Finance 3101 – Section 011

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					                Finance 3101 – Section 011
              Principles of Financial Management
                          Spring 2010

                      Temple University
                     Finance Department

Instructor:           Ozge Uygur


Office:               Alter Hall, Room 401e

Office Hours:         Monday, 2.00 pm – 3.00 pm
                      Wednesday, 2.00 pm – 3.00 pm
                      and by appointment.

Class Schedule:       Monday, Wednesday and Friday
                      @ 1:00 pm – 1:50 pm.
                      Alter Hall Room A607

Required Textbook:    Ross, Westerfield & Jordan,
                      Essentials of Corporate Finance
                      (6th ed., 2008)
Finance 3101 – Section 011 / Spring 2010 Syllabus

                                  COURSE OVERVIEW

Economics 1101 (C051) and 1102 (C052); Accounting 2101 (0001) and 2102 (0002);
Statistics 1001 (C011) and 1102 (C012) and 2101 (C021) or 2103, and Finance 3011

Course Description:
This course provides a survey of the financial problems associated with the life cycle of a
business firm. Topics include:
   • financial analysis and planning,
   • capital budgeting,
   • cost of capital,
   • the sources and uses of business funds.

While the emphasis is on decision making within a corporate environment, the tools
taught in this course are just as relevant to other forms of business organization and to
personal financial management.

Course Objectives
Upon completion of this course you should have a basic understanding of the following:
   • The goal of corporate financial management
   • Factors determining stock prices
   • Principal financial statements
   • Time value of money tools
   • How to determine prices and yields on bonds
   • How to determine prices and yields on stocks
   • How to determine whether a given investment is worthwhile
   • Measures and role of risk
   • How to determine a firm’s cost of capital
   • Implications of the mix of debt and equity in a firm’s capital structure

Minimum Grade Required:
D – (Subject to minimum GPA overall and in the major)

                                                                                   Page 2 of 6
Finance 3101 – Section 011 / Spring 2010 Syllabus

My Responsibilities:
 1. Present material clearly
 2. Provide opportunity to learn by doing
 3. Answer your questions - in class and when you see me for help
 4. Test your understanding of material
 5. Make requirements and criteria for grades known in advance
 6. Report grades earned by your performance

Your Responsibilities:
 1. Attend class prepared to actively participate
 2. Bring your calculator and book to class
 3. Monitor Blackboard on an ongoing basis
 4. Do all assigned exercises on time
 5. Inform me whenever you don’t understand anything
 6. Take exams as scheduled, on time and with pencil

Disability Notice:
Any student who has a need for accommodation based on the impact of a disability
should contact me in private to discuss the specific situation as soon as possible. Contact
Disability Resources and Services at 215-204-1280 in 100 Ritter Annex to coordinate
reasonable accommodations for students with documented disabilities.

You will have to use a calculator for both solving problems, as well as on the exam. The
type of calculator you use is up to you, so choose a calculator you are familiar and
comfortable with. Financial calculators are neither required nor necessary.

You will find lecture notes and additional materials, such as homework questions,
practice problems, as well as class announcements on Blackboard. It is recommended that
you access Blackboard regularly to check for new material and announcements.

Important Dates:
  February 1st, Monday           : last day to drop a course
  March 29th, Monday             : last day to withdraw from a course

Examinations and Grades:
  There will be two midterm exams, a final exam and homework assignments. You
    will receive a score for each scheduled exam. The examinations will have problems
    and/or objective questions, including questions on definitions, and will be multiple
    choice-type. The problems will be similar, though not identical, to those done in the
    class and homework assignments.

