Syllabus FNAN 301&303 spring 2017 2017 PDF

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Syllabus: FNAN 301/303 (Financial Management), Spring 2017 Updated January 23, 2017 Course coordinator: Dr. Steven Pilloff Professor: Office: Email: Phone: Office hours:

Dr. Steven Pilloff Enterprise Hall 229 [email protected] 703-993-5058 M: 11:45 am – 12:30 pm; R: 1:45 pm – 2:30 pm; and by appointment

Professor: Office: Email: Office hours:

Dr. Seokwoo Lee Enterprise Hall 230 [email protected] R: 12:00 pm – 1:30 pm; and by appointment

Lecture Schedule Professo Section(s) Day and time r FNAN 301-001 & FNAN 303-001 Pilloff M/W: 1:30 pm – 2:45 pm FNAN 301-002 & FNAN 303-002 Pilloff M/W: 3:00 pm – 4:15 pm FNAN 301-005 & FNAN 303-005 Pilloff T/R: 3:00 pm – 4:15 pm FNAN 301-003 & FNAN 303-003 Lee T/R: 4:30 pm – 5:45 pm FNAN 301-004 & FNAN 303-004 Lee T/R: 5:55 pm – 7:10 pm FNAN 301-DL1 & FNAN 303-DL1 Pilloff Not relevant

Name Jade Wang Soraya Farage Justin Kee Ano Glonti CiCi Cruse Trang Nguyen Emily Lamback Maryam Jan Kevin Sanford Jackie Loh

Location Exploratory Hall L004 Exploratory Hall L004 Enterprise Hall 80 Exploratory Hall L004 Innovation Hall 105 On-line

Teaching assistant contact information and office hours Office hours E-mail address Day and time [email protected] Mondays, 2:30 pm – 3:30 pm [email protected] Mondays, 3:30 pm – 4:30 pm [email protected] Tuesdays, 3:00 pm – 4:00 pm [email protected] Tuesdays, 4:00 pm – 5:00 pm [email protected] Wednesdays, 10:30 am – 11:30 am [email protected] Wednesdays, 12:00 pm – 1:00 pm [email protected] Wednesdays, 2:30 pm – 3:30 pm [email protected] Wednesdays, 5:00 pm – 6:00 pm [email protected] Thursdays, 4:15 pm – 5:15 pm [email protected] Thursdays, 5:30 pm – 6:30 pm

Location

Enterprise Hall 278

Note: there are no TA office hours during the first week of the semester Section FNAN 301/303 - 318 FNAN 301/303 – 301 FNAN 301/303 - 311 FNAN 301/303 – 302 FNAN 301/303 – 312 FNAN 301/303 – 303 FNAN 301/303 – 313 FNAN 301/303 – 304 FNAN 301/303 – 314 FNAN 301/303 – 305 FNAN 301/303 – 315 FNAN 301/303 – 306 FNAN 301/303 - 307 FNAN 301/303 – 308 FNAN 301/303 – 309 FNAN 301/303 – 316 FNAN 301/303 - 310 FNAN 301/303 – 317 FNAN 301/303 - 319

TA Maryam Jan CiCi Cruse CiCi Cruse Kevin Sanford Jackie Loh Kevin Sanford Jackie Loh Justin Kee Trang Nguyen Justin Kee Trang Nguyen Emily Lamback Emily Lamback Ano Glonti Ano Glonti Soraya Farage Jade Wang Soraya Farage Jade Wang

Special Graduate Assistant: Office: Email:

Lab Schedule Day Time Patriotweb room Actual room Wed 7:20 pm – 10:00 pm Enterprise Hall 173 Enterprise Hall 173 Thurs 7:30 am – 8:20 am Mason Hall D003 Mason Hall D003 Thurs 8:30 am – 9:20 am Mason Hall D003 Mason Hall D003 Fri 9:00 am – 9:50 am Enterprise Hall 274 Enterprise Hall 274 Fri 9:00 am – 9:50 am Enterprise Hall 174 Enterprise Hall 174 Fri 10:00 am – 10:50 am Enterprise Hall 274 Enterprise Hall 274 Fri 10:00 am – 10:50 am Enterprise Hall 174 Enterprise Hall 174 Fri 11:00 am – 11:50 am Enterprise Hall 277 Enterprise Hall 277 Fri 11:00 am – 11:50 am Enterprise Hall 174 Enterprise Hall 174 Fri 12:00 pm – 12:50 pm Enterprise Hall 277 Enterprise Hall 277 Fri 12:00 pm – 12:50 pm Enterprise Hall 174 Enterprise Hall 174 Fri 1:00 pm – 1:50 pm Enterprise Hall 277 Enterprise Hall 277 Fri 2:00 pm – 2:50 pm Enterprise Hall 277 Enterprise Hall 277 Fri 3:00 pm – 3:50 pm Enterprise Hall 277 Enterprise Hall 277 Fri 4:00 pm – 4:50 pm Enterprise Hall 277 Enterprise Hall 277 Fri 4:00 pm – 4:50 pm Enterprise Hall 174 Enterprise Hall 174 Fri 5:00 pm – 5:50 pm Enterprise Hall 277 Enterprise Hall 277 Fri 5:00 pm – 5:50 pm Enterprise Hall 174 Enterprise Hall 174 Fri 6:00 pm – 6:50 pm Enterprise Hall 174 Enterprise Hall 277

