Finance 3403 FINANCIAL MANAGEMENT Summer 2002. TABLE OF CONTENTS I. General Information...1 II. Academic Integrity Policies...4 III. Class Preparation...5 IV. Examinations and Quizzes...6 V. Grading.... 8 VI. VII. VIII. Past Grade Distributions on Fin 3403. 9 Class Schedule...12 Reserve Listing......14
TERM: Summer 2002 1 COURSE NUMBER: FIN 3403 COURSE TITLE: Financial Management PREREQUISITES: ACG 2071 and STA 2023 with a C better. Failure to have completed these prerequisites successfully will result in you being automatically removed from the class roster during the semester. CATALOG DESCRIPTION: Management techniques for and considerations in determining shortterm, intermediate-term, and long-term financial needs. Sources of funds available to management and the relevant financial instruments will be examined. INSTRUCTOR: Dr. Cheryl Frohlich OFFICE: 42/3210 OFFICE HOURS: Dr. Frohlich (42/3210): cfrohlic@unf.edu M W 4:00-5:30 and by appointment. Blazej Dankowski (42/3504): danb0005@uf.edu Karen Stanko (42/3504): stank0004@unf.edu M W 11:00-12:00 M W 2:30-4:00 (Stanko/Dankowski/Frohlich) PHONE: CLASS TIME: 620-2630 (office-dr. Frohlich, Blazej Dankowski, Karen Stanko); 223-7249 (Dr. Frohlich home) M, W (Mass Lecture) Fin 3403-363-369 6:10-7-50 PM Bldg. 42/ 1020
BREAK-OUT SESSIONS 2 Sections: Time Day Room TA 363 8:00 pm- 9:20 pm M 42/1101 Karen Stanko 364 8:00 pm- 9:20 am W 42/1101 Blazej Dankowski 365 4:30 pm-5:20 pm M 42/1101 Blazej Dankowski 366 4:30 pm-5:20 pm W 42/1101 Blazej Dankowski 367 9:00 am- 10:20 am F 42/2116 Karen Stanko 368 10:50 am- 12:10 pm F 42/2116 Karen Stanko 369 12:40pm-2:00 pm F 42/2116 Karen Stanko REQUIRED: CONTEMPORARY FINANCIAL MANAGEMENT by Moyer, McGuigan, and Kretlow; 8th edition. Financial Calculator (Texas Instrument--BAII Plus) RECOMMENDED: FINANCIAL MANAGEMENT: THE INSTRUCTOR-STUDENT PARTNERSHIP; 3 rd edition by Cheryl Frohlich DROP DATE: Thursday June 27, 2002 Memorial Day: Monday May 27, 2002 FINAL EXAM: FIN 3403-357-362 Wednesday at 6:10 pm-7:50pm July 31, 2002 WHY TAKE FINANCE? Finance is the language of business. Understanding finance is essential for all business students whether the intended major is management, marketing, law, or accounting. A finance background provides a graduate with fundamental training that can be used in all aspects of organizational activity, whether commercial, governmental, or institutional.
THIS COURSE INTENDS: It will be ASSUMED that all students have taken the previous required courses. If you have not had the prerequisites for this course, you need to drop this course. Students MUST have WORKING KNOWLEDGE of basic theoretical concepts discussed in the prerequisites, such as time value of money, standard deviations, etc. Finance 3403 will acquaint the student with the conceptual basis of making corporate financial decisions and with the techniques and tools used to make the decisions. The course will analyze three fundamental decisions: Financial Planning, Valuing Securities, and Value and Capital Budgeting using the basic tools developed. OBJECTIVE: The objective of this class is to provide the student the opportunity to stretch to his/her full THINKING potential. The course is very rigorous and the student must integrate concepts in lecture and class. Your tests integrate concepts. They are not homework problems with different numbers. Cash flow analysis is utilized throughout the course. The student will upon completion of the course be able to value both debt and equity securities, calculate a firm's cost of capital, evaluate capital projects and develop a working capital policy besides assimilating other principles and techniques applicable to financial management of a firm. TYPE OF FORMAT: LECTURE-DISCUSSION: Most of the class periods will be devoted to covering material from the textbook or assigned readings. Class participation through discussion, questions, examples or newspaper articles is required. I will expect each of you to remain abreast of current developments in financial markets and financial institutions in general. In order to accomplish this the Wall Street Journal along with certain weekly publications such as BusinessWeek, Newsweek, or Forbes need to be read on a regular basis. WRITTEN COMMUNICATION REQUIREMENT: None ORAL COMMUNICATION REQUIREMENT: Oral presentation skills will be demonstrated through class participation. COMPUTER APPLICATIONS: Several spreadsheet software packages are available for homework problems. However, problems can be solved without the use of a spreadsheet. INTERNATIONAL COVERAGE: International issues are included within each chapter. ENVIRONMENTAL ISSUES COVERED: None ETHICAL ISSUES COVERED: Ethics will be discussed as it pertains to the use of finance in managerial decisions and its impact upon the organization. 3
