CALIFORNIA STATE UNIVERSITY, FULLERTON
MIHAYLO COLLEGE OF BUSINESS AND ECONOMICS
Department of Finance
Finance 320-05 Instructor: Don Crane
Business Finance Office: SGMH-5158
Spring 2010 Office Hours: M 6:45–7:45 p.m.;T 6:00–7:00 p.m.
Class Hours: R 12:15-1:15 p.m.or by appointment
M: 4:00-6:45 p.m.; SGMH-1308 Phone/Vmail: 657-278-3956 (prefer email)
Sec Code: 18829 Email:
Dept. Office: SGMH-5113 Dept Website business.fullerton.edu/finance
Dept. Phone: 657-278-2217 Dr. Crane’s: business.fullerton.edu/finance/dcrane
Course Description
Using a lecture and discussion teaching format, this course provides a background in the concepts, processes and institutions in the financing of the business enterprise both domestically and internationally. Topics covered include: financing business enterprises; time value of money; financial analysis and planning; measurements of risks and rates of return; analysis of sources and uses of debt and equity financing; bond and stock valuation; determination of cost of capital; investment and capital structure decisions for the firm; dividend policy; working capital management; and selected topics in international finance.
Required Text:
Foundations of Finance: The Logic and Practice of Financial Management, Fifth Custom Edition for Finance 320, CSUF, by Keown, Scott, Martin, and Petty. Pearson Custom Publishing (2006).
Required Materials:
1) FinCoach 2.0 CD-ROM (Version C) (Included in textbook or available on loan from Finance Department, SGMH 5113
2) Financial Calculator (HP 12C preferred). (Book is geared to Texas Instruments BAII Plus.)
3) MyFinanceLab, an online companion to your textbook. (at no charge with new textbook and
$40 with used textbook)
Recommended – Read WSJ and Business section of newspaper daily.
Prerequisite: ACCTG 201A
Classes are subject to administrative audit at anytime during the semester. Any unqualified student will be administratively dropped.
Course Objective
To learn and understand the fundamental principles and applications of corporate finance, which are outlined in the Guide to Finance 320, pages 529 through 546, Required Competencies and Study Tips, in the textbook. These competencies are described in detail along with focus questions, related reading and study problems.
Assessment
The main purpose of the degree program at the Mihaylo College of Business & Economics (MCBE) at Cal State Fullerton is to provide you with the knowledge and skills that prepare you for a successful career in business. In order to assist us in achieving this goal, we will use a number of assessment tools to track your progress throughout the MCBE curriculum. Please expect to participate in MCBE assessment activities in several of your courses while at CSUF. As you do so, you will assist us in identifying our program’s strengths and weaknesses as well as areas for potential improvement. In other words, you are making an important investment in the value of your degree.
Evaluation Procedure
MIDTERM ONE 25%
MIDTERM TWO 25%
HOMEWORK 10%
FINCOACH EXAM - Mathematics of Finance 15%
COMPREHENSIVE FINAL 25%
1. Plus /minus grading will be used in this course. You are guaranteed at least the following grade if your weighted average course score falls within the following percentiles: A+=4.0 98-100%; A=4.0 94-97%; A-=3.7 90-93%; B+=3.3 88-89%; B=3.0 84-87%; B-=2.7 80-83%, C+=2.3 78-79%, C=2.0 74-77%; C-=1.7 70-73%; D+=1.3 68-69%, D=1.0 64-67%; D-= 0.7 60-63%; F=0.0 less than 60% Additionally, a curve may be applied to these scores. No exceptions are made to the course grading system as stated on the syllabus. Extra credit is available for the first 12 weeks of the semester only.
2. NO MAKE-UP EXAMS WILL BE GIVEN. Valid excuses (typed, signed and verified) for missed exams will be considered in the final grading. The course outline lists dates for the exams. You are responsible to take the exams whenever they are given, even if the date changes from this syllabus. You must take each exam with the section in which you are enrolled.
3. The FinCoach component of this course is a departmental requirement. Two in-class exams are given; if you do not pass the first exam with 76%, you will be required to take a second exam later. See page 540 of the text for information about the FinCoach software, required topics, exam tips, and grading procedures. You may fail FinCoach twice and pass the course, but it will be difficult. Two pages of handwritten notes are allowed. Time is one hour and fifteen minutes.
