Financial Management FINN 3120-006 Spring 2015 Class Time: 8:00am to 9:15am, TR Instructor: Samuel Abankwa Office: FRIDAY 254A Phone: (704)687-7356 Class Location: FRIDY 142 Email: sabankwa@uncc.edu Office Hours: 9:15am to 10:15 am, TR and by Appointment 1 Course Description Financial management represents the process of planning for, acquiring, and allocating funds by a business enterprise. This process involves several decision-making tools, including the time value of money, financial statement analysis and financial forecasting, working capital management, pricing various types of risk facing the firm, asset and project valuation, and determination of the firms optimal capital structure. This semester we will investigate how each of these decision-making tools is used to help financial managers accomplish the task of planning for, acquiring, and allocating funds within the business. Computer and financial calculator applications will be included where these are appropriate to the nature of the problems we are investigating. 2 Course Objective The objective of FINN 3120, Financial Management, is to provide students with an introduction to the nature and methods of financial analysis within the context of the business enterprise. To accomplish this objective, we will focus our attention on: 1. Developing an awareness of some major financial problems facing modern, for-profit business organizations as well as individual consumers; 2. Obtaining an understanding of the basic principles and concepts necessary to analyze these financial problems; and 3. Developing the ability to apply these principles and concepts so that students can independently evaluate alternative solutions to basic problems confronting the financial manager 3 Textbooks 1. Required: Foundations of Finance, Eighth Revised Edition, by Arthur Keown, John Martin, and William Petty, 2014. Financial Management 1 FINN 3120-006
2. Optional: Study Guide to Accompany Foundations of Finance, Eighth Revised Edition, by Arthur Keown, John Martin, and William Petty, 2014. MyFinanceLab is optional for this course, which is an integrated online homework management system that provides hands-on practice for each chapter in the textbook. For those who will like to use it, MyFinanceLab Student Access Code will be provided. 4 Other Materials 1. Slides are available on Moodle2 before class. Any announcement for this course will be posted on Moodle2, and students are responsible for checking their UNC-Charlotte student email and Moodle2 for important announcements 2. It is strongly recommended to read the Wall Street Journal and other business journals, which can help you understand how the concepts covered in class are applied in the real world. I will also present and discuss some relevant real examples in class. 3. Much of the course involves quantitative analysis. It is necessary for each student to have and be able to calculate time value of money, net present value and internal rate of return. A BA-II Plus financial calculator is recommended, but you can also choose whichever brand of financial calculator you prefer to use to solve the quantitative problems. During exams, sharing of calculators is strictly prohibited 5 Academic Prerequisites To enroll in this course students must have the following: 1. A declared major in the College of Business with at least Junior standing (e.g., 60 or more earned semester hours), and 2. Have completed the following prerequisites: MATH 1120 College Calculus STAT 1220 Statistics I ECON 2101 Macroeconomics ECON 2102 Microeconomics ACCT 2121 Financial Accounting ACCT 2122 Managerial Accounting INFO 2130 Introduction to Business Computing (or successful completion of the Microcomputer Proficiency Test) Financial Management 2 FINN 3120-006
6 Grading Policy Assignment Possible Points Weight Midterm Exam I 100 30% Midterm Exam II 100 30% Final Exam 100 30% Homework 33 10% TOTAL 333 100% All exams will be in a multiple choice format. Students are allowed to bring to the exam ONE 8.5 by 11 letter size formula sheet containing notes and formulas. Answers will be recorded on OpScan answer sheets provided by the instructor. A financial calculator and a number 2 pencil with a good eraser should be brought to class on test days to record answers on the sheet. 7 Homework Homework will be posted online on Moodle2. Questions will not be directly from the textbook. Homework will be due at the start of class on the due date. Late homework will receive zero credit. Bonus points will be discussed in class. 