Syllabus FINA 3332 PDF

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University of Houston C. T. Bauer College of Business Finance 3332 Principles of Financial Management Fall, 2019 --draft-_________________________________________________________________________ Professor:

Dr. Chisholm

Office:

240C Melcher Hall

Office Hours:

Wednesday: 12:15 – 12:45 Immediately after class Other Times by Appointment

Office hours begin the third day of classes. No office hours on exam days or after last class day except by appointment. Office Voicemail:

713-743-4655 (Please save in your mobile phone)

E-mail:

[email protected] (Please do not message through BB)

Blackboard Learn:

http://www.uh.edu/blackboard Log-in uses CougarNet ID and password Log-in help is posted on UH BB website Students should check daily for updated information

Bauer Tutoring Lab:

131 Melcher Hall (Shared with MIS) Tutors:

Colton Olivia

Hours: TBA Monday Tuesday Wednesday Thursday Friday

Tutoring Lab Rules 

Treat others with courtesy and respect.



MH #131 is a tutoring space, not a general study place or a social hangout. Please take conversations outside and go to the Quiet Room on the 5th floor of CBB to study for other classes.



No phone calls in the lab, take all calls outside.

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No food in the lab; eat at the UC or outside the lab.



If you violate our rules of conduct or the Bauer and UH Codes of Ethics and Conduct, you will be asked to leave MH #131. Your behavior may be reported to your professor.

Instructional Assistant: IA Office Hours:

Gideon TBA Cubical across from 240C Melcher Hall

Weekly Review/Q&A Sessions: 140 MH TBA

Please allow a 24 hour response time for emails

Required Materials 1. Text: This course utilizes an ebook from MyEducator that includes videos, readings, assessment tools, and activities. The text costs $69.99 online for lifetime access. Registration instructions and access link are posted on our BB course home page. Principles of Finance, 8th edition, by Brau, Holmes, & Blau, MyEducator, 2018 Prepaid access code also available at the campus bookstore; ask at the counter. •

If you paid for MyEducator last semester, you do not pay again. Click the Registration link posted on BB and sign into your account.

2. Calculator: Texas Instrument BAII Plus Financial calculator (Basic or Professional), or equivalent (No graphing or programmable calculators)

Recommended Reading The Wall Street Journal Yahoo! Finance at http://finance.yahoo.com/ or other daily Finance News source

Prerequisites: Junior standing, ACCT 2331, MATH 1313 and 1314. Students who have not successfully completed these prerequisites are not allowed to register for the course. Any questions should be directed to the Bauer Advisors on the second floor of Melcher Hall.

Course Description: A study is made of the basic concepts, terminology, and principles of corporate financial management. Topics include the role of the financial manager, time value of money, interest rates, security valuation, investment decision rules, and risk and return. Students will learn terminology, concepts, and problem-solving methods. Although focusing on the financial side of corporate management, many of the principles and analytical tools are also applicable to personal financial decisions.

Learning Objectives: 

Identify the Sub-Specialties within Finance



Explain how Finance fits into Business Management



Describe the advantages and disadvantages of the basic business forms



Explain the difference between compounding and discounting of cash flows



Calculate the present and future values of single sums, deferred annuities, perpetuities, and other special cash flow patterns



Employ time value of money calculations to solve basic financial planning issues

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Explain the terms par value, time to maturity, and coupon rate for a simple coupon bond



Graph the cash flows for a simple coupon bond

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Calculate the value of Yield to Maturity of a bond

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Describe the relationship between price and market yield of a bond

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Describe the impact of time to maturity on the interest rate sensitivity of a bond

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Explain the difference between common and preferred stock

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Calculate the value for a share of preferred stock and common stock using the perpetuity model, the single-stage model, the constant growth model, and the two-stage growth model



Calculate a holding period return to include capital gain and cash payment and an expected return given multiple states of nature

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Explain the concept of total risk to include the concept of diversification



