Business Finance
BA 51A
Spring 2004
Instructor:
Office:
Office Hours:
Phone:
e-mail:
Location:
Meeting Times:
Intranet:
Tom Smythe
201C Hipp Hall
M-Th 9:00-10:00 Or By Appointment.
294-3312 (O); 610-9744 (H) - Before 8:30 P.M.
thomas.smythe@furman.edu
Hipp Hall 107
M-F 12:00-12:50 (or thereabouts)
See course posted on Blackboard.
Textbook:
Fundamentals of Financial Management, Concise Fourth Edition, Eugene F.
Brigham and Joel F. Houston, (Dryden Press, 2004).
Accounting 23 and 24 or 41 or Econ 31; Economics 25.
Financial calculator. The best one to get is a Texas Instruments BAII Plus (about
$30). Bookstore textbook package should have a coupon for a calculator.
Prerequisites:
Other Materials:
Course Objective: This is the core finance course for all business administration students. More
importantly, many of the topics covered in this class can be applied directly to decisions you will make in
everyday life. The material is numbers oriented, but do not let that intimidate you. The key to success is
attendance, a willingness to learn, and asking questions. Any future finance courses use the topics covered
in this class as fundamental building blocks. To succeed in the competitive business world today, you must
be conversant in and understand how your discipline’s decisions affect the firm’s value. Additional
objectives include making use of research resources to gather information, identifying information needed
for analysis, conducting data analysis, and succinctly summarizing your findings.
Attendance: The official attendance policy is as stated in the 2003-2004 catalogue on p. 46-47. A formal
"roll" will not be taken. It is in your best interest to attend each class. If you know you will miss class,
make arrangements to get class notes from one of your peers. More importantly, let me know in advance,
if possible, if you will miss class. Approach this class as if I am your boss. If you have an emergency, get
in contact with me as soon as possible. Lectures will not always follow the material in the book and tests
will come predominantly from lectures.
Honor Code: Homework and projects can be done together, but I encourage you to try on your own first.
For all other assignments and tests, independent work is expected. See the Academic Integrity policy
121.5 for specifics. If I catch you cheating, my punishment is an ‘F’ in the course – it ain’t worth it!
Grades: A (93-100), A- (90-92), B+ (87-89), B (83-86), B- (80-82), C+ (77-79), C (73-76), C- (70-72),
D+ (67-69), D (63-66), D- (60-62), F (0-59).
Assignments: There will be four tests worth the following amounts: Test 1 - 18%; Test 2 – 18%; Test 3 –
18%; and Test 4/Final – 28%. The tests will be at night. Test 4/Final is scheduled for Friday December
12 from 9:00-11:30. You must take the final at this time or get approval from Dean Bartlett’s office.
There will be no make-up exams without an approved excuse provided within 24 hours of the test or
as soon as physically possible to attain. Test 4/Final is “partially cumulative”, but I will give you specific
guidance on what to review from earlier chapters. 18% of the grade will be from a semester project that is
broken into 4 distinct pieces. Specific guidance on the project will be given by the second week of class.
Keeping up with reading and homework will be essential. Do not get behind.
Tentative Schedule – Very Much Subject To Change
Week
3/8
Chapters
Introduction
Chapter 1,2
Subject Area
Introduction
Financial Statement Analysis
3/15
Chapter 2,3
Chapter 14
Financial Statement Analysis
Working Capital Management
3/22
Chapter 14
Chapter 15
Working Capital Management
Pro Forma Analysis
3/29
Chapter 15
Test1
Chapter 6
Pro Forma Analysis
4/5
Chapter 6
Chapter 5
April 9
Time Value of Money
Risk and Return
NO CLASS
4/12
April 12
Chapter 5
Chapter 7
NO CLASS
Risk and Return
Bond Valuation
4/19
Chapter 7
Chapter 8
Test 2
Bond Valuation
Stocks
Chapters 15, 5-7
4/26
Chapter 9
Chapter 10
Cost of Capital
Capital Budge
5/3
Chapter 10
Chapter 11
Capital Budgeting
Capital Budgeting
5/10
Chapter 11
Chapter 12
Capital Budgeting
Capital Structure
5/17
Test 3
Chapter 12
Chapters8-11
Capital Structure
5/24
Chapter 13
Dividend Policy
5/29
Test4/Final
Chapters 12-13, selected material
2:30-Until
Chapters 1-3, 14
Time Value of Money
ATTENTION: If you are a student with a disability and think that you might need special assistance or a
special accommodation in this class or any other class, call the Disabilities Services Coordinator, Susan
Clark at 294-2322.