BF 3220 Autumn 2019 syllabus PDF

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Syllabus BF 3220 AU 2019...

Description

BusFin 3220

Business Finance

Semester: Autumn ‘19

Class Day/Time: Tuesday 3:55 pm & 5:30 pm Room: 131 Hitchcock Hall Recitation: various times (see Class Times & Room: 375 Gerlach & online Locations in Carmen) Instructor: Susan Clark Office Hours: Tuesdays 1-3 pm & by Appt. Location: 638 Fisher Office Hours: TTh 2:30-3:30 pm & by Appt. Location: 301 Fisher Instructor: Derik Staufenberg Grad Asst: Sean To Office Hours: TWTH 12-1 pm Location: 040 Fisher Course Email: [email protected] Please direct any course related content to this account. Our grad assistant will be monitoring this account and you should expect a response within 24 hours. Course Description: This course explores the fundamentals of Financial Management from a corporation’s perspective. Emphasis is placed on understanding Time Value of Money concepts and applying those ideas to evaluating stocks, bonds and capital budgeting decisions. At the end of this course, a learner will be able to: • Apply TVM concepts to investment decisions of a company • Create and interpret cash flow statements • Determine discount/hurdle rates • Evaluate investments in long-term assets • Demonstrate proficiency in valuation techniques Pre-Requirements: Econ 2001.01 (200), and 2002.01 (201), and AcctMIS 2200 (211). Prereq or concur: AcctMIS 2300. Not open to students with credit for 620, or to students enrolled in UUSS, UExp or PreBSBA-PR. Course Format: In-class Lecture + Recitation (online or in-class) Required Texts/Materials: The textbook and courseware for this course is being provided via CarmenBooks. Through CarmenBooks, students obtain publisher materials electronically through CarmenCanvas, saving them up to 80%per title. The fee for this material is included as part of tuition and is listed as CarmenBooks fee on your Statement of Account. In addition to cost-savings, materials provided through CarmenBooks are available immediately on or before the first day of class. There is no need to wait for financial aid or scholarship money to purchase your textbook. Unless you choose to opt-out of the program, you do NOT need to purchase any materials for this course at the bookstore. For more information on the program or information on how to opt out, please visit the CarmenBooks website. Title: MindTap for Fundamentals of Financial Management 15th edition ISBN: 9781337710268 Author(s): Brigham & Houston Year: 2019 Publisher: Cengage Access the courseware for this title through the Cengage Learning MindTap link in the course navigation specified by your professor. Evaluation Criteria: Graded Components Quizzes (best 5 @ 20 pts each) Exams (2 midterms) Final exam Homework (8 @ 15 pts each) Attendance Total

Points 100 200 100 120

% of Total 18.2% 36.4% 18.2% 21.8%

30

5.4%

550

100%

Type N N O 

Requirements for each form of graded component. Failing to follow these will represent academic misconduct. See below. Independent Work [N ]: Strictly non-collaborative, original individual work. You may discuss this assignment with your instructor only. Discussions with other individuals, either in person or electronically, are strictly prohibited. Collaboration Required [C ]: An explicit expectation for collaboration among students either in class or outside of class (i.e. group work). Collaboration Optional [O]: Students are permitted, but not required, to discuss the assignment or ideas with each other. However, all submitted work must be one’s original and individual creation.

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If it is necessary to communicate with the class between class sessions, I will send communication via the Carmen Canvas system. Please make sure you have notifications turned on. I will assume that you check your e-mail at least once every 24 hours, Monday through Friday, or talk to classmates who check their e-mail daily. The course email, [email protected] will also be checked by the grad assistant once every 24 hours for questions Mon - Fri. Academic Conduct: If a student is suspected of, or reported to have committed, academic misconduct in this course, I am obligated by University Rules to report my suspicions to COAM. If you have questions about the above policy or what constitutes academic misconduct in this course, please contact me. See OSU Prohibited Conduct – Section 3335-23-04(A)

University Policies, Services and Resources (go.osu.edu/UPolicies)

Fisher Undergraduate Handbook and QuickLinks (www.bsbalinks.com)

Fisher Navigator Resource Portal (www.nav-1.com)

