INDIANA UNIVERSITY NORTHWEST
Division of Business and Economics
F301 - Financial Management
Spring 2005
Instructor:
Dr. Bala Arshanapalli
Office:
Room 331 Lindenwood Hall
Telephone:
(219) 980-6919
E-Mail :
barshana@iun.edu
Web Address: http://www.iun.edu/~bnwbga/bala.htm
Office Hours: M W 12:00 – 2:15 P.M. and M 4:00 – 6:00 P.M.
and by appointment
Textbook:
Foundations of Finance, Keown, Martin, Petty and Scott, Version 2, 2004
Prereqs:
A201, A202, E103, E104, M118, M119, E270, & A106
Automatic
W Date
March 24, 2005
Descriptions:
Fundamental tools of analysis for the financial management of the firm. Sources
and uses of funds analysis for capital budgeting and working capital management.
Course Objective:
The objective of this course is to familiarize the student with the fundamental
tools of analysis for the financial manager of the corporation. In order to do this
we must develop in the first part of the course specific analytical techniques
applied in managerial finance. We will reinforce this knowledge by utilizing
these techniques in solving problems. Next, we will discuss the three major
financial decisions of the firm: its investment policy (capital budgeting), its
financing policy (capital structure decisions), and its dividend policy. In the last
part of the course, if time permits, we will deal with the administration of the
current assets and liabilities (working capital management).
We will consider these subject areas in the context of the objective of all financial
management decision making, i.e. maximization of the wealth of the stockholder.
Performance Evaluation:
There will be Four exams including a final exam (cumulative). Three exams will
count for sixty percent, and the final exam for 20 percent of the final grade of the
course. I will allow you to drop one of the three exams. Since I will allow you to
drop one exam (not the final exam) there will be NO makeup exams for any
reason.
In addition, quizzes and class participation will count for the remaining 20% of the final
grade and how I will award these points will be at my discretion.
Grading:
Grades are awarded on the basis of the following scale:
A = 90 - 100
B = 80 - 89
C = 70 - 79
D = 60 - 69
F = 59 and below
Rules:
Students should expect to devote at least nine hours per week to each three semester hour
course generally three hours in class and six hours for homework, term papers, and other
Assignments. Some courses require more, hours, and in some cases, the efforts may be
Concentrated during certain portions of the semester.
Page 3
F301 Syllabus
Tentative Course Outline and Assignments
Week
Subject
Chapter(s)
1& 2
Introduction, Financial Statements & Taxes
1,3
3&4
Time Value of Money
5
4
Test # 1
5
Bond Valuation
7
6
Stock Valuation
8
7&8
Risk and Return
6
8
TEST #2
9
Capital Budgeting I
9
10
Capital Budgeting II
10
11
Cost of Capital
11
12
TEST #3
13
Capital Structure
12
14
Dividend Policy
13
15
International Finance
17
Finals