Fin 370

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					Syllabus Fin 370—Introductory Financial Management Winter 2004
Personal Information  Instructor: John Lasik  Office: Shaw-Smyser 127  Office phone: (509) 963-2933  Office hours: M&W from 4:00-5:00  E-mail address:  John’s website. The course website may be accessed through John’s site.

Working together to accomplish our goals

Course Description. The following description for Fin 370 appears in the CWU Catalog 2003/2004: Prerequisite, admission to the major or permission. An introduction to financial decision-making. Topics include time value of money, security valuation, capital budgeting, cost of capital, financial forecasting, financial statement analysis, and working capital management. Course Prerequisites. Formal admission to the Business Administration or Accounting major or permission. Admission to the major requires the following CWU courses (or equivalent courses transferred in from other institutions): 1. 2. 3. 4. 5. 6. ACCT 251/252 (Accounting I and II) ECON 201/202 (Principles of Economics, Micro and Macro) BUS 221 (Introductory Business Statistics) BUS 241 (Legal Environment of Business) MATH 163.1 (Pre-Calculus Mathematics) or higher In addition, the level of basic computer skills achieved upon the completion of IT 101 (Computer Applications) is assumed.

If you haven’t completed the entire set of prerequisites, it may be possible for you to succeed in this course, but you should discuss your initial preparation with the instructor and receive permission before continuing. Course Outcomes. The following outcomes apply to the core financial management aspects of FIN 370. By the end of the course, the student should be able to: 1. Describe the economic, institutional, and tax environments in which firms operate. 2. Discuss the interrelationships between financial management, financial markets, and investments. 3. Assess the financial condition of firms by examining their recent financial statements, and describe the steps involved in forecasting future financial statements. 4. Apply time value of money concepts to cash flow streams from real and financial assets. 5. Compute rates of return, and understand various risk measures, of financial assets. 6. Apply the basic frameworks used to value equities and fixed income instruments. 7. Employ different approaches to assess the relative attractiveness of potential capital investment projects and determine which projects should be undertaken. 8. Describe and estimate the costs of various sources of long term capital for firms, and show how to determine the firm's weighed average cost of capital. 9. Describe the consequences for the firm of changes in operating leverage and/or financial leverage. 10. Describe how each of the components of working capital affects the firm's financial condition, and discuss the costs and benefits of various sources of short term financing Additional Course Outcomes. The following additional outcomes are specific to John Lasik’s sections of Fin 370. By the end of the course, the student should be able to: 1. Illustrate the basics of personal investing and wealth management.

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2. Design and use Microsoft Excel basic spreadsheet models to facilitate financial analysis and decisionmaking. 3. Use the Internet as a research tool for topics related to financial management. 4. Explain how future financial management decisions will likely be affected by: a) technology advances, b) ethical considerations, c) globalization of business, d) political matters, e) legal and regulatory constraints, and f) environmental concerns. Text and Other Materials Textbook. Fundamentals of Financial Management, 10 edition, by Brigham and Houston, Southwestern Publishing, 2004. Computing hardware and software. Students must have access to the Internet and the Microsoft Office suite of applications. If you do not have the complete Office suite, Excel and Word are the minimum applications required. Further, all students must have an e-mail account, either one provided by CWU or your own personal account (e.g. Hotmail). All homework assignments and handouts will be downloaded from the class website directly as Excel, Word, or Adobe (.pdf) documents, not HTML documents. Calculator. A calculator with an exponential function is required. A financial calculator, such as the Texas Instruments BA II Plus is recommended, but not required. Bring your calculator to class each day. Course Conduct Role of the instructor. The primary role of your instructor is to promote learning related to the course outcomes. This means he will lead the class in a manner that facilitates your success in accomplishing the course outcomes. Your instructor promotes active learning and views himself more as the “guide on the side” rather than the “sage on the stage.” Role of the student. Students should take personal responsibility for the amount of learning accomplished. Research on teaching and learning styles reveals that learning is not a spectator sport. This means you cannot be passive in your approach—you should be fully prepared to participate in all class learning activities. Exit surveys conducted suggest a minimum of 2 hours outside the class are needed for every hour in class to perform at the “B” level or higher. The two hours include time for reading, homework & quizzes, and exam preparation. The total time commitment, including class time, is likely to be 15 hours each week. (Yes, 15 hours per week, every week!) Consistent class attendance is expected. Use of class time. Class time is used to: a) introduce and develop course concepts, b) demonstrate problem, computer, and Internet-assisted applications, c) discuss finance-related current events, and d) review quizzes & exams. Timely feedback is important. Role of the course website. Lasik uses the “Announcements” section of the course website as the primary means of communicating with students between class sessions. Also, to help you better prepare for class, Lasik posts an agenda for every class meeting no later than 5:00 p.m. on the evening before class. All handouts, lecture slides, take-home quizzes, and feedback keys, will be accessed through the website. More on expectations. As mentioned earlier, your instructor practices active learning techniques in his teaching style. One aspect of active learning he wholeheartedly subscribes to is students learn more when they “Learn by doing.” You should expect new reading and problem assignments each class meeting. Some of the homework problems require you to partially build and use an Excel spreadsheet model. In addition, you should expect a take-home quiz each week. The take-home quiz program utilizes a paperless system. All quizzes are downloaded by the student from the course website and submitted to the instructor as attachments to e-mail. Lasik provides feedback via return e-mail and postings to the course website. Use (and misuse) of study groups. The use of study groups is encouraged for exam preparation. Study groups are most useful if everyone contributes. For the take-home quiz program, however, I expect your submission to reflect only your own work. Note: Your score on a quiz will be reduced if your instructor believes a “team” effort has taken place.

