SYLLABUS and COURSE OUTLINE
F301 Financial Management
Fall 2011
Instructor:
Office:
Phone:
Assistant:
Email:
Office Hours:
James C. Smith
BS 4000A
(317) 278-8430
Sarah Abel (317-278-8435)
jamcsmit@indiana.edu
Many times are available. Just email me for an appointment.
Questions via email are welcomed.
Index
Required Items
Textbook: Ross, Westerfield, and Jordan: Essentials of
Corporate Finance, 7th edition, ISBN: 978-007338246-3.
The following are clickable links to
sections in this document (in MS Word).
Administrative Withdrawal
Calculators
This book is available as a purchase or rental, in
both hardback and electronic versions, from Barnes
& Noble on campus. The book is available for
purchase, in Kindle form or in hardback, from
Amazon. It is available for purchase in electronic
form at the McGraw-Hill online store at mcgrawhill.com/shop. Any of those formats is acceptable
for F301. Used copies of the textbook are OK, too.
Calculator help
Used copies of the previous textbook also are
acceptable for F301: Fundamentals of Corporate
Finance, by Ross, Westerfield, Jordan (8th or 9th
edition only). No problems from the Essentials
textbook will be assigned for a grade, so
Fundamentals can be used. All in-class examples
and suggested practice problems, however, will be
from the current Essentials book.
Gradebook
Course Website
Dictionaries
Email
Exams
Facebook
Grading Policy
Homework and Quizzes
Laptops
Learning Outcomes
Number format
Oncourse
Course Website: This course does not use Oncourse, except for
one item (the gradebook – see below). For everything else, there is a dedicated website just for this
course. The address is:
http://profjcs-f301-fall2011.blogspot.com
PBL
Professional Conduct
PUL
Rounding
Textbook
F301 – Fall 2011
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Required Items (continued)
Calculators: A financial calculator is required for this course. Your financial calculator
must have net present value (NPV) and internal rate of return (IRR) functions.
The two calculators which will be taught in this course are:
Texas Instruments BAII Plus
Hewlett-Packard HP 10B
My personal favorite: the HP 12C. It is also acceptable for F301, but it’s a little
harder to learn.
iPhones, Droids, other smartphones and PDAs, and high-end graphing
calculators with memory, are not acceptable for F301. Any calculator other
than the three approved units mentioned above must be approved by me in
advance before you can use it for an exam.
Calculators are necessary to work exam problems; be sure to have fresh
batteries.
Oncourse:
Oncourse will not be used in this course, except for posting the gradebook. The
Gradebook will be posted in the Oncourse section called “Post ’Em.”
Email:
You are encouraged to email me as much as you want with questions about the
material or the course. Please use regular Internet email, not Oncourse. My
email address is: jamcsmit@indiana.edu. (Note the letters – there is no H.)
Important: I will use the email address shown for you in Oncourse to send
messages to you. Take a look at the Oncourse roster to see the address I will be
using. If you would like to forward this address to another email account (such
as IU’s umail, or Gmail, Hotmail or Yahoo!), that is easy to do. See
instructions at http://kb.iu.edu/data/beoj.html and
http://kb.iu.edu/data/berh.html.
Note: Important F301 information may be sent to you by email. It
is your responsibility to check your IU email frequently.
Laptops, cell phones: I’m afraid I must insist that using laptop computers, iPads, cell
phones or any similar personal electronic device during class is not permitted.
Points may be deducted from your scores for using laptops, cell phones, etc.
during class.
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Optional Items
Dictionaries: If English is not your first language you may use a hard-copy
translating dictionary during the exams. However, you must show me the
dictionary before the exam begins to get approval to use it. Electronic
dictionaries are not permitted. Sharing of dictionaries is not permitted.
Calculator help: We will cover in class many details on using your financial
calculator. But you also can search YouTube for videos on how to use
financial calculators.
Computer spreadsheet program: Financial managers generally use a
spreadsheet like Excel more than they use calculators. We’ll have a look at
Excel in class, and you may use a PC or Mac spreadsheet for homework as
appropriate.
The Wall Street Journal. Highly recommended, as a source for financial data
and as a way to see financial management in practice. We may be discussing
financial news as it occurs. Student discounted subscription rates will be made
available to you.
Web site for the textbook. Go to: http://www.mhhe.com/business/finance/rwj/
for practice problems and solutions, and Excel spreadsheet templates.
Grading Policy
Your grade for F301 will be the result of a mathematical calculation. There is no