Learning Goals and Objectives: • Explain the links between stock price, intrinsic value & executive compensation • Identify potential conflicts that arise within the firm between various stakeholders • Explain how the stock market operates & list distinctions between the different types of stock markets • Discuss the importance of market efficiency • Explain how time value of money works & discuss why it is an important concept in finance • Calculate the present value and future values of lump sums, annuities and uneven cash flow streams • Explain the difference between nominal, periodic and effective interest • Discuss the basics of loan amortization and develop a loan amortization schedule • Discuss how market interest rates are affected by the borrowers' need for capital, expected inflation different securities' risks, & securities' liquidity • Identify the different features of corporate and government bonds • Discuss how bond prices are determined in the market, what the relationship is between interest rates and bond prices, and how a bond's price changes over time as it approaches maturity • Calculate a bond's yield to maturity • Explain the difference between stand-alone risk & risk in a portfolio context • Describe how risk aversion affects a stock's required rate of return • Discuss the difference between diversifiable & market risk, and explain how each type of risk affects welldiversified investors • Describe CAPM and illustrate how it can be used to estimate a stock's required rate of return • Evaluate a stock's intrinsic value using the following models: the discounted dividend model, corporate valuation model (DCF) and method of comparables • List the key characteristics of preferred stock and describe how to estimate the value of preferred stock • Estimate the costs of different capital components: debt, preferred stock, retained earnings & common stock • Combine the different component costs to determine a firm's WACC • Calculate & use the major capital budgeting decision criteria: NPV, IRR, MIRR, & payback • Explain why NPV is the best criterion & how it overcome problems inherent in the other methods • Identify relevant cash flows that should and should not be included in a capital budgeting analysis • Estimate a project’s relevant cash flows and put them into a time line format that can be used to calculate a project’s NPV, IRR, and other capital budgeting metrics • Explain how risk is measured, and use this measure to adjust the firm’s WACC to account for differential project riskiness • Correctly evaluate mutually exclusive projects that have unequal lives

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Graded Component Details Quiz Details: There will be six 20-point online quizzes in MindTap. Your best 5 scores from the quizzes will be applied to your grade. Due dates are listed on the Class Calendar page. All quizzes are due at 11:59 pm on the due date. The quizzes are available under Assignments in Carmen. Late assignments will not be accepted by Carmen. Exam Details: There will be two midterm exams. The exams will take place on the following dates: Tuesday, September 24th and Tuesday, November 5th and will be at a common time (5:30-7:00 p.m.). Exam Locations will be assigned based on your surname (last name). The Final exam will take place on Friday, December 6th at 6:00 p.m. at various locations across campus. All exams will be 100 points each and 90 minutes in length. Each exam will have 25 multiple choice questions worth 4 points each. The multiple-choice questions will involve both conceptual questions as well as calculation questions, based on material covered in class, in the video modules and from the problems in the text and Practice Activities. Your exam will have a formula sheet attached; you cannot bring your own. If you have another scheduled class on Tuesdays at 5:30 p.m., please let Prof. Clark know in advance. You will be able to take the exam at the Testing Center at an earlier time that same day. If you have a documented final exam conflict with a University-scheduled exam, please let Prof. Clark know. There will be a make-up for the final on Saturday, December 7th at 9:30 a.m. Homework: There will be eight (8) graded homework assignments beginning with Chapter 5. The homework must be completed through MindTap. Each assignment has five (5) problems. You will get three attempts at each assignment. Once an assignment is complete, feedback is provided to help you understand anything you missed. This will help you with the second and/or third attempts on the homework. Homework MUST be completed by the assigned date or no credit will be given. Check the Assignments in Carmen and/or Schedule in the syllabus for due dates. Attendance: There are 30 points available for attendance in this course. You will be required to engage in 10 different weeks of recitations throughout the semester. This can be achieved by attending an in-class recitation or participating in an online recitation (with access link posted in Carmen). You will receive 3 points per recitation attended up to a maximum of 30 points. The recitations must be for different weeks to count towards attendance. If you have questions about your attendance grade, please email our grad assistant through the course inbox. Please follow the guidelines below regarding recitations to ensure you receive appropriate credit. When logging into TopHat (in-class recitations) or Zoom (online recitations): • Login with your first and last name as it appears on your Carmen page. • Login with your name.#@osu.edu or name.#@buckeyemail.osu.edu. Do not use any non-OSU email address. • If you are unable to login using your OSU credentials, it is your responsibility to email the grad assistant immediately informing them of which recitation you attended and what email you used to login. You will NOT receive credit unless you send this email within one week of the recitation in which you logged in with a nonOSU email address. It is recommended that you keep track of which recitations you attend, including date, time, online vs. in-person, instructor, and any proof of attendance, as this is a very large course and mistakes in tracking occasionally occur. Participation points will be posted on Carmen half-way through the semester and at the end of the semester. You are welcome to email our grad assistant at any time throughout the semester to check your progress. *If at the end of the semester you believe your posted participation score is incorrect you may email our grad assistant with a list of the recitations you attended (with the information/proof suggested above). You must provide this information. Due to the number of students in the course we cannot double check your attendance without guidance from you on where to look. If you send an email that only says “I believe my score is incorrect” without any additional information, your score will not be reviewed or changed. Grading Scale Letter A (Points) (4.0) Range

