BUS 71A: Introduction to Finance
Brandeis University
International Business School
Spring 2016
Tuesdays: 6:30-9:20 PM
Fall Session: Class begins January 19, 2016. Last class April 19, 2016
Room: TBD, but most likely Pollack Fine Arts 001
Professor: Robert Podorefsky
Email: rpod@brandeis.edu
Office hours: By appointment
Teaching Assistant: Trevor Tuplin
Email: ttuplin@brandeis.edu
BUGS tutor: TBD
Email: TBD
Textbook: Ross, Westerfield, and Jordan. Essentials of Corporate Finance, 8th edition, McGraw-Hill,
2014. Online edition required.
Financial calculator: Students will be required to use a Texas Instruments BAII Plus financial
calculator, an industry standard. It will be demonstrated often in the class and may be used during the
exams. See pages 103-104 in the textbook for some basic instruction on frequently used financial
functions. Excel spreadsheets may be used for homework assignments but will not be available for use
during exams. You should bring the calculator to each class.
Other: Regular reading of The Wall Street Journal and Bloomberg.com is encouraged and you will also
gain perspective from weekly publications such as Barron’s, BusinessWeek and The Economist.
Supplemental articles and external case studies will be supplied to students and made available on Latte.
You will benefit considerably by having an appreciation for current business developments … each
class, every effort will be made to relate the course content back to real-world considerations.
Prerequisite: Bus 6a or equivalent. This course may not be taken for credit by students who have
previously taken Econ 171a. This course cannot be counted as an elective toward the economics major
or minor.
Course description: This course introduces students to topics and methods in the field of finance. It
covers;
 How firms secure financing via equity and debt markets
 How the market values stocks and bonds
 The risks of investing in stocks and bonds
 Fundamental analysis techniques
 Capital budgeting techniques
 Evaluating risk versus return
 How to determine the time-value-of-money
Learning goals & outcomes: The goal of this course is to introduce students to the tools and
considerations necessary for informed and successful investing and financing decision-making from both
an asset investment manager’s perspective and a corporate finance manager’s perspective. You will gain
a framework for how finance professionals approach financial decision making and an appreciation for
how critically important cash flow is for the health, flexibility and ultimate survivability of a business.
If you fully apply yourself, by the end of the course you will be able to: Engage in financial planning,
evaluate financing alternatives and different capital structures, price bonds and determine their yield to
maturity, value interest rate swaps, calculate mortgage and loan payments, apply different methodologies
to value corporations and stocks, compare interest rates with different compounding periods, measure the
returns on selected investments, measure and determine the risks of investing, create an investment plan
for purchasing a home or for retirement, apply capital budgeting for evaluating the merits of an
investment and use finance terminology fluently.
Lessons learned from global financial developments: This course will discuss the realities of
financing and investing in the current environment and what the future may hold for capital raising and
investing.
Homework: Advanced readings will be assigned every class. Homework problems will be assigned
after every chapter and lecture is presented and will be due by the next class. The goal of the assigned
problems will be to further the understanding of the topics presented in class, to enable students to keep
pace with lectures and to prepare for the examinations. If you have difficulty in solving the assigned
problems, please contact the Professor or the TA. Each student is expected to work on the assigned
homework problems in detail and submit their own work. Homework will generally be submitted
electronically via the CONNECT electronic interface with the electronic textbook. It is the responsibility
of the student to take the necessary notes during class time.
Class Participation: Class attendance is required and class participation is expected of everyone. If
you cannot attend a class, please notify the Professor beforehand @ rpod@brandeis.edu.
To facilitate participation, all students are asked to place a readable name card on their desks during
class. It is your responsibility to take an active role in the class and if you find this to be a problem, there
may be alternative ways for you to make your contributions.
Examinations: There will be 2 mid-term examinations (maximum of 1.5 hours each) and a final
examination, all closed book. The midterms will be spaced approximately to divide the content into
equal parts. The final examination will be cumulative, reflecting the content covered in the mid-term
examinations as well as content from the final third of the course. Exam solutions will be posted to Latte
once graded.
Make-up exams will only be given in extraordinary circumstances.
Grades are based on the following:
Interim exam I:
20%
Interim exam II:
20%
Final exam:
30%
Homework:
15%
Class participation:
15%
Class lecture slides will be posted to Latte prior to each class.
Planned schedule (Tuesday evenings, with one exception on February 8):
Date
1/19
1/26
2/02
2/08 (Mon)
2/16
2/23
Topic
Intro to Financial Management, Financial Statements & Cash Flow
Financial Ratio Analysis & S/T Financial Planning
Introduction to Valuation, Time Value of Money
Discounted Cash Flow Valuation
Midterm Recess: No Class
Mid-term exam I (chapters 1 – 5 & 16)
(after exam) Begin discussion on Interest Rates & Bond Valuation
3/01
Continue Bond Valuation & Interest Rate (IR) Swap Lesson
3/08
Continue with IR Swaps & Mortgage Lesson
3/15
Equity Markets, Stock Valuation & Dividend Policy
3/22
Net Present Value and Other Investment Criteria
3/29
Mid-term exam II (chapters 6, 7 & 14, IR swaps & mortgages)
Schedule continued:
(after exam) Making Capital Investment Decisions
4/05
Interest Rate Parity & Lessons from Capital Market History
4/12
Risk & Return and Cost of Capital
4/19
Leverage & Capital Structure and Semester Review
4/26
Passover and Spring Recess: No Class
TBD
Final Exam - 6:00 to 9:00 pm (cumulative content)
Reading
Lecture slides, Chapters 1& 2
Chapters 3 & 16
Chapter 4
Chapter 5
Chapter 6
Chapter 6 & Lecture slides
Lecture slides
Chapters 7 & 14
Chapter 8
Chapter 9
Chapters 18 & 10
Chapters 11 & 12
Chapter 13
Note: Not all topics in these chapters will be covered; more detailed chapter and section assignments
will be distributed in class.
Spring Term 2016 Academic Calendar is available at the following url:
http://www.brandeis.edu/registrar/calendar/spring16.html.
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 Professor Podorefsky
immediately.
Academic Honesty: You are expected to be honest in all of your academic work. Please consult
Brandeis University Rights and Responsibilities (http://www.brandeis.edu/studentlife/srcs/rr/) for all
policies and procedures related to academic integrity. Students may be required to submit work to
TurnItIn.com software to verify originality. Allegations of alleged academic dishonesty will be
forwarded to the Director of Academic Integrity. Sanctions for academic dishonesty can include failing
grades and/or suspension from the university. If you have any questions about these issues, please ask
Professor Podorefsky. Citation and research assistance can be found at LTS - Library guides
(http://guides.library.brandeis.edu/c.php?g=301723&p=2013447).
Syllabus: The Professor reserves the right to modify or alter, within reason, the lesson schedule
presented above if it is determined that the modification (s) will enhance this course.