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TROY UNIVERSITY FIN 3331

Fundamentals of Financial Mathematics

COURSE SYLLABUS

Spring 2014 January 9 – May 7, 2014

NOTE: For course syllabus posted prior to the beginning of the semester, the instructor reserves the right to make minor changes prior to or during the semester. The instructor will notify students, via email or Blackboard announcement, when changes are made in the requirements and/or grading of the course.

Classroom:

Bibb Graves Hall 147

Class time

TTH 10:00 AM – 11:30 AM, January 9, 2014 – May 7, 2014

INSTRUCTOR EDUCATION: Alabama State University – Finance – Undergraduate – Bachelor Degree Troy University – MBA Finance – Graduate – Masters Degree Mississippi State University – Finance – Graduate – Doctoral Degree LATE REGISTRATION: Students who register during the first week of the semester, during late registration, will already be one week behind. Students who fall into this category are expected to catch up with all of Week #2 and Week #3's work by the end of Week #3. No exceptions, since two weeks constitutes a significant percentage of the semester's lessons. Students who do not feel they can meet this deadline should not enroll in the class. If they have registered, they should see their registrar, academic adviser, CTAM/eArmyU representative, or Military Education officer to discuss their options. Also note that late registration may mean you do not receive your book in time to make up the work you missed in Week #2&3. Not having your book on the first day of class is not an excuse for late work after the deadlines in the Schedule.

INSTRUCTOR INFORMATION: Charod D. Dodd Assistant Professor of Finance Sorrell College of Business 108-C Bibb Graves Hall Troy, AL 36082 334-808-6482 (O) 334-538-1269 (C) 334-670-3592 (F) cddodd@troy.edu Students: Please put course title in the subject line of any emails sent to the instructor.

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OFFICE HOURS: I'm available by email at any time, office, or by phone on weekdays during my office hours. You can also post questions in the Ask the Instructor section in the discussion forum in Blackboard. I check that forum daily during the weekdays, but for more immediate and personal assistance, you should contact me via email. Office Hours: 9:00 – 10:00 AM & 11:30 AM – 2:30 PM Tuesday & Thursday Email: cddodd@troy.edu Troy instructors are required to respond to student messages within 24 to 48 hours. All courses at Troy University utilize the Blackboard Learning System. In every course, students should read all information presented in the Blackboard course site and should periodically check for updates-at least every 48 hours. Remember: This is not a “correspondence course” in which a student may work at his/her own pace. Each week there are assignments, online discussions, online activities and/or exams with due dates. Refer to the schedule at the end of the syllabus for more information. Departmental Contacts Department Chair: Dr. Scott Beaulier, sbeaulier@troy.edu Associate Department Chair: Dr. Chung Baek, cbaek@troy.edu The contact information for Drs. Beaulier and Baek is provided in the event that you cannot resolve a situation with me, your instructor. Drs. Beaulier and Baek are to be contacted ONLY after (1) you have first contacted me, (2) you have not received a response from me within 48 hours, and (3) you do not agree with my resolution of your concern. For grade appeals, please consult the appropriate Undergraduate Catalog for areas of permissible appeal. Thank you for your help in this matter. PREREQUISITES: ACT 2291, ACT 2292, ECO 2251, ECO 2252, LAW 2221, MTH 2201

ENTRANCE COMPETENCIES: The student must possess the knowledge and skills of a high school graduate and the capability to perform on a college level. Knowledge of basic mathematics, such as multiplying and dividing fractions and using percentages, simple algebra, and the ability read and construct graphs, is assumed. STUDENT EXPECTATION STATEMENT:

• The student is expected to participate in the course via email exchanges (or other communication) with the instructor, by reading the assigned readings, submitting comments to the discussion forums, submitting assignments, and completing quizzes in a timely fashion.

• Students are expected to check their emails daily and the announcements at least every 48 hours. CATALOG DESCRIPTION: Analysis, planning, and control of internal and external finance decisions of a firm with emphasis on corporate structure. Three Hour Lecture. This course covers fundamental topics in financial mathematics such as theory of interest, capital budgeting, break-even analysis, investment, and return and risk. All concepts are mathematically

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demonstrated and real-life examples are given to show how to apply mathematical skills to business and financial problems. PURPOSE (COURSE OBJECTIVES): The purpose of this course is to introduce and provide an overview of the business field of finance and serve as a survey of the principles, concepts, and tools of analysis in managerial finance. STUDENT LEARNING OUTCOMES: 1. Identify the primary goal of the firm, consequences of unethical behavior, and conflicts between managers and stakeholders. 2. Identify the different types of financial markets and institutions, and how they enhance capital allocation and market efficiency. 3. List the key financial statements, identify the kinds of information they provide, and estimate and explain free cash flow. 4. Analyze the financial condition of a firm by using proper financial-analysis techniques. 5. Calculate financial values based on the concept and techniques of the time value of money. 6. Explain the factors that influence the cost of money, and what determines the shape of the yield curve. 7. Calculate the value and yield of bonds 8. Calculate the value and yield of stocks. 9. Evaluate financial securities and portfolios using appropriate risk-return analysis. 10. Calculate the weighted average cost of capital. TEXTBOOK(S) AND/OR OTHER MATERIALS NEEDED:

Brigham, E.F. and Houston, J.F. “Fundamentals of Financial Management” 13th edition Thomson/South-Western ISBN 10: 1-285-12665-3 or ISBN 13: 978-1-285-12665-4. This is a Cengage text, you will need the access code for Cengage on Blackboard. Do not try to use Thomson One!

Students should have their text the first week of class. Not having your book will not be an acceptable excuse for late work. Students who add this course late should refer to the “Late Registration” section for further guidance.

