FINA2201 Syllabus Draft PDF

Preview

Summary

Download FINA2201 Syllabus Draft PDF

Description

D’Amore-McKim School of Business FINA2201: Finance Management / Fall2018 Syllabus (Draft) Professor: Jean Claude Makolo, PhD. Office: 126A Hayden Hall Email: [email protected] Tel. 978-328-6540 Professor Office Hours: Wednesdays & Fridays at 2:00pm – 4:00pm Class Meeting Days & Times: Mondays, Wednesdays and Thursdays 9:15am-10:20am Class Meets in Dodge Hall, Room 50 Teaching Assistant: TBA Email: TA Office hours TBA

COURSE DESCRIPTION Fin2201 covers the financial skills and thought processes necessary to understand and discuss financial policy decisions in a global economy. It emphasizes return and risk management issues faced by financial managers as they operate internationally. Topics include the effects of currency translation and valuation; understanding the time value of money; translating, consolidating, and evaluating financial statements in decision making; determination of the cost of capital; valuing stocks and bonds available in different global markets; and managing shortterm assets and liabilities and short term financing. The course addresses also the impact of legal, social, technological, and ethical considerations faced by financial managers in companies that operate globally. It requires a financial calculator and offers students an opportunity to develop computer spreadsheet skills. LEARNING GOALS 1. Analyze the financial performance of a company. 2. Calculate the cost of capital using the Capital Asset Pricing Model and other methodologies. 3. Apply discounted cash flow methodology to make capital budgeting decisions and to value financial assets such as stocks and bonds. 4. Use spreadsheets to help solve business problems.

1

5. Describe how managers determine short-term and long-term financing needs of a company. 6. Describe the difference between debt and equity in a company’s capital structure. REQUIRED TEXTBOOK AND COURSE PACKET TEXTBOOK: Stephen A. Ross, Randolph W. Westerfield and Bradford D. Jordan, Fundamentals of Corporate Finance, 11th Edition, McGraw-Hill/Irwin, 2016. Available in the bookstore. CONNECT: is an electronic homework manager. Purchasing Connect online is the best value for your required course materials – typically half the price of the printed textbook bundle. You may also purchase a discounted loose-leaf version of your book from within Blackboard or your Connect account directly from McGraw-Hill. Please use the following link and sign up for Connect platform. I will be assigning problem sets and it is very important for you to sign up ASAP http://connect.mheducation.com/class/jmakolo-fall2018. You'll be prompted to either login with an existing Connect account username and password, or to create a new account. Then enter your access code, purchase access online or begin your 14-day Courtesy Access period. You are also encouraged to read the Wall Street Journal and The New York Times business section and be familiar with current business news. COURSE REQUIREMENTS Attendance: All students are required to attend and actively participate in each class throughout the semester and, please, read the relevant book chapter before class. We will take class attendance at the start of every class; please arrive on time because if you come late or leave early the attendance will be marked as absent. Unless there is a documented medical and family emergency where students may be excused upon providing documentation, any student who miss a class, his/her final percentage point will be reduced by 1% for each class missed.

2

FINAL GRADE DETERMINATION Please read the following description of what is expected in each of the sections used for determination of the total course grade.  Class Attendance (5%) Class attendance plays an important role in your learning process of this course as it allows you to follow explanations related to different topics covered and ask questions if necessary. So, I expect regular class attendance from you and I might excuse up to 2 absences for good reasons (e.g., sickness, travel, job interview, etc.).  Class Participation (5%) To receive full 5% credit you should actively participate in class. The quantity and quality of each student’s participation include answering directed questions, asking perceptive questions that move the class discussion forward, comments/suggestions on the case/problem solving, participating in discussion motivated during lectures and active listening to the fellow classmates’ participation.  Problem Sets (20%) The best way to learn finance is by doing series of problem sets to digest the concepts developed in class lectures and textbook readings. I will assign problem sets throughout the semester on Connect platform. Problem set questions are carefully selected to help you prepare and use them as study tools for the midterm and final exams. All homework assignments MUST be completed individually. There should be NO collaboration on the homework assignments and no extensions and no makeup assignments. Problem sets must be completed by the specified due date and electronically submitted via the CONNECT platform; you will get instant feedback on your work and performance. I may also assign additional practice questions prior to the midterm and final exams.  Midterm Exam (30%) There will be a midterm exam on October 17, 2018 and will be closed books. You are permitted to bring one sheet written on both sides with notes/formula. Details of the exam procedures and instructions will be given in due course.  Final Exam (40%) The final exam will be scheduled by the Registrar office during the University examination period. You are permitted to bring one sheet written on both sides with notes/formula. Details of the exam procedures and instructions will be given in due course.