100%

-

A(3.7) 92.49%

B+ (3.3) 88.49%

-

B (3.0) 85.49%

-

B(2.7) 82.49%

-

C+ (2.3) 79.49%

Note: Above percentages are % of overall points earned

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-

C (2.0) 76.49%

-

C(1.7) 72.49%

-

D+ (1.3) 69.49% -

D (1.0) 65.49%

-

E (0.0) 59.49%

-

0%

Additional Policies Testing Policy: There are no make-ups for quizzes. Missed quizzes will be recorded as a “0”. Missed exams can only be made up in extreme cases (e.g., death of family member, personal hospitalization, etc.) with proper documentation (e.g., a physician’s note, ER paperwork, obituary, etc.). Each decision of potentially allowing a make-up exam is made by the instructor on a case-by-case basis. Additionally, you MUST contact the instructor ([email protected]) as soon as you know of a potential problem or conflict with an exam date. Alternative methods (e.g., oral exam, essay) of testing may be used for make-up exams. If you are experiencing an extreme situation or emergency, please attempt to notify the instructor ([email protected]) via email ASAP. Financial Calculator Required: TI BA-II Plus (any version) or similar financial calculator. Available at the OSU Bookstore, as well as Target, Wal-Mart, online, etc. Note: All problems will be solved using the TI BA-II Plus. No graphing or programmable calculators will be allowed. Only one calculator may be used during exams. Attendance/Participation Expectations: Any student who fails to attend without giving prior notification to the instructor will be dis-enrolled after the third instructional day of the term, the first Friday of the term, or the second scheduled class meeting of the course, whichever occurs first. Course-specific Copyright Policy: Material provided by the instructor may not be re-posted anywhere without the explicit permission of instructors. See University Copyright Policy. Additional Course Resources Tutor Lab: The tutor lab is in 040 Fisher. The tutors will be available to answer questions, help you solve problems and understand concepts. They are NOT allowed to help you with quiz questions until after the deadline for that quiz. Tutor hours will begin the second week of the semester and run until the end of the semester. How to insure you don’t miss a quiz or homework assignment: All quizzes and homework assignments that are graded have due dates. These will fill the course calendar which can be copied into the calendar on your phone. You can then set reminders so that you complete the quizzes and homework on time. To access the link to the course calendar: 1. Go to Carmen and access this course. 2. Once in the course, click on the Calendar icon on the left side of the page. 3. On the right side of the screen, there is a link that says Calendar Feed. Click on that link. 4. Follow the instructions to copy and paste this link into any calendar app that takes iCal feeds. Course Format: BUSFIN3220 is delivered in a hybrid format, with an in-class lecture on Tuesdays and an in-class or online recitation on either Wednesday, Thursday or the following Monday. Your responsibilities for each week will be as follows: 1. Read the chapter(s) in the e-text beforehand and watch the assigned video modules. The reading of the book plus the video modules will give you a first look at the concepts, terms and definitions that will be covered in the chapter. Try to do this on Sunday and Monday before the Tuesday lecture. 2. Also, before lecture, solve some of the Chapter Practice Activities in MindTap. These can be found by going to MindTap Study Tools from the Carmen website. 3. Attend the Tuesday lecture. There will generally be a brief (5-10 minute) summary of the basics of the chapter, then the lecture will move into the more difficult material from the chapter and solve some problems. Questions are always welcome; please don't hesitate to interrupt at any point! Lecture notes will be available in advance of the class. 4. Work the recitation problems. These can be found under Study Tools from the Home Page in Carmen. Recitations work on problem-solving. Either attend an in-class recitation (Wednesday or Monday) or attend an online recitation (see dates and times under Announcements in Carmen). It does NOT matter which recitation you attend each week and you can alternate depending on your availability and schedule. Attendance will be taken each week in recitation so you must attend at least one each week to get credit for attendance. 5. Work on the homework problems in the chapter, and the online quiz, if one is due that week. 6. For extra practice, go to MindTap Chapter Study Resources. -4-

