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ST. GREGORY’S
UNIVERSITY |
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COURSE
SYLLABUS for Fall 2001 |
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Course: |
Principles
of Finance, Section 3043-1 |
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Time/Location: |
MWF, 1:00
p.m. to 1:50 p.m., Room 414 |
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Prerequisite: |
Accounting
for Decision Making II, BUS 2203 |
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Instructor: |
Angela James,
273-6604, NO CALLS AFTER 8:00 P.M. |
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Email: |
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Office
Hours: |
MW 12:00 – 1:00
p.m. |
COURSE DESCRIPTION FROM UNIVERSITY CATALOG
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A
study of the organization’s problems in obtaining, allocating, and
managing funds. It examines
the sources of funds; costs of obtaining these funds; management of the
firm’s capital structure; and financial planning for a firm’s growth and
expansion. Emphasis is placed
upon the composition of capital structure, capital budgeting, and the cost
of capital theories. Problems and case analyses study bond and stock
markets, as well as short-term financing issues. |
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PURPOSE OF THE
COURSE |
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To
provide the student with an in-depth review of the basic principles of
corporate finance and the tools from which to analyze and make corporate
capital structure decisions. |
OBJECTIVES |
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At
the conclusion of this course the student will be able to: |
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Discuss
the risk-return tradeoff. |
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Know
how to employ the principles of the time value of money. |
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Discuss
the timing of cash flows and how to measure incremental cash
flows. |
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Construct
a statement of cash flows. |
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Use
ratio analysis to study financial reports. |
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Demonstrate
knowledge of the concept of “sustainable growth”. |
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Calculate
and use the portfolio rates of return/variance for investment
decisions. |
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Compare
and contrast long-term debt, preferred stock, and common
stock. |
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Demonstrate
familiarity with issuance/cost of equity securities. |
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·
Discuss
the components in a project’s cost of capital. |
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Demonstrate
knowledge of the effects of debt upon a firm’s capital structure
decisions. |
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Employ
dividend policy to maximize a firm’s financial performance. |
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Be
able to complete individual and team-based cost analysis. |
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You
will be expected to display initiative and a program of self-study. In that sense, a complementary
objective of the course is to provide you with an environment that will
encourage and reward your own intellectual effort, while simultaneously
maintaining rigorous standards that identify those who are motivated to
pursue excellence in their own educational preparation for a business
career. |
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ACADEMIC
HONESTY |
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Students
are advised that cheating and plagiarism are not tolerated at St.
Gregory’s University.
Students are expected to abide by the University's academic
regulations and policy and are responsible for awareness of the
University's definition of these activities. The consequences of violating
the academic honesty standard may include a grade of "0" on the
assignment/exam, a grade of "F" in the course, and, possibly, expulsion
from the University. |
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REQUIRED
TEXT AND SUPPLEMENTAL MATERIALS TO BE PURCHASED BY
STUDENT | |||
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Financial
Accounting Concepts,
Edmonds, McNair, Milam and Olds, 3rd Edition, McGraw-Hill 2000,
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ISBN
0-13-018368-7 | |||
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Lap
top Computer and 4 or diskettes | |||
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Calculator
– Texas instruments BA II PLUS | |||
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INTERNET
RESOURCES | |||
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METHODS
OF ASSESSMENT AND STUDENT EVALUATION |
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EXAM
I |
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15% | |
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EXAM
II |
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15% | |
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EXAM
III |
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15% | |
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REPORT |
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30% | |
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PRESENTATION
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15% | |
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HOME
WORK |
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10% | |
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TOTAL |
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100% | |
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+
BONUS |
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EXAMINATIONS |
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Examinations
will be take home. Again,
refer to the Academic Honesty section of the syllabus. The instructor will email the
students the exam. The
students will individually complete the exam using their computer then,
email the completed exam back to the
instructor. |
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If
any exam question is left unanswered, the value of that question will be
subtracted from the exam score.
If only the answer is given (i.e., no work showing how that answer
was determined), the question will be graded at 50% of its value. |
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HOMEWORK | |||
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The
homework assignments are to be attempted before class. One problem from each chapter is
to be worked by the individual student. The student will then email the
problem to the instructor for grading. It is encouraged that all homework
problems are completed. The
exams will cover the material covered in the
homework. | |||
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COURSE
OUTLINE/TENTATIVE SCHEDULE | |||
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DATE |
CH. |
TOPICS |
ASSIGNMENTS |
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08/27 |
1 2 |
An
Introduction to the Foundations of Financial Management – The Ties That
Bind The
Financial Markets and Interest Rates |
Q
1-3,1-4 P
1-1,1-2,1-6 Q
2-7,2-10,2-16 P
2-2,2-3,2-4,2-5 |
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09/10 |
3 |
Understanding
Financial Statements and Cash Flows (Bring Annual Report to
Class) |
Q
3-6 P3-5,3-6 |
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09/17 |
4 |
Evaluating
a Firm’s Financial Performance |
P
4-1,4-2,4-4,4-5 |
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09/24 |
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Exam
I |
Chpts.
1-4 |
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09/26 |
5 |
Financial
Forecasting, Planning and Budgeting |
P 5-3, 5-4,5-6,5-10
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10/01 10/03 |
6 7 |
Time
Value of Money Valuation
and Characteristics of Bonds |
Ps.
6-1-6-9 P
7-1,7-3,7-5,7-9, 7-10 |
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10/08 |
8 |
Valuation
and Characteristics of Stock |
P
8-1,8-2,8-3,8-4, 8-5 |
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10/15 |
9 |
The
Meaning and Measurement of Risk and Return |
Q
9-1 P
9-1,9-4,9-5,9-6, 9-9,9-10,9-11 |
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10/7 |
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FALLBREAK |
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10/24 |
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Exam
II |
Chpts.
5-9 |
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10/29 |
10 |
Capital-Budgeting
Techniques and Practice |
P
10-6,10-7,10-10 |
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11/5 |
11 |
Cash
Flows and Other Topics in Capital Budgeting |
Q
11-1 P
11-2, 11-3, 11-4, 11-5,11-6 |
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11/7 |
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NO
CLASS/Individual and Group Study |
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11/12 |
12 13 |
Cost
of Capital Determining
the Financing Mix |
P
13-1,13-4, 13-5,13-7,13-9 |
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11/19 |
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Exam
III |
Chpts.
10-13 |
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11/26 |
14 15 16 17 |
Dividend
Policy and Internal Financing Introduction
to Working-Capitol Management Liquid
Asset Management International
Business Finance |
TBA |
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12/5 |
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Report
Due |
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TBA |
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Final
Exam/Presentation |
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