FIN357 Business Finance - Hadaway by MichaelAmes


									                           The University of Texas at Austin
                            McCombs School of Business
                                Finance Department
                                      Fall 2006

Corporate Finance: Sam Hadaway                      Office: CBA 6.312; Phone: 471-4368
TT 11:00-12:30: FIN 357 (03000) UTC                 Office Hours: TT 2:00 p.m. till done, or by
4.124                                               appointment
TT 12:30-2:00: FIN 357 (03005) UTC
Textbook: Corporate Finance (7th Edition),
Ross, Westerfield, and Jaffe
Calculator: HP 10BII                                Additional readings and handouts may      be provided on the class website.

Course Objective:
This is the core course for finance, so it has dual roles. If you are a finance major, FIN 357
will be the foundation for your other finance classes. For non-finance majors, if this is the
only finance class you take, you will have a good background for evaluating financial
decisions (both business decisions and personal decisions), and the Ross, Westerfield, and
Jaffe textbook is an excellent reference for you bookshelf.

Course Expectations:
As financial managers, we hope to increase value, either the value of a business or the
value of an individual’s portfolio of assets. Many of the same financial methods and tools
are used in business decisions and in personal wealth decisions. Most financial decisions
involve two questions: 1. What assets to buy? 2. How to pay for them? In FIN 357, we
use financial analysis along with accounting, economics, and some math and statistics to
answer these questions. The course covers six areas topics that will help you make the
right choices.

   1. Value or Wealth Maximization (within ethical boundaries) is the basic goal.
   2. Accounting Statements and the Analysis of Accounting Data are the roadmap.
   3. Valuation Techniques, Based on the Time Value of Money, are key to valuing
      stocks and bonds and other business opportunities.
   4. Investment Risks and Expected Returns are the basic concepts for understanding
      the capital markets. In the corporation, the financial manager uses these concepts to
      issue securities efficiently. Investors use these concepts to manage their wealth.
   5. Financial Leverage (how much to borrow) addresses the “How to pay for them?”
   6. Other Financial Topics such as options, mergers and acquisitions, and international
      finance are important but time may permit only summary coverage of these topics.
Please see attached Course Schedule.

FIN 357 and 357H may not both be counted. Prerequisite: ACC 312, credit or registration
for BA 324 (or credit for MIS 324), ECO 304K AND 304L, STA 309, and admission to a
business major.

Grading and Evaluation:
Three announced quizzes = 10%-15% (a higher grade on the final will replace your lowest
quiz grade)
Two in-class examinations = 50% (25% each)
Comprehensive final exam = May vary between 35% and 40% (see next paragraph)

Three 30-minute quizzes will be given on the dates listed below. They will consist of
multiple choice questions and problems. There will also be two in-class exams. The exams
may have multiple choice questions, calculation problems, and short answer essays.
Practice quizzes and exams will be posted on the class webpage. You should attend all
classes and take all quizzes and exams. However, I will automatically drop your lowest
quiz if your final exam grade is higher. If you miss an exam, written documentation of a
University approved excuse will be required, in which case a one hour make-up exam will
be given after the final exam.

Important Dates:
   Quiz 1: Tues. Sep. 19
   Quiz 2: Tues. Oct. 3
   Exam 1: Thurs. Oct. 12
   Quiz 3: Tues. Nov, 2
   Exam 2: Tues. Nov. 16

   Final Exams:    11:00 Class (03000): Thursday, Dec. 14, 2:00 p.m.-5:00 pm.
                   12:30 Class (03005): Saturday, Dec. 16, 2:00 a.m.-5:00 p.m.

Students with Disabilities:        Upon request, the University provides academic
accommodations for qualified students with disabilities. If you should need assistance,
contact the Office of the Dean of Students at 471-6259 or 471-4641. Please let me know
the accommodations you may need during the first two weeks of class.


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