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Steven R. Cox, Ph.D.

F301 - Financial Management

Indiana University Kokomo

Summer 2009   

Dr. Steven Cox

 

COURSE SYLLABUS (print friendly version)

Time

5:45 – 9:00, Tuesdays and Thursdays  (May 14 – June 25)

Room

KO 281

Office Hours

9:00 – 10:00 (after class) , Tuesdays and Thursdays (and by appointment or walk-in)

Office

KO 174J

Work Phone

(765) 455-9314

Mobile Phone

(317) 696-0571

E-mail

scox@iuk.edu 

Web Site

http://www.iuk.edu/~bussrc/

Required Text

Ross, Westerfield, Jordan, Essentials of Corporate Finance, Fifth Edition

Calculator

A financial calculator is highly recommended.

Prerequisites*

A201, A202; E201, E202, E270

* If a student is found to be without the required prerequisites, he or she may be administratively withdrawn at any point in the semester.

 

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.

 

In addition, I have two personal goals relating to this course. First, I want to make finance interesting and perhaps even fun. Second, I want to award grades fairly. Students that come to class, do the reading, and practice the problems, will do well in my class.

 

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 School of Business Mission Statement
 

 http://www.iuk.edu/~kobus/Mission.shtml

 

Computer Usage

 

Students are strongly encouraged to use the computer to access selected web sites and to contact me via e-mail.  Answers to all assigned problems will be available in the “Resources” section in Oncourse. IU Kokomo also offers a variety of computer resources for course assignments and projects (e.g., word processing, spreadsheets, presentation software, database management, and statistical analysis packages). 

 

Library Usage

 

The IU Kokomo library system offers a large variety of resources for the student to supplement the content of this course. Examples include current newspapers (Wall Street Journal), magazines (Business Week), databases (ABI Inform), and access to the Internet.

 

Grading 

 

Midterm Exam

150 pts

Final Exam

150 pts

Quizzes

100 pts

Total Points

400 pts

 

Grading Scale 

 

96% - 100%

A+

90% - 96%

A

89% - 90%

A-

86% - 89%

B+

80% - 86%

B

79% - 80%

B-

76% - 79%

C+

70% - 76%

C

69% - 70%

C-

66% - 69%

D+

60% - 66%

D

59% - 60%

D-

Below 59%

F

 

 

 

 

Exams

Unexcused absences will result in zeros on exams. Exams may be a combination of multiple choice, problems, and short essays. The midterm exam will be in class on June 4th. The final exam will be in class on June 25th.  

Quizzes

Short 10-point quizzes will be given in each class (except for the two exam nights). You will receive your highest ten scores out of eleven quizzes. Quiz questions will come directly from the assigned homework problems. In chapters without assigned problems, the quiz material will come from in-class material. Only one make-up quiz will be allowed during the course.

 

Students with Special Needs

Indiana University Kokomo provides equal access and support services to students with special needs. Students with documented disabilities should contact the University Division and discuss any necessary support services or accommodation with the instructor. 

 

 

Course Schedule

 

 Chapter

Topic

 

Questions and Problems

 

Date

1
 

2

Introduction to Financial Management
 

Financial Statements, Taxes, and Cash Flow


 

1, 2, 3, 4, Handouts

May 14

4

 

 

5

Introduction to Valuation: The Time Value of Money

Discounted Cash Flow Valuation

2-10, 17, 18, 23, 24

 

 

4, 5, 7-10, 12, 13, 20, 21

May 19

6

 

Interest Rates and Bond Valuation
 

2-4, 6-9, 11, 15, 18

May 21

7

 

Equity Markets and Stock Valuation
 

1, 2, 4, 6-8, 10, 12, 13, 15-17

May 26

8

 

Net Present Value and Other Investment Criteria
 

3, 5, 6, 10, 12, 22

May 28

9

 

Making Capital Investment Decisions
 

1, 2, 20, Handouts

June 2

 

 

Midterm Exam

 

 

June 4

10
 

11

Some Lessons from Capital Market History
 

Risk and Return


 

1, 3, 4, 7, 12-17, 19, 25,

June 9

12

 

Cost of Capital
 

3, 5, 7, 9, 15, 17, 18

June 11

13

 

14

Leverage and Capital Structure

Dividends and Dividend Policy

 

June 16

15

 

Raising Capital
 

1-4

June 18

18

International Aspects of Financial Management
 

1-3, 6, 11

June 23

 

Final Exam  

 

June 25