ACADEMIC INTEGRITY POLICIES 4 ETHICS AND CODE OF CONDUCT In today's environment, ethics has become an extremely important topic. These characteristics are not bestowed upon you at graduation but are developed over time. The College of Business Administration has published an undergraduate handbook which includes a Code of Conduct (Pages 2-3). All items listed will be strictly enforced. Any student violating any aspect of the code of conduct will be penalized and receive a grade of `F' for the course and referred to the proper authorities for expulsion from the University. Specific items that relate directly to this course are: Cheating Intentionally using or attempting to use unauthorized materials, information, notes, study aids or other devises in any academic exercise. This definition includes unauthorized communication of information during an academic exercise. This includes, but is not limited to the following: (1) Computer assignments must be done independently. (2) Copying or allowing copying by another student or students constitutes cheating. Multiple Submissions The submission of substantial portions of the same academic work for credit more than once without authorization. (1) Computer assignments must be done independently. Abuse of Academic Materials Intentionally or knowingly destroying, stealing, or making inaccessible library or other academic resources such as: (1) Solution manuals. (2) Instructor's overheads. Complicity in Academic Dishonesty Intentionally or knowingly helping or attempting to help another to commit an act of academic dishonesty (1) Providing answer(s) to a later class. (2) Asking other student(s) or class(es) for answer(s). DISABILITY ACT: If you have a disability, as defined by the American with Disability Act (ADA), which requires a classroom accommodation or auxiliary aid(s), please inform me of your needs during the first week of class so that I may take appropriate action. Individuals who require reasonable accommodations must contact the Office of Disabled Services Programs at Founders Hall, Building 2, Room 2120, 904-620-2769 as soon as possible.
5 CLASSROOM PROTOCOL Success in business requires much more than adequate technical training. Some of the factors that you should have developed by now include: (1) dependability (e.g., attend class regularly) (2) punctuality (e.g., class starts on time) (3) courtesy (e.g., pay attention, don't pack up early) (4) motivation (e.g., be adequately prepared for class) If you need to leave class early, please sit towards the back near or on the end seat of the row. POLICY ON LATE WITHDRAWALS The University policy for dropping a course after the last official drop date, is as follows: UNF students are not allowed to drop a course after the official withdrawal date unless there are unusual circumstances that are clearly beyond the student's control. When such cases exist, the student should file a petition with attached documentation. The instructor does not approve or disapprove, but assigns a grade of WP or WF. The instructor may also recommend an action to be taken or write a note explaining unusual circumstances connected with the course. This policy means that students do not have the right to drop a course after the official university deadline simply because they have a passing grade at that time. CLASS PREPARATION Homework and attendance are essential parts of the learning process. It is the student's responsibility to have read the assigned chapter(s) or cases before coming to class. Problems must be attempted before class or Break-Out/ Help Sessions. Assignments should be prepared and are due on the dates indicated on the schedule unless otherwise instructed. You should spend at least twenty to twentyfive hours per week outside of class on doing all the problems at the end of each chapter and any other assignments.
6 EXAMINATIONS AND QUIZZES ATTENDANCE/PARTICIPATION Even though no roll will be called in the mass lecture, attendance is important in achieving good grades. Attendance will be taken in the Help sessions. If you cannot make a break-out session, you are responsible and accountable for informing your TA. Attendance is not coming, leaving homework and walking out. Attendance is remaining in the class for the majority of the entire class time. Students are responsible for thorough preparation of all assignments. BREAK-OUT/ HELP SESSIONS: Attendance is not coming, leaving homework and walking out. Attendance is remaining in the class for the majority of the entire class time. Break-Out/Help Sessions have 22 points for attendance distributed as follows: Attendance Absences Points 0-1 22 2 18 3 16 4 0 Attendance will be taken in the break-out/help sessions. Some of the weekly quizzes may be given in the help sessions. Break-Out/Help Sessions have 18 points for homework: Your graduate assistant will discuss homework problems and concepts in each session. Six homeworks will be randomly collected by the TA s and checked for actual attempts on solving the problems not necessarily on the correct answer for a total of 18 points. Do not use the answers to the problems that are on reserve before you attempt the problem. The long-run result of this is that you will NOT learn how to approach the problem.