Nuhira Masthan Ahmed Enterprise Hall 240 [email protected]

Course description, objectives, and goals FNAN 301/303 introduces students to the fundamental concepts, principles, and analytical tools in finance. Topics covered include time value of money, security valuation, capital budgeting, risk and return analysis, and cost of capital. Course objectives and learning goals can be found in Supplementary Appendix 1 of this syllabus, which is posted on Blackboard in Course Content in Syllabus material in Additional syllabus-related information. Students are expected to know and adhere to the GMU Honor Code, which deals with actual and attempted acts of cheating, plagiarism, lying, and stealing. Suspected, possible, or potential violations of the Honor Code will be reported to the Honor Committee. More detail on the Honor Code, academic integrity expectations, and classroom behavior standards can be found at http://oai.gmu.edu/the-mason-honor-code-2/ and in Supplementary Appendix 2 of this syllabus, which is posted on Blackboard in Course Content in Syllabus material in Additional syllabus-related information. Appendix B presents a matrix with typical sanction recommendations for non-freshman undergraduates that was approved by the School of Business faculty and that serves as our guide in this course. 2

Prerequisites Course prerequisites can be found on Patriotweb or in the university catalog.

Required Items 1. Financial calculator: Calculators with financial functions are used a great deal to help solve problems in this course. Support will be provided for the TI-83 Plus. Students may use a different calculator if desired, but course instructors may not be able to help with any calculator other than the TI-83 Plus.

2. Maple TA access: Graded assignments must be submitted by students through Maple TA, which is an on-line homework management system that runs “Financial Management Interactive” an on-line finance product that Dr. Pilloff has created that includes more than 160 problems, most of them algorithmic. There are several alternatives for gaining access to Maple TA. Access can be purchased from the GMU bookstore (as a card) or on-line at http://www.kendallhunt.com/pilloff/ (from an emailed code). Once a student has login access to Maple TA, the course assignments can be found at http://kendallhunt.mapleserver.com/gmu/. All students in the course, regardless of their section, should access the section titled “FNAN 301/303 Financial Management Spring 2017.” When registering for Maple TA, students should make sure to enter their Blackboard username as their student id. For example, Dr. Pilloff would enter spilloff as his student id. Students who are retaking the course may reuse the login code that they acquired for a previous semester. Students who are reusing a code may encounter some issues when initially trying to use it for this semester. If that is the case, they should contact Dr. Pilloff and Maplesoft customer service at 800-267-6583 or [email protected]. To register for this semester’s Maple TA, students should sign in, then click on "my homepage" at the top of the page, then click on "enroll in a class" on the left-hand side of the screen, then select "FNAN 301/303 Financial Management Spring 2017" and then click register. Students may not use a login code that has been used by another student in any semester. This could be considered stealing and could result in an Honor Code violation. Students who are new to the course must use a never-been-used access code. 3. Blackboard: Students must have access to Blackboard, an on-line course management system that enables students to receive messages, observe grades, and access course material such as overheads, problems, solutions, notes and corrections, and other relevant material. Blackboard also includes a discussion board, which students are encouraged to use to communicate about course-related issues. Students should not use the email feature associated with Blackboard.

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We plan to start the semester with unique Blackboard pages for each lecture section, but in order to create a large and vibrant community, one Blackboard course will be created for all students in FNAN 301/303. It will be set up shortly after the last day to add classes and will be titled “FNAN 301/303, Spring 2017.” Students without access to the combined site should contact Dr. Pilloff. Blackboard pages can be accessed through http://mymason.gmu.edu.

4. GMU email account: Students are expected to have their GMU email accounts activated, regularly check their inboxes, and keep adequate space available so that they can receive (and, of course, read) emails. Note that in order to help ensure privacy, faculty and students need to use their GMU email accounts when corresponding with each other. See http://masonlive.gmu.edu for more information.