Calculate total risk using standard deviation



Explain how beta measures systematic risk



Explain how beta is used in the Security Market Line (SML)



Calculate the expected return for common stock using the Capital Asset Pricing Model (CAPM), Gordon model, and build-up method

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Apply flotation costs to the costs of debt, preferred stock, and common equity

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Identify the impact of capital budgeting decisions

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Describe three criteria for the ideal evaluation method

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Explain the payback period for a capital project evaluation

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Calculate the net present value (NPV) for a project’s cash flows

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Define profitability index (PI)

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Calculate the internal rate of return (IRR) for a capital project

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Distinguish between incremental cash flows and incidental cash flows

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Explain the depreciation expense methods

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Describe changes in working capital

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Explain the impact of taxes

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Describe the capital budgeting process

Course Evaluation: Final averages will be calculated on the following basis: Graded MyEducator Topic Quizzes for Credit Graded Syllabus Assignment in BB Regular Exams (average of the 3 exams) Optional Comprehensive Final Exam

20% 10% 50% 20%

If opting out of the final exam, the following weights will apply: Graded MyEducator Topic Quizzes for Credit Graded Syllabus Assignment in BB Regular Exams (3)

25% 12.5% 62.5%

All exams count; no exams may be dropped. There are no extra credit provisions. If you require a certain grade for the course, you must earn it based on exam scores and homework grades. Please ignore the average reported in BB since it does not appropriately weight the grades. Use the above weights in calculating averages throughout the semester. A “Grade Calculator” Excel program will be posted after the first exam to help with calculations. Final course grades will be assigned on the following basis:

A

A-

B+

B

B-

C+

C

C-

D+

D

D-

F

94-100

90-93

87-89

84-86

80-83

77-79

74-76

70-73

67-69

64-66

60-63

0-59

At the professor’s discretion, two points may be added to all students’ final course averages, but beyond that, no curve can be expected. Do not email or phone requesting additional points after final course grades have been assigned; no additional points will be forthcoming. Expect no curve to be applied beyond the discussed 2 points. Please use only your official name as enrolled in BB on all Exams and correspondence, and include your full name and section time when emailing or leaving phone messages. When registering for MyEducator, please use the same name as used in BB.

Examinations: Exams are designed to test your knowledge and understanding of facts, concepts, and problem-solving methods. They are not designed to test your ability to memorize, although it is necessary to learn formulas and how to use them. Your score will depend heavily on your ability to apply fundamental concepts and procedures to financial management problems. Your ability to perform well on exams will require a large amount of preparation involving extensive individual practice on problems and examples. It is up to you to motivate yourself to devote the appropriate amount of time to such practice every day. Students should concentrate on the text and lectures to learn the course material. Since the material is cumulative and builds on previously covered material, lecture notes should be studied and learned each class day, before the next class. Please see the “Study Suggestions” document posted on our BB course homepage for advice on how best to study for and succeed in this course. All exams are cumulative, with closed book, closed electronics, and closed notes. An approved financial calculator is required. Each student must have his or her own calculator, and calculators may not be shared. No graphing or programmable calculators or calculators with alpha-numeric capabilities are allowed. During exams, students may use only one calculator. See the Calculator Policy below for more information. Limited formula sheets will be furnished with exams. Students are required to bring a valid and recognizable photo ID for all exams. ID’s must be presented before admittance to the classroom for an exam. On exam days, students should remain in the hall outside the classroom until ID’s can be checked. Check-in is required; students taking exams, but not checked in, will receive a zero for the exam. It is the student’s responsibility to ensure that the ID is checked and the name is checked off the class roster. During exams, students are required to complete the exam and turn it in to the professor or proctor before leaving the room. No breaks are allowed during exams. Missed examinations will result in a zero for that exam, unless 1) the professor is contacted prior to the start of the scheduled exam and 2) the absence is verified as legitimate by the Dean of Student Services Office. Phone messages or emails must be received by the professor before the exam starts. Be sure to program the office number in your mobile phone: 713-743-4655. No make-up exams will be given.

