The purpose of this course is to introduce students to the issues faced by
corporate financial managers. Upon successful completion of this course the
student ...
Finan 303 – Principles of Finance – Fall 2013 Sec. 002 – MW 1:30-2:45 p.m. – MBEB 2010 Professor: Office: Office Hours:
Keith Harvey MBEB 2239 MW 1:00-1:30 2:45-3:45
Phone: Email:
426-2391
[email protected]
Email:
Put 303 in subject.
E-Textbook:
Essentials of Corporate Finance, 7E, Ross, Westerfield and Jordan.
Objectives: The purpose of this course is to introduce students to the issues faced by corporate financial managers. Upon successful completion of this course the student should: 1. Acquire a working knowledge of the terminology and concepts necessary to communicate with financial managers 2. Be able to use the financial functions in Excel to solve financial problems 3. Have an understanding of the goals of the firm and how the finance function supports those goals 4. Be able to read and analyze the financial statements of a corporate organization 5. Be able to use the historical analysis of financial statements and a sales forecast to forecast the cash flow and financing needs of the organization 6. Understand how the time value of money impacts financial decisions 7. Understand and be able to apply the models for valuing financial assets 8. Understand the concept and measurement of risk as it applies to financial modeling 9. Be able to estimate cash flows accruing to long-term assets 10. Understand and be able to apply the models used to evaluate the long-term asset acquisition proposals for the firm 11. Understand the instruments and markets for raising capital for the firm 12. All of the objectives are considered for corporations operating in a global environment within the framework of ethical decision-making Online Content: Much of the lecture material will be presented in online videos, most of which are 10 to 15 minutes in length each. On scheduled class days for which videos and reading are assigned you will not be required to meet in class. I will be available in class on the online days to assist students needing further assistance on previously covered material. Rather than using a lecture format, class meetings will instead be interactive and devoted to application, problem solving, discussion and answering questions. Taking advantage of online content It is my objective to make the learning more effective, active and efficient by delivering much of the lecture material online. There are several advantages to learning in this format, especially when learning Finance. The following are some suggestions for realizing that potential: Students have varied backgrounds and abilities. Some students struggle to keep up with a lecture and are reluctant to ask the instructor to slow down, while others can accommodate a faster pace. Online delivery provides tremendous flexibility in this regard. Students needing a slower pace can pause the Finan 303 – Sec. 002 – Boise State University – Fall 2013 – Harvey
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presentation to collect their thoughts, view calculations in provided spreadsheets (especially helpful in Finance), study the illustrations and media, etc. They can replay the content at their leisure. Conversely, I find that I deliver the content online in less than half the time of a classroom presentation (no need for long pauses to accommodate these issues), allowing students desiring a faster pace to reduce their time commitment and maintain their focus. This also helps to address the problem of what appears to be our steadily shrinking attention spans. Our class time can be much more interactive and tuned to meet student needs. Instead of lecture where students receive material passively, the meetings will be devoted to revisiting portions of the online presentation as requested by students or suggested by quiz results, as well as application, problem solving and further illustration of the concepts covered online. The learning will be active as students will be working together in groups on practice problems, taking quizzes, and getting answers to questions. Student will receive credit for their participation by submitting work completed in class. In addition to making the learning more active, this format allows students to reflect on the material and formulate questions before we develop it more fully in class. The duration of class periods will be flexible, dependent on student needs. I urge you to help me to make our time together interactive. Problems: A large part of class time will be devoted to problem solving in groups of 3-5 students. In addition to receiving credit for in-class problems, these assignments will allow you to know what to expect on the exams, and to direct your study and prepare a study sheet accordingly. The assignments will be due electronically by 10:00 p.m. on the day assigned, and are typically completed during the class period. Students must be present in class to receive group credit for assignments. I will drop one assignment for absences. Study Sheet: You will be allowed to use a standard 8x11 front-and-back study sheet of your design for the exam. The sheet can include any formulas to assist with the quantitative material, but should not include any conceptual information. Its purpose is to assist you in applying the material to problems without unnecessary memorization. Quizzes: Online graded quizzes cover the video presentations. The quizzes can be started at any time up to the following in-class meeting period (see schedule). The purpose of the quizzes is to have students study the material before class, so two attempts will be granted. I will also provide non-graded quizzes to review the concepts from each chapter. These quizzes will be very beneficial to students in exam preparation. Excel Application: We will use the financial functions in Excel to make calculations. The exams will be completed in Excel and submitted electronically. A sample of the format in Excel will be provided prior to the first exam.
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Blackboard: All of the assigned materials for the course are found under the ‘Assignments’ tab in Blackboard, organized by chapter. For each chapter you will find: 1) Instructions; 2) Power Point; 3) Excel files; 4) videos; and 5) an online quiz. Grades: Ten percent of the course grade will be determined by a weighted average percent success on the video quizzes. Fifteen percent of the course grade will be determined by a weighted average percent success on inclass problem assignments. Seventy-five percent of the course grade will be determined by equally weighted scores on four exams. The exam questions include true/false, multiple choice, short answer, and problem formats. Exam Dates: Exam 1: Exam 2: Exam 3: Exam 4:
September 23 October 21 November 13 December 18
Topic Sequence
I.
