Finance 301 – Section 03Semester: Fall 2016Basic Business Finance

Class Time:TR 2:30PM – 3:45PM

Meeting Place: JHJ 210

Dr. Zahid IqbalOffice: JHJ 367 – TSU Main CampusPhone #: 713-313-7737E-mail: Iqbal_zx@tsu.edu

Office Hours (in Room 367)TR 1:00pm – 2:30pm

REQUIRED TEXTBOOKTitle: Financial ManagementAuthor: Raymond M. BrooksPublisher: PearsonEdition: 3e, 2014ISBN 13: 978-0-13-386669-8; ISBN 10: 0-13-3866669-6

COURSE PRE-REQUISITESAccounting 231 and 232; Economics 231

COURSE DESCRIPTIONThis course provides students an introduction to the concepts of financial markets; mathematics of finance; cost of capital and capital budgeting; security valuations; and international finance

LEARNING OBJECTIVESUpon completion of Fin 301, students are expected to1. Demonstrate an understanding of basic concepts and principles of finance (exams).2. Understand the process of financial analysis, valuation, and financial decisions (exams and

projects).3. Become familiar with current financial news and events (20 percent of exam grade).4. Develop financial problem-solving and quantitative skills (exams).5. Develop analytical skills (exams and financial analysis project).6. Develop technology skills (projects: spreadsheet, web research, PowerPoint).7. Develop writing and presentation skills (projects and presentations)

TEXTBOOK PURCHASEPlease purchase textbook no later than the second class period.

FINANCIAL CALCULATORYou must have a TI BAII+ financial calculator that includes NPV and IRR features to get through the course. You cannot share calculators during exams. I may also refer to charts/equations to explain financial calculations.

Class AttendanceStudents taking business classes are expected to attend all classes.Class attendance will be on a regular basis. You will be marked absent if you come late and leave before the class is adjourned. You will be marked absent if you wander in out of the class room. I will allow excused absences (e.g., illness, University business). You must get my approval in advance and provide documentation for excused absence. Attendance is roughly 12.5% percent of your total grade.

Cell PhonesPlease turn off cell phone and other electronic devices during class. Put your cell phone on vibrate if you are expecting an emergency call. No text messaging allowed in class.

OTHER POLICIES1) With the exception of a few important concepts that will be included in subsequent tests, the

regular tests are non-cumulative.2) It is student’s responsibility to obtain all information from Blackboard postings. This includes

any announced changes in exam dates, etc. that would be conveyed to the students in advance through the announcement section of Black Board.

3) Students are expected to log-on to the Black Board site on a regular basis to stay current with the course.

4) The instructor reserves the right to change/modify the syllabus if the situation calls for it.

MAKE-UPSIf you miss a class exam for excused reasons, you may take a make-up exam on the day of the final exam. You must get my approval prior to the missed exam.If you miss a class exam for unexcused reason, you may take a make-up exam on the day of the final exam. There is a 20% penalty for missing class exam for unexcused reasons.

ACADEMIC DISHONESTYI will impose the following sanctions for an academic misconduct. Grant no credit (or a zero) for the examination or assignment in question AND reduce the final course grade by a letter grade (e.g., from A to B; B to C; C to D; D to F, etc).Academic misconduct includes, but is not limited to talking during exam, copying, cheating, and collusion.

EVALUATION AND GRADING STANDARDS A. Points will be distributed as follows: Class Test (2x100) 200 points Class attendance 75 points

Stock market project - progress report 25 points - teamStock market project part – final report 75 points - team

Financial analysis – progress report 25 points – team Financial analysis project – final report 75 points – team

Financial analysis presentation 25 points – individual gradingFinal Exam 100 points

Total 600 points

B. Grading Scale

Total Points Earned (out of 600 points) Letter Grade600 558 600

540 557528 539498 527480 497468 479438 467420 437408 419378 407360 377

A A- B+

B B- C+

C C-

D+D

D-

DROPSIn compliance with the University catalog, Nov 4, 2016 is the last day to drop a course. The student, who wants to drop the class, is responsible for processing any paperwork necessary to drop the class.List of Topics and DescriptionsTopic Description (in the form of key questions)Goal of the Firm,Principles

What goals and principles must a financial manager know to make financing and investment decisions?

Financial MarketsInterest Rates

What are the different types of financial markets and how do they operate? What determine interest rates?

Financial Analysis How do we analyze financial performance of a business?Time Value of Money What financial calculations we must know as investors and financial managers?Risk and Return What explain risk and return of single investment and portfolio?Bonds How do investor and financial manager price a bond and determine its return?Stocks How do investor and financial manager price a stock and determine its return?Cost of Capital How do financial managers determine cost of obtaining funds?Capital Budgeting What methods do financial managers use to invest money in their businesses?Working Capital What short-term assets and financing sources businesses utilize?

Dates Chap Chapter Topics Readings/Problems

8/23 1 Introduction & instructionsIntroduction to Finance Read key topics

8/258/30 2

Project DiscussionFinancial Statements

Read key topicsProblems: 2-2a, 2-3a, 7, and 8

9/69/8 14 Financial Analysis Read Chapter

Mini case: Questions 1, 2, 3, 4, & 59/139/15 3 Financial Calculator

Time Value of MoneyProblems: 2, 3, 7, 9, 10, 14, 15, 16, 17, 27, 28

Exam I9/20

Chapters 1 (definitions), 2 (definitions & problems), 14 (definitions and problems) and 3 (basic problems) PLUS financial news discussed in class.

9/15 Stock Market Progress Report DueAll participating team members name must appear on the Progress Report

9/229/27 4 Time Value of Money Problems: 1 (6%), 2, 3, 4, 7, 10, 12,

16, 24, 26, 28, 30

9/29 5 Interest Rates Terminologies and Premium Key Terms

9/2910/4 6 Bond Terminologies and Pricing Read key topics

Problems: 1, 5, 11a, 12a, 13a

10/4 Financial Analysis Progress Report DueAll participating team members name must appear on the Progress Report

10/610/11 7 Stock Terminologies, Pricing,

Rate of Return

Read key topicsProblems: 1a, 2a, 5a, 9a, 11a, 12a, 15, 17, 25

10/13 Review for Exam IIExam II10/18

Chapters 4 (problems), 5 (definitions), 6 (definitions & problems), 7 (definitions & problems), PLUS financial news discussed in class.

10/2010/25 8 Risk and Return, Diversification

CAPMRead key topicsProblems: 1, 3, 5, 9, 12, 15

10/25 Financial Analysis Project & Presentation Due10/2711/111/3

9Payback, NPV, IRR, PI Read Chapter

Problems: 1, 7a, 9, 13, 20

11/8 10 TerminologiesOperating Cash Flow

Read key topicsProblem: 11

11/1011/15 11 Cost of Capital Read key topics

Problems: 4, 5, 7, 8, 9a, 1111/15 Stock Market Project Due11/22 Review for Final Exam11/29 Financial Analysis Presentation – 5 teams12/1 Financial Analysis Presentation – 5 teamsFinal ExamTBA Final Exam: Chapters 8, 9, 10, 11 PLUS financial news discussed in class.

CALENDAR