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School of Business

 

F301 FINANCIAL MANAGEMENT
COURSE OUTLINE FOR SPRING 2015
(Day Class #15015 Tu & Th 1:00-2:15 p.m. KO 104)
(Eve Class #14104 Tu 6:00-8:45 p.m. KO 102)

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INSTRUCTOR: Dianne Roden, PhD
Office: KO 174G; phone: (756)-455-9470; fax: (765)-455-9348
Office hours: Tu & Th  2:30-4:00 and 5:30-6:00 p.m. or by appointment
WEB PAGE:  
Roden's Home Page
email EMAIL:    droden@iuk.edu

 ross    TEXTBOOK:   Ross, Westerfield & Jordan, Essentials of Corporate Finance, 7th edition 
The student companion website for the textbook includes chapter summaries and on-line quizzes.   text website  

TI
                            BAII PlusOPTIONAL: 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 strongly recommended.
Assistance with financial calculators can be found at: www.tvmcalcs.com

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 Feb 17
in class
second midterm March 31
in class
Final exam May 5
Day:1:00-3:00 p.m.
Eve:6:00-8:00 p.m.
 
Your grade will be determined based on the following weights:
 
first midterm 30% 75 points
second midterm 30% 75 points
Final exam 30% 75 points
class participation
10%
25 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 Canvas at:     canvas.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 course builds from chapter to chapter and a failure to understand the major concepts of one chapter will lead to difficulties in understanding the chapters which follow. The readings and problems from the text will be supplemented by cases which will be handed out in class.

LIBRARY RESOURCES: A Study Guide for Essentials of Corporate Finance will be put on reserve in the library. 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 Jan 13

(Jan 15)
ch1 

ch2
introduction & overview 

financial statements & cash flows
2 Jan 20

(Jan 22)
HW 

ch4 & ch5
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 Jan 27

(Jan 29)
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 Feb 3

(Feb 5)
HW 

ch7
ch6 C#2,5,6,9    P#1,3,4,6,9,11,15,19 

valuation of stocks
5 Feb 10

(Feb 12)
HW 

review
ch7 C#2,5,6,11    P#1,2,7,8,12,13,15,16

review for first exam
6 Feb 17

(Feb 19)
EXAM I 

ch8
EXAM I 

net present value & investment criteria
7 Feb 24

(Feb 26)
HW 

ch9
ch8 C#2,3,5,7   P#3,4,5,6,12,15,16

capital investment decisions
8 March 3

(March 5)
HW 

ch10 & ch11
Case: Monet Brothers #1,2,3,4,5,6,7,9 

risk & return
9 March 10

(March 12)
HW

ch 12
ch10 C#3,9    P#1,2,4,9,10       ch11 C#1,6,7    P#3,7,10,12,13,16,17

cost of capital
10 March 17

(March 19)

no class

SPRING BREAK
11 March 24

(March 26)
HW

review
ch12 C#3,4,10    P#3,5,7,9,15,17,18

review for second exam
12 March 31

(April 2)
EXAM II

ch13
EXAM II

financial leverage & capital structure
13 April 7

(April 9)
HW

ch14
ch13  C#1,5,6,10     P# 1,4,5,11,12,14,16

dividend policy
14 April 14

(April 16)
HW

ch15
ch14  C#1,3,4,7,9     P#1,4,5,7,8,9

raising capital
15 April 21

(April 23)
HW 

ch18
ch15 C#1,3,4,5,9   P#1,4,5,6,7

international finance
16 April 28

(April  30)
HW 

review
ch18  C#1,3,5    P#1,2,3,5,6,7,11,14

review for final exam
17 May 5

FINAL 

FINAL EXAM
 

The Mission Statement of the IUK School of Business may be found at:   mission

Indiana University Kokomo provides equal access and support services to students with special needs. Students with documented disabilities should contact the Accessibility Center (765-455-9301) and discuss any necessary support services or accommodation with the instructor.


Academic Integrity:
Indiana University defines academic misconduct as any activity that tends to undermine the academic integrity of the university. Academic misconduct includes cheating (using unauthorized assistance on in-class or take-home exams), plagiarism, and fabrication.
If a student is found committing an act of academic misconduct, the student will receive zero on the assignment, exam or paper involved.
For more information read the IU Code of Student Rights, Responsibilities and Conduct at:
http://www.iu.edu/~code/code/responsibilities/academic/


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