PRINCIPLES OF FINANCIAL MANAGEMENT
FINK 301 130 CRN 88588
FALL 2013 – ONLINE COURSE
Instructor: Dr. Douglas Dyer; Accounting, Finance and Economics
Office: Founder’s Hall, 323 D
Phone: 254.519.5429
Email: For general purposes please use my general university email address with your course
name number and section:To: ddyer@ct.tamus.edu Subject: FIN 301 110;
however if your question is content specific please use the MESSAGE tool inside Blackboard.
Since it is far easier to check my regular email, you might want to send a head-up message there
asking that I be sure and check my Blackboard Messages
Response will usually be within 24 hours. If you have not had a reply within that time please
resend your message. I have received emails 14 months after they were sent!
Office Hours: M-W, 1.00-3.00. OR BY APPOINTMENT scheduled directly with Prof. Dyer using the email
address listed above. If you want to meet then we will find a time. I promise.
Admin Asst.: Ms. Charlotte Wesley, room 318 254.519.5762, cwesley@ct.tamus.edu fax: 254.519.5470
Mode of instruction and course access:
Include information on mode of instruction, the course platform, and access.
Example: This course is a 100% online course and uses TAMUCT Blackboard Learn system
(http://tamuct.blackboard.com). You will use the Blackboard username and password communicated to you separately
to logon to this system. (As of Spring 2012, Texas A&M Central Texas uses its own Blackboard system and the usernames
and passwords that you used to logon to Tarleton State University’s Blackboard are no longer valid.). We will make use of
APLIA. APLIA is an online teaching/testing system developed by Cengage. It provides instant full feedback. Each chapter
has 2 APLIA components: a teaching (reading) component and a testing (quizzing) component. Please note that
Blackboard and APLIA are completely separate systems. They live independently of each other. I am not a techie, so if you
need help please email or call the appropriate resource. Full Aplia registration instructions are on the Blackboard startup
page.
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1.0
Course Overview and description:
An analysis of financial decision-making at the corporate level with emphasis on the maximization of
stockholder wealth. Topics covered include financial statement analysis, the valuation of stocks and bonds, cost
of capital, capital budgeting, dividend policy, leverage and capital structure, methods of firm valuation, working
capital management, mergers and acquisitions and bankruptcy.
Course Prerequisites: ACC 2033, ACC 2043 and ECO 2013. You need to be able to use the basic tools of
corporate finance: balance sheets and income statements, and you need to be comfortable with basic algebra.
Without basic accounting and algebra skills you will have a very difficult time! If you are trying to learn (or
relearn) basic accounting while I am teaching finance you are not likely to do well in this course.
By choosing to take this course online YOU are assuming a more than the usual share of responsibility
for YOUR learning! You must take responsibility for doing the assigned readings and keeping up with the
course material. In a classroom you can stop and ask a question at any time and I can go into more detail on the
math or try to think of an analogy that will fit you and your interest and life-experience; obviously, that cannot
happen in an online course. If you will work WITH it, and let it work FOR you, the APLIA is a tremendous
resource with the “grade it now” feature and detailed solutions and explanations. And everyone will be assigned
into a “study group” where you can help each other. And of course I will do the best I can via DTL techniques.
But this is a hard course for most. That is just a fact. And taking it online reminds me of one of my
father’s favorite sayings: “Life is hard enough without going out of your way to make it harder.” I do
understand that there are many reasons why you might not have a choice about taking the course online. But
you need to understand that the standards are the same. This is NOT a course designed for someone who has a
job, a family, and is taking 15 hours of courses to pass without breaking a sweat. SO PLEASE, PLEASE:
START NOW! Go to DYER HANDOUTS and read the Some Finance Basics handout. Open the Online
Finance Resources handout and click on the links and review financial statements and financial assets. The
Baruch College Guide to Financial Statements is really a great place to start:
http://www.baruch.cuny.edu/tutorials/statements/
And get registered for Aplia and take the Problem Set: Introduction to Using Aplia Assignments ASAP
and keep taking until you are totally comfortable. If you have not noticed, with Aplia each chapter is divided
into two parts. The first part is called Reading and is just that chapter in the ebook. The second part is called
Problem Set and is covered in the Introduction to Using Aplia Assignments problem set referenced above.
2.0
Course Overview:
Students who successfully complete this course should be able to: explain the fundamental types of financial
assets including their basic characteristics, valuation, and their pros/cons as sources of financing (capital);
evaluate a firm’s financial performance using its financial statements; evaluate financial alternatives from a time
value of money perspective; evaluate the risk/return characteristics of different financial decisions; conduct a
thorough firm-level financial analysis; demonstrate a thorough financial literacy; demonstrate proficiency using
a financial calculator.
