Department of Finance
FIN 321 Section 8: Financial Management II
Course Syllabus
Professor: Jenny Hom, CFA /
Phone: 657–278–2217
Office: SGMH 5185 / Email:Course ID: hom05996
/Meetings: Thursday 7:00-9:45 pm; SGMH 2508
Office Hours: 4:00-6:00 pm on Thursdays (Fullerton); 6:00-6:55pm on Tuesdays (Irvine); or by appointment
Course Description:
Using a lecture and discussion teaching format, this course provides the theory and practice in the financial management of business enterprises. Topics covered include but not limited to: Time value of money; Security and bond valuation; Debt financing; Asset pricing models; Risk and return relationships; Firm valuation; Capital structure; Dividend policy.
Required Text:
Fundamentals of Corporate Finance, First Custom Edition for Finance 321, CSUF, by Berk, DeMarzo and Harford. Pearson Custom Publishing (2012). Purchase the package which includes MyFinanceLab.
Required Materials:
1. Financial Calculator (Texas Instruments BAII PLUS)
2. Required: Purchase and use of MyFinanceLab, a computerized on—line software package.
Prerequisite:
FIN 320 and classified CBE status. Classes are subject to administrative audit at any time 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 321, 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 College of Business & Economics (College) 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 College curriculum. Please expect to participate in College assessment activities in several of your courses while at CSU, Fullerton. 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 (MAKE–UP EXAMS ARE NOT GIVEN):
1. Homework/Quizzes 25%
2. Group Project 20%
3. Midterm Exam 25%
4. Comprehensive Final Exam 30%
100%
Course Policies:
1. Changes to the syllabus may be made during the term – Students are responsible for attending the class and being aware of any relevant changes.
2. Students are expected to read the assigned chapters before the class and to work out problems at the end of the chapter.
3. Plus/minus grading will be used in this course. You will earn the following grade if your weighted average course score falls within the following percentiles:
4. Grading Scale
Grade / GPA / % Range / Grade / GPA / % Range / Grade / GPA / % RangeA+ / 4.0 / 98 – 100% / A / 4.0 / 94 – 97.99% / A- / 3.7 / 90 – 93.99%
B+ / 3.3 / 88 – 89.99% / B / 3.0 / 84 – 87.99% / B- / 2.7 / 80 – 83.99%
C+ / 2.3 / 78 – 79.99% / C / 2.0 / 74 – 77.99% / C- / 1.7 / 70 – 73.99%
D+ / 1.3 / 68 – 69.99% / D / 1.0 / 64 – 67.99% / D- / 0.7 / 60 – 63.99%
F / 0.0 / < 60%
5. Make-up exams are not given. 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.
6. Dates and terms for withdrawal are as outlined for the CSUF in the Course Schedule.
7. CSUF student ID must be displayed during all exams; exams will only be given to enrolled students that show a valid picture ID.
8. 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.
9. Class Conduct. Student conduct is addressed on pages 73-75 of the University catalog. The
classroom environment is important to the instructor and students to optimize the learning
process. The student is expected to attend the full class each time. A disruptive student will
be asked to leave the classroom to maintain a respectful learning environment for all
students. The student will refrain from bringing food and beverage in class. Cell phone and
other electronic devices need to be turned off during class. Laptop computers may be used
to take notes or access PPT slides. Please take care of personal needs prior to class to avoid
disruption.
10. Special Needs. Our learning community respects all forms of diversity. Please see the
Instructor if you need accommodations for a registered disability, or to fulfill cultural or
religious obligations. Students with special needs should contact Disability Support
Services, UH 101 or via www.fullerton.edu/disabledservices/
11. Emergency Preparedness. The safety of all students attending California State University
Fullerton is of paramount importance. During an emergency it is necessary for students
to have a basic understanding of their personal responsibilities and the University’s
emergency response procedures. Students can determine the University’s operational
status by calling the University’s hotline number at 657-519-0911, or tuning into area radio
and television stations. Students should assume that classes will be held unless they hear or
read an official closure announcement.
http://www.fullerton.edu/emergencypreparedness/ep_students.html
Course Outline (Subject to Change)
Week / Chapter / Topic/ Assigned Reading1 / FIN 320 Review / Introduction to Corporate Finance
23-Jan / Time Value of Money
2 / 8 / Investment Decision Rules
30-Jan
3 / 9 / Fundamentals of Capital Budgeting
6-Feb
4 / 11 / Risk and Return in Capital Markets
13-Feb
5 / 11 / Risk and Return in Capital Markets
20-Feb / 12 / Systematic Risk and the Equity Risk Premium
6 / 12 / Systematic Risk and the Equity Risk Premium
27-Feb / 13 / Cost of Capital
7 / 13 / Cost of Capital
6-Mar / 14 / Raising Equity Capital
8 / 13-Mar / Discussion of Case Study Project
Mid Term Exam- Chapters 8, 9, 11, 12, 13, 14
9 / 15 / Debt Financing
20-Mar
10 / 10 / Stock Valuation: Second Look
27-Mar
April 1-6 / Spring Recess
11 / 10 / Stock Valuation: Second Look
10-Apr / 18 / Financial Modeling and Pro Forma Analysis
12 / 18 / Financial Modeling and Pro Forma Analysis
17-Apr / 16 / Capital Structure
13 / 16 / Capital Structure
24-Apr / 17 / Payout Policy
14 / 29 / Corporate Governance
1-May / Group Presentation and Project Due
15 / Group Presentation and Project Due
8-May
16 / 15-May / Cumulative Final Exam
7:30-9:20 pm
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