Document Sample
syllabus-buad306spring200912 Powered By Docstoc
                      Marshall School of Business
                    BUAD 306 – Business Finance – Spring 2009
                                Section 14783R
                             TTH 12.00 – 2.00 p.m.
                                    JKP 110
Instructor Professor Zekiye Selvili                    Phone (213) 740 1630
Office ACC 301K                                        E-mail
Office Hours T 2.00 – 4.00                             Teaching Assistant M 2-4, TTH 10-12

Course Description and Objective
Using a lecture and discussion teaching format, this course provides an introductory framework for
analyzing and understanding the financial choices made by investors and corporations. Topics covered
include: financing business enterprises; time value of money; financial analysis and planning;
measurements of risks and rates of return; analysis of sources and uses of debt and equity financing;
bond and stock valuation; determination of cost of capital; investment and capital structure decisions
for the firm; and dividend policy. By the end of the course, you should be familiar with the vocabulary,
concepts, theories and computational skills used by finance profess ionals

Required Text
Fundamentals of Corporate Finance, by Ross, Westerfield and Jordan, 8th Edition

Required Materials
   1) Financial Calculator (Texas Instruments BAII PLUS preferred)
   2) Access to the internet and valid e- mail address (which you will need to access Blackboard)

You are responsible for bringing your financial calculator to all the lectures and the exams. You will be
severely disadvantaged if you do not work with a financial calculator during quizzes and exams. My
lectures and notes will be based on the Texas Instruments BAII Plus calculator.

I will be using Blackboard ( to post announcements and class materials. All
grades will be distributed through this system. You are responsible for registering your email address
with Blackboard so that you can receive your grade. You are responsible for downloading all necessary
materials prior to class. You are also responsible for all materials covered and all announcements made
in class, regardless of whether you chose to attend class on that particular day.

If you are currently registered for the class, you must be present at one of the first two class meetings
to keep that registration. If you are absent fro m both, you will be dropped from the class. If you are
not registered for the class and wish to be, you should add your name to the sign- up sheet during both
of the first two class sessions. After the first week, I will add as many students as possible by random
draw from the sign- up sheets to the class.

Evaluation Procedure
   Midterm Exam #1                                           22%
   Midterm Exam #2                                           22%
   Quizzes and Homeworks                                     15%
   Class Participation and Attendance                         6%
   Cumulative Final Exam                                     35%

Midterm and Final Exams

All exams are closed book. You must take your exams in the lecture section in which you are
registered. You will be able to prepare your own formula sheet (detailed instructions will be given
prior to exams). The formula sheets will not be returned to you. Please make copies beforehand if you
would like to keep them as reference. Students must provide their own pencils and scantrons. All
exams will use the Scantron multiple choice format.

Any re-grade requests must be submitted in writing within one school week of the distrib ution of
correct answers. Any re-grading will encompass the entire exam.

You are required to be present for all the exams. If you are not able to take the exams on the dates and
times specified (as outlined on the last page of this syllabus), you should not take the class. There will
be no make-up exams.

Sunglasses, hats, and other headgear are prohibited during exams except for verifiable medical or
religious reasons.

There are some legitimate reasons for not showing up for an exam. However, you must provide
documentation of any such claim. Police reports and hospital records are fine; a simple note from a
doctor is not. If you do provide documentation for missing a midterm exam, your entire grade
distribution will be re-weighted as follows: If you miss the first midterm, your second midterm and
your final will each be worth 11% more than their original weight (33% and 46% respectively). If you
miss the second midterm, your final will be worth 22% more than its original weight (57%). I will not
be able to assign a complete grade if you miss both midterms or the final.

Quizzes and Home works

There will be 3 types of assignments throughout the semester.

   1) Homeworks: You will be assigned homework questions from the book, which you will be
      required to complete in your own handwriting and hand in at the beginning of class on the due
      date. We will have a total of 16 homework assignments. They will be graded on a Pass/Fail
      basis. To pass the homework, you must make a genuine attempt at all of the assigned e nd-of-
      chapter problems.
   2) In-Class Quizzes: You will be administered 4 in-class quizzes throughout the semester. They
      will usually take place during the last 15 minutes of class. They will be open book but closed
      notes. We will have a total of 5 in-class quizzes. They will be graded numerically, with the best
      possible grade being a 10.
   3) Take-Home Quizzes: You will also be given take-home quizzes to return the next class period.
      All take- home quizzes are to be turned in at the beginning of class. There will be no exceptions.
      We will have a total of 5 take- home quizzes. They will be graded numerically, with the best
      possible grade being a 10.

The due dates for the homeworks and quizzes will be announced in class and on Blackboard. All
quizzes/homeworks need to be handwritten in clear handwriting. There will be no make-up quizzes or
homeworks. As with exams, you may have legitimate reasons for missing class. Proof of
documentation, as defined above, will be required.

We will have a total of 25 assignments (16 homework assignments, 4 in-class quizzes and 5 take-home
quizzes). Not all of these will be graded. I will randomly select 11 assignments to be graded (a mixture
of quizzes and homeworks). In the end, your lowest assignment grade will be dropped and the
remaining 10 best will make up 15% of your grade.

