Principles of Finance
BUS265-3 Credits
ONLINE
Heidi Higgins, MBA Instructor:
Phone number:
Office Hours:
Email address:
860-944-5922
By appointment hhiggins@goodwin.edu
Prerequisite/Co-requisites: C- or better in ACC100 level and ECN100 level courses
Course Description:
The focus of this course is the fundamentals of sound financial management. Students will study the time value of money, risk/return analysis, cash flow management, the basics of capital budgeting, working capital management, financial forecasting, inventory management and basic financial ratios.
Required Text:
Besley, Scott and Eugene F. Brigham, Principles of Finance 5th Edition, Cengage, Mason,
OH, 2012 ISBN# 978-1-111-52736-5
Other Materials:
Financial Calculator. The book uses Texas Instruments BAII Plus financial calculator.
Learning objectives, outcomes and assessment methods for the course:
1.
Understand what finance entails and how it has changed over the last century.
2.
Explain how financial decisions can help maximize wealth
3.
Describe types of debt and their characteristics.
4.
Explain what bond ratings mean and how to evaluate equity and derivatives.
5.
Discuss how investors use financial statements.
6.
Describe ratio analysis and why it is important to managers and investors.
7.
Identify various types of cash flow patterns.
8.
Calculate present values and future values.
9.
Calculate risk and return on an investment.
10.
Describe the importance of capital budgeting and the general process followed.
11.
Compare the NPV and IRR methods
12.
Explain the proper management of working capital and how a firm should finance its working capital needs.
BUS 265 Summer 2014

Learning Objectives
To demonstrate an understanding of:
What finance entails and how it has changed over the last century
How financial decisions can help maximize wealth
Types of debt and their characteristics
What bond ratings mean and how to evaluate equity and derivatives
How investors use financial statements, describe ratio analysis and why it is Important to managers and investors
Various types of cash flow patterns, compute present values and future values
Computation of risk and return on an investment.
How risk and return are related
The importance of capital budgeting and the general process followed, comparison of the NPV and IRR methods
The Proper management of working capital, how a firm should finance its working capital needs, computation of the cost of credit
Learning Outcomes
At the end of this course, students will be able to:
Understand what finance entails and how it has changed over the last century.
Explain how financial decisions can help maximize wealth
Describe types of debt and their characteristics.
Explain what bond ratings mean and how to evaluate equity and derivatives.
Discuss how investors use financial statements.
Describe ratio analysis and why it is important to managers and investors.
Identify various types of cash flow patterns.
Calculate present values and future values
Calculate risk and return on an investment
Assessment Methods
As measured by:
Quizzes/Tests/Assignments/Cases
Quizzes/Tests/Assignments/Cases
Quizzes/Tests/Assignments/Cases
Quizzes/Tests/Assignments/Cases
Quizzes/Tests/Assignments/Cases
Quizzes/Tests/Assignments/Cases
Quizzes/Tests/Assignments/Cases
Describe the importance of capital budgeting and the general process followed.
Compare the NPV and IRR methods
Explain the proper management of working capital and how a firm should finance its working capital needs.
Quizzes/Tests/Assignments/Cases
Quizzes/Tests/Assignments/Cases
BUS 265 Summer 2014

Grading Policy:
Grades are determined using the following assessments:
20% Assignments 7 @ 20 pts
15% Ethical Dilemma Cases 7 @ 15 pts
140 pts
105 pts
15% Discussions
15% Quizzes
15% Midterm
20% Final Exam
13@15 pts
7 @ 15 pts
1 @ 100 pts
1 @ 100 pts
195 pts
105 pts
100 pts
100 pts
Total 745 pts.
Assessment:
This course will incorporate an assessment that is tied into the course outcomes and, by extension, programmatic outcomes. The instructor for this course will provide you with a rubric on which the assessment will be measured. This assessment may or may be part of an assignment that contributes to your grade for this course.
For BUS 265, the assessment will be the Final Exam, and it will assess Course outcome(s)
7-12 that support Programmatic Outcome 2.
Professor’s General Expectations:
This is a 15 week online course. With this in mind, it is expected that students will:

Set aside approximately 6 hours a week for work on this course. That figure allows generous time for readings, written work, projects, on-line discussions and oncampus activities. Your actual time may vary depending on reading speed, number of students in the class or group, personal effort toward the subject, etc.