Missed exam grades will remain a zero until the professor receives notification from the Associate Dean of Student Services verifying that the absence was due to illness or legitimate unavoidable events . Students must contact and submit documentation directly to: Associate Dean of Student Services Frank Kelley 223A MH 713-743-4912 [email protected] Documentation must be submitted within one week of the absence. If a student must miss an exam due to known, but unavoidable circumstances, the professor must be contacted and arrangements made to take the exam early. Within reason, exams may be taken early, but not late. Please retain all exams and other graded items through the end of the semester. When submitting the syllabus assignment through BB Learn, be sure to receive confirmation that the assignment was submitted. Periodically check grades in BB Learn and in MyEducator for accuracy, and immediately report any discrepancies to the professor. Grading discrepancies must be reported to the professor with one week of grades posting to BB. Graded regular exams must be picked up by the last regular class day of the semester. When used, scantrons and final exams will not be returned to students. Answers on scantrons are considered final.

Calculator Policy: An approved financial calculator is required for this course. Texas Instrument BAII Plus financial calculator (or equivalent) Basic or Professional Graphing calculators and programmable calculators are not allowed during exams. This calculator policy is strictly enforced. The use of any unapproved calculator or multiple calculators or sharing calculators during exams constitutes a violation of the UH academic honesty policy. Before exams, the cover of calculators with removable covers must be removed and put away. Students must learn the appropriate calculator settings and be able to set the calculator correctly; instructions can be found under the Lecture Notes folder in BB. Bring your own calculator and have extra batteries. Please obtain an appropriate calculator prior to the third class period and read the calculator manual carefully. Bring calculators to every class session.

Homework Assignments: Graded MyEducator quizzes and the BB Syllabus assignment must be submitted on time. No exceptions or extensions to MyEducator quiz due dates will be granted for any reason, including technology problems, so plan to submit assignments well before the date and time due. Access is cut off at 11:59 pm on the date due. Please contact the MyEducator support group directly at [email protected] with technical problems or accessibility difficulties. MyEducator assignments are 20% (25% under the No Final exam option) of your course average. Be aware that any quiz not submitted will result in a zero for that quiz, and that quiz will be inaccessible for review until after the due date. Although the Knowledge Checks after each Topic have unlimited attempts, the chapter Topic Quiz for Credit (the graded quizzes) have a maximum of three attempts, with the highest score of the three taken as the grade for that Topic. Submitted assignments will be available for review after the due date. The quizzes should be taken only after the target material has been studied and learned. Since quiz grades are part of course averages, students may ask general questions about the material; however, questions about correct responses and/or how to solve a specific quiz problem will not be answered until after the quiz due date. The BB syllabus assignment must be submitted by 11:59 PM on the due date to qualify for full credit. Points will be deducted when assignments are submitted late, but before the cut-off date near the end of the semester. Assignments not submitted, or submitted after the cut-off date, will receive a grade of zero. No exceptions or extensions past the cut-off date will be granted for any reason, including technology problems, so plan to submit assignments well before the due date. Be sure to verify submission. This grade is 10% (12.5% with the No Final exam option) of your course average.

Attendance: Regular class attendance is necessary to succeed in this course. Each student is responsible for all lecture notes and announcements made in class. Students should check Blackboard on a regular basis—daily—for updated course information. Laptops may be used during lectures, but their use is limited to on-topic, course relevant applications. Students who are observed using laptops or other electronic devices for any other use, such as checking e-mail, web surfing, texting, working on finance homework assignments, etc., will be required to leave class. All students should respect other students by demonstrating appropriate language, courtesy, and demeanor in class. Due to large class size, any talking, unless called upon, will not be tolerated, and students who continue to talk after being asked for quiet, will be required to leave the classroom.