2.1
Student Learning Outcomes by chapter.
1. AN OVERVIEW OF MANAGERIAL FINANCE
Discuss the basic types of financial management decisions and the role of the financial manager.
Identify the goal of financial management.
Compare the financial implications of the different forms of business organizations.
Describe the conflicts of interest that can arise between managers and owners.
Discuss the role of ethics and corporate governance in a well-functioning economic system.
2. ANALYSIS OF FINANCIAL STATEMENTS
Interpret the information provided in a firm’s basic financial statements.
Standardize financial statements for comparison purchases.
Compute and interpret common financial ratios.
Assess the determinants of a firm’s financial performance.
Identify and explain some of the problems and pitfalls in financial statement analysis.
3. THE FINANCIAL ENVIRONMENT
Describe the role the financial markets play in determining living standards and economic growth.
Distinguish between the various types of financial markets.
Describe the various types of financial intermediaries and their functions.
4. THE TIME VALUE OF MONEY
Determine the future value of an investment made today.
Determine the present value of cash to be received in the future.
Calculate the rate of return on an investment.
Calculate how long it will take for an investment to reach a desired value.
Calculate the rate of return required for an investment to reach a desired value.
Determine the future and present value of investments with multiple cash flows.
Calculate loan payments and find the interest rate on a loan.
Describe the loan amortization process.
Explain how interest rates are quoted.
6. BONDS (DEBT)
Identify important bond features and types of bonds.
Describe how bond are valued and why bond values fluctuate.
Discuss bond ratings and what they mean.
Evaluate the impact of inflation on interest rates and bond values.
Explain the bond structure of interest rates and the determinants of bond yields.
7. STOCKS (EQUITY)
Assess how stock prices depend on future dividends and dividend growth.
Identify the rights and privileges of stockholders.
Explain how stock markets work.
12. CAPITAL STRUCTURE
Discuss the effects of financial leverage
Analyze the determinants of a firm’s optimal capital structure.
Discuss the essentials of the bankruptcy process.
2.2
Competency Goals
 Understand the agency relationship, recognize agency violations, and correct unethical corporate behavior.
 Read real-world financial statements and draw accurate conclusions about the firm's financial health.
 Construct and interpret important financial ratios. Make informed short- and long-run financing decisions
based upon expected movements in interest rates.
 Apply risk/ return concepts in assessing the required rate of return for suppliers of debt and equity capital.
 Apply time value of money methods to financing and corporate decision-making.
 Undertake fundamental valuation of the firm's debt and equity securities using prescribed models.
 Compute and utilize the firm's cost of capital in financial decision-making.
 Make investment decisions using established capital budgeting techniques.
 Understand the different types of risk associated with various forms of leverage.
 Understand the implications of a sub-optimal capital structure.
 Recognize the real-world factors that impact the capital structure decision.
 Understand dividends and share repurchases as they impact firm valuation.
 Implement an appropriate working capital management policy.
 Understand and be able to use the Internet as an important source of financial data and information.
 Be financial calculator literate.
3.0 TEXT: CFIN3, Besley and Brigham, Cengage, 2013 WITH APLIA
ACCESS! See Blackboard Startup page for ordering information. The book is
available in the bookstore but you do NOT have to purchase there. You will also
need a TI BA II Plus financial calculator.
Also Required: A financial calculator which can perform internal rate of return (IRR) calculations. (I will use
a TI BA II Plus in class - this is the only financial calculator that I know how to use, so if you have another
make or model you are pretty much on your own.) The Professional model is even better, but is not required.
4.0
Course Requirements:
There will be two 3 regular Exams and a Comprehensive Final Exam. Your overall Aplia score (converted to a
decimal, 87.8%=89pts will count as an exam. Blackboard quizzes will be offered as extra-credit opportunities.
In-class Exams will be a combination of multiple choice questions, short-answer questions and quantitative
problems and will have a time limit of 75 minutes. Each Exam covers all material covered in the course
prior to that Exam. You may bring to all in-class Exams and the Final Exam I-II a single 8.5x11 inch piece of
paper with whatever you wish written on both sides. You will need a TI BA II Plus financial calculator. There
will be a Comprehensive Final Exam worth a maximum of 200 points. The Final Exam will cover all material
covered in the course. You may bring to the Final Exam a single 8.5x11 inch piece of paper with whatever
you wish written on both sides. You will need a financial calculator for the Final Exam. Points will be
subtracted for: failure to follow instructions, failure to show your work and for submitting an Exam which is so
messy it is hard to grade.
