Department of Finance
FIN 320: Financial Management I
Professor Milligan /
Phone: 657–278–3864 email:
Office: SGMH 5177 / http://business.fullerton.edu/finance/Section: 16999
/Meetings: M/W, 1-2:15; SGMH 1506
OFFICE HOURS: M/W 2:30-4 or by appointment
Course Description
Using a lecture and discussion teaching format, this course provides a background in the concepts, processes and institutions in the financing of business enterprises. Topics covered include: Financial statement analysis. Interest rates and valuing cash flows (Time Value of Money; valuing stocks & bonds). Investment decision rules and capital budgeting. Risk and return (CAPM) and cost of capital. Integrate international corporate finance.
Required Text:
Fundamentals of Corporate Finance, First Custom Edition for Finance 320, CSUF, by Berk, DeMarzo and Harford. Pearson Custom Publishing (2012). Purchase the package which includes MyFinanceLab.
Required Materials:
1. Financial Calculator (HP 10B II or Texas Instruments BAII PLUS)
2. Required: purchase and use of MyFinanceLab, a computerized on—line homework software package. If you purchase your text new with MyFinLab, the book and software price is about $100. Purchase price is otherwise $40 for MyFinLab alone.
Prerequisite: ACCTG 201A 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 320, 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)
Quizzes and Homework Assignments 15%
MyFinanceLab (2 lowest scores dropped)
2 MIDTERM EXAMS – In Class 40% total (20% each)
Valuation Exam (2 attempts) 15%
Administered through MyFinanceLab
COMPREHENSIVE FINAL 30%
100%
Course Policies – IMPORTANT
1. CHANGES TO THE SYLLABUS MAY BE MADE DURING THE TERM – STUDENTS ARE RESPONSIBLE FOR ATTENDING CLASS AND BEING AWARE OF ANY RELEVANT CHANGES.
2. Plus/minus grading will be used in this course. Please remember, that because FIN 320 is a College Core Course, you need a minimum grade of a C to keep from having to retake the course. You will earn the following grade if your weighted average course score falls within the following percentiles:
3. 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%
4. Quizzes and Homework: Quizzes and homework will be counted toward your grade (the 2 lowest scores will be dropped at the end of the term). Use www.myfinancelab.com (register and complete quizzes and homework on-line).
5. Extra Credit: You can earn up to (3) extra credit points by subscribing to the Wall Street Journal, joining the Real Estate Association (RE), Finance Association (FA) or the Student Mutual Investment Fund (SMIF). If you cannot do this then you can attend any three meetings when the group has a guest speaker and write a one page summary of the speaker (3 summaries). Summaries are due two weeks after speak has spoke! No extra credit summaries will be accepted after Dec 10, 2012. The three extra credit points will be added to your final exam grade.
6. A sample Valuation Exam and a sample Department Final exam are available on the Finance Department FIN320 webpage at: http://business.fullerton.edu/finance/finance320.htm. The Valuing Cash Flows Exam is a departmental requirement and will be administered through MyFinanceLab. The Guide to Finance 320 in the text book, contains information about these exams.
7. Per the Department policy, students are allowed to use the Finance Formula Sheet provided by the Finance Department. The Finance Formula Sheet will be provided for each exam and the final exam. You can obtain your own copy on Titanium or the Finance Departments website.
8. MAKE-UP EXAMS ARE NOT 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.
9. Homework assignments are administered through MyFinanceLab.
10. Dates and terms for withdrawal are as outlined for the CSUF in the Course Schedule.
11. CSUF student ID must be displayed during all exams; exams will only be given to enrolled students that show a valid picture ID.
12. 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.
COURSE OUTLINE
Week of / Chapter / Topic/Assigned Reading / Assignments8/27
9/3 & 10 / 1
2 / Corporate Finance and the Financial Manager i, iii
Introduction to Financial Statement Analysis ii, iii, iv / Please see
MyFinanceLab for
Assignments
9/10
9/17 / 3
4 / Time Value of Money: An Introduction
Time Value of Money: Valuing Cash Flow Streams
9/24 / 3 & 4
1 – 4 / Time Value of Money – Focus on Timelines/Formulas and Excel
EXAM 1 / Exam in Class
10/1 / 5 / Interest Rates
10/8 / 6 / Bonds
10/15 / 7 / Stocks (Int’l Corp Fin) ii
10/22 / 8 / Investment Decision Rules
10/29 / 3,4,6,7
9 / Valuation Exam Administered through MyFinanceLab (Nov. 1-9)
Fundamentals of Capital Budgeting / You are allowed 2 attempts on Valuation Exam
11/5 / 10 / Stock Valuation: A Second Look
11/12 / 5 – 10
11 / EXAM 2
Risk and Return in Capital Markets / Exam in Class
11/26 / 11
12 / Risk and Return in Capital Markets, continued
Systematic Risk and the Equity Risk Premium
12/3 / 12 / Systematic Risk and the Equity Risk Premium, continued
12/10 / 13 / The Cost of Capital
Final Exam Dec 17 / FINAL EXAM IN CLASS (2:30-4:20).
The Final Exam is a common exam for the Department of Finance.
The Final Exam is COMPREHENSIVE (except chapter 10).
The roman numeral code following most topics indicates coverage of the following business perspectives: i) Ethical issues; ii) Global issues; iii) Political, social, legal, regulatory, and environmental issues; and iv) Technological issues.
How to Register and Enroll in Your MyFinanceLab Course
Welcome to MyFinanceLab! Your instructor has set up a MyFinanceLab course for you.
To join your instructor's course, please complete the following two steps:
1. REGISTER for MyFinanceLab, and
2. ENROLL in your instructor's course
To Register for MyFinanceLab
To register, you will need a student access code and a course ID. If you don't have an access kit, you can purchase access online at http://www.myfinancelab.com.
You will have the choice to purchase access with or without a full etext. Once enrolled in your professor's course, you will also have the option to purchase a discounted version of your text.
Textbook: Berk, Fundamentals of Corporate Finance
Course Name: FIN 320 Fall 2012
Course ID: milligan78335
Steps to Register:
1. Go to http://www.myfinancelab.com and click the Student button, in the Register section.
Enter the course ID, milligan78335 and click Next.
2. Choose to register an access code (came with your new book) or purchase access if you don’t have an access kit/code.
3. Click the button to proceed to registration.
4. Follow the instructions to create your account.
5. Click the link to login. You’ll be directed to http://www.myfinancelab.com, where you can enter the user name and password you just created. Click the login button.
Steps to Enroll in Class:
1. The first time you enter the site you’ll be asked to enter your course ID. Enter your course ID (for FIN 320): milligan78335.
2. Be sure to click on the Browser Check link on the Announcements page or in the upper right of the screen the first time you login and anytime you use a new computer. This wizard will walk you through the installation of the software you will need to use the MyFinanceLab resources (such as Flash).
Note: the software may already be installed in the school lab, so in that case check first with your lab administrator.
To log into MyFinanceLab after Enrolling
1. Go to http://www.myfinancelab.com
2. Enter the user name and password you just created, and click Log In (or hit the enter key). If you purchased access, visit the Textbook Resources inside your Instructor's Course for additional purchase options.
· Note: If you are taking two MyFinanceLab courses simultaneously you will need two separate login accounts.
· Need Help? For assistance, please visit http://www.myfinancelab.com/support.
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