General: In addition to the professor, students have valuable resources to help learn and understand material and problems. Undergraduate tutors dedicated to this course are available Monday through Friday in 131MH, the Bauer MIS tutoring lab. In addition, an Instructional Assistant is available during IA office hours in the cubicle across from 240C MH. However, before seeking help, students should study class notes, review posted PowerPoints and Notes, and attempt problem solutions on their own, making a first effort individually. Keep in mind that due to greater need near exams, it could be difficult to get one-on-one help; therefore, students should study and learn class material every day, and seek help or ask questions as they arise. In addition, emails asking general, factual questions whose answers are posted on BB or contained in the course syllabus will not be answered. Also, questions from material on old exams from prior semesters will not be answered. Academic Honesty: The University of Houston Academic Honesty Policy is strictly enforced by the C. T. Bauer College of Business. No violations of this policy will be tolerated in this course. A discussion of the policy is included in the University of Houston Student Handbook under Academic Honesty Policy. Students are expected to be familiar with this policy. In keeping with this policy, each student must submit his or her own individual work, homework assignments, and examinations. Dropping the Course: Students wishing to drop or withdraw from the course must do so on or before the official drop dates as specified in the current Academic Calendar.  

Wednesday, September 4: Last day to drop or withdraw from a course without hours counting toward the Enrollment Cap for Texas Residents, and last day to drop without receiving a grade. Thursday, October 31: Last date to drop a course or withdraw. When dropping, students must be on-line prior to 11:59 pm on the drop date and are responsible for ensuring that the course is dropped. The professor is unable to drop students after the official drop deadline.

Students with Disabilities: The C. T. Bauer College of Business would like to help students who have disabilities achieve their highest potential. To this end, in order to receive academic accommodations, students must register with the Center for Students with Disabilities (CSD), telephone 713-743-5400, and present approved accommodation documentation to their instructors in a timely manner. Course Evaluations: The C.T. Bauer College of Business requires all its instructors to be evaluated by their students. The results of these evaluations are important to provide feedback to instructors on how their performance can be improved. We encourage students to provide feedback to instructors through the on-line evaluation process which is available near the end of the semester.

Monday-Wednesday Course Schedule Date

Topic Brau, Holmes & Blau Text Syllabus Overview Topic 1: Intro Topic 1: Intro Ch 5: TVM

M Aug 19 W Aug 21 M Aug 26 W Aug 28 M Sept 2 W Sept 4 M Sept 9 W Sept 11 M Sept 16 W Sept 18 M Sept 23 W Sept 25 M Sept 30 W Oct 2 M Oct 7 W Oct 9 M Oct 14 W Oct 16 M Oct 21 W Oct 23 M Oct 28

Labor Day Holiday—No class Ch 5: Ch 5: Ch 5: Ch 6: Ch 6: Q&A

TVM TVM TVM Bonds Bonds

Ch 7: Ch 7: Ch 8: Ch 8: Ch 8: Ch 8: Q&A

Stock Stock Risk & Risk & Risk & Risk &

Last day to add a course 8/26 BB Syllabus Assignment: Due: 8/31 Topic 1 Quiz: Closes 9/1 First drop date: 9/4 Topic 5 Quiz: Closes 9/15 Topic 6 Quiz: Closes 9/22

EXAM 1: Chapters 1, 5, 6

Return Return Return Return

Topic 7 Quiz: Closes 10/6

Topic 8 Quiz: Closes 10/20

EXAM 2: Chapters 7, 8 Ch 11: Capital Budgeting Criteria Ch 11: Capital Budgeting Criteria Ch 11: Capital Budgeting Criteria Ch 12: Capital Budgeting CF Ch 12: Capital Budgeting CF Ch 12: Capital Budgeting CF

W Oct 30 M Nov 4 W Nov 6 M Nov 11 W Nov 13 M Nov 18 W Nov 20 M Nov 25

Assignments & Quizzes MyEducator

Last day to drop: 10/31

Topic 11 Quiz: Closes 11/10 Topic ...