located in IRC 112. These items include DV and HD digital camcorders; digital still cameras; video, slide and overhead projectors; DVD, CD, and audiotape players; sound systems, wireless microphones, projection screens and monitors. SJSU Peer Connections Peer Connections free tutoring and mentoring is designed to assist students in the development of their full academic potential and to inspire them to become independent learners. Peer Connections tutors are trained to provide content-based tutoring in many lower division courses (some upper division) as well as writing and study skills assistance. Small group and individual tutoring are available. Peer Connections mentors are trained to provide support and resources in navigating the college experience. This support includes assistance in learning strategies and techniques on how to be a successful student. Peer Connections has a learning commons, desktop computers, and success workshops on a wide variety of topics. For more information on services, hours, locations, or a list of current workshops, please visit Peer Connections website at for more information. SJSU Writing Center The SJSU Writing Center is located in Clark Hall, Suite 126. All Writing Specialists have gone through a rigorous hiring process, and they are well trained to assist all students at all levels within all disciplines to become BUS 170 Sections 2 and 4, spring 201 Page 7 of 16

8 better writers. In addition to one-on-one tutoring services, the Writing Center also offers workshops every semester on a variety of writing topics. To make an appointment or to refer to the numerous online resources offered through the Writing Center, visit the Writing Center website at For additional resources and updated information, follow the Writing Center on Twitter and become a fan of the SJSU Writing Center on Facebook. (Note: You need to have a QR Reader to scan this code.) SJSU Counseling and Psychological Services The SJSU Counseling and Psychological Services is located on the corner of 7th Street and San Carlos in the new Student Wellness Center, Room 300B. Professional psychologists, social workers, and counselors are available to provide confidential consultations on issues of student mental health, campus climate or psychological and academic issues on an individual, couple, or group basis. To schedule an appointment or learn more information, visit Counseling and Psychological Services website at BUS 170 Sections 2 and 4, spring 201 Page 8 of 16

9 BUS1 170 / Fundamentals of Finance, Spring 2016, MW 9:00 and 10:30am This schedule is subject to change; updates will be posted on the Canvas system. Course Schedule Week Date Topics, Readings and Assignments: due at start of class session, unless otherwise specified n/a n/a Due by Wed Feb 10 Due by Mon Feb 29 Download the Canvas LockDown Browser on the device (tablet or laptop) you will be using to take in-class quizzes and exams, and take the Test Your Browser quiz posted on Canvas; 3 points. NOTE: if you do not have access to a device you can bring to class for quizzes, you must see me BEFORE this due date to arrange for alternate test taking instructions. Bloomberg Certification 1: Economics Each student is required to complete Bloomberg Market Concepts (BMC) Certifications in 2 subject areas: Economics and Equities. The Economics module is due by Feb 29; the Equities module is due by April 30. Each takes 2-3 hours and is worth 15 points. Bloomberg is accessible FREE through the SJSU Bloomberg Terminals: see posted instructions document for locations and hours of operation and login directions. NO late submissions will be accepted. You are responsible for planning ahead and allowing enough time to complete the assignments, recognizing that there are a limited number of terminals available. Completion of each of these assignments includes the following steps: 1. Review ALL the instruction documents in the Bloomberg folder on Files in Canvas. 2. Register for BMC on a Bloomberg terminal: you must login correctly including the Course Code Bloomberg has set up for this class in order to receive credit. After each assignment due date Bloomberg will send me a list of those students who have completed each module. If you have not registered correctly and completed the module according to Bloomberg s records you will not receive credit for the assignment. 3. Complete the credential and check to make sure your Bloomberg account has recorded it as completed and given you a final score. 4. Write a one page (at least 250 word) review of your experience acquiring each credential, and submit it in Text form through the Canvas module for the assignment (submit your Economics writeup under the Economics assignment and your Equities writeup under the Equities assignment). Grading of this assignment is based on BOTH your score on the credential and the quality of your writeup, as follows: Up to 10 points available based on score (example: if you received a score of 75 on Bloomberg, you would receive 7.5 points.) Up to 5 points available based on your writeup quality. Your writeup must include a) what you learned and b) how it is relevant to the concepts you are studying in this course. Write-ups that do not address these issues or that contain spelling, grammar, vocabulary usage, or other errors will be subject to a point deduction BUS 170 Sections 2 and 4, spring 201 Page 9 of 16

