Syllabus Financial Management Course Title: Financial Management Course Number: GBA2005-02 Semester: Fall 2018 Class Hours & Venue: Thurs. 9:00 ~ 11:45 a.m.; International Bldg. #90110 Course Web Address: http://web.skku.edu/~heejoon/gbafm.htm Instructor: Prof. Hee-Joon Ahn Phone: 02-760-0455 E-mail: heejoon@skku.edu Office Hours: Wed. 3:00 ~ 4:30 p.m. Office Location: Business Bldg. #33522 1. General Information The objective of this course is to equip students with working knowledge of finance needed to make major decisions by corporate financial managers. The topics to be covered include the principles of the time value of money, valuation of corporate securities, project investment, cost of capital, financing, and working capital management with special attention paid to the role of capital markets. Students who take this course should be familiar with elementary statistical concepts (mean and standard deviation, etc.) as well as the basic structure of financial statements (balance sheet, income statement, etc.), although formal technical requirements are minimal. Language: Textbook: English Ross, Westerfield, Jordan, "Fundamentals of Corporate Finance," 12th Edition (12/e), 2019, McGraw-Hill 2. Grading Policy and Homework Assignment Final grades will be based on coursework as well as two exams and two quizzes. Exams and Quizzes Mid-term exam 30% Final exam 35% Two Quizzes 10% Quiz #1 4% Quiz #2 6% Coursework Assignments 15% One Case Analysis (Group Work) 10% Finance Ethics Essay 5% Attendance and class participation 10% Total 100% 1
Tests There will be two exams and two quizzes. All examinations and quizzes will be closed book. However, you can bring a self-prepared formula sheet to the tests. You are also allowed to use a hand calculator. The final exam is not comprehensive in the sense that textbook chapters covered in the mid-term exam will be excluded from the final. The format of the tests (exams and quizzes) will be all multiple-choice. There will be no makeup tests. It is your responsibility to attend all tests. No exceptions are allowed from these policies. The coverage of the quizzes will be announced one week prior to each quiz. Test Schedule Mid-Term Test: 7-9:00 p.m., Oct. 25, 2018 Final Test: 7-9:00 p.m. Dec. 20, 2018 Quiz #1: Sept. 20, 2018 in class Quiz #2: Nov. 22, 2018 in class Group Project One group project will be assigned after the mid-term test. The project requires you to solve a capital budgeting case with the tools that you learn in class. The group list will be released in the third week. Free riding in the group work will work against you. Towards the end of the semester, you will be asked to submit an evaluation form to assess the contribution of each of your team mates. The due date of the project will be given when the project is assigned. Late submissions will not be tolerated. Writing Component (Ethics Essay) Every student in the class is required to submit an essay covering a topic or topics related with ethical issues in finance. The work should be done in student s own writing. Any breach of this rule (i.e., plagiarism) would result in an F grade regardless how well you do in other evaluation criteria. You should decide the potential title of your essay by Week 10. The due time for the essay is the Week 14 class. Attendance and Class Participation You are expected to attend all classes. Attendance will be checked regularly. You are also encouraged to participate actively in class discussions. Any questions or comments will be regarded as a valid form of participation as long as they are relevant to course topics. - Assessment Criteria: Attendance (5%), Class Participation (5%) Homework Problems Homework problems (end-of-chapter problems) will be assigned regularly but will not be collected. However, students should make a serious effort to work on the assignments in order to do well on the exams. Answer keys will be released periodically. Course Webpage The course webpage (http://web.skku.edu/~heejoon/gbafm.htm ) will serve as an important communication venue between the instructor and the students. Check the website as frequently as possible. You may download files for class notes, business articles, test scores, and the project paper, or an Excel file needed for homework from the webpage. The class notes will be uploaded at least one day before each scheduled class. 2
Policies on Performance Evaluation The overall distribution of grades remains the sole prerogative of the instructor. A few words are in order regarding students solicitation for a higher grade during the grade-check period. Once the final grades are posted by the instructor, they are final, meaning that they will stand firm unless there is a critical error or errors in marking the exam etc. You may never solicit for a higher grade once final grades are posted and there will be a penalty for violation of this rule. [Overall guideline for grade distribution] A+ 25% or fewer A+ and A 50% or fewer A+ to B+ 70% or fewer A+ to B 90% or fewer 3. Course Topics Part 1. Introduction 1. Introduction to Corporate Finance (Ch. 1) Part 2. Fundamentals 2. Financial Statements and Cash Flow (Ch. 2) 3. The Time Value of Money (Ch. 5) 4. Discounted Cash Flow Valuation (Ch. 6) Part 3. Security Valuation 5. Interest Rates and Bond Valuation (Ch. 7) 6. Stock Valuation (Ch. 8) Part 4. Capital Budgeting 7. Net Present Value and Other Investment Criteria (Ch. 9) 8. Making Capital Investment Decisions (Ch. 10) 9. Project Analysis and Evaluation (Ch. 11) Part 4. Capital Markets and Cost of Capital 10. Lessons from Capital Market History (Ch. 12) 11. Return, Risk, and the Security Market Line (Ch. 13) 12. The Cost of Capital (Ch. 14) Part 5. Capital Structure 13. Financial Leverage and Capital Structure Policy (Ch. 16) 3
14. Dividends and Payout Policy (Ch. 17) Part 6. Financial Analysis 15. Working with Financial Statements (Ch. 3) Part 7. Short-Term Finance 16. Short-Term Finance and Planning (Ch. 18) 4. Important Weeks/Dates Tentative, subject to change. But if there has to be a change, it will be known well in advance. Week 1: Add/Drop Period Week 3: Group list released Quiz #1, in class Week 4: No Class A makeup class plan will be discussed later Week 8: Mid-Term Test, Oct. 25 in the evening (7-9 p.m.), No regular class during the day Week 10: Potential Essay Topic Submission, in class Group project assigned Week 12 Quiz #2, in class Week 14 Essay Due, in class Week 16 Final Test, Dec. 20 in the evening (7-9 p.m.), No regular class during the day 4
Assurance of Learning 1. Adherence to Mission Globalization Innovation Leadership 2. Program Learning Goals Possess Knowledge and Skills in Management Disciplines Possess Critical Thinking Skills Be Ethically and Socially Responsible Communicate Business Concepts and Cooperation Effectively Be Competent with Technology Possess Global Perspective and Be Adequately Proficient in a Foreign Language 3. Pedagogical Methodologies Lecture Discussion Presentation Seminar Case Study Project Role-Playing Internship e-learning Group Study Independent Learning Simulation Problem-Based Learning Action-Based Learning Others 4. Student Abilities Enhancement A. Intellectual Abilities Knowledge Understanding Application Analysis Synthesis Evaluation Others B. Behavioral Abilities Foreign Language Communication Presentation Leadership Confidence Tenacity Problem Solving Theory Development Teamwork Tolerance Flexibility Self-Management Others 5