Syllabus BYU Course Outcomes • Use fundamental analysis to conduct a firm performance • • • • • evaluation. Construct a financial forecast for a term. Employ time value of money to solve common financial problems. Make corporate investment decisions using capital budgeting. Be able to value firms, bonds, and stocks. Understand how entrepreneurial and corporate finance differ. Course Objectives The objective of this class is to help you develop an understanding of the role of finance within a firm. Topics covered in this course include financial analysis, planning and control, asset valuation, capital budgeting, risk and return, and the cost of capital. Additionally, this class will improve your personal financial management skills. The major theme of the class is that basic financial principles, correctly applied, can enhance the value of your career and your personal life. We will focus on the application of finance principles to the personal financial planning problem. The Marriott School of Business has articulated the following five learning objectives for all of their offered courses: 1. Being able to communicate effectively, both orally and in writing 2. Developing a sense of ethical values that translate into the business community 3. Becoming proficient in the subject matter of the degree 4. Developing the ability to use technology efficiently 5. Being able to participate effectively in a global environment, This course focuses primarily on the third—subject matter excellence. The individual lectures will provide more detailed learning objectives. 1 BUSM 201: Financial Management Specifically, the learning objectives for this course include: • • • Apply basic financial tools to evaluate the results of current operations and potential investment projects. Articulate how financial analysis can be used to influence decision making in a business environment. Identify the limitations of financial analysis. Prerequisites: Accounting 200 or equivalent Required Materials: 1. Principles of Finance Packet – Includes Brau and Holmes, 5th Edition 2. Business calculator (HP-10B/TI BAII+ or equivalent / better) 3. Internet access 4. Good attitude Course Outline Lesson Title Graded Elements Grade Weight Lesson 1 Financial Managers Speedback Quiz 1% Lesson 2 Financial Statements Speedback Quiz 1% Lesson 3 Financial Statement Analysis Speedback Quiz 1% Case Study One: Hobby Horse Case Case Study One Questions and Spreadsheet 2% Pro Forma Financial Statements Speedback Quiz 1% Computer Lab One Computer Lab One Questions and Spreadsheet 2% Lesson 4 Exam 1 24% Lesson 5 Time Value of Money Speedback Quiz 1% Lesson 6 Bond Valuation Speedback Quiz 1% Lesson 7 Stock Valuation Speedback Quiz 1% Lesson 8 Capital Budgeting Speedback Quiz 1% Computer Lab Two Computer Lab Two Questions and Spreadsheet 2% Exam 2 Lesson 9 24% Capital Budgeting DCF Analysis 2 Speedback Quiz 1% Syllabus Computer Lab Three Computer Lab Three Questions and Spreadsheet 2% Risk and Return Speedback Quiz 1% Case Study Two: Sheetbend Case Case Study Two Questions and Spreadsheet 2% Cost of Capital Speedback Quiz 1% Case Study Three: Sea Shore Salt Case Case Study Three Questions 2% Lesson 12 Firm Valuation Speedback Quiz 1% Lesson 13 Entrepreneurial Finance Speedback Quiz 1% Lesson 14 Personal Finance Speedback Quiz 1% Lesson 15 Financial Markets and Microfinance Speedback Quiz 1% Lesson 10 Lesson 11 Exam 3 25% Total 100% Course Description Speedback Quizzes The speedback quizzes are administered on-line through the course website. Speedback quizzes count towards your grade. All speedback quizzes are open book and open note, but closed neighbor/friends/family. These speedback quizzes will help prepare you for the course exams. Please work through the practice quizzes before taking the speedback quizzes. Practice Quizzes The practice quizzes are open all the time and do not count towards your grade. Work through each problem on the practice quiz, it will help you prepare for the speedback quizzes and the final exams. Computer Labs There are three computer lab projects throughout the course. These projects require a computer. Case Analysis Three times during this course you will prepare a more detailed case analysis. These are graded on effort and completion rather than finding the “correct” answer. You will prepare and upload the cases to Independent Study. 