San Diego State University
College of Business Administration
FIN 323 SEC 7: Fundamentals of Finance
Spring 2013
Instructor:
Class Hours:
Classroom:
Office:
Contact:
Office Hours:
Stephen Blum
12:30PM – 1:45PM TTH
LL-2203
SSE-3369
stephen.blum@mail.sdsu.edu
3:30PM – 4:30PM TTH
Course Objectives:
1. To obtain an understanding and ability to use basic business financial
management concepts and tools of analysis such as valuation, risk-return
relationships, financial statement analysis, capital budgeting, cost of capital,
capital structure, and working capital management.
2. To become familiar with the various types of financing available to a firm.
Student Learning Outcomes:
At the end of this course students will be able to:
1. Explain how domestic financial markets work and how institutions and firms
obtain funds in the financial markets and at what cost.
2. Apply basic valuation concepts to valuing various types of cash flow streams.
3. State and explain what determines the value of a firm’s securities and how
management can influence these values.
4. Measure a firm’s risk; explain what determines this risk, and how this affects the
value of a firm.
5. Analyze a firm’s performance to determine its strengths and weaknesses, and
use financial analysis to make suggestions to improve performance.
6. Forecast a firm’s financial needs.
7. Discuss the various methods for analyzing projects, apply them and specify what
to do if there are conflicting recommendations.
8. Identify and explain the tradeoffs involved and techniques used to manage a
firm’s working capital efficiently.
9. Define what leverage is, how a firm influences its leverage, and how leverage
affects a firm.
10. Describe how firms raise money in foreign markets.
11. Define the finance terminology in the above areas.
FIN 323 Spring 13 SEC 7 Syllabus - Page 1 of 4
Textbook: Selected chapters from Finance: Applications and Theory (2nd Edition), by
Cornett, Adair, Nofsinger, McGraw-Hill, with an access code to McGraw Hill
Connect Plus Finance, ISBN-13: 978-0-07-766438-1. The SDSU bookstore
has bundled the special edition of this text with an access code to McGraw
Hill Connect Plus Finance at a substantially reduced cost.
Required:
i>clicker 2 (Before the first session of class you must purchase and
register your i>clicker 2 on Blackboard)
Financial Calculator (Texas Instrument BAII Plus is highly recommended)
4 ParScore (Red) Test Forms and #2 pencil – for midterms and final exam
Classwork: As with all upper-division business courses that are cumulative, it is
important for you to attend every class session. We will cover a large amount of
material each class period and use class time to answer questions, do sample
problems and review homework assignments. Your attendance and class
participation will be recorded at every class session via your i>clicker 2.
Classwork is 5 percent of your final grade. Your score will be maintained in the
i>clicker 2 grade book and posted to the Blackboard grade book at the end of
the semester. You must purchase and register your i>clicker 2 on Blackboard
before the first class session.
Homework: In preparation for each class session it is essential you read the assigned
chapter(s) and do the assigned homework problems. Homework problems
coincide with each assigned chapter and must be accessed (preferably using
Firefox) through the homework tab on Blackboard. Homework assignments are
available and must be completed no later than the class session immediately
prior to the respective culminating exam. Regularly check Blackboard for
availability. Homework will be graded through Connect Plus Finance and posted
to the Blackboard grade book after each assignment is completed. You will have
unlimited attempts to solve each problem but will only receive credit for correct
answers. Homework is 15 percent of your final grade.
Student Evaluation: Final grade is based on individual performance on the following:
Classwork
25 points
Homework
75 points
Midterm Exams – 3 @ 100 each
300 points
Final Exam
100 points
TOTAL POSSIBLE
500 points
Grades: The final grade depends on your total accumulated points:
A- 450-484 Points
A 485-500 Points
B- 400-419 Points
B 420-435 Points
B+ 436-449 Points
C- 350-369 Points
C 370-385 Points
C+ 386-399 Points
D- 300-319 Points
D 320-335 Points
D+ 336-349 Points
F 299 Points or less
FIN 323 Spring 13 SEC 7 Syllabus - Page 2 of 4
Grades shall genuinely distinguish between high and low levels of academic
achievement. A, outstanding achievement; B, praiseworthy performance; C
satisfactory performance; D, minimally passing; and F, failing.
Exam Dates: This syllabus contains a tentative schedule for the semester. While we
may vary on the actual topics covered on a given day, the exam dates are FIRM!
If you cannot make an exam for a “college-approved” reason (i.e. athletic
events, military commitment, etc.) you must make arrangements with me prior
to your absence to take a make-up exam. In case of an emergency, please get
in touch with me as soon as you possibly can to arrange for a make-up exam.
Exams will not be returned but will be available for review during office hours.
Grades: Accumulated points will be maintained at all times on Blackboard.
BSBA Goals: BSBA students will graduate being Effective Communicators, Critical
Thinkers, Able to Analyze Ethical Problems, Global in Their Perspective, and
Knowledgeable About the Essentials of Business. This class contributes to those
goals through its student learning outcomes.
Communications Skills: Please note the College of Business Administration’s
expectations of communication skills (oral and written) are available online at
sdsu.edu.
Disability Accommodations: If a student requires an accommodation based on a
disability, the student should meet with me during the first week of the
semester.
Statement of Academic Dishonesty: Academic dishonesty is completely
unacceptable and will not be tolerated. Any person caught cheating will receive
an “F” for the course and will be disciplined in accordance with University
regulations and procedures.
Final Note: If you come to and participate in class, read the assigned chapters in
advance of class, do the homework assignments within the assigned timeframe,
and ask questions; you will learn a lot and should do well. Let’s have a great
semester discussing and learning about the wonderful world of finance!
Caveat: I reserve the right to change any item in the syllabus. I will let you know of
any updates or changes in the syllabus via postings to Blackboard and/or
through announcements during class periods.
FIN 323 Spring 13 SEC 7 Syllabus - Page 3 of 4
Course Outline
Date
01/17
Chapter
1
Syllabus Review & Introduction to Financial Management
01/22-24
Reviewing Financial Statements
2
01/29-31
Analyzing Financial Statements
3
02/05
Time Value of Money 1: Analyzing Single Cash Flows
4
02/07
Time Value of Money 2: Analyzing Annuity Cash Flows
5
02/12
Midterm I
02/14
Understanding Financial Markets and Institutions
6
02/19-21
Valuing Bonds
7
02/26-28
Valuing Stocks
8
03/05-07
Characterizing Risk and Return
9
03/12
Estimating Risk and Return
10
03/14
Midterm II
03/19-21
Calculating the Cost of Capital
11
03/26-28
Estimating Cash Flows on Capital Budgeting Projects
12
04/02-04
NO CLASS – SPRING RECESS
04/09,11,16 Weighing Net Present Value and Other Capital Budgeting Criteria
13
04/18
Midterm III
04/23-25
Working Capital Management and Policies
14
04/30
International Corporate Finance
19
05/02
Final Exam Review
05/07 Final Exam – During Final Class Session
FIN 323 Spring 13 SEC 7 Syllabus - Page 4 of 4