All Exams will cover any and all material presented or assigned prior to the Exam
5.0 Grade Calculations: Total Points earned is the only that that matters.
There are 200 possible points: best two of Exams I-III @ 100 points each, total APLIA Exam @ 100 points, and
the Final Exam @ 200 points). There will also be extra-credit point earning opportunities.
Total Points Earned
500-450
449-400
399-350
349-300
below 300
Grade
A
B
C
D
F
EVERYTHING IS BASED ON POINTS EARNED!
YOUR APLIA EXAM SCORE WILL COME FROM
CONVERTING YOUR TOTAL APLIA % INTO A DECIMAL
SO 93.3%=93 POINTS
NOTE: Requests for Incomplete Grades: Incompletes will only be given in emergency or other extreme
circumstances. Any request for an incomplete grade in this course must be approved by the professor
prior to the last week of classes. Where possible, requests should be submitted in written form and must
include an address and/or telephone number where you may be contacted throughout the following
semester.
Complete Course Calendar: see end of document
7. Drop Policy
If you discover that you need to drop this class, you must go to the Records Office and ask for the necessary
paperwork. Professors cannot drop students; this is always the responsibility of the student. The record’s office
will provide a deadline for which the form must be returned, completed and signed. Return the signed form to
the records office, wait 24 hours, go into Duck Trax and confirm that you are no longer enrolled. If you are still
enrolled, FOLLOW-UP with the records office immediately. You are to attend class until the procedure is
complete to avoid penalty for absence. Should you miss the deadline or fail to follow the procedure, you will
receive an F in the course.
8. Academic Integrity Statement
Texas A&M University - Central Texas expects all students to maintain high standards of personal and
scholarly conduct. Students found responsible of academic dishonestly are subject to disciplinary action.
Academic dishonesty includes, but is not limited to, cheating on an examination or other academic work,
plagiarism, collusion, and the abuse of resource materials. The faculty member is responsible for initiating
action for each case of academic dishonesty and report the incident to the Director of Student Affairs. More
information can be found atwww.ct.tamus.edu/StudentConduct
9. Disability Support and Access
If you have or believe you have a disability and wish to self-identify, you can do so by providing documentation
to the Disability Support Coordinator. Students are encouraged to seek information about accommodations to
help assure success in their courses. Please contact Gail Johnson at (254) 519-5831 or visit Founder's Hall 114.
Additional information can be found at www.ct.tamus.edu/AcademicSupport .
10. Tutoring
Tutoring is available to all TAMUCT students, both on-campus and online. Subjects tutored include
Accounting, Finance, Statistics, Mathematics, and Writing (APA). Tutors are available at the Tutoring Center in
Founder's Hall, Room 204, and in the Library in the North
Building. Visit www.ct.tamus.edu/AcademicSupport and click "Tutoring Support" for tutor schedules and
contact info. If you have questions or if you are interested in becoming a tutor, contact Academic Support
Programs at 254-519-5830 or by emailing gnichols@ct.tamus.edu.
Tutor.com is an online tutoring platform that enables TAMU-CT students to login and receive FREE online
tutoring and writing support. This tool provides tutoring in Mathematics, Writing, Career Writing, Chemistry,
Physics, Biology, Spanish, Calculus, and Statistics. Chat live with a tutor 24/7 for any subject on your
computer. To access Tutor.com, click on www.tutor.com/tamuct
11.
Library Services
INFORMATION LITERACY focuses on research skills, which prepare individuals to live and work in an
information-centered society. Librarians will work with students in the development of critical reasoning,
ethical use of information, and the appropriate use of secondary research techniques. Help may include, yet is
not limited to: exploration of information resources such as library collections and services, identification of
subject databases and scholarly journals, and execution of effective search strategies. Library Resources are
outlined and accessed at: http://www.tarleton.edu/centraltexas/departments/library/
12. Changes to Syllabus
A syllabus serves as an instructional and study planning document. It may become necessary to make
changes during the course of this semester. If changes are necessary, they will be announced in class
and posted on Blackboard.
13. Expectations
Explore the Blackboard Tutorial and Blackboard Help content area at the top of the Blackboard course
menu.
FIN 301, Principles of Financial Management, is considered by many to be the most difficult core course in the
undergraduate degree programs. It is extremely difficult to “play catch-up” because every chapter uses the
jargon/concepts/tools developed in previous chapters. So start reading and studying immediately.
What I Expect From You
Respect !
Regular Class Attendance
That You Read and Follow Instructions
What You Can Expect From Me
Respect!
Exams That Cover the Material Emphasized in class, On Quizzes, And Covered in Handouts
Exams Returned Promptly and Discussed Thoroughly
Ample Class-Time for Questions and Discussion