OKLAHOMA CITY UNIVERSITY
Business Finance
FIN3023-Plus; August Cycle (August 22 – October 10, 2006)
Oklahoma City MSB
Dr. Ronnie J. Shaw
BRING YOUR FINANCIAL CALCULATOR TO THE FIRST CLASS ON
TUESDAY, August 22.
Address:
Meinders School of Business
Oklahoma City University
2501 N. Blackwelder
Oklahoma City, OK 73106
Office:
e-mail:
Phone:
Office hrs:
118 A
rshaw@okcu.edu
208-5283
M
2-4
T
9-12
W
9-12
W
2-4
Course Description:
The function of business financial management and its interrelationship
with other business management functions.
Planning of cash flow,
investment in current and fixed assets, source of funds, methods of
financing and utilizing funds effectively in the business. Primary
emphasis on guiding principles and techniques of financial analysis.
Prerequisites:
ACCT 2123 & 3033
Course Materials:
1.
Foundations of Finance, 5th edition. Keown, Martin, Petty, Scott,
2006.
2.
A financial calculator capable of calculating internal rate of
return (IRR) is required. Because the course moves very quickly,
students must have the calculator at the beginning of class. The
HP-10B II (Hewlett-Packard) and the TI BAII-Plus (Texas
Instruments) offer a good mix of capacity, price, and ease of use.
Both are excellent calculators. The HP-10B II is much easier
to learn and use. I recommend the HP-10B II.
Course Objectives:
The overall approach is that of a survey course, with primary emphasis
on corporate finance. Students should become competent with the
techniques of:
1.
2.
3.
4.
5.
6.
7.
Time value of money calculations
Determining and measuring risks associated with financial assets
Advantages and disadvantages of equity and long-term debt financing
Stock and bond valuation models
Conceptualizing and measuring cost of capital
Capital budgeting problems, procedures, calculations, and decision
rules
Short-term financing and money management
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Course Requirements:
1.
There will be two exams. The first exam will be administered during
normal class time (September 12). The second exam will be
administered during normal class time (October 10), and will be
comprehensive. The quizzes will be announced one week before the
quiz. Formula sheets will be provided for the exams and quizes.
2.
There will be a computer spreadsheet project (September 26).
Students may work together to learn the concepts necessary to
complete the spreadsheet assignment. However, each student is
expected to work individually to complete the assignment. There may
be other take-home or in-class assignments that will be announced
during the class sessions.
3.
Any student who misses an exam or assignment deadline must have a
documented and valid excuse to makeup the work.
Grading:
Your semester grade will be based on:
Exam I
Exam II
Quizes
Spreadsheet Project
30%
30%
30%
10%
Score
92.5 –
90
87.5 82.5 80
77.5 72.5 70
67.5 62.5 60
<60
Grade Points
4.00
3.75
3.25
3.00
2.75
2.25
2.00
1.75
1.25
1.00
0.75
0.00
100
92.49
89.99
87.49
82.49
79.99
77.49
72.49
69.99
67.49
62.49
Grade
A
AB+
B
BC+
C
CD+
D
DF
Important Dates:
Exam 1
Spreadsheet Project
Exam 2
September 12
September 26
October 10
2
Course Outline: (Because each class of students is unique with differing
interests and differing backgrounds, some topics may require more or less class
time than designated in the course outline. Although the topics covered on a
particular date may change slightly, assignment due dates and exam dates will
remain as scheduled.)
Date
August 22
Chapter
1
2
5
August 29
Sept 5
Problems
Financial Management
1: 3,4.
Financial Markets and Interest Rates
2: 3,4.
Time Value of Money
5: 1,2,4,5,6,7,8,13,14,16,18,19,21,24,34.
5
Time Value of Money
5: 1,2,4,5,6,7,8,13,14,16,18,19,21,24,34.
4
Financial Performance (Ratio Analysis)
6
Risk and Return
6: 1,6.
Valuation and Characteristics of Bonds
7: 2,3,4,6,11,13.
7
Sept 12
Exam 1
8
Exam 1
Stocks and Stock Valuation
8: 1,5,8,10,12,13,16.
Sept 19
9
Capital Budgeting Techniques
9: 1,3,4,5,6.
Capital Budgeting Cashflows
10: 9.
10
Sept 26
11
13
Spreadsheet Due
Oct 3
15
16
Oct 10
EXAM 2
Cost of Capital
11: 3,4,5,6,8.
Dividend Policy
18:1-4,6.
Spreadsheet Due
Working Capital Management
15: 1,3.
Short-term
16: 7,10,14,17.
FINAL EXAM
3
Finance on the Internet
Each student at OCU should have an e-mail account and access to the World
Wide Web through the university's computer system. The following
locations can provide relevant business and financial information:
www.bloomberg.com
www.spglobal.com
www.yardeni.com
www.moodys.com
www.bog.frb.fed.us
www.cnnfn.com
www.wilshire.com
www.connectok.com
www.money.com
www.standardandpoors.com
Academic Honesty:
The two exams and any other graded assignments in this course must
reflect the individual student’s effort, without assistance from others.
Any act of cheating will be turned over to the university administration
for disciplinary action.
Special Accommodation:
If you need an accommodation due to a disability under the Americans
with Disabilities Act, please contact Student Health and Disability
Service Office immediately at 521-5991 or 521-5090. Advance notice is
required for many accommodations.
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