Fayetteville State University
School of Business and Economics
Department of Accounting, Finance, Healthcare and Information Systems
FINC 311-45 (Principles of Finance)
I.
Locator Information
FSU Policy on Electronic Mail: Fayetteville State University provides to each student,
free of charge, an electronic mail account (username@broncos.uncfsu.edu) that is easily accessible via
the Internet. The university has established FSU email as the primary mode of correspondence
between university officials and enrolled students. Inquiries and requests from students pertaining to
academic records, grades, bills, financial aid, and other matters of a confidential nature must be
submitted via FSU email. Inquiries or requests from personal email accounts are not assured a
response. The university maintains open-use computer laboratories throughout the campus that can
be used to access electronic mail.
II.
Course Description
A course in basic financial management, including the study of the nature of financial management, financial
analysis, working capital management, and long-term investment decisions. This course covers fundamental
financial concepts and principles. Emphasis is placed on practical problem solving skills based on these
concepts and principles. Topics include the role of the financial manager, time value of money, risk and
return, cash flow analysis, and valuation.
III.
Disabled Student Services
In accordance with Section 504 of the 1973 Rehabilitation Act and the Americans with Disabilities Act
(ACA) of 1990, if you have a disability or think you have a disability to please contact the Center for
Personal Development in the Spaulding Building, Room 155 (1 st Floor); 910-672-1203.
IV.
Required Text and Materials
1. Textbook
Gitman, Lawrence J. and Chad J. Zutter, Principles of Managerial Finance, 13th Edition, Boston, MA:
Pearson Prentice Hall (2012)
2. Financial Calculator
Students will need to use a financial calculator in this course. The calculator must at least have the following
keys: PV, FV, PMT, I or I/YR, n, NPV, IRR, square root, e x, and yx. Calculators with these keys include the
HP-10BII, HP-12C, and TI BAII Plus among others. The instructor uses a HP-10BII calculator in class.
Each student is responsible for reading the calculator manual in order to become proficient in the use of the
calculator. Students should know how to set their calculator to 4 decimal places and to one payment per
period. Finally, students shall have sole responsibility to know how to use their calculator before we begin to
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discuss Chapter 5 material in class.
V.
Student Learning Outcomes
Upon completion of this course, students will be able to:
1) Identify the different issues examined in finance and the activities of a financial manager;
2) Identify and relate the different forms of business organization to investor objectives;
3) Identify factors that determine stock prices;
4) Characterize different types of financial markets;
5) Differentiate between the mechanisms that facilitate the transfer of capital in the economy;
6) Make simple business tax computations;
7) Identify the periodic financial statements supplied by public corporations;
8) Understand the structure of and the relationship between the different financial statements;
9) Extract information from financial statements and compute financial ratios;
10) Classify and interpret financial ratios;
11) Describe the financial planning process;
12) Compute present and future value of a single sum and annuities;
13) Differentiate between nominal, periodic, and effective interest rates;
14) Make time value of money computations involving uneven cash flows and multiple compounding
periods per year;
15) Use time value of money techniques to prepare loan amortization schedule;
16) Use investment cash flows to compute rates of return;
17) Differentiate between expected rate of return and realized rate of return;
18) Describe measures risk such as coefficient of variation, standard deviation, and beta;
19) Relate the level of risk to expected rate of return;
20) Relate risk reduction of portfolio diversification;
21) Differentiate between market and diversifiable risk;
22) Identify factors that determine interest rates;
23) Provide simple explanation of how the level of interest rates is affected by various factors;
24) Relate bond values to bond characteristics and be able to compute the value of bonds;
25) Differentiate between coupon rate, required return, and yield to maturity of bonds;
26) Explain how funds are raised through the issuing of stocks;
27) Value stocks with using multiple techniques.
VI.
Course Requirements and Evaluation Criteria
Evaluation Criteria and Grading Scale
Scores
Grade
Meaning
Attendance Requirements
Students are expected to attend all classes (Refer to the Fayetteville State University Undergraduate Catalog).
Only Fayetteville State University approved absences will be considered unless prior approval is obtained
from the instructor. It is the responsibility of students who miss class to find out from their classmates what
material was covered and to do the extra work necessary to keep up with the remainder of the class.