4. Sample FinCoach and Department Final exams can be found on the CSUF Finance Department Web site located at: http://business.fullerton.edu/finance/finance320.htm
5. Homework assignments are required and are contained in the Course Outline. They will be turned in prior to reviewing them in class.
6. One page of HAND WRITTEN ONLY notes will be allowed for midterm exams, 4 pages handwritten for final exam. Scantrons used will be F-288-PAR-L for all exams.
7. Students are responsible for any announcements made by the professor during class.
Course Policy
1. Dates and terms for withdrawal from this class are as outlined for the CBE in the Course Schedule.
2. CSUF student picture ID will be required during exams
3. Academic dishonesty, as defined by University policy in the 2009-2011 CSUF Catalog, will result in appropriate University level disciplinary and academic action. The Department of Finance requires that students engaging in academic dishonesty receive a grade of F. In addition, Department policy requires that all individuals engaging in academic dishonesty be reported to the Vice President, Student Affairs.
Academic dishonesty takes place whenever a student attempts to take credit for work that is not his/her own or violates test-taking rules. Examples of academic dishonesty during test taking include looking at other student's work, passing answers among students or using unauthorized notes. When students sitting next to each other have identical answers, especially the same mistakes, this may indicate academic dishonesty.
4. Find a “Study Buddy” to get information from when you are absent (notes, announcements, handouts, etc.). Trade phone numbers, email, addresses, etc.
5. Please turn off cell phones & pagers. No texting please.
Spring 2010
Finance 320 Course Outline
Week of / Chapter / Topic/Assigned Reading / Homework Assignments1
(1/25) / 1 / Introduction to Business Finance i, iii / Q 1-1, 1-4
2
(2/1) / 2
3 / Financial Markets & Interest Rates ii, iii, iv
(skip bottom 59-top 60)
Financial Statements i, ii, iii (skip bottom 75-mid 82); Appendix: The Cash Flow Statement / Q 2-1, 2-5, 2-13, 2-14
Q 3-4
P3-1
3
(2/8) / 4 / Evaluating Financial Performance i / Q 4-2, 4-4, 4-9, 4-10
P 4-9
4
(2/15) / Holiday
5
(2/22) / 5 / Time Value of Money
(skip bottom 149-150 “Annuities Due”) / Q 5:1, 2,3,4; P 5:1-6 (a only), 7,14,15,17,21,24,25, 27
6
(3/1) / Midterm I: Ch 1 – 5
7
(3/8) / 6 / Risk & Rates of Return ii
Appendix: An Introduction to Mutual Funds
/ Q 6:1-6P 6:2,4,5,6,11
8
(3/15) / 7, 8 / Bond Valuation i;
Stock Valuation i / Q 7:1,4,5,8,10
P 7:1,2,3,5,6,7
Q 8:1,6,7,8
P 8:1,3,5,8,10,11,12
9
(3/22) / 9, 10 / Capital Budgeting Techniques i, iv (skip bottom 265-mid 268; 272-top 278) / Q 9:2,4,5,8
P 9:6,7,9,10
10
(3/29) / Spring Break
11
(4/5) / 10 / Cash Flows in Capital Budgeting(skip bottom 319-top 322)
FinCoach I / Q 10:2,6
P 10
12
(4/12) / Midterm Exam II, Ch. 6 - 10
13
(4/19) / 11 / Cost of Capital, ii / Q 11:2,3,5
P 11:1
14
(4/26) / 12 / Capital Structure (skip bottom 378-top 383, bottom 383– top 385, 399 – mid 403) FinCoach II / Q 12:1,2,3,8,9,10,11,13
P 12:11
15
(5/3) / Furlough
16
(5/10) / 14, 15 / Dividend Policy; Working Capital Management (skip mid 446-bottom 447); International Finance ii,iii,iv (skip bottom 475 – mid 477, bottom 480-bottom 481) / No homework to turn in Ch. 13, 14, 15
17
(5/17) / COMPREHENSIVE FINAL EXAM
Monday, May 17, 2010 5:00 p.m. / Chapters 1-15 and Appendices
The Roman numeral code in each topic indicates coverage of the following business perspectives: i) Ethical issues; ii) Global issues; iii) Political, social, legal, regulatory, and environmental issues; and iv) Technological