     The composition of the final grade is as follows:
                 Homework                           15%        150 points
                 Midterm Exam-1                     25%        250 points
                 Midterm Exam-2                     30%        300 points
                 Final Exam                         30%        300 points
                 TOTAL                              100%       1000 points

                                                                                  Page 3 of 6
Finance 3101 – Section 011 / Spring 2010 Syllabus

      The letter grades are determined as per the following table:
                 Grade            Point Score         GPA Weight
                 A                940 – 1000          4.00
                 A-               900 – 939           3.67
                 B+               870 – 899           3.33
                 B                830 – 869           3.00
                 B-               800 – 829           2.67
                 C+               770 – 799           2.33
                 C                730 – 769           2.00
                 C-               690 – 729           1.67
                 D+               650 – 689           1.33
                 D                600 – 649           1.00
                 D-               570 – 599           0.67
                 F                 0 – 569            0.00
      Note that your course grade is determined solely by your scores on the exams and
      homework assignments. There is no extra credit.
      Please note that a grade of Incomplete (I) will be given only under extraordinary

     The grades for every exam item will be curved so that the average is 77 (out of
      100). If the class average is below 77, everyone will get extra points added to the
      score. If the average is above 77, no curving will take place.

     Finance Department Grading Policy: Beginning with Fall 2005, the Department of
      Finance requires an average grade of 2.3 +/- .20. (All questions regarding this
      policy should be directed to the department chair, Dr. Kenneth Kopecky.)

     For every exam you may use one 8.5” x 11” sheet of hand-written notes of your
      choosing. You should also have a calculator with you.

     Students are expected to take the examinations when administered. The only valid
      excuse is when the student is too sick to take the examination, supported by a note
      from the doctor to that effect. Unexcused absence from the examination will result
      in a grade of zero for that examination. There will be no make-up examinations and
      no incompletes because of unexcused missed examinations.

     University Policy: No grades will be reported on phone or by email. If you miss the
      class when the exams are given back, please stop by in the office hours to look at
      your grade.

Provost Statement:
Freedom to teach and freedom to learn are inseparable facets of academic freedom. The
University has adopted a policy on Student and Faculty Academic Rights and
Responsibilities (Policy # 03.70.02) which can be accessed through the following link:

                                                                                  Page 4 of 6
Finance 3101 – Section 011 / Spring 2010 Syllabus

                             TENTATIVE COURSE OUTLINE
Date                Topic                                        Chapter        Homework
Jan 20              Introduction to Financial Management        Chapter 1

Jan 22              NO CLASS

Jan 25 – Jan 29     Financial Statements, Taxes and Cash Flow   Chapter 2

Feb 1 – Feb 5       Working with Financial Statements           Chapter 3

Feb 8               Intro. to Valuation: Time Value of Money    Chapter 4

Feb 10 – Feb 15     Discounted Cash Flow Valuation              Chapter 5
                                                                               HW#1 is due
Feb 17              Review for Midterm Exam-1
                                                                             (Chapter 1,2,3,4,5)
Feb 19              MIDTERM EXAM-1 (Chapters 1, 2, 3, 4, and 5)

Feb 22              Solutions of Midterm Exam-1

Feb 24 – Mar 1      Interest Rates and Bond Valuation           Chapter 6

Mar 3 – Mar 5       Equity Markets and Stock Valuation          Chapter 7

Mar 8 – Mar 12      NO CLASS – SPRING BREAK

Mar 15              Equity Markets and Stock Valuation          Chapter 7

Mar 17 – Mar 22     NPV and Other Investment Criteria           Chapter 8
                                                                               HW#2 is due
Mar 24              Review for Midterm Exam-2
                                                                              (Chapter 6,7,8)
Mar 26              MIDTERM EXAM-2 (Chapters 6, 7, and 8)

Mar 29              NO CLASS

Mar 31              NO CLASS

Apr 2               NO CLASS

Apr 5               Solutions of Midterm Exam-2

Apr 7 – Apr 12      Risk and Return                             Chapter 11

Apr 14 – Apr 19     Cost of Capital                             Chapter 12

Apr 21 – Apr 26     Leverage and Capital Structure              Chapter 13

Apr 28              Catch up Day

Apr 30              NO CLASS
                                                                               HW#3 is due
May 3               Review for Final Exam
                                                                             (Chapter 11,12,13)
                    FINAL EXAM: (Common Part: Chapter 6,7,8,13)
May 6 – May 12                   (Section Part: Chapter 11,12,13)

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