Exams (85% of course grade)
Exams will consist of multiple choice problems and theory questions. A clear understanding of the material
is required to do well on the exams, particularly the theory questions. The questions on each exam may
incorporate any material covered in the earlier chapters. Each student may prepare and use an 11” x 8.5” crib
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sheet (one side only) for each exam. The crib sheet must be turned in with the exam and will be considered
as part of your exam for grading purposes. The information on the sheet must be legible and written (or
typed) in English; and remember, no copying or cutting and pasting. The information on the sheet must
include your name, course title and the date of the exam. (Use of photocopy material on the crib sheet will be
considered cheating.) The final exam will be comprehensive.
Quizzes (7% of course grade)
Quizzes will be given at the beginning of class and will last approximately 5 minutes. If a student arrives late
for class, no extra time can be afforded since other class activities will be taking place. There are no make-up
quizzes; therefore, the lowest quiz grade or one missed quiz will not count towards your grade.
Assessment Assignment (3% of course grade).
A special homework assignment will be provided during the semester to assess student learning of material
critical to the successful completion of the degree in Business Administration requirements. The assignment
will be graded and included as part of the course grade. The exercise is an important component of
university’s ongoing activities to maintain the AACSB accreditation, which certifies the high quality of your
business degree earned at Fayetteville State University. The following rubric will be used to evaluate and
grade your understanding of financial ratios.
Rubric
Exceeds expectation
Does not meet
Traits
Meets expectation
expectation
Use of financial
Demonstrates
Lacks complete
Cannot clearly
statements
understanding of major
understanding of different differentiate types of
financial statements and
financial statements
financial statement and
how they interrelate
has difficulty computing
financial ratios
Student relates
Computes financial
Computes most financial
Unable to compute most
financial ratios to
ratios, interprets financial ratios Limited
financial ratios.
improved
ratios and relate financial interpretation of financial Misinterprets financial
business decisions ratios to appropriate
ratios and has difficulty
ratios; makes
financial decisions.
making the connection
inappropriate decision
between ratios and
choices.
financial decisions.
All students should strive to earn a rating of “Exceeds expectation” on both traits.
Class Participation (5% of course grade)
Classroom participation is incorporated to encourage students to engage in academic discussion related to the
material covered in this course. Students may contribute through the asking or answering of questions, and
the sharing of relevant information reported in the financial press. When referencing information reported in
the financial press a copy of the article should be provided to the instructor. Being present in class is
requirement to earn credit for class participation.
Homework
Successful completion of all homework problems is an important component of this course, which is
essential to your success on the exams. Students should prepare and bring their homework to class. The
instructor will randomly review homework throughout the semester and provide extra credit. Since students
will not know which assignments will earn the extra credit, they should always have their assignment ready
at the beginning of each class. Deadline for each homework assignment to be reviewed will be announced in
class and posted on Blackboard; however you will not know which assignments will earn extra credit.
Assigned homework problems and solutions will be placed on Blackboard.
Students should first attempt to do the problems by themselves then seek the assistance of a classmate before
checking the solutions provided by the instructor. Students, who need additional help with their homework
problems after checking the solutions and the graded material is returned, should contact the instructor for
further assistance during office hours or by making an appointment. To be successful in the course, students
should develop the skill and knowledge necessary to eventually be able to do all of the homework problems
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without assistance.
Make-up Policy
There are no scheduled make-up exams; however, the instructor may consider each request, provided it is
made in writing before the exam and is consistent with the university’s policy for excused absences. The
written request for a make-up exam submitted by the student should clearly state the reason for the request
and should be accompanied by the documentation required by the university to substantiate the claim. When
approved, make-up exams will be scheduled at a mutually agreeable time. Unexcused absence from an exam
will result in a zero score for that exam. Assignments are due at the beginning of the class period and late
submissions will not be accepted.
Academic Integrity
Students are expected to adhere to ethical academic practices. Anyone participating (actively or passively) in
the use or exchange of information during an exam, or engaged in unethical practices during the pursuit of
this course will be subjected to the university’s Dishonesty in Academic Affairs policy (Refer to the
Fayetteville State University Undergraduate Catalog).
Request for Review
A student may request a review of graded exams, or quizzes in writing within 5 days after they are returned
or the date it is made available to the student, whichever is earlier. The student must clearly state the
specifics of the issue he/she would like the instructor to address. All requests for review must be in writing.