8 Letter Grade Weighted Percentage (%) Course Grade 90-100 A 80-89 B 70-79 C 60-69 D Below 60 F 9 Additional Important Information 9.1 Exam Make-up Policy All students are expected to take all exams as scheduled. Written proof of the reason for absence must be provided to qualify for a make-up exam. Examples of acceptable reasons are: medical (minor illness not included, i.e. cold), death or serious illness to immediate family members, major traffic accident, and athletes and others who represent the university on a regular basis. Remember, excused absences must provide a written reason from the appropriate official(s) indicating the exact dates for which test/exam will be missed 9.2 Disability Services Students in this course seeking accommodations to disabilities must first consult with the Office of Disability Services and follow the instructions of that office for obtaining accommodations. 9.3 Student Conduct Regular attendance, promptness and appropriate classroom decorum is expected. Frequent tardiness or disruptive classroom behavior may result in a substantial grade penalty at the discretion of the Financial Management 3 FINN 3120-006
instructor. Students should not use cell phones during an exam. Academic dishonesty is not tolerated by the Belk College of Business Administration. Students are expected to be familiar with the university s academic integrity policy. Violations will be dealt with in the manner specified by the most recent edition of the UNC-Charlotte Code of Student Academic Integrity. 9.4 Statement on Diversity The Belk College of Business strives to create an inclusive academic climate with which the dignity of all individuals is respected and maintained. Therefore, we celebrate diversity that includes, but is not limited to ability/disability, age, culture, ethnicity, gender, language, race, religion, sexual orientation, and socioeconomic status. 9.5 Academic Honesty Students are required to adhere to the UNC Charlotte Code of Student Academic Integrity. This code forbids cheating, fabrication or falsification of information, multiple submission of academic work, plagiarism, abuse of academic materials, and complicity in academic dishonesty. I will pursue the maximum punishment for any violation of the code. The normal penalty for a first offense is zero credit on the work involving dishonesty and further substantial reduction of the course grade. In almost all cases, the course grade is reduced to F. 9.6 Extra Help Do not hesitate to come to my office during office hours or by appointment to discuss a homework problem or any aspect of the course. I also respond to e-mails as quickly as possible. 9.7 Attendance Policy Attendance is strongly recommended because the exams will be testing on the material covered in lectures. It is thus highly recommended that you attend class to put yourself in a better position to do well on the exams. Bonus points will go toward attendance and this will be discussed in class. Please note that all electronic devices must be turned off during class. Smartphones must be turned off during an exam and left on the desk in the front of the classroom if you have to go to the bathroom. 10 Important Dates Date Jan 19, 2015 Jan 29, 2015 Mar 2-7, 2015 Mar 12, 2015 Mar 17, 2015 May 5 Event Dr. Martin Luther King Jr. Day - University Closed Midterm Exam I Spring Break - University Closed Midterm Exam II Last day to withdraw from course Final Exam (8:00 am to 10:30 am) Financial Management 4 FINN 3120-006
11 Tentative Class Schedule Week Date Chapter/Material Description Week 1 1/8 Syllabus and Chapter 1: Introduction to Financial Management Week 2 1/13 Chapter 2: Financial Markets and Interest Rates 1/15 Chapter 2: Financial Markets and Interest Rates (cont d) Week 3 1/20 Chapter 3: Financial Statements and Cash Flows 1/22 Chapter 3: Financial Statements and Cash Flows (cont d) Week 4 1/27 Review: Chapters 1-3 1/29 Midterm Exam I (Chapters 1, 2 and 3) Week 5 2/3 Chapter 4: Evaluating a Firm s Financial Performance 2/5 Chapter 4: Firm s Financial Performance (cont d) Week 5 2/10 Chapter 5: Time Value of Money 2/12 Chapter 5: Time Value of Money (cont d) Week 6 2/17 Chapter 6: Risk and Return 2/19 Chapter 6: Risk and Return (cont d) Week 7 2/24 Chapter 7: Valuation and Characteristics of Bonds 2/26 Chapter 7: Valuation and Characteristics of Bonds (cont d) Week 8 3/3 Spring Break (No Class) 3/5 Spring Break (No Class) Week 9 3/10 Review: Chapters 4-7 3/12 Midterm Exam II (Chapters 4, 5, 6 and 7) Week 10 3/17 Chapter 8: Valuation and Characteristics of Stocks 3/19 Chapter 8: Valuation and Characteristics of Stocks (cont d) Week 11 3/24 Chapter 9: Cost of Capital 3/26 Chapter 9: Cost of Capital (cont d) Week 12 3/31 Chapter 10: Capital Budgeting Techniques and Practice 4/2 Chapter 10: Capital Budgeting Techniques and Practice (cont d) Week 13 4/7 Chapter 14: Short-Term Financial Planning 4/9 Chapter 14: Short-Term Financial Planning (cont d) Week 14 4/14 Chapter 16: International Business Finance 4/16 Chapter 16: International Business Finance (cont d) Week 15 4/21 Chapter 11: Cash Flows and Other Topics in Capital Budgeting 4/23 Chapter 11: Cash Flows and Other Topics in Capital Budgeting (cont d) Week 15 4/28 Review: Chapters 8-16 Week 16 5/5 Final Exam (Chapters 8, 9, 10, 14, and 16)[8:00 am to 10:30 am] Financial Management 5 FINN 3120-006