Finance Introduction to Financial Management Summer 2012 Online

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1 PROFESSOR: Dr. Todd A. Brown OFFICE: McGee 392 PHONE: WWW: Finance Introduction to Financial Management Summer 2012 Online COURSE COURSE DESCRIPTION: The role of finance in the modern business organization with emphasis on the decision process. LEARNING OBJECTIVES: Upon successful completion of this course the student should be able to identify the goal of financial management and explain why it is superior to other possible goals; describe the relation of the financial markets to the economy and financial management; construct and interpret the tools of financial analysis including financial ratios, pro forma financial statements, and cash budgets; understand how financial instruments are priced in financial markets; explain the concepts of risk, return and time value of money, including the application of these concepts to securities, portfolios and capital budgets; describe, calculate and interpret the rate of return on different types of securities issued by corporations; and explain and calculate the cost of capital for corporations and explain its relationship to the capital structure; describe and compare the sources of funds which a corporation might use to finance its operations. These objectives require quantitative analysis, problem solving, critical thinking, and computer skills. COURSE PREREQUISITES: Accounting 231 COURSE MATERIALS APLIA REGISTRATION: You are required to register with Aplia at Upon registration you will receive a digital copy of the text: Fundamentals of Financial Management 12 th edition, by Brigham and Houston, pub. Cengage. The Course Key needed for Registration with Aplia is: UECZ-CG2M-6CCT. CALCULATOR: A financial calculator is required. I recommend the Texas Instruments BA II Plus. The examples assume you use this calculator. If you buy a different calculator, make sure the operating manual is included because each model works differently and you will need to learn it on your own.

2 COURSE GRADE EXAMS: There are two exams worth a total of 400 points. Each exam will be taken online during the scheduled time and will be worth 200 points each. APLIA PROBLEM SETS: You will be assigned problem sets within Aplia that will be worth 300 points in total. You total points earned will be calculated as a percent of the points you earned on all of your Aplia assignments to the total points available on all of the Aplia assignments multiplied by 300. Desire2Learn HOMEWORK: Homework will be assigned throughout the term and will be worth 140 points in total. Your homework assignments will need to be entered in Desire2Learn and you will receive three attempts at each of your homework assignments. NO late homework assignments will be accepted. If you cannot enter your answers because of technical difficulties, you may or phone them to me BEFORE they are due. QUIZZES: There will be 4 quizzes given through Blackboard that will be worth 40 each for a total of 160 points. Quizzes will be timed and may only be attempted one time. GRADING POLICY: Points Grade A B C D F COURSE READINGS/OUTLINE Chapter Topic 5 Time Value of Money 1 An Overview of Financial Management 2 Financial Markets and Institutions 6 Interest Rates 7 Bonds and Their Valuation 9 Stocks and Their Valuation 8 Risk and Rates of Return 10 The Cost of Capital 14 Capital Structure and Leverage 15 Distributions to Shareholders 3 Financial Statements, Cash Flow, and Taxes 11 The Basics of Capital Budgeting 12 Cash Flow Estimation and Risk Analysis 18 Derivatives and Risk Management

3 Tentative Course Timeline & Schedule Topics Module 1 Time Value of Money Module 2 Chapters 1, 2, and 6 Module 3 Bonds and Their Valuation Module 4 Stocks and Their Valuation First Exam July 25 Module 5 Risk and Rates of Return Module 6 Cost of Capital Assignment Read through the Introduction folder including the syllabus.. Complete the Texas Instruments Financial Calculator problem set in Aplia by July 11. Complete Homework 1 by July 12. Complete the Time Value of Money problem set in Aplia by July 13. Complete Homework 2 by July 15. Complete Quiz 1 by July 16. Complete the Chapter 1, 2, and 6 problem set in Aplia by July 17. Complete the Bonds and Their Valuation problem set in Aplia July 18. Complete Homework 3 by July 19. Complete the Stocks and Their Valuation problem set in Aplia by July 20. Complete Homework 4 by July 22. Complete Quiz 2 by July 24. *** Covers Modules 1-4*** Complete the Risk and Rates of Return problem set in Aplia by July 26. Complete Homework 5 by July 27. Complete the Cost of Capital problem set in Aplia by July 29. Complete Homework 6 by July 30. Module 7

4 Chapters 14, 15 and 3 Module 8 Basics of Capital Budgeting Complete the Chapters 14, 15 and 3 problem set in Aplia by July 31. Complete Quiz 3 by August 1. Complete the Basics of Capital Budgeting problem set in Aplia by August 2. Complete Homework 7 by August 3. Module 9 Cash Flow Estimation Complete the Cash Flow Estimation and Risk Analysis problem set in Aplia by August 6. Module 10 Derivatives and Risk Management Second Exam August 10 Complete the Derivatives and Risk Management problem set in Aplia by August 7. Complete Quiz 4 by August 8. *** Covers Modules 5-10***

5 Program Learning Outcomes: Rusche College of Business Syllabus Addendum Program learning outcomes define the knowledge, skills, and abilities students are expected to demonstrate upon completion of an academic program. These learning outcomes are regularly assessed to determine student learning and to evaluate overall program effectiveness. You may access the program learning outcomes for your major and particular courses at General Student Policies: Academic Integrity (A 9.1) Academic integrity is a responsibility of all university faculty and students. Faculty members promote academic integrity in multiple ways including instruction on the components of academic honesty, as well as abiding by university policy on penalties for cheating and plagiarism. Definition of Academic Dishonesty Academic dishonesty includes both cheating and plagiarism. Cheating includes but is not limited to (1) using or attempting to use unauthorized materials to aid in achieving a better grade on a component of a class; (2) the falsification or invention of any information, including citations, on an assigned exercise; and/or (3) helping or attempting to help another in an act of cheating or plagiarism. Plagiarism is presenting the words or ideas of another person as if they were your own. Examples of plagiarism are (1) submitting an assignment as if it were one's own work when, in fact, it is at least partly the work of another; (2) submitting a work that has been purchased or otherwise obtained from an Internet source or another source; and (3) incorporating the words or ideas of an author into one's paper without giving the author due credit. Please read the complete policy at Withheld Grades Semester Grades Policy (A 54) Ordinarily, at the discretion of the instructor of record and with the approval of the academic chair/director, a grade of WH will be assigned only if the student cannot complete the course work because of unavoidable circumstances. Students must complete the work within one calendar year from the end of the semester in which they receive a WH, or the grade automatically becomes an F. If students register for the same course in future terms the WH will automatically become an F and will be counted as a repeated course for the purpose of computing the grade point average. Students with Disabilities To obtain disability related accommodations, alternate formats and/or auxiliary aids, students with disabilities must contact the Office of Disability Services (ODS), Human Services Building, and Room 325, / (TDD) as early as possible in the semester. Once verified, ODS will notify the course instructor and outline the accommodation and/or auxiliary aids to be provided. Failure to request services in a timely manner may delay your accommodations. For additional information, go to Acceptable Student Behavior Classroom behavior should not interfere with the instructor s ability to conduct the class or the ability of other students to learn from the instructional program (see the Student Conduct Code, policy D 34.1). Unacceptable or disruptive behavior will not be tolerated. Students who disrupt the learning environment may be asked to leave class and may be subject to judicial, academic, or other penalties. This prohibition applies to all instructional forums, including electronic, classroom, labs, discussion groups, field trips, etc. The instructor shall have full discretion over what behavior is appropriate/inappropriate in the classroom. Students who do not attend class regularly or who perform poorly on class projects/exams may be referred to the Early Alert Program. This program provides students with recommendations for resources or other assistance that is available to help SFA students succeed.