Routinely check your Goodwin e-mail account and the Announcements area on
Blackboard for important messages and for communications with classmates.
 Post Discussion Board messages as required by specific course assignments.
 Complete and submit all assignments on time.
 Abide by the College’s Academic Integrity Policy.
Course Logistics:
The course is segmented into 15 (fifteen) units over a 15 week period. Each week’s activities begin on Sunday and end on the following Sunday at midnight.
General Course Policies:
1. Reading: Students must read all assignments and be prepared for class. All assignments will be considered for assessment material.
2. Cheating: Not allowed. Do your own work. You may be surprised by how much you really know and can demonstrate. Please refer to the academic integrity policy located at http://www.goodwin.edu/pdfs/Academic_Intergrity_Policy_2010.pdf
.
BUS 265 Summer 2014

3. Make up assessments: Please contact instructor PRIOR to missing an assignment or quiz. Discussions cannot be made up.
4. Grammar and Spelling: Employment in the business or government workforce requires competent reading and writing skills. Students are required to use proper grammar, spelling, and punctuation. Assignments with grammar and spelling errors will be graded down. Assignments that do not meet acceptable standards will be returned without a grade. Returned assignments will be considered late. Assignments that are late may be graded down unless first approved by the instructor.
5. Problems: If you need help with studying, readings, writing, note taking skills, or if you have other problems that interfere with your academic work, contact the instructor or your advisor. We are here to help.
6. Late assignments may be graded down if not first discussed this with the instructor.
More than a week late, the item will not be accepted except in extenuating circumstances.
7. Attitude: Attitude is everything. Come prepared to contribute, learn, share your perspectives and teach. It will make all the difference between and exciting semester or just another course for credit.
Communication:
General questions regarding assignments and other activities should be posted to the
Questions for Professor on the Discussion Board in Blackboard. Students are encouraged to help their classmates by routinely reading and replying to these postings.
Personal or sensitive communications, i.e. a question about a quiz item, personal issue, etc. should be handled via email to the instructor (or phone call).
Written Work:
Written work assigned for this class should be prepared using MS Word and delivered in compliance with APA style. Written work should use the following format:

One-inch margins on top, bottom, left and right.

The first page should contain in the upper left section (typed, single-spaced) the following:
 Student Name (i.e. Jones, Margaret)
 Instructor Name
 Course Number & Title
 Assignment Title
 Date (i.e., July 12, 2010)
Written work should be submitted on-line to the course Grade Book.
Discussion Board Guidelines:
Post on time. Participate in the discussion during the assigned week. All Discussion
Board postings assigned for a given week must be completed by Sunday at midnight. It is recommended that you post early in the week then check the discussion board again later in order to make replies. You may be required to post earlier as directed by the
BUS 265 Summer 2014

Bb course assignments for a particular week or discussion board. Late postings are not beneficial to the group and will not be considered in the grading process.
* Be concise but complete. Initial posts should be thoroughly developed in 200-250 words to adequately articulate your responses to the prompts.
* Connect your comments to what you are learning in the course. Integration of required course materials to support your contributions is expected. Additional inclusion of outside references is strongly encouraged. Note your sources.
* Reply to other students, however, you should post an appropriate comment(s) on at least one (1) classmate's posting for full credit. These exercises should encourage dialogue and an exchange of ideas and confirmations.
* Be informative. Go beyond just agreeing or repeating by adding to the conversation.
* Bring together or synthesize comments from the discussion.
* Illustrate your points with examples.
* Relate personal experiences, but be careful not to release confidential information.
* Utilize professional conventions of communication (e.g. etiquette, grammar and word usage).
* The instructor may not respond to every thread or posting, however, the instructor’s role is to facilitate and guide the discussion where necessary as in a classroom. In this environment, adult students bring vast knowledge and experience to the class and this is where it gets demonstrated.
Course Outline: *
A summary is provided below:
*subject to change at instructor’s discretion
Date
Unit 1
Topic(s) Covered
Introduction to Course,
What is Finance?
General Areas of
Finance, The Evolution of Modern Finance,
Financial Decisions and
Wealth Maximization,
Recent Developments in Business and Finance
Assignments/Reading Assessment Schedule
Chapter 1-An
Overview of Finance
Integrative Problem pg.
20
Ethical Dilemma Case pg.
17
Discussion Board
Quiz #1- Chapter 1
Unit 2 Financial Instruments and the Firm’s Balance
Sheet, Debt, Bond
Contract Futures, Bond
Ratings, Stock (Equity)
Chapter 2-Financial
Assets (Instruments)
Integrative Problem (2-10) pg.59-60
Discussion Board
BUS 265 Summer 2014