3 BUSM 201: Financial Management End of Textbook Chapter Questions The end of chapter textbook questions are not submitted for grading, they are assigned for your benefit. By working through the end of chapter questions, you will have a better understanding of the course material and will be better prepared to function in the business world. You will be asked on each lesson speedback if you completed the end of chapter questions. Please be honest in answering these questions. Video Professor Problems The video professor problems have been created to help you better understand how to work through the various financial problems in the book. If you have a slow Internet connection, these videos can take awhile to load. PowerPoint Presentations Each lesson has a PowerPoint Presentation that accompanies the lesson readings. Please view these PowerPoints as you complete the readings. They will help clarify the reading material and give you more insight to the topics discussed. Exams We will have 3 exams. The first two exams cover 4 chapters and the third exam covers 7 chapters. You must complete all three exams in order to receive a final grade. The exams will need to be taken in an approved BYU Independent Study testing center. You must pass the final exam with a 46% or better to pass the course. Course Layout Please note, the lesson number of the course do not follow the chapters of the textbook. The following table clarifies each lesson with its corresponding textbook chapter. Course Lesson Textbook Chapter Lesson 1: Financial Managers Chapter 1 “An Introduction to Finance” Lesson 2: Financial Statements Chapter 2 “Accounting and Financial Statement Review” Lesson 3: Financial Statement Analysis Chapter 3 “Ratio Analysis” Lesson 4: Pro Forma Financial Statements Chapter 4 “Financial Forecasting Lesson 5: Time Value of Money Chapter 5 “Time Value of Money” Lesson 6: Bond Valuation Chapter 6 “Bond Valuation 4 Syllabus Lesson 7: Stock Valuation Chapter 7 “Stock Valuation” Lesson 8: Capital Budgeting Chapter 11 “Capital Budgeting Decision Criteria” Lesson 9: Capital Budgeting Discount Cash Flow Analysis Chapter 12 “Capital Budgeting” Lesson 10: Risk and Return Chapter 8 “Risk and Return” Lesson 11: Cost of Capital Chapter 9 “Cost of Capital” Lesson 12: Firm Valuation Chapter 13 “Firm Valuation” Lesson 13: Entrepreneurial Finance Chapter 14 “Entrepreneurial Finance” Lesson 14: Personal Finance Chapter 15 “Personal Finance” Lesson 15: Financial Markets and Microfinance Chapter 16 “Microfinance” Assignment Submission In this course there are three Labs and three Case Studies. You will submit your completed excel sheets for each of the Labs and two of the case studies to Independent Study electronically through the course. For every file submitted, please use the following naming convention for your file: • Use the course number, your first and last name, and the assignment name for the filename. For example, “BUSM 201_ [YourName]_[BriefTitle].xls.” ◊ Example: BUSM201_Lise Crawford_CaseStudy1.xls Assessment Grades will be assigned based on your performance in each of the following areas: Graded Element Grade Weight 15 Speedback Quizzes 15% 3 Case Preparations 6% 3 Computer Labs 6% Exam I 24% Exam II 24% Final Exam 25% Total 100% 5 BUSM 201: Financial Management Grade Scale A 100–91 A- 90–85 B+ 84–81 B 80–76 B- 75–71 C+ 70–66 C 65–61 C- 60–56 D+ 55–51 D 50–46 D- 45–41 Fail 40–0 Citizenship requirement A course requirement is that all students actively seek to be good citizens. Among other factors, this requires living the letter and intent of the honor code. For this course, failure to meet the citizenship requirement is specifically manifest by any of the following: 1) overt racial bias, 2) overt gender bias, 3) failure to show respect to fellow students, 4) failure to show respect to the instructional staff, 5) failure to show respect to the instructor, 6) failure to make a “good-faith” individual effort on individual assignments, and 6) any attempt to deceive or undermine the grading process. Additionally, use of any returned assignments (other than those provided by your instructor) from past semesters in preparation for this semester’s coursework will be considered cheating and, therefore, a violation of the honor code. Students who violate the citizenship requirement will fail the course regardless of their performance on tests, quizzes, cases, etc. The instructor is the sole judge of what constitutes violations of the citizenship requirement. Conduct yourself with integrity and you will not have to worry about citizenship issues. Syllabus Changes The instructor reserves the right to change course policy and/or schedule if, in her sole judgment, the changes will serve to better meet the learning needs of the class or of individual students. 6