Please note these assignments will not be returned back to you. Please make copies beforehand if you
would like to save them for reference.

Class Participation and Attendance

Class Participation is a measure of a student’s positive impact on the class such as asking intelligent
questions or offering insightful opinions during discussions in lectures. We will also have mini group
projects and question/answer sessions in class. Your participation in these will also impact your
participation grade.

Finally, regular attendance is strongly advised and I may pass a sign-up sheet or do a roll call on
random days. You are responsible for all assignments and all material covered in class in addition to
announcements of changes in the reading or changes in the exam schedule. This is true regardless of
whether or not you choose to be in class when such assignments or announcements are made.

Practice Proble ms

In addition to the homework problems, I will post a set of practice problems on Blackboard to help
with your studying. The answers will be posted after the homework has been turned in. These will not

be graded and do not need to be turned in. They are assigned to help you practice the important

Institute Policy Regarding Academic Integrity
The use of unauthorized material, communicating with fellow students during an exam, attempting to
benefit from the work of another student, allowing another student to benefit from one’s own work,
and similar behavior that defeats the intent of an examination or other class work is unacceptable.
Examples of academic dishonesty include copying off another student, allowing someone else to copy
one’s own work, bringing any written material besides your exam packet to your seat during an exam,
and refusing to stop when exam time is called. The minimum penalty for academic dishonesty is to
fail the class. The maximum penalty is expulsion from the university.

Institute Policy regarding Disabilities
Any student requesting academic accommodations based on a disability is required to register with
Disability Services and Programs (DSP) each semester. A letter of verification for approved
accommodations can be obtained from DSP. Please be sure that the letter is delivered to me as early in
the semester as possible. DSP is located in STU 301 and is open 8:30am-5:00pm, Tuesday through
Friday. The telephone number for DSP is (213) 740-0774.

Some Obvious Stuff


        no late arrivals or early departures, unless you make prior arrangements with me
        no laptops (unless I require it for an in-class assignment)/cell phones/headphones/pagers
        no long conversations with classmates
        no sleeping
        no other type of disruptive behavior that I forgot to mention

                    TENTATIVE COURSE OUTLINE

Lecture #   Date    Chapters                Topic/Assigned Reading
    1       01/13      1       Introduction to Corporate Finance
    2       01/15      2       Financial Statements, Taxes, and Cash Flow
    3       01/20      3       Working with Financial Statements
    4       01/22      4       Long Term Financial Planning and Growth
    5       01/27      4       Long Term Financial Planning and Growth
    6       01/29      5       The Time Value of Money
    7       02/03      6       Discounted Cash Flow Valuation
    8       02/05      6       Discounted Cash Flow Valuation
    9       02/10      7       Interest Rates and Bond Valuation
   10       02/12      8       Stock Valuation
   11       02/17   REVIEW     Review for Midterm Exam 1
   12       02/19    EXAM      Midterm Exam 1
   13       02/24      8       Stock Valuation
   14       02/26      9       Net Present Value and Other Investment Criteria
   15       03/03     10       Making Capital Investment Decisions
   16       03/05     10       Making Capital Investment Decisions
   17       03/10     12       Some Lessons From Capital Market History
   18       03/12     13       Return, Risk, and the Capital Market Line
   19       03/24     13       Return, Risk, and the Capital Market Line
   20       03/26     14       Options and Corporate Finance
   21       03/31   REVIEW     Review for Midterm Exam 2
   22       04/02    EXAM      Midterm Exam 2
   23       04/07      15      Cost of Capital
   24       04/09      15      Cost of Capital
   25       04/14      16      Raising Capital
   26       04/16      16      Raising Capital
   27       04/21      17      Cost of Capital and Long-Term Financial Policy
   28       04/23      17      Cost of Capital and Long-Term Financial Policy
   28       04/28   REVIEW     Review for Final Exam
            04/30              NO CLASS – STUDY DAY
            05/13   EXAM       Final Exam 2.00 – 4.00 p.m., Room: TBA

Chapter (Pages)   Homework Problems             Tentative Due Date
2 (43 – 47)       1, 2, 8, 14, 18, 22           01/20
3 (82 – 87)       16, 18, 26, 27, 29, 30        01/22
4 (114 – 119)     1, 2, 5, 16, 17, 25           01/29
5 (143 – 145)     1, 9, 13, 14, 19, 20          02/03
6 (181 – 190)     3, 6, 9, 10, 14, 21, 32, 42   02/10
7 (229 – 233)     6, 7, 8, 14, 18, 23           02/12
8 (259 – 261)     2, 3, 12, 13, 16, 17          02/26
9 (295 – 300)     3, 6, 9, 12, 13, 16           03/03
10 (331 – 336)    1, 4, 8, 9, 14, 18, 19        03/10
12 (398 – 401)    1, 2, 4, 7, 8, 14             03/12
13 (433 – 437)    10, 11, 17, 23, 24, 26        03/26
14 (473 – 477)    1, 2, 3, 9, 13, 14            04/07
15 (507 – 511)    4, 7, 9, 13, 17, 19, 20       04/14
16 (547 – 549)    1, 2, 3, 5, 6, 7              04/21
17 (585 – 588)    4, 12, 13, 14, 16, 17         04/28