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San José State University Lucas College of Business Department of Accounting and Finance Fundamentals of Finance, BUS1 170 Fall 2016 Instructor:

Dr. Xiaoyan Xu

Office Location:

BT 856

Telephone:

(408) 924-3472

Email:

[email protected]

Office Hours:

Chatroom: MW 10-11pm WebEx: TBA

Contact Method Preference: Class Days/Time:

Email; Canvas Online, no physical meeting times and dates Class accessible 24 hours a day

Class Location:

Online on Canvas

Prerequisites:

BUS 21 or BUS 122A, ECON 1A, ECON 1B and BUS 90

Course Description This introductory finance course focuses on the finance function and its relation to other decision-making areas in the firm, the study of theory and techniques in acquisition and allocation of financial resources from an internal management perspective. Upon completion of this course, students will be able to demonstrate an understanding of the role of Finance in a corporation, with emphasis on the theory and tools that are used to help company leaders make sound financial decisions. Students will learn how to ensure that the company has sufficient capital for operations, growth, and maximization of shareholder wealth. Students will also learn how time value of money, risk, and diversification can contribute to good decision-making in business and to their own accumulation of wealth and financial security. Students will find the finance knowledge and tools learned in this course in many practical applications of everyday life.

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Course Learning Objectives/Outcomes (CLO) Upon successful completion of this course, students will be able to: 1. LO1 Demonstrate an understanding of financial analysis – CBPG #5. Critical Thinking 2. LO2 Demonstrate an understanding of time value of money - CBPG #5. Critical Thinking 3. LO3 Demonstrate an understanding of financial valuation - CBPG #5. Critical Thinking 4. LO4 Demonstrate an understanding of real asset valuation - CBPG #5. Critical Thinking 5. LO5 Demonstrate an understanding of risk & return - CBPG #5. Critical Thinking Required Topics 1. 2. 3. 4. 5.

Financial Analysis Time Value of Money Financial Valuation Real Asset Valuation Risk & Return

Required Texts/Readings Textbook Berk, DeMarzo, and Harford, Fundamentals of Corporate Finance, 3rd Edition, Pearson 2015. Print ISBN: 9780133507676, 013350767X eText ISBN: 9780133762808, 0133762807 https://www.vitalsource.com/referral?term=9780133762808 Other Readings Students are encouraged to read Wall Street Journal to keep updated. Other equipment / material requirements Students will need Excel for some assignments. A financial calculator is useful but not required. Course Requirements and Assignments    

Exams: 3 exams, 20 points each Assignments: 9 assignments, 2 points each Quizzes: online quizzes, 12 points total Online discussion/participation: 10 points

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Grading Policy (1) There are no make-up exams. In the case of an emergency, proof needs to be provided for consideration of an exception. (2) Late assignments are NOT accepted. Assignments are graded based on effort. However, these assignments are great practice for the course materials and some problems will be randomly picked into the exams. (3) The purpose of the quizzes is to help you review the materials and keep up with the pace of the course. Quizzes are timed and you will get two attempts for each quiz; the higher score will be recorded. (4) There will be graded online discussions. Online discussions on Canvas will be used to highlight important concepts. It is important that students regularly post comments on the discussion topics. Your participation in discussions includes posting comments on topics discussed, responding to other discussion questions, or sharing relevant material related to the discussion topic (e.g., newspaper articles, video clips) that enhance discussion. The purpose of the discussion threads is to create a dialogue in the class. (5) Your final grade for the course is based on the distribution below and follows a standard 100 percent scale: 97-100 A+

86-88 B+

75-77 C+

64-66 D+

92-96

A

81-85 B

70-74 C

60-63 D

89-91

A-

78-80 B-

67-69 C-

0-59

F

All students have the right, within a reasonable time, to know their academic scores, to review their grade-dependent work, and to be provided with explanations for the determination of their course grades. Classroom Protocol Students should arrive on time and stay until the end of class unless permitted by the instructor for legitimate reasons. Students are expected to stay engaged during lecture. No cell phone use, eating, sleeping, irrelevant conversation is allowed during class time. Students are welcome to bring laptops/tablets to take notes or for other class related activities. University Policies General Expectations, Rights and Responsibilities of the Student As members of the academic community, students accept both the rights and responsibilities incumbent upon all members of the institution. Students are encouraged to familiarize themselves with SJSU’s policies and practices pertaining to the procedures to follow if and when questions or concerns about a class arises. See University Policy

