BUS 310 A Course Outline Introduction to Finance Fall 2014 INSTRUCTOR Office Phone E-mail Terry Cole, CMA MC 423 403-356-4894 Terry.Cole@rdc.ab.ca CLASS TIMES Section A Tuesday/Thursday 11:00 AM 12:20 PM Room MC 306 A OFFICE HOURS Tuesday Thursday 3:00 PM - 4:30 PM 3:00 PM - 4:30 PM or by appointment CREDIT HOURS 3.0 Hours ACADEMIC CALENDAR ENTRY Types of securities and basic methods of valuation. Valuation and selection of physical and intellectual assets. Operation of asset markets and market efficiency. Risk measures and risk reduction methods. Financing policy, including choices between debt and equity financing. PREREQUISITES ACCT 202 and BUS 306 COURSE TOPICS: Role of financial managers Financial mathematics Time value of money Valuation Capital projects Securities markets Discounted cash flow analysis Risk and return Cost of capital Derivatives BUS 310 Course Outline Red Deer College Page 1 of 6
Mergers & acquisitions Capital budgeting Systematic risk Much of finance today is analytically and quantitatively challenging. The effort expended to master finance however, is well worth it. The field is exciting, always changing, and often lucrative. LEARNING ACTIVITIES: Teaching in this course is comprised primarily of lectures, problems, assignments, quizzes and tests. Students can expect to engage in small group work at times during all components of the course. LEARNING OUTCOMES Upon successfully completing this course, you should be able to solve real world time value of money problems. value a stock or bond. compare investments using net present value and other criteria. prepare and appraise a capital budget. apply the risk-return trade-off decision to investment decisions. calculate cost of capital and explain its importance for capital budgeting decisions. critique a corporate financial plan. TRANSFER AGREEMENTS Formal transfer agreements between Red Deer College and other Alberta universities and colleges are found at www.acat.gov.ab.ca. If you want to transfer this course to an institution not shown on the website, please contact that institution for correct procedures. REQUIRED TEXTBOOKS Fundamentals of Corporate Finance (Eighth Canadian Edition) By Ross, Westerfield, Jordan and Roberts McGraw-Hill Ryrerson. 2013. Assignments to be completed online using Connect with above textbook. REQUIRED CALCULATOR Texas Instruments BA II or BA II Plus Professional. Instruction will be given specifically on using only this calculator. Please note programmable calculators are not allowed for exams. COURSE REQUIREMENTS 1) Attendance This is a hands-on course with a substantial in-class problem solving focus. It is important to attend class and to complete assigned readings, exercises and problems before coming to class. Lack of attendance may impact the students ability to successfully complete the course. Handouts of material not included in the textbook may be distributed and discussed during class. Students are responsible for this material on tests. BUS 310 Course Outline Red Deer College Page 2 of 6
2) Class Participation Students are expected to professionally participate in class discussions throughout the course. Students are to be prepared to discuss assigned readings and to present and discuss possible solutions to assigned exercises and problems during class. Participation means actively pursuing in-class assignments and exercises. It is unacceptable to work on other assignments or engage in activities (such as texting or using other electronic devices, chatting with other students, etc.), unless such work/activity is specified by the instructor. Engaging in activity other than that specified by the instructor will result in the student being penalized. Cell phone usage, including texting, will not be tolerated during class times. 3) General Students who are encountering difficulty with the course are urged to contact the instructor at once. Students should ensure that they are familiar with Red Deer College s Student and Academic Standard Practices and Policies as well as the key dates in the Academic Schedule. BLACKBOARD The course schedule and supplementary materials are available on the Blackboard site for this course. It is important to check this site frequently for updates. ASSESSMENT OF STUDENT PERFORMANCE The final grade in this course will be computed based on the following elements. At all times the Red Deer College final examinations policy will be adhered to. Component Description Weight 1. Assignments 15% 2. Quizzes - 3 15% 2. Mid Term 35% 3. Final Exam 35% Total 100% The exact dates for assignments and tests will depend upon the rate of progress through the term and are therefore subject to change. Chapter assignments may be administered online, details to be provided during the first week of classes. The date and time for the final exam will be set by the registrar. The instructor will assign various short projects, exercises and problems during the course and during class. Many of these will be taken up during class time and the student is expected to have attempted all such exercises and problems before class. Some may be assigned IN CLASS for completion during the class and some may be taken in for evaluation as part of the course assignment component of the course evaluation, as described above. Failure to complete an assignment/project, test or exam, on time and in the manner specified will result in a zero grade being assigned to that course component. If there is a legitimate reason for a student being unable to complete a course component by the required date and time, then solely at the discretion of the instructor, an alternative may be arranged. This BUS 310 Course Outline Red Deer College Page 3 of 6