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Academic dishonesty. Lasik has zero tolerance in this area. If he believes you’ve cheated on an exam, the grade of “F” will be reported immediately to the registrar. Further, a report of academic dishonesty will be submitted to the CWU’s Office of Student Affairs recommending additional disciplinary action. (Note: “Team” efforts on take-home quizzes were discussed earlier.) Basis for Final Grade. Final grades are awarded based on your performance in the following areas: Assessment Take-home quizzes—10 at 10 points each Exams—2 at 100 points each Comprehensive final exam Total Points 100 200 150 450

Makeup work. It is anticipated that a few of you may be forced to miss a due date for a quiz or a scheduled exam during the quarter. A makeup opportunity may be given at the instructor’s discretion, but only in those instances when the absence is excused. Excused absences include personal illness, emergencies in your immediate family, job interviews, and university sponsored trips, among others. For non-emergency situations, check in advance before you make travel and other arrangements for planned absences. Exams. The exams are given during the regular class time and are 85 minutes in length. The final exam will be scheduled during finals week and is 2 ½ hours in length. NO EARLY FINALS. Ranking Procedure for Exams. If the unadjusted class average on an exam is lower than 76.00 percent of the points available, an equal number of points will be added to everyone’s score such that the adjusted class average is 76.00 percent. The following additional considerations about the grading policy apply:    If the unadjusted class average is higher than 76.00 percent on an individual exam, adjustment points will never be subtracted to “curve down” the class average. If some students officially withdraw from the course, the adjusted class average will change as their scores are pulled from the database. Extra credit assignments are never extended on an individual-by-individual basis.

Assigning letter grades. Your grade in this course is based solely on your adjusted final average. To monitor your progress throughout the quarter, divide the total number of adjusted points earned by the total number of points possible. Then apply the following scale:

Adjusted Average 93.00% and up 90.00 to 93.00 87.00 to 90.00 83.00 to 87.00 80.00 to 83.00 77.00 to 80.00 71.00 to 77.00 68.00 to 71.00 65.00 to 68.00 61.00 to 65.00 58.00 to 61.00

Grade A AB+ B BC+ C CD+ D D-

Interpretation in the CWU 2003-04 Catalog The highest grades are reserved for students who have excelled in every phase of the course. These grades denote work that is superior, but does not warrant the special distinctiveness of the “A.” “C” grades indicate that a student has made substantial progress toward meeting the objectives of the course and has fulfilled the requirements of the course. “D” grades are for students who have made progress toward meeting the objectives of the course, but who have fulfilled the requirements only in a substandard manner. The “F” grade is reserved for students who have failed to meet or have accomplished so few of the requirements of the course that they are not entitled to credit.

Less than 58.00


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Chapter Coverage The following chapters in Fundamentals will be covered this quarter: 1. 2. 3. 4. 5. 6. An Overview Of Financial Management Financial Statements, Cash Flow, And Taxes Analysis Of Financial Statements The Financial Environment: Markets, Institutions, And Interest Rates Risk And Rates Of Return Time Value Of Money Exam 1 [Chapters 1-6 only] 7. 8. 9. 10. 11. 14. Bonds And Their Valuation Stocks And Their Valuation The Cost Of Capital The Basics Of Capital Budgeting Cash Flow Estimation And Risk Analysis Distributions To Shareholders: Dividends And Share Repurchases Exam 2 [Chaters 7-11 and 14 only] 15. Managing Current Assets 16. Financing Current Assets 17. Financial Planning And Forecasting Final exam [Entire course] You should anticipate that the actual conduct of the course will follow the procedures outlined in this document. However, your instructor reserves the right to make changes if he believes that changes are warranted. In the unlikely event that changes are made, a revised syllabus document will be made available.