10 Week Date Topics, Readings and Assignments: due at start of class session, unless otherwise specified n/a Due by Sat Apr 30 ranging from % depending on severity of the issues. Note: ANY form of plagiarism on write-ups will result in a NEGATIVE point score (it will hurt your total course grade) AND it will be reported to the University ethics councils. Bloomberg Certification 2: Equities Same process for the second certification area (Equities). 1 Mon Feb 1 Course Orientation; Structure and Goal of the Corporation Obtain book and calculator; start practicing Test Your Calculator problems posted on Canvas. See me before or after class if you are not getting the correct answers, your calculator may need to be reset. 1 Wed Feb 3 Forms of Organization review; Capital Markets; Calculator Quiz 1 1. Reading: SKIM Chapter 1 Overview of Financial Management. 2. Make a Table with the seven major forms of business organization in the left column (sole proprietorship, general partnership, limited partnership, C corp, S corp, LLC, and B corp) and 4 columns to the right: ownership structure, liability, taxation, and other (miscellaneous). In each cell of the table, note the pros and cons and any other special items regarding each form of organization relative to each of the four characteristics. To answer question fully, do online research, don t rely on book which is very brief on these important questions. Make sure to include B corps (not mentioned in book but important current topic.) EXPECT A QUIZ. 3. Download Test Your Calculator instructions from Canvas Files for this course. Learn how to calculate growth rate, also known as percent change, on your calculator, as shown in Test Your Calculator problem #1. EXPECT A QUIZ. YOU MUST BRING YOUR CALCULATOR TO EVERY CLASS STARTING WITH THIS SESSION. 2 Mon Feb 8 Financial Institutions 1. Reading: Chapter 2 Financial Markets and Institutions sections IN DETAIL, for comprehension and vocabulary. 2. Online research: getting a feel for equity markets: a) Do internet search and find out the total current Market Capitalization (in US $) of all companies listed on the New York Stock Exchange, the NASDAQ, the London Stock Exchange, the Tokyo Stock Exchange and the Hong Kong Stock Exchange (also look at other exchanges if you like). If the numbers are not in U.S. dollars, you must convert them to dollars at the current exchange rate in order to analyze them. The internet offers many free currency conversion apps to do this. b) Also find out the # of companies listed on each of these exchanges c) Using these two sets of numbers, calculate the average market cap per company for each exchange. (Make sure you know what Market Cap means.) What did you learn from this exercise? EXPECT A QUIZ. 3. Online research: getting a feel for the banking system: a) Do internet search and find out what are the 10 largest banks in the world in terms of total assets, expressed in U.S. $? If the numbers are not in U.S. dollars, you must convert them. BUS 170 Sections 2 and 4, spring 201 Page 10 of 16

11 Week Date Topics, Readings and Assignments: due at start of class session, unless otherwise specified What did you learn from this exercise? EXPECT A QUIZ. NOTE the source and date of all data. Bring your work to class to discuss. 2 Wed Feb 10 Securities and the Stock Market 1. Reading: chapter 2, sections read IN DETAIL for comprehension and vocabulary. 2. Online research: understanding how to read stock market information. Study Figure 2.3 (p. 45) in the book; then go to Yahoo Finance, look up any company listed on NYSE or NASDAQ that interests you, and learn how to read and explain what all the statistics on the Summary page mean, as if you were teaching another person about the stock. Make sure you understand ALL vocabulary and abbreviations on this page. EXPECT A QUIZ in which you will be given the summary page for a DIFFERENT stock and need to explain what the page tells you. NOTE: only choose a company that is listed on the NYSE or NASDAQ; if it is not listed on one of these exchanges, it will not contain complete information. 3 Mon Feb 15 Segment 1 Quiz and Ethics Review/Discussion 1. Online Research: a) Read about insider trading. What are the THREE key characteristics that define something as illegal insider trading? b) Find a case of a public company executive who served or is serving jail time for a white collar crime that involves an ethical violation and analyze why you agree/disagree. 2. Study for Segment I Quiz: refer to Vocabulary and Concept Outline for Segment I. 3 Wed Feb 17 Income Statements 1. Reading: SKIM all of Chapter 3 Financial Statements ; read IN DETAIL sections 3.3 Income Statement and 3.9 Income Taxes. NOTE: do not memorize tax rates, since they change constantly; understand concepts, vocabulary, and how to calculate taxes if you are given the tax rates. 2. Do problems: 3.2, 3.3, and EXPECT A QUIZ. 3. Online research: a) Download the 2014 annual report or Form 10-K for ONE of these companies: Starbucks, McDonalds, Walmart, or Tiffany s. b) Print out the 2014 Income Statement and compare it to the text book examples: similarities, differences? Make sure you understand the meaning of each line on the financial statement. BRING THIS INCOME STATEMENT TO CLASS, YOU WILL BE QUIZZED ON IT. NOTE: you must bring the FULL 2014 P&L from the company s Annual Report or 10-K; you may NOT use the abbreviated statements from the annual report Highlights, Selected Financial Results, Yahoo Finance, Bloomberg or other sites because they do not have complete information. If you do not have a print out of the full P&L with you, you will not be allowed to take the quiz and will receive Zero points for this assignment. 4 Mon Feb 22 Balance Sheets & Statements of Shareholders Equity 1. Reading: REVIEW all of chapter 3 AGAIN; read IN DETAIL sections 3.2 BUS 170 Sections 2 and 4, spring 201 Page 11 of 16