arrangement may include an initial penalty of 20%, then 10% for each late day or part of a late day. GRADING SYSTEM Final grades in the course will be assigned based on the Alberta Education Grade Comparison letter grading system as described in the Red Deer College Calendar on page nine. Refer to ASSESSMENT OF STUDENT PERFORMANCE section for additional details 1) Homework and Assignments Students are expected to have read in advance the material to be taken up in class, and to have completed all assigned homework. Due to time constraints, topics outlined in the tentative schedule will be covered in varying detail. Students are responsible for further reading and assignments as deemed necessary by the instructor. 2) Examinations Quizzes/Tests are closed book, unless otherwise specified Use of cell phones, ipods, computers or any electronic device other than the TI BA II+ is PROHIBITED during all tests and exams. Cell phones are to be turned off during the test/exam period. Any person(s) found using their cell phone, or ipod or computer during an exam will have their examination confiscated and a grade of zero will be assessed to that portion of the final course grade applicable to the confiscated test/exam. 3) Absences Any student missing an exam or assignment due date without having made arrangements with the instructor prior to the due date will receive a grade of zero for that exam or assignment. Normally, a medical certificate will be required to justify any alternate arrangements I do NOT normally consider vacation/being out of town to be a valid reason to make up an assignment or test. MIDTERM FEEDBACK Midterm feedback for this course will be available from the instructor following marking of the first term test. After reviewing their marks to this point, students should make an appointment with the instructor to discuss their progress and concerns if the cumulative total to this point is less than 20 marks. The instructor is also available prior to this in designated office hours if students have any concerns. Please see Important Dates below. RDC FINAL EXAMINATION POLICY The RDC Final Examination Policy will be followed with respect to Final Examinations. Please review this document to ensure you understand the contents and implications of the policy at http://rdc.ab.ca/sites/default/files/uploads/documents/2132/student-misconduct-academic-nonacademic-policy_0.pdf ACADEMIC MISCONDUCT Please become familiar with what constitutes academic misconduct, as well as the consequences. Plagiarism involves submitting work in a course as if it were the student s own work. Plagiarism may involve the act of submitting work in which some or all of the phrasing, BUS 310 Course Outline Red Deer College Page 4 of 6
ideas, or line of reasoning are alleged to be the submitter s own but in fact were created by someone else. The complete policies are available on the RDC Policies web site: Appeals: Formal Policy, Appeals: Informal Resolution Policy and Student Misconduct: Academic and Non-Academic Policy. CHANGES TO THE COURSE OUTLINE Changes to the course outline will be made with the consent of the course instructor and students. Changes will be reviewed by the Department Chairperson for consistency with College policies. IMPORTANT DATES September 3 September 11 September 11 October 7 October 13 October 24 November 10 November 10 November 11 November 12 December 3 December 3 December 8 13 December 16 December 22 First Day of Classes Last day to register or add/drop Fall or Full year courses Last day to have tuition refunded for Fall or Full year courses Emergency Response Day Thanksgiving Day College is closed Mid-term feedback date Instructors give students formal feedback on their academic standing in Fall Term courses Final examination schedule posted College is open no credit classes Remembrance Day College is closed Credit classes resume Last day to withdraw from Fall term courses and receive a WD Last day of classes for Fall term courses Final Exams Week - Students are expected to be available during this time period for the writing of final exams Deferred exams written Final grades available The Tentative Timetable for the course is tentative, but it is critical for inclusion as it is used extensively by our transfer partners in assessing the transferability of a course. In addition course timelines are required in course outlines as per RDC s Course Outline policy. TENTATIVE TIMETABLE Week Beginning Outline of Topics Activities/Readings Sept. 3 Intro to Corporate Finance. Chapter 1 Sept. 8 Valuation & Discounted Chapters 5 and 6 Cash Flows Sept 15 Discounted Cash Flows & Chapters 6 and 7 Interest Rates/Bond Valuation Sept 22 Bond Valuation & Stock Chapters 7 and 8 Valuation Sept 29 Stock Valuations and Chapters 8 and 9 Oct 6 Oct 13 Investment Criteria Investment Criteria & Capital Investment Decisions Capital Investment Decisions & Capital Market Quiz 1 (Ch 1, 5-8) Chapters 9 and 10 Chapters 10 and 12 Quiz 2 (Ch 9,10) BUS 310 Course Outline Red Deer College Page 5 of 6
Oct 20 Oct 27 Nov 3 Nov 10 Nov 18 History Review Mid Term Exam Risk & Return, Cost of Capital Cost of Capital & Raising Capital Financial Leverage & Capital Structure Dividend Policy & Short Term Financial Planning October 23 Mid Term Exam Chapters 1, 5-10, 12 Chapters 13 and 14 Chapters 14 and 15 Chapter 16 Chapters 17 and 18 Nov 24 Mergers and Acquisitions, Chapters 23, 24 and 25 Risk Management Dec 1 Review Quiz 3 (Ch 12-18, 23-25) Final Exam Week Final Exam SCHEDULED BY THE REGISTRAR This course may be eligible for Prior Learning Assessment. Students should refer to the RDC Course Calendar for a list of excluded courses. A plagiarism detection tool is used in this course. Classroom Learning Resources may be available to students in alternative formats. Students should be aware that Personal Counselling, Career, Learning and Disability Services are provided by RDC. Inquire about locations at Information Desk. It is the student s responsibility to discuss their specific learning needs with the appropriate service provider. It is the student s responsibility to be familiar with the information contained in the Course Outline and to clarify any areas of concern with the instructor. Students should refer to the Appeals: Formal Policy, Appeals: Informal Resolution Policy and Student Misconduct: Academic and Non-Academic Policy should questions or concerns about the Course Outline not be resolved directly with the instructor. Associate Dean Date August 26, 2014 BUS 310 Course Outline Red Deer College Page 6 of 6