F301 FINANCIAL MANAGEMENT COURSE OUTLINE FOR FALL 2008 ( Class #20397 Tu, Th 1:00-2:15 p.m. KO 108)
  INSTRUCTOR: Dianne Roden, PhD Office: KO 174G, phone: 455-9470, fax: 455-9348
Office hours: Tu, Th  2:30- 4:00 and 5:30-7:00 p.m. or by appointment
WEB PAGE:           Roden's Home Page EMAIL:     droden@iuk.edu

TEXTBOOK:    text website:  Ross, Westerfield & Jordan, Essentials of Corporate Finance, 5th edition         

OPTIONAL: Study Guide for Essentials of Corporate Finance.This book will be on reserve in the library.
A calculator is necessary to do the assignments and exams.A financial calculator is recommended, but is not required.

PREREQUISITES:  BUS A201, A202;    ECON E201, E202, E270   (Graduate students should consult with the instructor)
 
EXAMS: There will be three exams, two during the semester and one during the final exam period.
 

first midterm	Sept 30	in class
second midterm	Nov 4	in class
Final exam	Dec 16	1:00-3:00 p.m.

 
Your grade will be determined based on the following weights:
 

class participation	10%	25 points
first midterm	30%	75 points
second midterm	30%	75 points
Final exam	30%	75 points
TOTAL	100%	250 points

Exam format will contain some multiple choice, some short answer, and a number of problems similar to ones assigned in class.

CLASS PARTICIPATION: Problems and questions from the text will be assigned each week and the solutions discussed in class. Participation in this process, other class discussions, and general attendance will impact this portion of the grade.

GRADES: A 90-100, B 80-89, C 70-79, D 60-69, F < 60
(plus and minus grades will be given in the high & low range of each group)
Grades will be posted on Oncourse at:     http://oncourse.iu.edu
 
GOALS:
This course is an introduction to corporate finance providing a conceptual framework of the firm's investment, financing, and dividend decisions. Students will be prepared to face many of the issues that confront financial decision makers in a global setting. The students will develop an understanding of risk, rates of return, and valuation.

OBJECTIVES:

• Understand the concept of time value of money and applications of discounted cash flow.
   
• Utilize valuation models in order to value stocks and bonds.
   
• Understand and apply the concept of discounted cash flows in a capital budgeting setting. Students are required to demonstrate competence in Net Present Value analysis.
   
• Be proficient in measuring risk and grasp the risk-return tradeoff as described in the Capital Asset Pricing Model.
   
• Comprehend the theory of capital structure including the weighted average cost of capital.  
   
• Be familiar with the factors that influence a firm's dividend and reinvestment policy.

The structure of this class makes your individual study and preparation outside class extremely important. You will get much more from the lectures if you attempt the problems on your own and you come to class prepared.
 
The readings and problems from the text will be supplemented by cases which will be handed out in class.

LIBRARY RESOURCES: Solutions to all problems will be put on reserve in the library after they are discussed in class. A Study Guide for Essentials of Corporate Finance will also be on reserve. The IUK library offers a large variety of resources to supplement this course. Examples include current newspapers (Wall Street Journal), magazines (Business Week), databases (ABI Inform), and access to the Internet.
 

WEEK	DATES	TEXT	TOPIC & ASSIGNMENT  (C=Concept Questions & P=Problems at end of each chapter)
1	Aug 26 Aug 28	ch1  ch2	introduction & overview  financial statements & cash flows
2	Sept 2 Sept 4	HW  ch4 & 5	ch1 C#1,2,5,12     Ch2 C#2,4,7   P#1,2,5,6,7,8,14  time value of money & discounted cash flow
3	Sept 9 Sept 11	HW  ch6	ch4 C#1,3,6    P#2,3,6,9,10,17      ch5 C#1,2   P#1,2,4,5,7,9,10,12,20  interest rates & bond valuation
4	Sept 16 Sept 18	HW  ch7	ch6 C#2,5,6,9    P#1,3,4,6,9,11,15,18,19  valuation of stocks
5	Sept 23 Sept 25	HW  review	ch7 C#2,5,6,11    P#1,2,7,8,12,13,15,16,19  review for first exam
6	Sept 30 Oct 2	EXAM I  ch8	EXAM I  net present value & investment criteria
7	Oct 7 Oct 9	HW  ch9	ch8 C#2,3,5,7   P#3,4,5,6,12,15,16 capital investment decisions
8	Oct 14 Oct 16	HW  ch10 & 11	Case: Monet Brothers #1,2,3,4,5,6,7,9  risk & return
9	Oct 21 Oct 23	HW  ch12	ch10 C#3,9    P#1,2,4,8,9,10,17      ch11 C#1,6,7    P#3,7,10,12,13,16,17 cost of capital
10	Oct 28 Oct 30	HW  review	ch12 C#3,4,10    P#3,5,7,9,15,17,18,25 review for second exam
11	Nov 4 Nov 6	EXAM II ch13	EXAM II  financial leverage & capital structure
12	Nov 11 Nov 13	HW ch14	ch13  C#1,5,6,10     P# 1,4,5,10,13,16,18 dividend policy
13	Nov 18 Nov 20	HW  ch15	ch14  C#1,3,4,7,9     P#1,4,5,7,8,9,14 raising capital
14	Nov 25 Nov 27	no class	THANKSGIVING
15	Dec 2 Dec 4	HW  ch18	ch15 C#1,3,4,5,9   P#1,4,5,6,7 international finance
16	Dec 9 Dec 11	HW  review	ch18  C#1,3,5    P#1,2,3,6,7,11,13,15 review for final exam
17	Dec 16	FINAL  EXAM	FINAL EXAM

 

INTERESTING FINANCE LINKS

BIG CHARTS  historical stock charts
CNN MONEY business news and stock quotes
MICROSOFT INVESTOR  track investments and follow the market
WALL STREET JOURNAL  interactive version
YAHOO FINANCE a one-stop financial center
LOTS MORE FINANCE LINKS  interesting web sites for finance & econ	Fun Finance Sites

 

 

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