Unit 3
Unit 4
Unit 5
Unit 6
Derivatives, Rationale for Different Types of
Securities, Financial
Instruments in
International Markets
Midterm Exam
Chapter 2-Financial
Assets (Instruments)
Recording Business
Activity, Financial
Statements, Financial
Statement Ratio
Analysis,
Comparative Ratios,
Uses and Limitations of
Ratio Analysis
Chapter 7-Analysis of
Financial Statements
Chapter 7-Analysis of
Financial Statements
Chapters 1,2 & 7
Ethical Dilemma Case pg.51
Discussion Board
Quiz #2- Chapter 2
Integrative Problem (7-17) pg. 245-246
Discussion Board
Ethical Dilemma
Case pg.234-235
Discussion Board
Quiz #3-Chapter 7
Midterm Exam
Chapters 1,2 & 7
Integrative Problem (9-44) pg.338-339
Discussion Board
Unit 7
Unit 8
Unit 9
Cash Flow Timelines,
Cash Flow Patterns,
Future Value, Present
Value, Comparison of
Future Value and
Present Value,
Mid-Term Review
Solving for Interest
Rates, Time or Annuity
Payments,
Compounding Periods,
Comparison of
Different Interest
Rates, Amortized Loans
Defining and Measuring
Risk, Expected Rate of
Return, Portfolio Risk,
The Concept of Beta,
Chapter 9-The Time
Value of Money
Chapter 9-The Time
Value of Money
Chapter 11-Risk and
Rates of Return
BUS 265 Summer 2014
Ethical Dilemma Case pg.
328
Discussion Board
Quiz #4- Chapter 9
Integrative Problem (11-
28) pg. 439-441
Discussion Board

Unit 10 The Relationship
Between Risk and Rates of Return, Stock Market
Equilibrium, Physical
Assets versus
Securities, Different
Types of Risk
Unit 11 The Importance of
Capital Budgeting,
Project Classifications,
Steps in the Valuation
Process, Estimating a
Project’s Cash Flows,
Unit 12 Evaluation Techniques,
Comparison of the NPV and IRR Methods,
Modified Internal Rate of Return.
Unit 13 Working Capital
Terminology, The
Requirement for
External Working
Capital Financing, The
Cash Conversion Cycle,
Unit 14 Advantages and
Disadvantages of Short-
Term Financing,
Computing the Cost of
Short-Term Credit,
Managing Cash and
Marketable Securities.
Unit 15 Final Exam
Chapter 11-Risk and
Rates of Return
Chapter 13-Capital
Budgeting
Chapter 13-Capital
Budgeting
Chapters 15-Working
Capital Management
Chapters 15-Working
Capital Management
Ethical Dilemma Case pg.
431
Discussion Board
Quiz #5- Chapter 11
Integrative Problem (13-
35) p.540-542
Discussion Board
Ethical Dilemma Case pg.527
Discussion Board
Quiz #6 – Chapter 13
Integrative Problems (15-
29 and 15-30) pg. 643-644
Discussion Board
Ethical Dilemma Case pg.
633
Discussion Board
Quiz #7 – Chapter 15
Chapters 9,11,13 & 15 Final Exam
Chapters 9,11,13 & 15
BUS 265 Summer 2014

