BA 360 Introduction to Financial Management E-Campus Instructor: Professor Raymond M. Brooks 430 Bexell Hall 541-737-3692 brooksr@bus.oregonstate.edu Office Hours: Required Text: Calculator: Course Objective: Grading: Academic Dishonesty: By appointment if on campus otherwise please use e-mail. Brooks, Financial Management: Core Concepts, Pearson Prentice Hall First Edition, Copyright 2010 (with My Finance Lab access) Highly recommend purchasing a TI BAII Plus Advanced Financial Calculator (cost around $30 to $35). The objective of the course is to introduce students to the basic questions facing a financial manager and the tools a financial manager uses to find answers to these questions. The course will introduce the basic tools of finance and applications of financial theory in use today. Students will be introduced to legal, ethical, technology, and global issues facing a financial manager. The course is designed to enhance a student s approach to financial decision-making and emphasizes technical analysis and quantitative approaches to decision making. Students take two examinations during the course. Each examination will be a series of multiple choice questions, essay questions, and/or problems. Midterm exam will be worth 100 points and the final exam worth 120 for a total of 220 points. Weekly homework assignments will be assigned and completed via My Finance Lab. There are nine weekly homework assignments. Some weeks there are two separate chapter homework assignments worth five points each and some weeks a single chapter assignment worth ten points. Therefore the weekly homework is worth a total of 90 points. There will be a weekly quiz (a total of eight). The quizzes will be worth 80. You also earn 10 points if you complete all quizzes and homework assignments on time. This is to encourage students to stay on task throughout the course. Class points total 400. For expectations of Student conduct see: http://oregonstate.edu/admin/stucon/achon.htm How to Register and Enroll in Your MyFinanceLab Course To join your instructor's course, please complete the following two steps: 1. REGISTER for MyFinanceLab, and, 2. ENROLL in your instructor's course
To Register for MyFinanceLab To register, you will need a student access code and a course ID. If you don't have an access kit purchased with your new text book, you can purchase access online at http://www.myfinancelab.com. Textbook: Brooks: Financial Management: Core Concepts 1e Course Name: Intro. to Fin. Mgmt. E-Campus Fall 2010 Course ID: XL0K-M1LA-901Y-0QV2 Steps to Register: 1. Go to http://www.myfinancelab.com and click the Student button, in the Register section. 2. Enter the course ID, XL0K-M1LA-901Y-0QV2 and click Next. 3. Choose to register an access code (came with your new book) or purchase access if you don t have an access kit/code. 4. Click the button to proceed to registration. 5. Follow the instructions to create your account. 6. Click the link to login. You ll be directed to http://www.myfinancelab.com, where you can enter the user name and password you just created. Click the login button. 7. The first time you enter the site you ll be asked to enter your course ID. Enter your course ID, XL0K-M1LA-901Y-0QV2. 8. Be sure to click on the Browser Check link on the Announcements page or in the upper right of the screen the first time you login and anytime you use a new computer. This wizard will walk you through the installation of the software you will need to use the MyFinanceLab resources (such as Flash). Note: the software may already be installed in the school lab, so in that case check first with your lab administrator. To log into MyFinanceLab 1. Go to http://www.myfinancelab.com 2. Enter the user name and password you just created, and click Log In (or hit the enter key). If you purchased access, visit the Student Center inside your Instructor's Course for additional purchase options. Note: If you are taking two MyFinanceLab courses simultaneously you will need two separate login accounts.
Need Help? For assistance, please visit http://www.myfinancelab.com/support. Book Purchase Options: Because you must register for MyFinanceLab you have the following options for this course. 1. Purchase new book (at OSU Bookstore for example) with the access code to MyFinanceLab approximate price $97 2. Purchase the access code on line from Pearson Publishing approximate cost $50 and get the access to e-text book. You can print one page at a time (capture print) from e-text or for an additional $35 get a full print (three hole punch pages) mailed to you. Total cost for access, e-text and printed version approximately $85. 3. You can purchase access code only from Pearson Publishing approximate cost $50 and get the e-text only. Then you can buy a used book for around $35 and total cost is approximately $85. Do not pay more than $45 for the used text as this would reach the cost of a new book with access.