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S90–5 at http://www.sjsu.edu/senate/docs/S90-5.pdf. More detailed information on a variety of related topics is available in the SJSU catalog, at http://info.sjsu.edu/webdbgen/narr/catalog/rec-12234.12506.html. In general, it is recommended that students begin by seeking clarification or discussing concerns with their instructor. If such conversation is not possible, or if it does not serve to address the issue, it is recommended that the student contact the Department Chair as a next step. Dropping and Adding Students are responsible for understanding the policies and procedures about add/drop, grade forgiveness, etc. Refer to the current semester’s Catalog Policies section at http://info.sjsu.edu/static/catalog/policies.html. Add/drop deadlines can be found on the current academic year calendars document on the Academic Calendars webpage at http://www.sjsu.edu/provost/services/academic_calendars/. The Late Drop Policy is available at http://www.sjsu.edu/aars/policies/latedrops/policy/. Students should be aware of the current deadlines and penalties for dropping classes. Information about the latest changes and news is available at the Advising Hub at http://www.sjsu.edu/advising/. Lucas College of Business Policies To ensure that every student, current and future, who takes courses in the Boccardo Business Center has the opportunity to experience an environment that is safe, attractive, and otherwise conducive to learning, the College of Business at San José State has established the following policies: Eating Eating and drinking (except water) are prohibited in the Boccardo Business Center. Students with food will be asked to leave the building. Students who disrupt the course by eating and do not leave the building will be referred to the Judicial Affairs Officer of the University. Cell Phones Students will turn their cell phones off or put them on vibrate mode while in class. They will not answer their phones in class. Students whose phones disrupt the course and do not stop when requested by the instructor will be referred to the Judicial Affairs Officer of the University. Computer Use In the classroom, faculty allow students to use computers only for class-related activities. These include activities such as taking notes on the lecture underway, following the

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lecture on Web-based PowerPoint slides that the instructor has posted, and finding Web sites to which the instructor directs students at the time of the lecture. Students who use their computers for other activities or who abuse the equipment in any way, at a minimum, will be asked to leave the class and will lose participation points for the day, and, at a maximum, will be referred to the Judicial Affairs Officer of the University for disrupting the course. (Such referral can lead to suspension from the University.) Students are urged to report to their instructors computer use that they regard as inappropriate (i.e., used for activities that are not class related). Academic Honesty Faculty will make every reasonable effort to foster honest academic conduct in their courses. They will secure examinations and their answers so that students cannot have prior access to them and proctor examinations to prevent students from copying or exchanging information. They will be on the alert for plagiarism. Faculty will provide additional information, ideally on the green sheet, about other unacceptable procedures in class work and examinations. Students who are caught cheating will be reported to the Judicial Affairs Officer of the University, as prescribed by Academic Senate Policy S0412.

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Tentative Course Schedule Week

Starting Date

1

8/24

Module 0: Course overview

2

8/29

Module 1: Introduction (Chapter 1)

3

9/5

Module 2: Financial statement analysis (Chapter 2)

4, 5

9/12 & 9/19

Module 3: Discounted cash flow valuation (Chapter 3-5)

6

9/26

Review and Test #1 (9/28)

7

10/3

Module 4: Capital budgeting: investment decision rules (Chapter 8)

8

10/10

Module 5: The basics of capital budgeting (Chapter 9)

9

10/17

Module 6: Valuing bonds (Chapter 6)

10

10/24

Module 7: Valuing stocks (Chapter 7, 10)

11

10/31

Review and Test #2 (11/2)

12

11/7

Module 8: Risk and return in capital markets (Chapter 11)

13, 14

11/14 & 11/21

Module 9: Risk and diversification (Chapter 11,12) Happy Thanksgiving!

15, 16

11/28, 12/5

Module 10: the CAPM model and estimating the cost of capital (Chapter 12, 13)

17

12/12

Review; project due; final exam (12/15)

Fall 2016

Topics, Readings, Assignments, Deadlines

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