Download Syllabus

Finance 3320.501.2158 PRINCIPLES OF FINANCIAL MANAGEMENT
Fall 2015
Mesa Building 4250
MW 5:40 – 6:55 P.M.
Instructor: Dr. Shuming Bai
Office:
MB 2250
Telephone: (432) 552-2194
Fax:
(432) 552-2174
Email:
[email protected] ; Power point notes and Announcements are on Blackboard
Office Hours: M 1:30 – 5:30 p.m. and W 4:30-5:30 p.m. and by appointment
I. Course Objectives, Learning Outcomes, and Assessment
Catalog Description:
This course is designed for the general business students. It is a survey of foundational concepts
in finance; in particular, discounted cash flow analysis and its application to valuation of bonds,
stocks, and corporate capital assets. Introduction to the following topics: time value of money;
bond and stock markets; pricing mechanisms in those markets; relationship between risk and
return; capital budgeting methods based on discounted cash flow valuation.
Course Objectives:
Students will learn the fundamentals of future cash flow valuation; in particular, discounted cash
flow analysis and its application to valuation of bonds, stocks, and corporate capital assets.
Students will be introduced to the following topics: time value of money; bond and stock
markets; pricing mechanisms in those markets; relationship between risk and return; capital
budgeting methods based on discounted cash flow valuation.
Student Learning Outcomes
(1) Understand the flow of information into a firm’s financial statements
(2) Understand the valuation of financial assets
(3) Identify sources of financing for firms
(4) Use techniques to evaluate the investment and financing decisions of a firm
Assessment that Student Learning Outcome Competencies Are Met:
(1) Problems
(2) Exam
Course Prerequisites:
ACCT 2301 and Principles of Statistics or equivalent (e.g. MNGT 2342)
II. Course Requirements and Procedures
A. Textbook and Materials:
(1) Loose-leaf Essentials of Corporate Finance with Connect Plus, 8th ed.(2014) by Ross,
Westerfield, and Jordan, published by McGraw-Hill Irwin.
(2) Required Financial Calculator: Financial calculator is required for study and exam. I
would recommend a Texas Instrument BA II Plus (ordered for the book store) for this course.
FINA 3320.501_Syllabus_Fall 2015_Dr.Bai
III. Grading
Grades will be based upon your performance on three unit exams, the comprehensive final exam,
homework, attendance and participation using the following weights:
Exam I
20%
Exam II
20%
Exam III
20%
Cumulative Final Exam
25%
Homework/Practice Problems/Quiz 10%
Attendance/Participation
5%
Total
100%
Grading Scale: Grade
Overall Performance
A: 90-100%; B: 80-89%; C: 70-79%; D: 60-69%; F: Below 60%
IV. Tentative Schedule
Tentative Schedule
.
Week
Wk 1
Wk 2
Wk 3
Wk 4
WK5
Wk 6
Wk 7
Wk 8
Wk9
Wk 10
Wk 11-12
Wk 13
Wk14
Wk 15
Wk 16
Topic
Syllabus; Introduction to Financial Management; HW Connect
Financial Statements, Taxes, and Cash Flow
Working with Financial Statements
Time Value of Mone
Exam I
Discounted Cash Flow Valuation
Working out HW5; Interest Rates & Bond Valuation
Interest Rates and Bond Valuation
Stock Valuation
Exam II
Net Present Value
Making Capital Investment Decisions
Lessons from Capital Market History
Exam III
Thanksgiving Holiday. No Class.
Risk and Return
Cost of Capital
Review for the Final
Cumulative Final Exam –Dec. University Final’s Calendar
FINA 3320.501_Syllabus_Fall 2015_Dr.Bai
Reading
Ch1
Ch1/Ch2
Ch3
Ch4
Ch1-4
Ch5
Ch5
Ch6
Ch7
Ch5-7
Ch8
Ch9
Ch10/Ch11
Ch 7-9
Ch10/11
Ch11/Ch12
Ch12
Ch1-12