12 Week Date Topics, Readings and Assignments: due at start of class session, unless otherwise specified Balance Sheet and 3.5 Statement of Shareholders Equity, 2. Do problems: 3.1, 3.4, 3.8 and 3.9. EXPECT A QUIZ. 3. Online research: using the same Annual Report or 10-K you downloaded for the last class, print out the 2014 Balance Sheet and Statement of Shareholders Equity and compare it to the text book examples: similarities, differences? Make sure you understand the meaning of each line on these financial statements. BRING THESE FINANCIAL STATEMENTS TO CLASS, YOU WILL BE QUIZZED ON THEM. ALERT: in one section of Chapter 3 the Book incorrectly defines Working Capital as the same as Current Assets. The correct definition of Working Capital is Current Assets Minus Current Liabilities. NOTE: you must bring the FULL 2014 B/S AND EQUITY STATEMENT from the company s Annual Report or 10-K, you may NOT use the abbreviated statements from the annual report Highlights, Selected Financial Results, Yahoo Finance, Bloomberg or other sites because they do not have complete information. If you do not have a print out of the full B/S and Statement of Shareholders Equity with you, you will not be allowed to take the quiz and will receive Zero points for this assignment. 4 Wed Feb 24 Cash Flow Statements 1. Reading: REVIEW all of chapter 3 AGAIN; read IN DETAIL sections 3.4 Cash Flow and 3.7 Free Cash Flow 2. Problems: 3.11, 3.12 and 3.13 parts a, b and c. EXPECT A QUIZ. 3. Online research: using the same Annual Report or 10-K you downloaded for the last class, print out the 2014 Cash Flow Statement and compare it to the text book examples: similarities, differences? Make sure you understand the meaning of each line on the financial statement. BRING THE CASH FLOW STATEMENT TO CLASS, YOU WILL BE QUIZZED ON IT. NOTE: you must bring the FULL 2014 Cash Flow statement from the company s Annual Report, you may NOT use the abbreviated statements from the annual report Highlights, Selected Financial Results, Yahoo Finance, Bloomberg or other sites because they do not have complete information. If you do not have a print out of the full B/S and Statement of Shareholders Equity with you, you will not be allowed to take the quiz and will receive Zero points for this assignment. 5 Mon Feb 29 Financial Statements Quiz and Calculator Quiz 2 1. Learn Calculator Problem II: calculating compound growth rates. 2. Study the 4 financial statements for a Financial Statement Quiz: review Chapter 3 reading and Homeworks. 3. YOUR FIRST BLOOMBERG CERTIFICATION AND WRITEUP MUST BE COMPLETED AND SUBMITTED. 5 Wed Mar 2 Ratio Analysis 1 1. Reading: Read all of Chapter 4 Analysis of Financial Statements IN DETAIL. 2. Memorize the names and formulas for every ratio on table 4.2 plus the DuPont Ratio. EXPECT A QUIZ. 6 Mon Mar 7 Ratio Analysis 2 BUS 170 Sections 2 and 4, spring 201 Page 12 of 16

