Course Number: FMGT 2371 Course Title: Financial Management I Credits: 3

Transcription

1 Course Outline Department: School of Management Course Number: FMGT 2371 Course Title: Financial Management I Credits: 3 Semester Year: (Spring 2010) Section: 1 Days: Tue/Thur Hours: 2:30 4:20 Classroom: L215 Instructor Contact Name: Aziz Rajwani Office: B253k Phone: Office Hours: M/W 10: arajwani@langara.bc.ca Tue/Thur 12-12:30 4:30-5 (Tue) and 6-6:30 (Wed.) Other times by appointment Course Description Financial Management 2371 develops three learning streams: 1. valuation and investment measurement techniques for corporate and individual investors, 2. working capital management approaches for corporations, and 3. long-term planning and performance analysis of firms. This course lays the groundwork for mathematical and strategic analysis of investment decisions for the modern corporation and investor. Learning Objectives and Outcomes At the completion of FMGT 2371, students should have a basic understanding of the fundamentals of finance: time value of money, valuation of bonds and shares, investment theory, working capital management and financial statement analysis. Prerequisite(s) One of FMGT 1116, 1215 or 2293; and of MATH 1118, 1119, 1210 or permission of the instructor.

2 Required Textbooks and Financial Calculator Introduction to Corporate Finance, by Laurence Booth and W. Sean Cleary, Wiley Publications. The textbook s website has (useful) materials for students: A financial calculator is required for this course. I will be using a Hewlett Packard 10B (or 10BII) for in-class demonstration. The Texas Instruments Business Analyst II and the Sharp Business Calculator (EL733-A or EL738) are also capable of performing discounted cash-flow calculations; however, the Texas Instruments Business Analyst (BA35) is not capable of performing certain discounted cash-flow calculations.) If you don t already have one of the above calculators, it is HIGHLY RECO0MMENDED that you purchase the HP 10BII as it is the most user friendly calculator. mylangara Assignment templates and other instructional materials will be posted on mylangara. Students are expected to regularly check mylangara (and their Langara accounts) for messages from the instructor. Grade Allocation Assignments 10 Two Midterms 55 Final exam 35 TOTAL 100 Grading A % B % C % D 50 54% A 90 94% B 75 79% C 60 64% F < 50% A % B % C % Page 2

3 University Transferability Refer to for transferability and whether credits are assigned or unassigned. Expectations Regular class attendance is expected. Students are responsible for all announcements made in class, whether the student is present or not. Course information is subject to change with notice. Check your Langara account frequently or have your college forwarded to your personal account. All exams must be written at the scheduled date, time and location. Only a legitimate reason, such as illness will be accepted as an excuse. Alternate arrangements may be possible if presented with a valid medical certificate or other acceptable formal (written) notice of absence. Please refer to the current College Calendar regarding the scheduling of final exams. Students are responsible for maintaining a classroom atmosphere which will promote and encourage learning. Frequent classroom disturbances, either directly or indirectly as the result of a student s actions, may result in the student s removal from the course. All mobile phones must be turned off at the beginning of class, unless previous arrangements have been made with the instructor. Cell phones are NOT permitted to be on the table during exams. Devices with digital text or photo display (mobile phones, PDAs, programmable calculators, etc.) are NOT permitted for use in exams. Cell phones must be turned off (or put in silent mode, NOT vibrate mode) and stored in your coat/pants/purse/ murse during exams. BUY A CHEAP WATCH TO KEEP TRACK OF TIME. You are expected to come prepared to class having read the required reading applicable for that class, to participate in class discussion, to ask questions, and to answer questions. The course places a heavy onus on keeping current and keeping up. Students who succeed will do the assignments. Examinations will reveal how well one is learning. While the course is quite text-bound, students will find that outside reading in the business press will help their understanding of finance. Writing skills will be just as important as numerical/calculation skills. Assignments must be submitted on the template provided. Page 3

4 Assignments and Exams Assignments and due dates are indicated on the course schedule. Assignment templates will be posted on mylangara. Assignments must be submitted on the template posted on mylangara. Assignments are due at the beginning of class on the due date. Students who arrive to class late should submit their assignments at that time. Assignments and examinations should be submitted with your Last (Family) Name, First (Given) Name. There will be two midterms (approximately 1.5 hours) and one comprehensive final exam (2 hours). Devices with digital text or photo display (mobile phones, PDA s, programmable calculators, etc.) are not permitted for use in exams. Students who miss a midterm due to illness must contact the instructor before the start of the midterm to determine if alternate arrangements can be made. Plagiarism and Cheating Policy Plagiarism and cheating are serious educational offences, which may result in failure of an assignment, failure of a course, and possible suspension from Langara. For more details, please refer to Langara's Code of Conduct in the College calendar or Student Policies and Procedures on Langara's website at School of Management It is the aim of the School Management at e to promote the mastery of core skills such as reading, reading comprehension, writing fluency, verbal articulation, and analytical development. These core skills will be practiced by means of presentations and class participation, and will be evaluated on submitted work. Critical thinking and problem solving exercises are encouraged at every opportunity. Course Schedule The schedule for FMGT 2371 is on the following page. All dates are tentative and subject to change with appropriate notice. Please note the all final exams will be scheduled April Students are reminded that this is the only scheduled time period for final exams. Thus, do not make any travel plans before the final exam schedule is posted (on the web) by the College. Page 4

5 Course Schedule*** Date Topic Textbook Readings Jan. 5, 7 An Introduction to Finance Chapter 1: Topic 1.3 (pp ) Business (Corporate) Chapter 2: Topic 2.2, 2.3 & 2.4 (pp ) Finance Options Chapter 12: Topics 12.1 & 12.2 (pp and pp ) Jan. 12, Financial Statement Chapter 4 [Ignore Topic 4.9 (pp )] 14, 19, 21 Analysis and Forecasting Jan. 26, Time Value of Money Chapter 5 28, Feb. 2, 4, 9 Feb. 11 Midterm 1 Chapters 1, 2, 12, 4 and 5 Feb. 16, 18, 23, 25 No classes due to 2010 Olympics Mar. 2, Bond Valuation and Interest Chapter 6 4, 9, 11, 16 Rates Interest Rate Parity Appendix 6A (pp ) Equity Valuation Chapter 7 (pp ) Mar. 12 Last day to Withdraw Mar. 18, Risk, Return and Portfolio Chapter 8: Topics 8.1, 8.2 & 8.3 (pp ) 23, 25 Theory The Capital Asset Pricing Chapter 9: Topic 9.3 (pages ) Model (CAPM) Mar. 30, Apr. 6, Working Capital Management: General Chapter 23 [Ignore Topic 23.2 (pp ); Ignore Topic 23.3 (pp )] 8 Issues Apr. 1 Midterm 2 Chapters 6, 6A, 7, 8 and 9 Apr. 13, 15 Chapter 24 [Ignore Topic 24.1 (pp ); Ignore pp ] Working Capital Management: Current Assets and Current Liabilities *** Subject to change Page 5

6 ASSIGNMENT SCHEDULE*** NUMBER CHAPTER DUE DATE*** *** Subject to change 1 4 (Part 1) Jan (Part 2) Jan Feb and 6A and 7 Mar and 9 Mar Apr. 13 Assignments will be posted on mylangara and (where applicable) should be submitted on the templates provided (print the.pdf file). Only submit the pages starting with Name (Last, First).