BA 360 Introduction to Finance Management Course Outline Date Reading / Lecture Homework -- Problems (CH 1 HW Due by Thurs 11:00 PM) Register for (Quiz 1 Due by Sunday 11:00 PM) WEEK ONE MyFinanceLab YOU CANNOT DO THE QUIZ and Chapter 1 WITHOUT FIRST HAVING A HOMEWORK SCORE! WEEK TWO Chapter 2 Chapter 3 (CH 2 HW Due by Thurs 11:00 PM) (CH 3 HW Due by Thurs 11:00 PM) (Quiz 2 Due by Sunday 11:00 PM) from both Chapters 2 and 3. WEEK THREE Chapter 4 Chapter 5 (CH 4 HW Due by Thurs 11:00 PM) (CH 5 HW Due by Thurs 11:00 PM) (Quiz 3 Due by Sunday 11:00 PM) from both Chapters 4 and 5. WEEK FOUR WEEK FIVE (Monday thru Friday) WEEK SIX Chapter 6 Chapter 7 EXAM 1 Chapter 8 (CH 6 HW Due by Thurs11:00 PM) (CH 7 HW Due by Thurs11:00 PM) (Quiz 4 Due by Sunday 11:00 PM) from both Chapters 6 and 7. Wed April 28 th Friday April 30 th Exam Covers Chapters 1-7 (CH 8 HW Due by Thurs11:00 PM) (Quiz 5 Due by Sunday 11:00 PM) from Chapter 8. WEEK SEVEN Chapter 9 Chapter 10 (CH 9 HW Due by Thurs11:00 PM) (CH 10 HW Due by Thurs11:00 PM) (Quiz 6 Due by Sunday 11:00 PM) from both Chapters 9 and 10. Date Reading / Lecture Homework -- Problems
WEEK EIGHT Chapter 11 Chapter 12 (CH 11 HW Due by Thurs11:00 PM) (CH 12 HW Due by Thurs11:00 PM) (Quiz 7 Due by Sunday 11:00 PM) from both Chapters 11 and 12. WEEK NINE (Monday thru Wednesday) Chapter 13 (CH 13 HW Due by Wed. 11:00 PM) ( No Quiz this week due to the Thanksgiving Holiday) WEEK TEN WEEK ELEVEN FINALS WEEK (Wednesday thru Friday) Chapter 14 Final Examination (CH 14 HW Due by Thurs11:00 PM) (Quiz 8 Due by Sunday 11:00 PM) from Chapters 13 and 14. Wednesday to Friday Covers Chapters 8 14 Plus INSTRUCTOR COMMENTS: 1. Homework assignments will open every Monday morning and close every Thursday night at 11:00 PM. One exception is during the Thanksgiving Holiday week where the homework will close Wednesday evening at 11:00 p.m. 2. Each quiz will open every Thursday afternoon at 4:00 PM and close every Sunday at 11:00 PM. Again with the exception of the Thanksgiving Holiday week where there will be no quiz that week. 3. YOU CANNOT TAKE A WEEKLY QUIZ WITHOUT FIRST DOING THE CORRESPONDING HOMEWORK ASSIGNMENTS! My Finance Lab is programmed to require completion of the homework before you can open the Quiz. So, if you are pressed for time, at least get a homework score for each chapter that week so you can attempt the weekly quiz. On weeks with two chapters, you must complete both chapter homework assignments before the quiz will unlock. 4. This is a fast-paced course where you must stay on task to do well. The materials provided through My Finance Lab will enhance your experience, and hopefully make this an excellent learning environment.
PREREQUISITES (1) ECON 201: Introduction to Microeconomics (2) BA 213 Managerial Accounting or BA 215 Money & Investment Management (3) Junior Standing MEASURABLE LEARNING OUTCOMES Understand the fundamental theories, concepts, and tools of finance, including time value of money valuation techniques, the relationship between risk and return, and the use and interpretation of financial statements. Apply financial management concepts and tools to the decisions faced by a manager to Investment decisions Financing decisions Working capital management decisions Financial analysis and planning. Fundamental Theories, Concepts, and Tools Time Value of Money (TVM) Explain the concepts of discounting and compounding. Find the present value and future value for a single cash flow, series of cash flows, annuity, and perpetuity. Develop a loan amortization schedule. Calculate an APR (annual percentage rate) and an EAR (effective annual rate). Use TVM to value assets such as common stock, preferred stock, and bonds. Describe and explain the variety of interest rates. Identify and explain the factors that determine interest rates and the yield curve. The Relation between Risk and Return Calculate the historical return average and standard deviation of the historical returns. Calculate the expected return, standard deviation, and beta for a portfolio. Explain diversification, and distinguish between "diversifiable risk" and "nondiversifiable" risk. Describe "beta coefficient". Describe how beta coefficients can be estimated from historical returns. Understand and use the CAPM (SML) to calculate required rates of return. Explain the efficient market hypothesis (EMH) and its implications for an optimal investment strategy Financial Statements Understand the information contained in an income statement, balance sheet, statement of retained earnings, and statement of cash flows. Summarize the differences between debt and equity. Financial Decisions Investment Decisions (Capital Budgeting) Recognize and calculate the relevant cash flows for a potential investment. Calculate and interpret a net present value (NPV), an internal rate of return (IRR), and a payback period for a capital budgeting analysis. Make capital budgeting decisions under conditions of capital rationing and mutually exclusive investments. Explain how to account for inflation in a capital budgeting analysis.
Recognize and explain the weaknesses in the capital budgeting process. Financing Decisions (Capital Structure) Calculate and interpret a weighted average cost of capital (WACC). Understand the effect of floatation costs on the cost of capital. Define financial leverage, capital structure, and optimal capital structure. Understand the effects of capital structure on the risk and return characteristics of a company's debt and equity financing. Working Capital Management Decisions Understand the issues involved in setting corporate policy concerning current assets and current liabilities. Understand the cash conversion cycle and issues involved in managing the cash conversion cycle Briefly explain the difference between permanent financing needs and seasonal financing needs. Understand and be able to analyze the issues involved in setting credit standards and terms. Briefly describe the sources available for short-term debt financing. Financial Analysis and Planning Identify and explain the major categories of financial ratios. Calculate and interpret typical financial ratios. Use financial ratios to analyze company performance. Identify weaknesses in ratio analysis. Calculate and interpret pro forma financial statements using % of sales method and / or specific information. Identify the major reasons for estimating a pro forma financial statement. Plagiarism You are expected to submit your own work in all your assignments, postings to the discussion board, and other communications, and to clearly give credit to the work of others when you use it. Academic dishonesty will result in a grade of F. Link to Statement of Expectations for Student Conduct: http://oregonstate.edu/admin/stucon/achon.htm. Students with Disabilities Accommodations are collaborative efforts between students, faculty and Disability and Access Services (DAS). Students with accommodations approved through DAS are responsible for contacting the faculty member in charge of the course prior to or during the first week of the term to discuss accommodations. Students who believe they are eligible for accommodations but who have not yet obtained approval through DAS should contact DAS immediately at 541-737-4098. Course Evaluation We encourage you to engage in the course evaluation process each term online, of course. The evaluation form will be available toward the end of each term, and you will be sent instructions by Ecampus. You will login to Student Online Services to respond to the online questionnaire. The results on the form are anonymous and are not tabulated until after grades are posted.