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DUONG DUC NGUYEN

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					                  UNIVERSITY OF MASSACHUSSETS DARTMOUTH
                                College of Business
                        Department of Accounting and Finance

Spring 2008

COURSE:               Business Finance, FIN 312-Section 02, TR 11:00-12:15 pm
                      Class location: Dion 116

PREREQUISITES: ACT 312, ECO 231, and at least junior standing

INSTRUCTOR:           Duong Nguyen, Ph.D.
                      Room 220, College of Business
                      (508) 999 – 8070
                      Email          Dnguyen2@umassd.edu
                      Website        http://www.faculty.umassd.edu/duong.nguyen
OFFICE HOURS:         Monday         11:00-12:00 and 1:30-4:30
                      Wednesday 11:00-12:00 and 1:30-4:30
                      and also by appointment


COURSE DESCRIPTION

An introduction to the nature of financial management. The course presents the basic tools used
in the decision-making process as they pertain to the acquisition, management, and financing
current and long-term assets. Working capital policies, the time value of money, capital
budgeting, and debt and equity financing are discussed.

COURSE OBJECTIVES

      Explain and evaluate the concept of shareholder wealth maximization and how it relates
       to other possible objectives of the firm's management as well as the nature of the agency
       relationship inherent in the corporate structure.
      Explain the concepts of compounding and discounting and utilize these tools to calculate
       the future value and present value of lump sums, annuities, and uneven cash flow streams
       and in addition calculate the value of other variables such as the interest rate, time period,
       and periodic payment.
      Determine the expected rate of return and risk of an individual investment as well as a
       portfolio of assets, including concepts such as standard deviation, correlation,
       diversification, and the CAPM (Capital Asset Pricing Model).
      Explain the determinants of intrinsic value and utilize these concepts to determine the
       value and yields of bonds and preferred and common stocks.
      Calculate various measures of project profitability using traditional capital budgeting
       techniques including Payback Period, Net Present Value, Internal Rate of Return, and
       Modified Internal Rate of Return.
       Explain the concept of the cost of capital and how it is affected by the firm’s capital
        structure and the application of these concepts to capital budgeting decision-making and
        dividend policy.
       Understand the significance of information included in the income statement and balance
        sheet, discuss the importance of the cash flow statement and explain the difference
        between accounting net income for the firm and cash flow; analyze a firm's financial
        performance using financial ratio analysis.


COMPETENCIES AND CONTACT HOURS

The student will be introduced to:
Overview and Financial Management                                                       1.5
Ethical issues in Financial Management                                                  1.5
The student will understand:
Balance sheet and Income statement. Understanding financial statements                   6
The time value of money                                                                  6
Valuation of bonds                                                                       5
Valuation of commons stocks and preferred stocks                                         5
Risk and return tradeoff                                                                 5
Long-term investment decision of corporation                                             2
Net present value principle and other techniques of capital budgeting                    5
Weighted average cost of capital                                                         5
Total                                                                                   42


       Students will be able to apply the skills learned in this class to real life financial
problems. Also this course provides a background to learn advanced level of finance in the areas
of investments, international finance, financial institutions, valuation of derivatives and other
complex securities.


TEXTBOOK AND REQUIRED MATERIALS

   Fundamentals of Corporate Finance, 8th edition by Ross, Westerfield, and Jordan. A
    customized version of this book for the use at Umass Dartmouth is available in the bookstore.
    ISBN 0-07-325453-3.
   Recommended Reading: The Wall Street Journal, Business Week, and other financial
    periodicals and journals.
   Financial Calculator: BA II Plus (recommended)

    Financial calculator is a must in this class. You will not be able to do the assignment or the
    exam without one. I strongly recommend all of you get familiar with the calculator by
    reading the manuals posted on website.
ATTENDANCE

   Regular attendance and participation is essential for success. All assigned material should be
    carefully read and end-of-chapter exercises should be attempted before each class meeting.
   If you miss any material, it is your responsibility to obtain the information from another
    student.
   Do not consistently arrive late or leave early. If you have to leave or enter the room while a
    discussion or presentation is in progress, be quiet and discreet. A continued absence or
    several absences will adversely impact your grade.
   Do not conduct private conversations while class is in session. However, participation in
    class discussions is expected.


TENTATIVE COURSE SCHEDULE

Meeting    Topic                                   Chapter      Quizzes and        Chapter exercises
                                                                assignment            (optional)
01/29/08   Class Introduction
           Introduction to corporate finance         1
01/31/08   Financial Statements, Taxes, and cash     2
           flow
02/05/08   Financial Statements, Taxes, and cash     2                                 Q 1: 20
           flow
02/07/08   Time value of money                       5            Quiz 1

02/12/08   Time value of money                       5                                 Q: 1-19

02/14/08   Discounted cash flow valuation            6            Quiz 2

02/19/08   Follow Monday Schedule (no class)
02/21/08   Discounted cash flow valuation            6                                   1-22
                                                                                        29-41
02/26/08   Wrap up and Review                                Assignment 1 due

02/28/08   Interest rates and bond valuation         7

03/04/08   Exam 1                                  1,2,5,6

03/06/08   Interest rates and bond valuation         7                                   1-27

03/11/08   Stock valuation                           8            Quiz 3

03/13/08   Stock valuation                           8                                   1-21

