Syllabus: Fin 351: Financial Management – Summer 2011
Instructor: Mr. George Li
Office: BUS 315
Office hours: 17:15 to 18:15 MW at BUS 315
E-mail:
Web: http://online.sfsu.edu/~li123456
Class time and location: MW 13:15 to 17:15, BUS 210
Course Overview
This is a second course in financial management. Students learn tools and concepts about how to make financial decisions such as capital budgeting and financing. Topics include valuation of financial and real assets, risk and returns, capital budgeting and capital structure.
Prerequisite
Students are required to take BUS 350 with a grade of at least C- before taking this course. It is the business school’s policy that all the students taking this course must satisfy this prerequisite requirement. If you didn’t take these prerequisite courses, please drop the course as soon as possible so that the qualified students on the waiting list can enroll in this course.
Required text
Fundamentals of Corporate Finance, 6th Edition, by Richard A. Brealy, Stewart C. Myers and Alan J. Marcus, published by Irwin McGraw-Hill, 2009.
Reading
You are expected to do the assigned readings: book chapters and minicases. Some topics that are very important (NPV) are covered in great detail. In these cases, the readings serve to reinforce what is covered in class. However, time does not allow all topics to be covered in such detail. Therefore, the readings are necessary. You are responsible for all materials covered in assigned readings, whether or not we have time to cover them in class. Reading ahead is encouraged as it will aid your understanding of material presented in class. Re-reading after class is also encouraged as it will help solidify the concepts just presented.
Homework
To help you understand concepts and prepare for the quizzes and the final exam, there will be weekly homework problem sets. Homework problem sets will not be graded but their solution will be reserved in the library electronically. The best (only) way to learn the material in this class is to work out a large number of problems.
Mid-term exam
There will be a mid-term exam , which takes 2 hours and 30 minutes.
There are no makeup or in-advance the mid-term exam. The students who want to take this course are supposed to plan their time to take the mid-term exam.
The final exam
The final exam will be in class (closed book), with multiple choice questions. The final exam takes 2 hours and 30 minutes also. There are no makeup or in-advance exams. The final is comprehensive.
Final grade
Your overall course grade will be based your mid-term exam and the final. Each graded item has a certain number of points attached to it. These points determine the relative weight of each graded item that goes into determining your final grade. The actual points are expected to follow the list below.
Class attendance 10 pts
Mid-term exam: 40 pts
Final exam: 60 pts
Total 110 pts
Letter grades will be based on the distribution of the class. If you are ranked at the top 10% of the class, you will get a grade of at least A-. The following table is a guideline.
Ranking (from top to bottom) Grade
0%-10% A Range ( A, A-)
10%-50% B Range (B+, B, B-)
50%-80% C Range (C+, C, C-)
80% - 95% D Range (D+,D,D-)
95%-100% F
Administrative issues for add, drop and withdrawal
Students must follow the school’s add, drop and withdrawal policies for Summer 2011. Students not on the original class roster but on the waiting list can be added by obtaining a permit from the instructor during the first four weeks of the semester, according the capacity of the class.
So, students must enroll in classes during the first four weeks of the semester. They will not be permitted to add later even if they have attended all classes, taken all exams, and otherwise completed all course requirements.
University policy is that withdrawals are permitted only for serious and compelling reasons. College of Business policy prohibits students from withdrawing from the same course more than once for any reason.
For details, please see the school’s add, drop and withdrawal policy for Summer 2011.
Disability Access
Students with disabilities who need reasonable accommodations are encouraged to contact the instructor. The Disability Programs and Resource Center (www.sfsu.edu/~dprc) is available to facilitate the reasonable accommodations process.
Class schedules
6/6 topic: introduction to financial management and course description, the function of financial markets and discussion of the present value concept .
reading: chapters 1, 2,
suggested reading: chapter 3
Homework: chapter 1, 10-23, chapter 2 ,14-17,
6/8 The time value of money (continues)
reading: chapter 5 (5th edition, chapter 4)
homework: 21-40
6/13 topic: valuing bonds and stocks
reading: chapters 6, 7 (5th edition, chapters 5, 6)
homework: chapter 6, 9-20; chapter 7, 11-31
6/15 NPV and other investment criteria, discounted cash-flow analysis in
investments
reading: chapters 8, 9 (5th edition, chapters 7,8)
homework: chapter 8, 13-18; chapter 9, 11-20
6/20 Review of the covered chapters and case discussion
6/22 Mid-term exam
6/27 topic: introduction to risk and return and capital budgeting
reading: chapters 11, 12 (5th edition, chapters 10,11)
homework: chapter 11, 9-20; chapter 12, 6-15
6/29 topic: the cost of capital and case discussion and course review
reading: chapter 13 ( 5th edition, chapter 12)
homework: 8-15
7/4 no class
7/6 Final
13:15-15:45
The same class room