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School of Business

 

F301 FINANCIAL MANAGEMENT
COURSE OUTLINE FOR FALL 2015
(Class #29552 Tu & Th 1:00-2:15 p.m. KO 203)

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

TEXTBOOK: ross     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: A 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 Sept 29
in class
second midterm Nov 3
in class
Final exam Dec 15
1:00-3:00 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:     http://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.    IUK library
 

WEEK DATES TEXT TOPIC & ASSIGNMENT 
(C=Concept Questions & P=Problems at end of each chapter)
1 Aug 25

Aug 27
ch1 

ch2
introduction & overview 

financial statements & cash flows
2 Sept 1

Sept 3
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 Sept 8

Sept 10
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 15

Sept 17
HW
 
ch7
ch6 C#2,5,6,9    P#1,3,4,6,9,11,15,19 

valuation of stocks
5 Sept 22

Sept 24
HW 

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

review for first exam
6 Sept 29

Oct 1
EXAM I 

ch8
EXAM I 

net present value & investment criteria
7 Oct 6

Oct 8
HW
 
ch9
ch8 C#2,3,5,7   P#3,4,5,6,12,15,16

capital investment decisions
8 Oct 13

Oct 15
HW 

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

risk & return
9 Oct 20

Oct 22
no class

HW
FALL BREAK

ch10 C#3,9    P#1,2,4,9,10       ch11 C#1,6,7    P#3,7,10,12,13,16,17
10 Oct 27

Oct 29
ch12

HW
cost of capital

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

Nov 5
EXAM II

ch13
EXAM II

financial leverage & capital structure
12 Nov 10

Nov 12
HW

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

dividend policy
13 Nov 17

Nov 19
HW

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

raising capital
14 Nov 24

Nov 26
no class

no class
Roden Holiday

THANKSGIVING
15 Dec 1

Dec 3
HW 

ch18
ch15 C#1,3,4,5,9   P#1,4,5,6,7

international finance
16 Dec 8

Dec 10
HW 

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

review for final exam
17
Dec 15

FINAL 
FINAL EXAM
 

MISSION: The Mission 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/

INTERESTING FINANCE LINKS

BIG CHARTS 
historical stock charts
Big Charts
CNN MONEY
business news and stock quotes
cnnmoney
GOOGLE FINANCE
stock market quotes and financial news
Google Finance
WALL STREET JOURNAL 
interactive version 
wsj
YAHOO FINANCE
a
one-stop financial center
yahoo
LOTS MORE FINANCE LINKS 
interesting web sites for finance & econ
 Fun Finance Sites links

  

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