13 Week Date Topics, Readings and Assignments: due at start of class session, unless otherwise specified Online research: Using the annual report or 10-K you previously downloaded, calculate EVERY ratio on table 4.2 plus the DuPont Ratio and analyze/think about what these ratios tell you about the business. BRING YOUR WORK TO CLASS. EXPECT A QUIZ. 6 Wed Mar 9 Ratio Analysis 3 Online research: a) Download the 2014 annual report or 10-K for the company in the same industry you didn t choose before (eg, if you have been studying Tiffany s, now download Walmart). b) Calculate every ratio for the new company. c) Compare it to your company: which company is doing better on which performance measurements? What did you learn about the companies from analyzing this? BRING YOUR WORK TO CLASS. EXPECT A QUIZ. 7 Mon Mar 14 Segment II Exam Study for test: refer to Vocabulary and Concept Outline for Segment II. Use Vocabulary and Concept Outline. Test yourself: can you write down all the major components of each financial statement from memory, in the correct order? Can you write down the formula for each financial ratio correctly? Do you know what each ratio tells you about a business? 7 Wed Mar 16 Risk & Return and Time Value of Money, and Calculator Quiz 3 1. Reading: Read Chapter 5 Time Value of Money parts IN DETAIL. 2. Practice all examples with your calculator: first do Testing Your Calculator problem # III (TVM) posted in Canvas to make sure you know how to use your calculator correctly. EXPECT A QUIZ. 3. Problems: 1, 2, 3, 4, 5, and 8. EXPECT A QUIZ. 8 Mon Mar 21 Calculating TVM, and Calculator Quiz 4 1. Reading: Read/Review ALL of Chapter 5 IN DETAIL. Practice all examples with your OWN calculator. 2. Learn Test your Calculator problem # IV: non-annual periods. EXPECT A QUIZ. 3. Problems: 10, 11, 12, 13, 14, 15, 16, 17, 19, 21 and 23. EXPECT A QUIZ. 8 Wed Mar 23 Net Present Value, IRR and Payback, and Calculator Quiz 5 1. Read Chapter 11 Capital Budgeting to understand CONCEPTS of NPV, IRR and PayBack. 2. Do the following problems: Chapter 5 problems 20 and 33; Chapter 11 Questions 4 and 8; Chapter 11 problems 1, 2, 4, 6(a), and 12. EXPECT A QUIZ. 3. Learn Test your Calculator problem V and make sure you know how to calculate NPV and IRR on your calculator. EXPECT A QUIZ. 9 Mon Mar 28 Spring break 9 Wed Mar 30 Spring break 10 Mon Apr 4 Bond Valuation 1. Read Chapter 7 Bonds and their Valuation IN DETAIL. Read for concepts and vocabulary. BUS 170 Sections 2 and 4, spring 201 Page 13 of 16

14 Week Date Topics, Readings and Assignments: due at start of class session, unless otherwise specified 2. MEMORIZE the vocabulary in Self-Test Question 1. Make sure you know what the terms really mean. Problems: Self Test 1 and 2; Problems 1, 2, 3, 4, 5, 6, 8 and 9. EXPECT A QUIZ. ALERT: ERROR IN BOOK: several of the Self Test and regular problems in the Book do not correctly convert Semi-annual yield to annual yield. You must use the converting non-annual to annual rate of return formula you have learned. Your answer will be slightly higher than shown in the book. 10 Wed Apr 6 Interest Rates & Yields; the Yield Curve 1. Read Chapter 6 Interest Rates IN DETAIL. Pay close attention to vocabulary and concepts. Do Self-Test questions 1 and 2, and Problems 1, 2, 4, and 5. EXPECT A QUIZ. 2. Online research: do a search for a graphic (pictorial) description of the Yield Curve and study it. What are the axes? What are the points that define the curve? What does it tell you? Why is it such an important concept in the financial world? EXPECT A QUIZ. 11 Mon Apr 11 Finish Segment III, overflow and review Review all section III vocabulary and homework problems; BRING SPECIFIC QUESTIONS TO CLASS. 11 Wed Apr 13 Segment III Exam Review all section III vocabulary and homework problems, study for exam. 12 Mon Apr 18 Diversification, Beta and CAPM, and Calculator Quiz 6 1. Read Chapter 8, Risk and Return. NOTE: you will NOT have to calculate Standard Deviation, but you do need to understand what it means and how it relates to risk. 2. Answer self-test questions. 3. Learn Calculator Problem #6: Weighted Averages. EXPECT A QUIZ. 12 Wed Apr 20 Diversification, Beta and CAPM con t 1. Read Chapter 8 AGAIN, "Risk and Rates of Return," IN DETAIL. Focus on concepts covered in the lecture: Diversification, Risk, Correlation, Beta, and CAPM. 2. Do problems 8.2, 3, 4, 5, 7, 8, 9, 10, 11, 12. You should do all these problems as a self-test to make sure you understand the CAPM calculation and how to calculate it. EXPECT A QUIZ. 13 Mon Apr 25 Cost of Capital and WACC 1. Reading: read Chapter 10 Cost of Capital IN DETAIL 2. Test yourself on all Self-Test questions and Questions 2, 3 and Do problems 10-1, 2, 3, and 5. EXPECT A QUIZ. 13 Wed Apr 27 Leverage and Optimal Capital Structure 1. Reading: read Chapter 13 Capital Structure and Leverage IN DETAIL 2. Do problems 1, 2, 4, 6 and Study the Hamada Equation and CAPM and how they are used to complete the example tables posted on Canvas. EXPECT A QUIZ. 4. REMINDER: YOUR SECOND BLOOMBERG CERTIFICATION AND WRITEUP MUST BE COMPLETED AND SUBMITTED BY NO BUS 170 Sections 2 and 4, spring 201 Page 14 of 16