Important resources 1. Answering student questions: If a student has a question related to course material, they can ask their question to someone either in person, through the Blackboard discussion board, or through email. A. If a student would like to talk to someone in person, then they can see any of the instructors (professors or teaching assistants) during office hours, which are listed at the beginning of this document. B. We encourage students to make extensive use of the Blackboard discussion board. If a student would like to ask a question, they can post a message on the relevant forum on the Blackboard discussion board. Once a finance-related message is posted, a TA should address it in a timely manner. One of the benefits of this approach is that all students, not just the one asking the question, can benefit from the exchange. In addition to finance-related forums, there are forums that enable students to communicate with each other for reasons such as asking general questions about the course or trying to form study groups. Because it’s important for students to feel comfortable asking questions, the “anonymous” feature has been activated, which, as the name implies, enables students to post questions and responses anonymously. All communication through the discussion board should be professional and respectful. The discussion board will not be available until shortly after the last day to add classes when one Blackboard course will be created for all students in FNAN 301/303 that will be titled “FNAN 301/303, Spring 2017.” C. If a student would like to ask questions about course material via email, they should send a message to the appropriate TA, which is the one assigned to teach their lab (or to the DL1 section for students in the on-line section of the course). The table on page 2 provides information on which TA is relevant for each section. TAs will attempt to 4

respond within 24 hours, but hopefully sooner (except on weekends and holidays, when it could be longer). Students can send questions related to course material directly to their lecture professor in two cases: 1) the TA did not respond to a finance-related email message (or discussion post) within 24 hours (except on weekends and holidays, when it could be longer) or 2) the student remains unclear about the answer to a question (either from email or the discussion board) after the TA has attempted to answer it. If a student has a question related to an administrative aspect of the course that is not answered in the syllabus, that question should be sent directly to Dr. Pilloff. Examples of such questions would involve issues like a missed exam. 2. Finance Tutors: A list of potential finance tutors is posted on Blackboard, so current students have numerous alternatives for tutoring services if desired. The people on this list performed well in FNAN 301/303 and many are current or recent undergraduates. Although the names of potential tutors are provided on Blackboard, the terms of any arrangements are strictly up to the student and the tutor. This list should not be posted anywhere other than this course’s Blackboard page.

3. Videos: Two types of recorded lectures are available that may be helpful for students: actual lectures from the Fall 2016 semester recorded by GMU-TV (posted on Vimeo) and video PowerPoint lectures (posted on YouTube). The links and relevant topics of these videos can be found on Blackboard in Course Content.

4. Twitter: Dr. Pilloff has set up a Twitter account (@fnan301_fnan303) as a vehicle for sharing tips, suggestions, and information. Following or looking at his Twitter messages is optional, but the tweets should be useful for students in the course. The web address for the Twitter page is: https://twitter.com/fnan301_fnan303 5. Other Help and Tutoring and Services: Information on other help and tutoring services can be found in Supplementary Appendix 3 of this syllabus, which is posted on Blackboard in Course Content in Syllabus material in Additional syllabus-related information.

Exams There will be 4 tests, which will be given on the following Mondays and Tuesdays: February 13/14, March 6/7, April 10/11, and May 1/2. Students in FNAN 301-DL1 or FNAN 303-DL1 will take their tests at 7:30 am (we know it’s early, but it’s the only time we can be confident of getting a room) on “test Tuesdays” in a room to be reserved later. Students in the other sections (001, 002, 003, 004, and 005 of FNAN 301 and FNAN 303) will take their tests in lecture on the relevant day at the relevant time. 5

The final exam, which will be cumulative, will be given at the University-assigned times for each faceto-face lecture section in the regular lecture classroom, and from 10:30 am to 1:15 pm on Friday, May 12, for FNAN 301-DL1 and FNAN 303-DL1 in a room to be reserved later. Note that due to University policies regarding room assignments, it is possible that the dates and times of the tests or final may change for FNAN 301-DL1 and FNAN 303-DL1. It is anticipated that the dates and times will be finalized shortly after the last day to add classes. Relevant information and policies for the exams can be found in appendix A, which students are strongly encouraged to review. It is important for students to become familiar with the material in this appendix, as policy violations often lead to deductions, exams not being accepted (and therefore given zeroes), and/or potential violations of the Honor Code and a report to the Honor Committee. A list of common examrelated deductions is presented in appendix A. At each exam, students will be provided a document with formulas and key notes about assumptions, conventions, and terminology used in the course. Students are strongly encouraged to use this document for all work done in the course. This practice should help build familiarity with the formula and notes document and better prepare students for exams. The document is posted on Blackboard in Course Content in Exam material, information, and old problems. Students should not have their own document with formulas and notes with them during exams. They will be supplied one by us. The following table presents the day and time for each lecture section’s final exam. This information (for face-to-face sections) can be found on the GMU Registrar’s homepage. Lecture section number(s) FNAN 301-001 & FNAN 303-001 FNAN 301-002 & FNAN 303-002 FNAN 301-003 & FNAN 303-003 FNAN 301-004 & FNAN 303-004 FNAN 301-005 & FNAN 303-005 FNAN 301-DL1 & FNAN 303-DL1