opportunity for extra credit work in F301. Final course grades are the average of
five scores from your work during the semester, with weights as follows:
Exam 1
Exam 2
Final Exam
Homework and Quizzes
I-Core Team Project
20%
20%
30%
15%
15%
100%
Minimum grade requirements:
Two minimum requirements must be met to pass F301.
1. Achieve a weighted average of at least 60% on all F301 course work, including
exams, problem sets and quizzes, but not including the I-Core team project.
2. Demonstrate significant participation with your team in the I-Core Project. Peer
evaluations will be the main factor in assessing team participation.
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Exams
There will be three examinations in F301: two exams during the semester and a
Final near the end. Dates of the exams will be announced at the first class
meeting and posted in the course calendar on the website.
A medical excuse signed by a doctor will be required for missing an exam due
to illness. There are no makeup exams in F301 other than for documented
illness.
Examinations are closed book and will consist of multiple choice, qualitative
questions, and numerical problems. Exam questions will cover class
discussions and handouts as well as the textbook.
A formula sheet will be provided with each exam.
Calculators with financial functions are required for exams. I do not bring
extra calculators to exams. Students are not permitted to share calculators
during exams.
Tutoring: The only officially sanctioned tutor for F301 is me, your instructor.
Please email me as much as you want, or set up an office appointment, if you
have questions about the course material. Unofficial tutors are sometimes
available around campus, but we don’t know how good they are.
Homework and Quizzes
Problem Sets: Three problem sets will be assigned as homework for a grade
during the semester. The due dates are shown on the course calendar posted on
the website. Problem sets are individual assignments, not team assignments.
Quizzes: Four in-class quizzes will be given. These will be short quizzes
covering the most current material. Questions will be both quantitative
(calculations) and conceptual. In effect, they are exam prep exercises. Dates of
the quizzes are shown on the course calendar.
I will drop your lowest score from the problem sets and quizzes. Hence, your
score for the homework and quizzes will be the average of your highest six
scores.
If you just don’t get a certain problem set, talking to other students or to me
outside class may help you understand it.
Late Policy: Homework assignments are due at the beginning of class.
Homework turned in after the collection period will receive partial credit at
most. If you are forced to miss a class in which an assignment is due, you
should make other arrangements to turn in the assignment. Turn it in early,
drop it off at my office, or have a friend bring it to the class.
Turning in assignments by fax or email is not acceptable and will not earn full
credit.
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Legibility: This is a business course. Make your homework assignments look
businesslike. A neat, professional presentation is important. Points will be
deducted for homework papers which are unprofessional, illegible, messy,
disorganized or unstapled.
Number format and Rounding: For numerical answers, please show decimal
places as follows:
Dollar amounts less than $10,000: Two decimal places (dollars and cents),
unless otherwise instructed.
Dollar amounts of $10,000 or more: Omit the cents. Show whole dollars only.
And be sure to use commas as separators of each thousand.
Percents: Two decimal places (e.g., 32.56%).
Decimal fractions: Four decimal places (e.g., 0.3256).
Please DO NOT round intermediate calculations except for dollars and cents.
Attendance
Administrative Withdrawal: An administrative withdrawal policy applies in
I-Core. This means you may be automatically dropped from a course if you
miss too many early class meetings.
If you are absent for half our class meetings within the first four weeks of the
semester without providing me an acceptable explanation, you may be
administratively withdrawn from all three I-Core courses. F301 meets twice a
week. Thus if you miss four of the first eight classes, the trap door may open
under you, and you may be automatically withdrawn from the courses.
NOTE: During the first four weeks, I take attendance at the beginning of the
class period. Students arriving late are considered absent for attendance
purposes.
If you are administratively withdrawn from the course you may not be eligible
for a tuition refund.
Administrative withdrawal may have academic, financial, and financial aid
implications. If you have questions about the administrative withdrawal policy
at any point during the semester, please contact me.
Drop Policy: If you are passing F301, the last day to withdraw from this