7 QUIZZES Quizzes will be drawn from all problems at the end of the assigned chapters. ALL WORK ON THE PROBLEMS MUST BE SHOWN TO RECEIVE ANY CREDIT. THE CORRECT ANSWER WITH NO WORK SHOWN WILL RECEIVE A ZERO. The quizzes may not be the exact problems at the end of the chapters but they will be very similar to problems at the back of the chapters. Sample Quizzes are on the Professor s website You should spend at LEAST 20-25 hours per week on problems to be adequately prepared for class and tests. All of the assigned sets of the quizzes will be collected and graded. Only the highest five quizzes will count towards the final grade. There will be quizzes throughout the semester. If the quiz is rendered in the mass lecture, students must remain in class and seated until the "quiz count" has been taken and the instructor notifies the class. If a student leaves the class before the instructor notifies the class that the quiz count is correct, that student will receive a zero on the quiz. Chapter Questions and Topics for Discussion for all chapters covered in class that may count as one Quiz: Answers cannot be copied from the Instructor s Resource Manual verbatim nor can they be rephrased from the Instructor s Resource Manual. If you should do this, then the chapter is not counted and will count as a missed chapter. The answers must be in your own words and thoughts. Written answers to questions will be worth the following points: Missed Chapters Points 0-1 24 2 16 3 8 4 0 Chapters covered for midterm must be turned in at the test date. Chapters covered for the final must be turned in at the test date. EXAMINATIONS: There will be a midterm and final. The professor leaves an option to add an hourly depending on how the class progresses. If an hourly is added the percentages will be adjusted accordingly. The final may be comprehensive. If you do have to miss a test, clear it with the professor PRIOR (PRIOR DOES NOT MEAN AN HOUR BEFORE) to the exam. Exams may be taken early but as a general case NO MAKE-UP's are given. Exams are to remain in control of the professor. FAILURE TO RETURN AN EXAM RESULTS IN AN AUTOMATIC ZERO FOR THAT TEST. WORK MUST BE SHOWN ON PROBLEMS FOR PARTIAL CREDIT. If you do not wish consideration for partial credit then no work needs to be shown. Tests will gone over in break-outs. FORMULA SHEETS Formula sheets may be used during quizzes and tests. Only the formula may be written on a sheet of paper. Examples or directions on how to use the formula cannot be on the sheet. ALL Formula sheets must be cleared with the Instructor or TA before the test begins and attached to the test upon completion. Therefore, it would be best if you copied your formula sheet in case the test is not returned in time to take a quiz the following week.
GRADING Grading schedule is subject to change given class progress. Notification will be provided prior to change. Grading is on a numerical average not on the effort involved. Grades are posted in the cabinet in the stair-well after every test. Students are responsible and accountable for checking the accuracy of all their scores and notifying the TA for adjustments. Proper documentation (i.e. A quiz with an improperly recorded grade for example) must be provided in order for a grade change to be made. 8 Midterm Final Break-Out/Homework Quizzes (Top five) TOTAL 120 points 120 points 40 points 120 points 400 points Percentage A 90-100% B 80-89% C 70-79% D 60-69% F 0-59% A student must have earned at least 90% of the total possible course points (maximum 100) to obtain an 'A' for the course. Similar requirements for letter grades, B, C, and D are indicated on the schedule above. Extra Credit projects and in-class extra credit questions are given over the semester. Therefore, a curve is not likely since the extra credit points already provide a curve. The most conservative approach will be to use the above percentages for grading during the semester. The + and grades may be used at the discretion of the instructor.
9 Fin3403 Summer 2001 35% 30% 25% 20% 15% 10% A B+/B C+/C D F 5% 0% Grades A 13% B+/B 33% C+/C 28% D 16% F 10%
10 FIN3403 Fall 2001 40% 30% 20% 10% 0% Grades A 10% B+/B 21% C+/C 34% D 20% F 15% A B+/B C+/C D F
11 Fin 3403 Spring 2002 40% 35% 30% 25% 20% 15% GRADE DISTRIBUTION 10% 5% 0% GRADE DISTRIBUTION A B C D F 15% 28% 35% 15% 7%
Valuation Chapter 4/4A Introduction Chapter 1 Chapter 2 CHAPTER OUTLINE The Time Value of Money Questions: 1-18 Problems: 1-15 16-30 31-44 The Role and Objective of Financial Management Questions: 1-19 The Domestic and International Marketplace Questions: 1-10 Problems: 1-15 --------- Markets & Institutions (in class notes) Interest Rate Theory (Chapter 5 pgs. 180-186) 12 Valuation Chapter 6/6A Chapter 7 TEST Chapter 5 Fixed Income Securities: Characteristics and Valuation Questions: 1-18 Problems: 1-15 16-25 Common Stock: Characteristics, Valuation and Issuance Questions: 1-18 Problems: 1-28 Analysis of Risk and Return Questions: 1-21 Problems: 1-27 Capital Budget Decision Chapter 8 Capital Budgeting and Cash Flow Analysis Questions: 1-11 Problems: 1-23 Chapter 8A Depreciation Problems 1-6 Chapter 9 Capital Budgeting Decision Criteria Questions: 1-9 Problems: 1-25 Chapter 11 The Cost of Capital Questions: 1-13 Problems: 1-27 Chapter 10 Capital Budgeting and Risk Questions: 1-10 Problems: 1-27
13 Financial Analysis and Forecasting Chapter 3 Evaluation of Financial Performance Questions: 1-15 Problems: 1-27 Chapter 13/13A International Chapter 21 Capital Structure Management in Practice Pages 481-491 Questions: 1-6; 8-9 Problems: 1-17 The International Financial Marketplace Questions: 1-6 Problems: 1-11 *TEST--- Note that placement of tests may change depending on the progress of the class.
Reserve Listing Text: Contemporary Financial Management [2826] Text Question Answers and Problems: Instructor's Resource Manual [2828] Study Guide [2827] Supplemental Problems [2829] Exam for Fin 5405 [702] Financial Management: Instructor-Student Partnership [1937] (Professor s Website with password given in class) 14 Sample Quizzes are on the Professor s website