BRANDEIS INTERNATIONAL BUSINESS SCHOOL
FIN 200F (1) – Principles of Finance
Wednesday: 6:30 pm – 9:30 pm
Fall 2015
SYLLABUS
Instructor: J. Lawrence Bezviner
Phone: (631) 922-1544
E-mail: lbezvine@brandeis.edu
Office Hours: Wednesdays, 6:00pm – 6:30pm
Co-requisites:
This course is meant for those who are taking FIN201a and FIN202a concurrently with this course.
Course objectives:
The primary objective of this course is to develop the fundamental financial skills and logical thought
processes necessary to make and implement business decisions in a global environment. It is directed
to students who have not taken FIN201a in a prior term. Upon successful completion of this course,
students will have developed an understanding of key concepts underlying most financial
calculations: the time value of money, methods of stock and bond valuation and the relationship of
valuation to risk and return. We will look at several basic questions: What functions do financial
markets provide? How do firms use and deal with financial markets to raise capital? How do
investors approach financial decisions? How do we value financial securities like stocks and bonds?
We will analyze how individuals and financial managers make decisions within a framework which
emphasizes the time value of money and the relationship between expected return and risk. In
addition, we will introduce the techniques that financial managers use to evaluate feasibility of
undertaking new projects (i.e., capital budgeting).
Method of Instruction:
Instruction will be done on the basis of a combination of lectures, discussions, and problem solving.
This course is reasonably technical in nature, and it requires each student to do considerable out-ofclass work. Problem solving is very important in this course and I encourage participation from all
my students in this activity throughout the term. You should read the assigned book chapters prior to
coming to class. The material will mean a great deal more to you, and you will understand and retain
much more of it, especially when you review the class notes and problems prior to a quiz or exam.
Course materials
Text:

Corporate Finance, 10th Edition, Ross, Westerfeld, and Jaffe, McGraw-Hill.
Problem sets and other materials posted on LATTE are as important as the required text.

Grading and Student Evaluation:
The final grade will be determined according to the following components:
Problem Sets
20%
Midterm Exam
30%
Final Exam
40%
Class Participation 10%
Total
100%
Important Dates
Sep 30th, 6:30pm – 9:30pm: Midterm Exam
Oct 21th, 6:30pm – 9:30pm: Final Exam
Use of Laptop Computers, Cell Phones, and Calculator in Class:
Cell phones and PDA.s (i.e., Blackberry.s, iPhones, etc.) must be turned off during lectures. Laptops
may be used. Regular class attendance is very strongly advised if you want to do well in the course.
Laptop computers and financial calculators may be used during exams.
Disabilities:
If you are a student with a documented disability on record at Brandeis University and wish to have a
reasonable accommodation made for you in this class, please see me immediately. For more
information go to: www.brandeis.edu/disability
Academic Integrity:
The instructor enforces all University rules, especially those regarding academic honesty and
integrity. Note: there is a zero tolerance level in this area. Plagiarism is cheating. The use of
another’s material without permission and without recognition is cheating. This applies to text books,
solution manuals, study guides, a friend's assignment, past assignments, internet resources or any
other material irrespective of the source.
You are expected to be familiar with and to follow the University’s policies on academic integrity:
http://www.brandeis.edu/studentlife/sdc/ai/. Instances of alleged dishonesty will be forwarded to the
Office of Campus Life for possible referral to the Student Judicial System. Potential sanctions
include failure in the course and suspension from the University.
Course Schedule
Chapter 4: Time value of
Money and Discounted Cash
Flow Valuation
Chapter 6: Making Capital
Investment Decisions
Chapter 10: Risk and return
Lessons from History
Chapter 13.2: Risk, Cost of
Capital, and Valuation
Chapters 8 & 9: Interest Rates,
Bond Valuation, and Stock
Valuation
Week 1
Sep 2
Week 2
Sep 9
Week 3
Sep 16
Week 4
Sep 30
Weeks 5 and 6
Oct 7, 14
Present/Future Value of a dollar;
Present/Future Value of anuity;
Growing annuity; Perpetuities;
Growing perpetuities; Uneven
cash flows; Basics of NPV
Incremental Cash Flow,
Inflation and Capital Budgeting,
Alternative Definitions of
Operating Cash Flow,
Investments of Unequal Lives
Returns; Holding period returns;
Return statistics; Average stock
returns and risk-free returns;
Risk statistics; Risk premiums;
Financial crisis
Estimating the cost of equity
capital using the CAPM
Bond markets; Risk-free rates;
Real and Nominal Rates; Term
structure of interest rates; Stock
markets.