Lecture section days and time M/W: 1:30 pm – 2:45 pm M/W: 3:00 pm – 4:15 pm T/R: 4:30 pm – 5:45 pm T/R: 5:55 pm – 7:10 pm T/R: 3:00 pm – 4:15 pm Not relevant

Final exam day Wednesday, 5/10 Monday, 5/15 Tuesday, 5/16 Thursday, 5/11 Thursday, 5/11 Friday, 5/12

Final exam time 1:30 pm – 4:15 pm 1:30 pm – 4:15 pm 4:30 pm – 7:15 pm 4:30 pm – 7:15 pm 1:30 pm – 4:15 pm 10:30 am – 1:15 pm

The following table presents relevant information on when each exam will take place, how much time students will have to complete each exam, and what material and problems will be relevant for each exam. The term “exams” refers to the final and four tests. Students must take all exams with the lecture section that they are registered for unless they get explicit permission from Dr. Pilloff to do otherwise.

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Exa m

Date February 13 (MW sections)

Test 1

Test 2

Test 3

Test 4

Time limit & # questions

Material covered

Relevant test bank problems

TVM, part 1, all

or

60 minutes

February 14 (DL1 and TR sections) March 6 (MW sections)

10 questions

or

60 minutes

March 7 (DL1 and TR sections) April 10 (MW sections)

10 questions

or

60 minutes

April 11 (DL1 and TR sections) May 1 (MW sections)

10 questions

or

60 minutes

May 2 (DL1 and TR sections)

10 questions

TVM, part 2, up to and including problems involving finding the PV of a delayed annuity, annuity due, or perpetuity

TVM1: all (1 – 23) TVM2: 1 – 66

TVM, part 2, from finding the future value of multiple cash flows to the end of topic

TVM2: 67 – 124

Bonds & stocks, up to and including overview of stocks

Stocks: 1 – 10

Bonds: all (1 – 43)

Bonds & stocks, from rate of return for stocks to end of topic

Stocks: 11 – 63

Capital budgeting criteria, all

Capital budgeting criteria: all (1 – 24)

Relevant cash flows and NPV analysis, up to and including what-if analysis

Relevant CFs & NPV: 1 – 33

Relevant cash flows and NPV analysis, from relevant cash flows: finding NPV to end of topic

Relevant CFs & NPV: 34 – 42 Risk & return: all (1 – 55)

Risk and return, all TVM1: 1, 2, 10, 15, 17, 20, 22 TVM2: 1, 2, 6, 13, 35, 41, 48, 49, 62, 63, 64, 65, 66, 67, 68, 74, 76, 78, 80, 82, 84, 86, 88, 91, 98, 100, 102, 104, 106, 107, 111, 112, 114, 116, 118, 120, 122, 124 Bonds: 3, 4, 33, 37, 39, 41, 43

Final

Depends on lecture section

140 minutes 20 questions

All material covered in course except corporate financial management

Stocks: 19, 21, 25, 26, 30, 33, 34, 39, 40, 45, 57, 59, 61, 63 Capital budgeting criteria: 16, 17, 18, 19, 20, 23, 24 Relevant CFs & NPV: 4, 7, 9, 13, 14, 21, 23, 25, 26, 27, 30, 31, 36, 37, 38, 40, 41, 42 Risk & return: 4, 5, 6, 8, 14, 15, 16, 21, 24, 26, 29, 31, 41, 44, 45, 47, 51, 52, 53, 55 Cost of capital: 1, 2, 3, 4, 5, 6, 7

Students can only take a make-up exam or an exam at an alternative time if explicit permission from the course coordinator (Dr. Pilloff) is given. If an exam is missed for an excused reason (with adequate documentation) such as required military service, GMU activities, some religious occasions, certain unavoidable work conflicts, or poor health, then a make-up would be permitted with no deductions. If an exam is missed for an unexcused reason such as a family vacation, or if inadequate documentation is 7

provided, then a make-up would be permitted, but a deduction of 30 points would be applied to the exam score. Students must confirm with Dr. Pilloff that they plan to take a make-up exam. Moreover, if a student fails to get permission to make up an exam in a timely manner, that student may be prohibited from taking a make-up or may be allowed, but with a deduction. Eligible students can choose their preferred time for a make-up exam among the options listed in the following table: Date Friday, February 24, 2017 Friday, March 10, 2017 Friday, March 24, 2017 Friday, April 21, 2017 Friday, May 5, 2017

Time 9:30 am to 10:30 am 9:30 am to 10:30 am 9:30 am to 10:30 am 9:30 am to 10:30 am 9:30 am to 10:30 am

Location to be reserved later to be reserved later to be reserved later to be reserved later to be reserved later

In some cases, students who address the situation ahead of time may receive permission to take the exam with a different section of the course. Due to possible scheduling conflicts with other GMU final exams or other excused reasons, students may be given permission to take their final at an alternative time to the one assigned for their lecture section by ...