course with a “W” is Tuesday, November 15. Last day for withdrawing with an
automatic “W” is Friday, October 14.
If you drop F301, you may be able to continue with the other two I-Core
courses. Check with Prof. Ippolito, the I-Core coordinator, if you have
questions about this.
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Professional Conduct
Honesty and respect are key elements of business relationships. We take them
seriously at the Kelley School of Business.
Copying answers on examinations, or allowing your answers to be copied,
constitutes cheating. Any instance of cheating will result immediately (at a
minimum) in a failing grade for the course.
For further information on the subject of academic integrity at Kelley, see the
student handbook, available at:
http://kelley.iupui.edu/undergrad/handbook.cfm#integ
Students are expected to do their own work on the homework assignments. I
encourage study groups, but you must write your own homework papers in order
to receive credit.
F301 classes should be treated like business meetings. In a business meeting
with other senior executives, you would make sure your cell phone is turned
off, you would not carry on a private conversation while someone else is
speaking, you would respect the rights of others in the meeting to ask questions
which are important to them, you would not be reading the newspaper, and you
would not walk in and out of the room while the meeting was going on.
That kind of thing should not happen in F301, either.
Points may be deducted from your scores for disrespectful behavior or for other
actions which are not appropriate for a business setting.
Social networking sites
Social networking websites will not be used in F301. I do not have a Facebook
page, and I do not use Twitter. If you see a site that purports to be mine, you
can be sure it is a fake.
Helpful Resources
Writing: Correct English usage, grammar and punctuation are required in all
F301 assignments and email correspondence (e.g., do not start an email with
“Hey, Professor”). Try to write like the Wall Street Journal. The campus has a
good source for answers and assistance with writing. Contact University
Writing Center at http://www.iupui.edu/~uwc/
Research: The University Library has assigned Katie Emery, a professional
research librarian, to assist students and faculty at the Kelley School. Contact
her at katemery@iupui.edu for advice and direction in connection with your
research.
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Course Learning Outcomes
F301 Financial Management introduces the basic concepts in financial analysis
for use in making business decisions. These concepts include rates of return,
risk, cash flows and valuation. An important part of F301 is learning to use
computational tools for quantifying these items.
The expected course outcomes are associated with the Kelley School’s
Principles of Business Learning (PBL) and the University’s Principles of
Undergraduate Learning (PUL). These program and university principles are
included as an appendix to this syllabus, starting on the following page.
The intended learning outcomes for F301 are related to these principles as
shown below. PBL and PUL item numbers associated with each outcome are
listed in parentheses.
Upon successful completion of this course, students will be able to:
1) Measure risk and return and explain the trade-off between risk and
return. (PBL 1, PUL 2)
2) Estimate project cash flows to distinguish between value-creating and
value-destroying investments. (PBL 4, PUL 3)
3) Estimate the required return on projects of differing risk, and use the
required return in evaluating investment decisions. (PBL 4, PUL 1)
4) Build on their team experience with the I-Core Project to integrate their
knowledge across disciplines and communicate the results of their
research both in an oral presentation and in a written report. (PBL 1, 3,
4, PUL 1, 3)
(A personal objective: preparing you to do well in subsequent KSB courses.)
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APPENDIX
Principles of Undergraduate Business Learning (PBL)
The Kelley School of Business has adopted and supports these Principles of Undergraduate
Business Learning (PBL). These principles are tailored and prioritized to the needs of a
business education and reflect the intellectual competence and cultural and ethical awareness
that every Kelley School of Business graduate should attain. Faculty members in each
discipline have been charged with determining which of the principles will be taught and
assessed in each of their courses – and what graduates in that major will know and be able to
do to illustrate competence in each of the four areas addressed by these principles. Instructors
must distribute the principles to students with descriptions of how the principles are enacted
in the course.
1. Critical Thinking
The ability to synthesize and analyze information and ideas from multiple sources and
perspectives:

to arrive at reasoned conclusions and informed decisions

and to solve challenging problems

by evaluating the logic, validity, and relevance of data

and using knowledge in order to generate and explore questions.
2. Management, Leadership, and Ethics
The ability to make judgments with respect to individual and organizational conduct
concerning citizenship, ethics, and the value of diversity in business:

in order to make informed and principled choices regarding conflicting
situations in personal, business, and public lives

and to foresee the consequences of those choices.
3. Communication
a. Written Communication
The ability to analyze, interpret, and comprehend information sources and
technology:

to effectively express ideas and facts

in a variety of written and visual formats.
b. Collaboration and Oral Communication
The ability to engage in active and professional communications and dialogue in
business and the community:

to encourage, examine, and comprehend the viewpoints of others

by being effective in one-on-one and in group settings

in order to operate with civility and cooperation in a complex, diverse, and
global business and social world.
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4. Professional Skills and Competencies
The ability to obtain substantial knowledge and understanding in at least one field of
study while gaining exposure and knowledge in other related disciplines:

to meet professional standards and demonstrate important skills and
competencies, and

to make efficient use of information and technology resources for intellectual,
professional, community and personal needs.
Principles Of Undergraduate Learning (PUL)
The Principles of Undergraduate Learning (PUL) were first approved by the Indianapolis
Faculty Council in 1998. The Principles of Business Learning (PBL) apply specifically to
courses in the business major and are derived from the PULs.
The PUL framework describes the knowledge and skills graduates of IUPUI should develop in
and outside courses in their major prior to completion of bachelor’s degree requirements. The
core areas of the PUL are described in detail at http://www.iport.iupui.edu/selfstudy/tl/puls/.
The main points are as follows.
1. Core Communication and Quantitative Skills
Definition: The ability of students to express and interpret information, perform
quantitative analysis, and use information resources and technology--the foundational
skills necessary for all IUPUI students to succeed.
Outcomes: Core communication and quantitative skills are demonstrated by the student’s
ability to:
a. express ideas and facts to others effectively in a variety of formats, particularly
written, oral, and visual formats;
b. comprehend, interpret, and analyze ideas and facts;
c. communicate effectively in a range of settings;
d. identify and propose solutions for problems using quantitative tools and reasoning;
e. make effective use of information resources and technology.
2. Critical Thinking
Definition: The ability of students to engage in a process of disciplined thinking that
informs beliefs and actions. A student who demonstrates critical thinking applies the
process of disciplined thinking by remaining open-minded, reconsidering previous beliefs
and actions, and adjusting his or her thinking, beliefs and actions based on new
information.
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Outcomes: The process of critical thinking begins with the ability of students to remember
and understand, but it is truly realized when the student demonstrates the ability to:
a.
b.
c.
d.
apply,
analyze,
evaluate, and
create
knowledge, procedures, processes, or products to discern bias, challenge
assumptions, identify consequences, arrive at reasoned conclusions, generate and
explore new questions, solve challenging and complex problems, and make
informed decisions.
3. Integration and Application of Knowledge
Definition: The ability of students to use information and concepts from studies in
multiple disciplines in their intellectual, professional, and community lives.
Outcomes: Integration and application of knowledge are demonstrated by the student’s
ability to:
a. enhance their personal lives;
b. meet professional standards and competencies;
c. further the goals of society; and
d. work across traditional course and disciplinary boundaries.
4. Intellectual Depth, Breadth, and Adaptiveness
Definition: The ability of students to examine and organize disciplinary ways of knowing
and to apply them to specific issues and problems.
Outcomes: Intellectual depth, breadth, and adaptiveness are demonstrated by the student’s
ability to:
a. show substantial knowledge and understanding of at least one field of study;
b. compare and contrast approaches to knowledge in different disciplines;
c. modify one's approach to an issue or problem based on the contexts and
requirements of particular situations.
5. Understanding Society and Culture
Definition: The ability of students to recognize their own cultural traditions and to
understand and appreciate the diversity of the human experience.
Outcomes: Understanding society and culture is demonstrated by the student’s ability to:
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a. compare and contrast the range of diversity and universality in human history,
societies, and ways of life;
b. analyze and understand the interconnectedness of global and local communities; and
c. operate with civility in a complex world.
6. Values and Ethics
Definition: The ability of students to make sound decisions with respect to individual
conduct, citizenship, and aesthetics.
Outcomes: A sense of values and ethics is demonstrated by the student’s ability to:
a. make informed and principled choices and to foresee consequences of these choices;
b. explore, understand, and cultivate an appreciation for beauty and art;
c. understand ethical principles within diverse cultural, social, environmental and
personal settings.
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