Student Support Services:
Peer-Tutoring - Tutoring services are available in the Academic Success Center. Any student seeking tutoring assistance should fill out a request form in the Academic
Office.
E-Tutoring - Tutoring is available online at any time through the Connecticut Distance
Learning Consortium. Any student needing help with registration or navigating eTutoring should contact the Academic Success Center for assistance.
Academic Success Center
Students may receive assistance with writing in any course or academic discipline through the Goodwin College Academic Success Center. The Academic Success Center is open on
Monday through Friday from 8:30AM-8:30PM and Saturdays from 8:30Am-2:30PM. The
Academic Success Center is located in the Learning Center, Room 209. Appointments are available outside regularly scheduled hours to accommodate students whose work or school schedule do not allow them to attend during regular times. To schedule an appointment or speak with the coordinator of the Academic Success Center students should stop into the
Academic Success Center Room 209, email ASCStaff@goodwin.edu
or call 860-913-2090 for an appointment.
Counseling Services - Counseling services are available on the first floor, Suite 144. Any student seeking counseling for personal, emotional, or academic reasons should contact a counselor in Suite 144. Please visit the website for further details: http://www.goodwin.edu/counseling.asp
Goodwin College Policies :
These general academic policies of Goodwin College may be found on the college web site at http://www.goodwin.edu/academics/policies.asp
. Additional information may be found in the college catalog at http://www.goodwin.edu/academics/undergraduate_catalogs.asp
. Please make it a point to familiarize yourself with the college policies. Additional academic regulations may be found at http://www.goodwin.edu/2012_2013_Catalog/
Academic Integrity
The Academic Integrity Code prohibits cheating, fabrication or falsification of information, multiple submissions of academic work, plagiarism, abuse of academic materials, and complicity in academic dishonesty as well as other forms of fraudulence.
It is the students’ responsibility to know and observe the requirements of the Goodwin
College Code of Academic Integrity. The entire policy is located in the Academic Dean’s
Office. Academic Integrity policy may be found at http://www.goodwin.edu/pdfs/Academic_Integrity_Policy_2010.pdf
Disability Services (was Special Needs/Disabilities)
Students with documented disabilities are eligible to receive accommodations as mandated by the Americans with Disabilities Act and Section 504 of the Rehabilitation
Act. (was Americans with Disabilities Act). Students may request accommodations by contacting the Disability Services Coordinator in the Academic Advising Suite. Please visit the website for further details: http://www.goodwin.edu/disability_resources/
BUS 265 Summer 2014

Incompletes
Satisfactory progress is computed for all courses taken for credit. An incomplete is a temporary grade assigned by the faculty member. Course Incompletes are counted as credit hours attempted but not earned. Generally, if a student receives an "Incomplete,"
(s)he has two (2) weeks from the end of the course to complete all course requirements in order to receive a grade for that course. If requirements are not met, the incomplete will be converted to an "F". Academic standing will be recomputed after the "INC" is replaced with a grade. In both cases the final grade will then be included in calculating the student's GPA and count as credits attempted. In cases where the Incomplete has been issued for a pre-requisite course, the student may not be allowed to move on to the higher level course if the Incomplete has not been replaced with a satisfactory grade. http://www.goodwin.edu/2012_2013_Catalog/
Prerequisite Requirement
For students who do not successfully complete a prerequisite course and have registered for the next level course, it is the students’ responsibility to see their academic advisor before the end of the first week of the next module/semester to revise their schedule to avoid any academic or financial consequences.
Technology Policy
Access to all computer systems, networks and electronic devices owned by Goodwin
College imposes certain responsibilities and obligations to all faculty, staff and students. The college’s technology policy outlines the acceptable usage for all computers and peripherals, network resources, telephones and all other electronic devices owned and maintained by Goodwin College. Users failing to adhere to this policy may face disciplinary actions by Goodwin College and/or local and federal law enforcement agencies. The complete technology policy is located on the Goodwin website www.goodwin.edu
and in the student handbook.
Registration for next semester
The Official Registration Period for the subsequent semester is Week 10 of the current semester. Students must complete all registration activities by the end of the 10 th week of the semester to avoid the late registration fee which is $100.00. Information concerning registration is available in the Academic Office, the Academic Advising
Office, and directly from your advisor.
This course adheres to all policies outlined in the Goodwin College catalog. For further information, see Academic Regulations as stated in the catalog.
BUS 265 Summer 2014