Financial Measurement and Analysis Chapter 2: Cash Flow Chapter 3: Financial Statement Analysis II. Valuation Chapter 4: The Time Value of Money Chapter 5: Discounted Cash Flow Valuation Chapter 6: Bond Valuation Chapter 7: Stock Valuation III. Risk Measurement Chapter 10: Capital Market Returns History Chapter 11: Risk and Return Chapter 12: Cost of Capital IV. Project Investment Evaluation Chapter 8: Capital Budgeting Criteria Chapter 9: Capital Budgeting Cash Flows
Using the Electronic Textbook The electronic textbook can be accessed online through Blackboard by clicking on the Courseload link in the control panel. The e-textbook is supported by the Courseload platform. We recommend accessing Courseload through a device with a sizeable screen (9 inch or larger). Recommended browsers include Google Chrome or Safari (4.0+). Using Firefox or Explorer will not work as Finan 303 – Sec. 002 – Boise State University – Fall 2013 – Harvey
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effectively. Courseload also supports Internet Explorer 7.0 or 8.0 with the Chrome Frame Plugin installed. Courseload does not support Kindle Fire, Nook or Nook Color. The text can be checked out for offline reading at a later time by clicking on ‘Checkout’. This feature requires the Google Chrome browser, which is not currently available for iPad or Android tablets. Courseload provides many interactive features on the e-textbook. These include: 1. Search for words or phrases. 2. Instructor highlights: I will highlight key terminology in red, equations in blue, important text in yellow, and links to other resources in green. The terms, equations and links will be tagged to allow you to search for them separately (e.g. see a list of key terms for the chapter). 3. Instructor notes: I will elaborate on or clarify certain parts of the material. 4. Student highlights and notes: students can highlight text and create notes and tags, and have the ability to share these with other selected students. 5. Bookmark important pages. 6. Print up to 50 pages at a time. Here are a couple of links to instructions for using the e-textbook: Getting started guide: https://kb.iu.edu/data/bbao.html Guide to Courseload: http://help.courseload.com/help/documentation.pdf Courseload provides the instructor with data on individual student usage of the text. I will not use this information during the semester. Class Schedule Week 1 2 3 4 5 6 7 8 9 10 11
Day 8/26 8/28 9/2 9/4 9/9 9/11 9/16 9/18 9/23 9/25 9/30 10/2 10/7 10/9 10/14 10/16 10/21 10/23 10/28 10/30 11/4 11/6
Activities Introduction Online; watch Ch 2 Cash Flow videos; Labor Day Holiday Ch 2 Cash Flow; VQ 1 Online; watch Ch 3 Financial Analysis videos Ch 3 Financial Analysis; VQ 2 Ch 3 Financial Analysis Review Ch 2-3 Exam 1 Online; watch Ch 4-5 Time Value of Money videos Ch 4-5 Time Value of Money; VQ 3 Ch 4-5 Time Value of Money Online; watch Ch 6 Bond Valuation videos Ch 6 Bond Valuation; VQ 4 Ch 6 Bond Valuation Review Ch 4-6 Exam 2 Online; watch Ch 7 Stock Valuation videos Ch 7 Stock Valuation; VQ 5 Online; watch Ch 10-11 Risk and Return videos Ch 10-11 Risk and Return; VQ 6 Ch 10-11 Risk and Return; Ch 12 Cost of Capital
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12 13 14 15 16 Finals
11/11 11/13 11/18 11/20 11/25 11/27 12/2 12/4 12/9 12/11 12/18
Review Ch 7, 10-12 Exam 3 Online; watch Ch 8 Capital Budgeting Criteria videos Ch 8 Capital Budgeting Criteria; VQ 7 Thanksgiving break Thanksgiving break Online; watch Ch 9 Capital Budgeting Cash Flows videos Ch 9 Capital Budgeting CF; VQ 8 Ch 9 Capital Budgeting CF Review Ch 8-9 Exam 4 2:30 p.m.
Online = online class day; watch the assigned videos. I am available in class to students who want help with previously covered material. VQ = video quiz due; take the quiz any time prior to the beginning of the class session.
College of Business and Economics Core Curriculum Student Learning Goals and Objectives Students in this class will learn or practice the following COBE Core Curriculum concepts, methods, and skills: 1. Understand and apply analytical and disciplinary concepts and methods related to business and economics:
1.1. Accounting
1.2. Business Policy and Strategy
1.3. Economics
1.4. Finance
1.5. Information Technology Management
1.6. International environment of business
1.7. Legal environment of business
1.10. Mathematics & Statistics
2.1. Communicate effectively: Write messages and documents that are clear, concise, and compelling
2.2. Communicate effectively: Give oral presentations that use effective content, organization, and delivery
3. Solve problems, including unstructured problems, related to business and economics
4. Use effective teamwork and collaboration skills
5. Resolve ethical issues related to business and economics
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