03/18/08   Spring break (no class)
03/20/08   Spring break (no class)
03/25/08   NPV and other investment criteria         9

03/27/08   NPV and other investment criteria         9                                   1-17

04/01/08   Making capital investment decisions       10
04/03/08   Wrap up and Review                                        Quiz 4
                                                                Assignment 2 due
04/08/08   Exam 2                                   7,8,9,10

04/10/08   Lessons from Capital Market History         12

04/15/08   Lessons from Capital Market History         12                              1-16

04/17/08   Risk, return, and security market line      13            Quiz 5

04/22/08   Risk, return, and security market line      13                              1-23

04/24/08   Cost of capital                             15

04/29/08   Cost of capital                             15                             Q: 1-15

05/01/08   Options and corporate finance               14

05/06/08   Options and corporate finance               14                              1-12

05/08/08   International corporate finance             22

05/13/08   Wrap up and Review                                        Quiz 6
                                                                Assignment 3 due
 Check
calendar   Exam 3                                      12,
                                                    13,14,15,
                                                       22




EXAMS, QUIZZES, ASSIGMENTS, AND GRADES

There will be three exams. They are both multiple choices and problem questions. The exams are
not comprehensive, although some material will carry through.

There is no point for end-of chapter exercises. However, it is recommended that all of you should
do them for better understanding about the class materials and for preparation of the exams. The
solutions for the homework are posted on Website.

There will be 6 quizzes throughout the semester. Only your 4 highest score quizzes are counted
toward your final grade. You can drop your 2 lowest score quizzes. Check the syllabus for quiz
dates. Quizzes typically have 7 or 8 questions, you will have about 10-15 minutes to complete
them.

There will be 3 assignments. The assignments will be posted on Website. Check the syllabus for
assignment due dates. You can either do them on your own or work in a group of no more than 2
people. Late assignments will not be graded.
Attendance will count 5% in your total grade. To have this 5%, you should not miss more than 3
class meetings.
Exam 1:        25%
Exam 2:        25%
Exam 3:        25%
Quizzes:       8% (4 quizzes, 2% each)
Assignments 12% (3 assignments, 4% each)
Attendance 5%

Total :        100%

The distribution grade for attendance as follows

Attendance grade                      No. of meetings missed
       5%                                    <=3
       4%                                    4
       3%                                    5
       2%                                    6
       1%                                    7
       0                                     >7


Your grade will be based on the following schedule

A+ (97-100); A (91-96); A- (88-90);
B+ (82-87); B (73-81); B- (70-72);
C+ (66-69); C (61-65); C- (58-60);
D+ (52-57); D (50-54); F (0-49)


Absolutely no incomplete grades or make-up examinations will be given unless a medical or
personal EMERGENCY precludes the completion of the exam. Students who are eligible
for makeup need to finish the makeup within 48 hours of the scheduled time. Otherwise,
missing an exam on the scheduled date will automatically earn a zero score.



DISABILITY SERVICES

If a student has a disability and needs assistance, please notify the Instructor and contact the
Office of Disability Services for Students to make arrangements for the appropriate modification
and/or assistance.
RELIGIOUS HOLIDAYS

Any student may request to be excused from a scheduled exam to observe a religious holy day of
their faith. The student must notify the instructor and arrange to take the exam in advance of the
regularly scheduled exam date.

MISCELLANEOUS

Cell phones and beepers are to be turned off or set to “silent mode” during class and exams.

The last day to drop the course with a grade of “DR” or “WI” is: Check school calendar.

POLICIES FOR ALL EXAMINATION – READ CAREFULLY

      All examinations will start at the scheduled time.
      Exams are to be completed individually. You are not to discuss any question with any
       individual.
      Make sure that your calculator works and you have extra batteries available. A non-
       working calculator will be no excuse for a make-up test.
      You may be asked to produce a photo ID during the examination.
      Bring at least two sharpened No. 2 pencils.
      Students are permitted the use of a calculator and a formula sheet.
      Tests will typically consist of multiple choices and problem solving questions.
      You must hand in the examination, answer sheet and formula sheet at the end of the
       examination.
      If you do not hand in your examination before the scheduled end time, one point will be
       deducted for every extra minute. Ten minutes after the end time, I will assume you have
       not taken the test and get a score of zero.

ACADEMIC MISCONDUCT

Every student must respect the right of all to have an equitable opportunity to learn and honestly
demonstrate the quality of their learning. Therefore, all students must adhere to a standard of
academic conduct, demonstrating respect for themselves, their fellow students, and the
educational mission of the University. As a student in the College of Business taking this class:

      I will not represent someone else’s work as my own
      I will not cheat, nor will I aid in another’s cheating
      I will be honest in my academic endeavors
      I understand that if I am found responsible for academic misconduct, I will be subject to
       the academic misconduct procedures and sanctions as outlined in the Student Handbook

Failure to adhere to the guidelines stated above may result in one of the followings:

      Expulsion: Permanent separation of the students from the University, preventing
       readmission to the institution. This sanction shall be recorded on the student transcript
      Suspension: Temporary separation of the student from the University for a specific
       period of time

By taking this class, I promise to adhere to UMass Darthmouth Student Code of Academic
Integrity. For details on the policy and procedure, please check the Student Handbook.

				
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