3

 Letters Grading Final course grades using the above component weights will be assigned on the following basis: Grade A AB+ B BC+ C CD+ D DF

Numerical Equivalence X ≥ 94% 90% ≤ X < 94% 87% ≤ X < 90% 84% ≤ X < 87% 80% ≤ X < 84% 77% ≤ X < 80% 74% ≤ X < 77% 70% ≤ X < 74% 67% ≤ X < 70% 64% ≤ X < 67% 60% ≤ X < 64% X < 60%

 Workload expectation Please note as FINA2201 is a six-credit course, you are expected by to spend a minimum of 8 hours of study time per week in preparation for class (readings, problems sets, discussion sections, preparation for exams, case studies, etc.). POLICY ON CALCULATORS For both midterm and final exam you are allowed to use financial calculator. For the exams you are not allowed to use any calculator with notes taking capability. USE OF LAPTOP COMPUTERS AND CELL PHONES IN CLAS Cell phones must be turned off during lectures. Laptops may be used but only to browse the lecture slides or take notes. ACCOMMODATION FOR DISABILITIES If you are a student with a documented disability on record at Northeastern University and wish to have a reasonable accommodation made for you in this class, please see me immediately. For more information go to: http://www.northeastern.edu/drc/

4

ACADEMIC INTEGRITY The college takes academic integrity violations very seriously. Students found participating in any of the following situations will be reported to the Office of Student Conduct and Conflict Resolution: cheating, fabrication, plagiarism, unauthorized collaboration. Please note that this applies to programming code as well as written assignments or exams. Additionally, students may be subject to receiving a reduced or failing grade for the assignment or the course or, depending on the severity of the violation, students may be dismissed from the program. Visit http://www.northeastern.edu/osccr/academic-integrity-policy, the Office of Student Conduct and Conflict Resolution web page for a full description of these policies and procedures. DETAILED COURSE OUTLINE Date: Topics

Reading (RWJJ):

9/5 (W)

Overview & Introduction

Chapter 1

9/6 (TH)

Introduction

Chapter 1

9/10 (M)

Financial statements, cash flow, and taxes

Chapter 2

9/12 (W)

Financial statements, cash flow, and taxes

Chapter 2

9/13 (TH)

Working with financial statements

Chapter 3

9/17 (M)

Working with financial statements

Chapter 3

9/19 (W)

Time value of money

Chapter 5

9/20 (TH)

Time value of money

Chapter 5

9/24 (M)

Discounted cash flow valuation

Chapter 6

9/26 (W)

Discounted cash flow valuation

Chapter 6

9/27 (TH)

Discounted cash flow valuation

Chapter 6

10/1 (M)

Interest rates and bond valuation

Chapter 7

10/3 (W)

Interest rates and bond valuation

Chapter 7

10/4 (TH)

Stock valuation

Chapter 8

10/8 (M)

No Classes

10/10 (W)

Stock valuation

10/11 (TH)

Capital market history

No Classes Chapter 8 Chapter 12

5

10/15 (M)

Midterm Exam

Midterm Exam

10/17 (W)

Capital market history

Chapter 12

10/18 (TH)

Return, risk, and the security market line

Chapter 13

10/22 (M)

Return, risk, and the security market line

Chapter 13

10/24 (W)

Cost of capital

Chapter 14

10/25 (TH)

Cost of capital

Chapter 14

10/29 (M)

Leverage and capital structure

Chapter 16

10/31 (W)

Leverage and capital structure

Chapter 16

11/1 (TH)

Net present value

Chapter 9

11/5 (M)

Net present value

Chapter 9

11/7 (W)

Capital investment decisions

Chapter 10

11/8 (TH)

Capital investment decisions

Chapter 10

11/12 (M)

No Classes

No Classes

11/14 (W)

Project analysis and evaluation

Chapter 11

11/15 (TH)

Project analysis and evaluation

Chapter 11

11/19 (M)

Dividends and payout policy

11/21 (W)

Thanksgiving Break

Thanksgiving Break

11/22 (TH)

Thanksgiving Break

Thanksgiving Break

11/26 (M)

Dividends and payout policy

11/28 (W)

Real options

Chapter 24

11/29 (TH)

Real options

Chapter 24

Chapter 17

Chapter 17

12/3 (M)

Mergers and Acquisitions

Chapter 26

12/5 (W)

Mergers and Acquisitions

Chapter 26

Please note that this is a draft schedule. I might add and remove readings from the course and to alter or modify the lecture schedule as required.

6...