PENN STATE-ERIE THE BEHREND COLLEGE SAM AND IRENE BLACK SCHOOL OF BUSINESS FIN 301_003: CORPORATE FINANCE Spring 2012 Instructor: Eric J. Robbins, CFA Class Time and Location: M, W 6:10-7:25 in Burke 002 Instructor Office Hours: Before and after class, by appointment in REDC 002 E-mail: ejr122@psu.edu Phone: 898-6578 School of Business Phone: 898-6107 Course Prerequisites: ACCTG 211, ECON 002, ECON 004, SCM 200, fifth-semester standing Course Objectives: 1. To introduce you to the world of finance, especially to the financial operations of businesses. Finance affects all segments of a company, so anyone involved with the management of a business needs some minimal knowledge of business finance. 2. To introduce you to the concepts of financial statement analysis, financial forecasting, time value of money, risk vs. return, capital budgeting and valuation as they are applied in finance. This information is essential in business, but it is also very useful in one s personal investment planning. 3. We will focus on concepts and theories and applying them in practice. The course is designed for the general business student. Required Materials: Essentials of Corporate Finance, 7 th Edition, with Homework Manager Access Code, Ross, Westerfield and Jordan, Irwin/McGraw-Hill Calculator Texas Instruments BA II Plus (Note: This is the ONLY calculator that will be allowed for exams.) McGraw-Hill Connect This is where you will be taking all of your quizzes and exams to prepare for actual tests. 1. If you purchased a code with a next textbook, then: Login to http://connect.mcgraw-hill.com/class/e_robbins_003 a. Select Register Now in the middle of the page b. Enter your student email c. Input your Registration Code that came with your textbook 2. If you did not purchase a code with your textbook, then you must a. Login to http://connect.mcgraw-hill.com/class/e_robbins_003 b. Select Register Now in the middle of the page c. Enter your student email d. Select Buy Online on the right and follow the prompts
e. DO NOT leave the payment area without a Registration Code (call tech support if in doubt) 3. Be sure to bookmark http://connect.mcgraw-hill.com/class/e_robbins_003 because this is the webpage you will use to complete weekly quiz assignments. 4. If you experience any difficulties with this process, call McGraw Hill tech support at 1-800-331-5094. Student hours are on Monday Friday from 7AM-11PM and on Sunday from 6PM-11PM. They are closed for student questions on Saturdays. Academic Integrity Policy: The University Faculty Senate Policies for Students, which can be found at http://www.psu.edu/ufs/policies/, states that academic integrity is the pursuit of scholarly activity free from fraud and deception and is an educational objective of this institution. Academic dishonesty includes, but is not limited to, cheating, plagiarizing, fabricating of information or citations, facilitating acts of academic dishonesty by others, having unauthorized possession of examinations, submitting work previously used without informing the instructor, or tampering with the academic work of other students. Minor infractions of the academic integrity policy will result in a grade of F on the assignment or test in question. Major infractions will result in an academic sanction of F for the course. In the case of a major infraction, the University Hearing Board may also impose disciplinary sanctions such as warnings, probation, suspension, dismissal, expulsion, or loss of privilege. Note: Throughout the remainder of this syllabus, I refers to the instructor and You refers to the student. McGraw Hill Connect Quizzes: You will have 12 online quizzes. Makeup quizzes are NOT provided except in extenuating circumstances, such as a hospitalization extending beyond one week. Computer problems are not considered extenuating circumstances. Makeup work will be at the sole discretion of the instructor and may consist of a different assignment. All quizzes must be completed within the allowed time period as displayed in McGraw Hill Connect. The lowest 2 quizzes will not count towards your final grade. All online quizzes are algorithmic, which means that the questions will always be the same, but the numbers will change every time you or anyone else attempts to take them. Special Projects: The Financial Ratios Project will be a group assignment given in-class on January 25 th. The Time Value of Money Project will be a group assignment given in-class on February 21 st. These projects will be due before the end of class on the day they are given. Makeup assignments and/or extensions of due dates are NOT provided except in extenuating circumstances, such as a hospitalization extending beyond one week. Makeup work will be at the sole discretion of the instructor and may consist of a different assignment. Make-up exams: Make-up exams will be given only for extenuating circumstances, such as a hospitalization. Penalty points may be assessed. A different, more difficult exam may be administered as a make-up. Make-up exams will be given at the convenience of the instructor.