15 Week Date Topics, Readings and Assignments: due at start of class session, unless otherwise specified LATER THAN SATURDAY APRIL 30. NO EXCEPTIONS. 14 Mon May 2 Stock Valuation 1. Reading: Chapter 9 Stocks and their Valuations focusing on understanding concepts and vocabulary. 2. Online Research: using Yahoo Finance, look up 4 companies in different industries (see Template for assignment) and create a table comparing their current trailing PE ratio, their Earnings growth rate over the past year (most recent year net income vs. prior year), their forecasted EPS growth rate between now and one year from now (in Analyst Estimates), and their forecasted growth rate in stock price between now and the 1 year analyst estimate. Do these statistics seem to be related or follow any pattern? USE THE TEMPLATE POSTED IN CANVAS. HAND IN ASSIGNMENT IN PAPER FORM AT START OF CLASS TO GET UP TO 4 POINTS OF CREDIT. Any evidence of plagiarism will result in NEGATIVE points for everyone involved. Must be able to explain work if asked. 14 Wed May 4 Equity valuation using Comparables Online Research: using Yahoo Finance, look up 4 companies in a single industry (see Template for assignment) and create a table comparing their ratios for Price/Earnings, Price/EBIT, Price/Revenues, and Price/Book Value. (REMEMBER to use per-share OR total entity values to calculate ratios: you can t compare a per-share price with a total-entity earnings.) What should stock prices be based on, and how does that related to each of these ratios? What could explain the differences between the companies ratios? USE THE TEMPLATE POSTED IN CANVAS. HAND IN ASSIGNMENT IN PAPER FORM AT START OF CLASS TO GET UP TO 4 POINTS OF CREDIT. Any evidence of plagiarism will result in NEGATIVE points for everyone involved. Must be able to explain work if asked. 15 Mon May 9 Segment IV Exam Study for Exam 15 Wed May 11 Working Capital Management 1. Read Chapter 15, Working Capital Management, carefully in its entirety. Make sure you really understand what Working Capital is, what makes it go up and down, and why it is so important to forecast. Learn all unfamiliar vocabulary. NOTE: as in a prior chapter, the book erroneously defines Working Capital as the same as Current Assets. This is NOT the standard definition of Working Capital. The definition of Working Capital (and Net Working Capital) you should memorize is Current Assets Minus Current Liabilities. 2. Do Self Test 1 to make sure you understand all the important vocabulary. 3. Read and answer Questions 15-1, 15-2, 15-6, and By this time you should be able to answer all these clearly. 4. Do Problems 1, 2, 3, 4, 5 and 6 to keep practice your mastery of these basic calculations. EXPECT A QUIZ. BUS 170 Sections 2 and 4, spring 201 Page 15 of 16

16 Week Date Topics, Readings and Assignments: due at start of class session, unless otherwise specified 16 Mon May 16 Final Exam Cash Flow Forecasting 1. Read Chapter 16 Financial Planning and Forecasting carefully in its entirety. Pay particular attention to forecasting calculation methods. 2. Test yourself by doing "Easy Problems" # 16-1, 2, 3, 4, and 5. EXPECT A QUIZ. Section 2: Wednesday, May 18, 7:15-9:30am Section 4: Tuesday, May 24, 9:45am-12:00n The final exam is held in the same room as class sessions unless otherwise posted. BUS 170 Sections 2 and 4, spring 201 Page 16 of 16