Sunday

Monday

Tuesday

Wednesday

Thursday

Friday

Saturday

Aug. 18

19

21 Ch. 1 online content Ch. 2

22

23

24

25

26 Ch. 2

28 Ch. 5

29

30

31

Sept 1 Quiz 1 (Ch. 1-2) Due 11:59pm 8

2 Labor Day NO CLASSES

20 WEEK 1 Introduction to Course/ Chapter 1 (Skip section 1.3) ONLINE Chapter 2 27 WEEK 2 Chapter 5 Intro to TVM, Lump Sums 3 WEEK 3 Chapter 5 Annuities/Perpetuities

4 Ch. 5

5

6

7

11 Ch. 5

12

13

14

15

16 Ch. 5

18 Review

19

20

21

22 HW Ch.5 & Quiz 2 (Ch.5) Due 11:59pm 29

23 Review

10 WEEK 4 Chapter 5 EAR vs. APR 17 WEEK 5 EXAM SIMULATION & REVIEW 24 WEEK 6 MIDTERM 1: (5:30-7:00 pm Room Assignments: TBD) Ch. 1,2,5

25 Chapter 6 Sections 6.1-6.5

26

27

28

30 Chapter 6 Sections 6.16.5 7 Ch. 7

Oct 1 WEEK 7 Chapter 7

2 Ch. 7

3

4

5

8 WEEK 8 Chapter 8

9 Ch. 8

11 Autumn Break No University Classes

12

13 HW Ch. 7 & Quiz 3 (Ch. 6-7) Due 11:59pm 20 HW Ch. 8 due 11:59 pm 27

14 Ch. 8

15 WEEK 9 Chapter 9 Dividend Discount Model

16 Ch. 9

10 Autumn Break No University Classes 17

18

19

21 Ch. 9

23 Ch. 9

24

25

26

30 Review

31

Nov 1

2

3 HW Ch. 9 & Quiz 4 (Ch. 8-9) Due 11:59pm 10

4 Review

22 WEEK 10 Chapter 9 Enterprise Value/Method of Comps 29 WEEK 11 Review 5 WEEK 12 MIDTERM 2: (5:30-7:00 pm Room Assignments: TBD) Ch. 6-9

6 NO BF3220 RECITATIONS

7

8

9

11 VETERAN'S DAY NO UNIVERSITY CLASSES 18 Ch. 10

12 WEEK 13 Chapter 10

13 Ch. 10

14

15

16

19 WEEK 14 Chapter 11

20 Ch. 11

21

22

23

25 Ch. 11

26 WEEK 15 Chapter 12: Sections 12.1-12.4, 12.7 only

2 Ch. 12

3 WEEK16 Final Review

28 NO UNIVERSITY CLASSES Thanksgiving Break 5

29 NO UNIVERSITY CLASSES Thanksgiving Break 6 FINAL EXAM 6-7:30 pm (Room Assignments: TBD)

30

Dec 1 HW Ch.11 due 11:59 pm

27 NO UNIVERSITY CLASSES Thanksgiving Break 4 Final Review HW Ch. 12 & Quiz 6 (Ch.1112) Due11:59pm

8

9

10

11

12

13

14

6 HW Ch. 6 due 11:59pm

17 HW Ch. 10 due 11:59 pm 24 Quiz 5(Ch.10) Due 11:59pm

9 Ch. 5

28 Ch. 9

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