Pricing for Out of Stat Debt

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					                                      CASPER COLLEGE
                                     COURSE SYLLABUS

COURSE NUMBER & TITLE:               FIN 2100 – N1 Managerial Finance

SEMESTER/YEAR: Fall 2007

LECTURE HOURS:                3      LABORATORY HOURS:                     CREDITS: 3

CLASS TIME:           TBA

INSTRUCTOR'S NAME:            Mark Steinle Ph.D.

INSTRUCTOR’S CONTACT INFORMATION:
                    Office Location:                WT 146
                    Office Phone:                   268- 2411
                    Email:                          msteinle@caspercollege.edu

OFFICE HOURS:                 As posted

COURSE DESCRIPTION: Managerial finance deals with two main decisions that must be
confronted by those managing the financial operations of corporations. First, there is decision on
which investment projects to undertake. Second, there is the decision on the best way to enhance
projects. For the first task, the managers must forecast cash flows that might be generated by
prospective projects and then select the appropriate d iscount rate with which to value such cash
flows. The second task involves selecting the capital structure of the firm and includes for
example, the choice between dept and equity.

STATEMENT OF PREREQUISITES:                  ACCT 2010, STAT 2050 or permission of
instructor.

GOAL:          Student understanding of risk return relationship;
               Student understanding of investment decision making process;
               Student understanding of time value of money;

OUTCOMES:         Students will be able to demonstrate the use of risk premium in pricing
                  equities and debt;
                  Students will demonstrate ability to discount cash flows for investment
                  decisions;

METHODOLOGY: lecture, discussion, written exams;

EVALUATION CRITERIA: Grading will not be done on a curve – the final letter grade you
will receive will depend on the percentage of total points that you have earned as follows:
               90 – 100% A
               89 – 80% B
               79 – 70 % C
               69 – 60% D
               below 60%      F
The grade will be determined from the following assignments:
Assignments:          30%
Quizzes               40%
Final Exam            30%

The assignments will be on an approximately a bi-weekly basis, usually being given to class on
Wednesday, and usually due the following Wednesday. These assignments will be based on
problems in the book and can be worked on in groups. These assignments must be turned in
before noon. The quizzes will be an hour long and will not be cumulative. The final exam will
be cumulative.

If you miss a quiz or hand in an assignment late you will be assigned a grade of zero unless a
reasonable excuse is provided by the office of Student Life or by some other source that the
instructor deems acceptable. For all students, the lowest scoring assignment will be thrown out
in the calculation of the final grade.

REQUIRED TEXT, READINGS, MATERIALS: Required Ross, Westerfield, and Jordan,
Fundamentals of Corporate Finance (7th Edition)
Recommended: a financial calculator and the Student Problem Manual accompanying Ross,
Westerfield, and Jordan.

CLASS POLICIES:
Last Date to Change to Audit Status:         See current Casper College catalog.
Last Date to Withdraw With a W Grade:        See current Casper College catalog.

STUDENT’S RIGHTS AND RESPONSIBILITIES : Please refer to the Casper College Student
Conduct and Judicial Code for information concerning your rights and responsibilities as a
Casper College Student.

Chain of Command: If you have any problems with this class, you should first contact the
instructor in order to solve the problem. If you are not satisfied with the solution offered by the
instructor, you should then take your problem through the appropriate chain of command starting
with the department head, then the division chair, and lastly the vice president for academic
affairs.

Academic Dishonesty – Cheating and Plagiarism : Casper College demands intellectual honesty.
Proven plagiarism or any form of dishonesty associated with the academic process can result in
the offender failing the course in which the offense was committed or expulsion form school.
See the Casper College Student Code of Conduct.

ADA Accommodations Policy: It is the policy of Casper College to provide appropriate
accommodations to any student with a documented disability. If you have a need for
accommodation in this course, please make an appointment to the instructor at your earliest
convenience.

CALENDER OR SCHEDULE INDICATING COURSE CONTENT:

This course will closely follow the selected chapters of the required book. You should go over
the Concept Review and Critical Thinking Question at the end of each chapter. It is also strongly
suggested that you go over the quantitative self – test problems (the answers are provided).
SCHEDULE:
CH 1. Overview
CH 2. Financial Statements, Taxes, Cash Flow
CH 5. The Time Value on Money
CH 6. Discounted Cash Flow Valuation
CH 7. Interest Rates and Bond Valuation
CH 8. Stock Valuation
CH 9. Net Present Value and Other Investment Criteria
CH 10. Making Capital Investment Decisions
CH 11. Project Analysis and Evaluation
CH 13. Risk, Return, and the Security Market Line
CH 15. Cost of Capital **
CH 17. Financial Leverage and Capital Structure policy**
CH 22. International Corporate Finance**
** time permitting we will cover materials from some chapters of interest to the class.

First examination:  As posted
Second examination: As posted

Final Examination:    As posted

				
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