Quizzes and Exams: Quizzes and exams cover terminology, theory, concepts, applications, and problems. Your answers to mathematical problems are either right or wrong. (Partial credit is NOT provided.) In the interest of academic integrity, multiple versions of each exam will be used. The final exam is cumulative. I will provide you with on-line review tests in Homework Manager to help you review for my exams. Assigned work and class participation: You are expected to complete all work as assigned and come to each class prepared to fully participate in both class discussions and group/individual exercises. At almost every class, you will be working end-of-chapter questions, which will factor into this grade. Grading Policy: The grading scale is based on: 100 McGraw Hill Connect Quizzes 20 Financial Ratios Project 20 Time Value of Money Project 100 Exam # 1 100 Exam # 2 100 Exam # 3 120 Comprehensive Final Exam 40 Attendance & Participation 600 Total Points Letter Grade Percentage Point Range A 93.0% 558-600 A- 90.0% 540-557 B+ 87.5% 525-539 B 82.5% 495-524 B- 80. 480-494 C+ 77.5% 465-479 C 70.0% 420-464 D 60.0% 360-419 F 50.0% 0-359 Student Disabilities: Any student who, because of a disabling condition, may require some special arrangements in order to meet course requirements should contact the instructor as soon as possible to make necessary accommodations. Students should present appropriate verification if applicable.
Tentative Class Schedule Month Day Chapter Exams Topic January 9 th 1 Overview of Financial Management 11 th 2 Financial Statements 16 th NO CLASS - MARTIN LUTHER KING DAY 18 th 2 Taxes and Cash Flow 23 th 3 Common Size & Ratio Analysis 25 th 3 DuPont Analysis & in-class Ratios Project 30 st 16 Operating Cycle & Cash Cycle February 1 st Exam 1 Chapters 1, 2, 3, 16 & material covered in class 6 th NO CLASS - PROF AT CONFERENCE 8 th 4 TVM, Future Value, & Compounding 13 th 4 TVM, Future Value, & Compounding 15 th 5 Discounted CF Valuation 20 th 5 EAR & Amortization & in-class TVM Project 22 nd 6 Bond Valuation 27 th Review before pivotal 2 nd Exam 29 th Exam 2 Chapters 4, 5, 6, & material covered in class March 5 th NO CLASS SPRING BREAK 7 th NO CLASS SPRING BREAK 12 th 7 Equity Markets and Stock Valuation 14 th 7 Equity Markets and Stock Valuation 19 th 8 Net Present Value and Other Investment Criteria 21 st 8 Net Present Value and Other Investment Criteria 26 th 9 Making Capital Investment Decisions 28 th 9 Making Capital Investment Decisions April 2 nd Exam 3 Chapters 7, 8, 9, & material covered in class 4 th 10 Capital Market History 9 th 11 Risk and Return 11 th 11 Risk and Return 16 th 12 WACC 18 th 12 WACC 23 rd 13 Introduction to Capital Structure 25 th Comprehensive Review TBA Final Exam Comprehensive Final Exam Any changes to this schedule will be announced in class. It is your responsibility to know what occurred in class, whether or not you actually attended. For school cancellations, call 898-6000 or check the campus website at www.pennstatebehrend.psu.edu
McGraw Hill Connect Quiz Due Dates All online quizzes are due on the below dates which are also shown within McGraw Hill Connect. All quizzes are due by 11:00PM on the date shown unless otherwise specified. The system will not accept submissions after the specific time stated on the due date, so be sure to submit your completed quiz by this time. Ch 2: (Friday, January 20 th ) Ch 3: (Saturday, January 28 th ) Ch 16: (Wednesday, February 1 st @12noon) Ch 4: (Saturday, February 18 th ) Ch 5: (Saturday, February 25 th ) Ch 6: (Wednesday, February 29 th @12noon) Ch 7: (Saturday, March 17 th ) Ch 8: (Saturday, March 24 th ) Ch 9: (Saturday, March 31 st ) Ch 10: (Saturday, April 7 th ) Ch 11: (Saturday, April 14 th ) Ch 12: (Saturday, April 21 st )