Web Enhancement
To assist students to be successful in this course, a substantial amount of material is posted on Blackboard,
with additional postings throughout the semester. This online support is intended to help students assimilate
the material that is covered in the course. Supplemental reading materials may also be provided on
Blackboard. Please visit Blackboard on a regular basis to access new material that is posted.
Prerequisites
ACCT 211 and ECON 211 or ECON 212, with grade of “C” or better in each course.
Conduct of Class
Students will be evaluated on the basis of quizzes, exams, and class participation. The instructor reserves the
right to change the assigned chapters or parts of chapters and, thereby, the homework assignments and exam
dates without it having any effect on the remainder of this syllabus; and reassign the weights for grading
purposes. It is imperative that students preview the chapters before the class during which the material will
be covered. Students are also required to read additional materials assigned during the semester. Materials
from the additional readings may be included on the exams.
Students are required to read current business publications including The Wall Street Journal and other
financial publications (print or electronic). Students will have an opportunity during the first week of class to
sign-up for a subscription to The Wall Street Journal at a special discount rate for students.
The Code of the University of North Carolina (of which FSU is a constituent institution) and the FSU Code
of Student Conduct affirm that all students have the right to receive instruction without interference from
other students who disrupt classes.
FSU Core Curriculum Learning Outcome under Ethics and Civic Engagement (6.03): All students will
“prepare themselves for responsible citizenship by fulfilling roles and responsibilities associated with
membership in various organizations.” Each classroom is a mini-community. Students learn and
demonstrate responsible citizenship by abiding by the rules of classroom behavior and respecting the rights
all members of the class.
The FSU Policy on Disruptive Behavior (see FSU website for complete policy) identifies the following
behaviors as disruptive:
1.
Failure to respect the rights of other students to express their viewpoints by behaviors such as
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2.
3.
4.
5.
6.
7.
8.
9.
repeatedly interrupting others while they speak, using profanity and/or disrespectful names or labels
for others, ridiculing others for their viewpoints, and other similar behaviors;
Excessive talking to other students while the faculty member or other students are presenting
information or expressing their viewpoints.
Use of cell phones and other electronic devices (including calculators on cell phones and similar
electronic devices)
Overt inattentiveness (sleeping, reading newspapers)
Eating in class (except as permitted by the faculty member)
Threats or statements that jeopardize the safety of the student and others
Failure to follow reasonable requests of faculty members
Entering class late or leaving class early on regular basis
Do not leave trash behind.
The instructor may take the following actions in response to disruptive behavior. Students should recognize
that refusing to comply with reasonable requests from the faculty member is another incidence of disruptive
behavior.
1.
2.
3.
4.
5.
6.
Direct student to cease disruptive behavior.
Direct student to change seating locations.
Require student to have individual conference with faculty member. At his meeting the faculty
member will explain the consequences of continued disruptive behavior.
Dismiss class for the remainder of the period. (Must be reported to department chair.)
Lower the student’s final exam by a maximum of one-letter grade.
File a complaint with the Dean of Students for more severe disciplinary action.
Students who believe the faculty member has unfairly applied the policy to them may make an appeal with
the faculty member’s department chair.
Students should not conduct private conversations while the class is in session.
University policy prohibits non-enrolled students from being present in the classroom.
VII.
Academic Support Resources
Refer to Homework and Web Enhancement under Course Requirements and Evaluation Criteria and
University College Learning Center.
VIII.
Course Outline
Chapter 1:
The Role of Managerial Finance
Chapter 2:
The Financial Market Environment
Chapter 3:
Financial Statements and Analysis
Chapter 4:
Cash Flow and Financial Planning
Exam 1
Chapter 5:
Time Value of Money
Chapter 8:
Risk and Return
Exam 2
Chapter 6:
Interest Rates and Bond Valuation
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Chapter 7:
Stock Valuation
Final Exam Schedule: Thursday, October 9, 2014, 6:00 p.m. – 7:50 p.m.
IX.
Teaching Strategies
The course includes class lectures, discussion of current issues related to financial management, readings
from the financial press, assigned homework problems, and problems done in class.
X.
Bibliography
Brigham, Eugene and Joel F. Houston, Fundamentals of Financial Management, 12th Edition, Mason, OH:
South-Western (2010).
Ross, Stephen A., Randolph W. Westerfield and Bradford D. Jordan, Essentials of Corporate Finance, 6 th
Edition, New York, NY: McGraw-Hill Irwin (2008).
Appendix to Course Syllabus (FINC 311-45)
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