The textbook provider for the eCampus of Troy University is MBS Direct. The web site for textbook purchases is http://bookstore.mbsdirect.net/troy.htm.

ADDITIONAL READING:

• Recommended: Business calculator such as Texas Instruments BA II. A Texas Instrument BA II Plus or a Texas Instrument BA II Plus Professional financial calculator is required and will be used throughout the class. Students may not share calculators with others. Students must also have access to a computer with an internet connection and a certified copy of Microsoft Excel with all Financial Add-Ins activated. Students are encouraged to read and bring a copy of the Wall Street Journal, New York Times, Business Weekly, Forbes, Economist, or Barron’s to each class meeting. The Sorrell College of Business participates in the Academic Partnership Program, and students may pick up a copy

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of the New York Times & WSJ at locations throughout Bibb Graves Hall or at the campus library.

RESEARCH COMPONENT: None There will not be a research requirement for this course. THREE USEFUL WEBSITES FOR THIS COURSE: www.wsj.com www.yahoofinance.com www.morningstar.com COURSES AT TROY UNIVERSITY: All courses at Troy University utilize Blackboard Learning Management System. In every course, students should read all information presented in the Blackboard course site and should periodically check for updates—at least every 48 hours. SITE MAP FOR YOUR BLACKBOARD COURSE SITE: To obtain a site map to enable the student to navigate through the Blackboard course site, please go to the Blackboard course site and click on the “Site Map” button found on the left side of the computer screen. TROY EMAIL:

All Students

Effective July 1, 2005, all students were required to obtain and use the TROY email address that is automatically assigned to them as TROY students. All official correspondence (including bills, statements, emails from instructors and grades, etc.) will be sent ONLY to the troy.edu (@troy.edu) address.

• All students are responsible for ensuring that the correct email address is listed in Blackboard by the beginning of Week #1. Email is the one way the instructor can, at least initially, communicate with you. It is your responsibility to make sure a valid email address is provided. Failure on your part to do so can result in your missing important information that could affect your grade.

Your troy.edu email address is the same as your Web Express user ID following by @troy.edu. Students are responsible for the information that is sent to their TROY account. You can get to your email account by logging onto the course and clicking “email link.” You will be able to forward your Troy email to your personal or army email. You must first access your Troy email account through the Troy email link found on the website. After you log in to your Troy email account, click on “options” on the left hand side of the page. Then click on “forwarding.” This will enable you to set up the email address to forward your email to. Attendance Policy In addition to interaction via Blackboard, classroom participation, and e-mail contact, students are required to contact the instructor via e-mail or telephone by the first week of the term for an initial briefing.

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COURSE REQUIREMENTS:

• Upon Enrollment: Student should check e-mail address for accuracy, introduce yourself on the student discussion board

• Discussion Board: Weekly, students must participate utilizing the discussion topic. • Quizzes: Weekly quizzes are required, and must be completed by the due date. • Exams: Three Exams will be announced on blackboard and must be completed by the due date. • Homework: assignments must be completed in Cengage by Sunday midnight.

STUDENT/FACULTY INTERACTION:

• Interaction will take place in classroom, via email, Telephone, Discussion Board Forums, Comments on Written Assignments, Office Visits (if needed or possible).

• The student will participate in this course by following the guidelines of this syllabus and any additional information provided by the instructor.

• The student is expected to remain in regular contact with the instructor and class via email or other communications means, by participating in the discussion forums, submitting assignments and taking exams, all in a timely fashion.

• TROY requires instructors to respond to students’ e-mail within 24 hours M-Th, and 48 hours Fri-Sun.

• As instructor, I will communicate on the Blackboard.com Announcement page and/or via e-mail, or answering questions on the discussion board.

MAKE-UP WORK POLICY: Missing any part of this schedule may prevent completion of the course. If you foresee difficulty of any type (i.e., an illness, employment change, etc.) which may prevent completion of this course, notify the instructor as soon as possible. Failure to do so will result in failure for an assignment and/or failure of the course. See “Attendance,” above. If I have not heard from you by the deadline dates for assignments, exams, or forums, no make-up work will be allowed (unless extraordinary circumstances existed, such as hospitalization). Requests for extensions must be made in advance and accompanied by appropriate written documentation if the excuse is acceptable to the instructor. "Computer problems" are not an acceptable excuse. INCOMPLETE GRADE POLICY: Missing any part of the Course Schedule may prevent completion of the course. If circumstances will prevent the student from completing the course by the end of the semester, the student should complete a request for an incomplete grade. Note: A grade of incomplete or “INC” is not automatically assigned to students, but rather must be requested by the student by submitting a Petition for and Work to Remove an Incomplete Grade Form. Requests for an incomplete grade must be made on or before the date of the final assignment or test of the semester. A grade of “INC” does not replace an “F” and will not be awarded for excessive absences. An “INC” will only be awarded to student presenting a valid case for the inability to complete coursework by

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the conclusion of the semester. It is ultimately the instructor’s decision to grant or deny a request for an incomplete grade, subject to the policy rules below.

Policy/Rules for granting an Incomplete (INC): • An incomplete cannot be issued without a request from the student. • To qualify for an incomplete, the student must:

a. have completed over 50% of the course material and have a documented reason for requesting the incomplete. (50% means all assignments/exams up to and including the mid-semester point, test, and/or assignments.)

b. be passing the course at the time of their request. If both of the above criteria are not met an incomplete cannot be granted.

• An INC is not a substitute for an F. If a student has earned an “F” by not submitting all the work or by receiving an overall F average, then the F stands.

METHOD OF INSTRUCTION: This is a Campus class. It is not a “correspondence course” in which students may work at his or her own pace. Each week there will be assignments, on-line discussions, and/or exams with due dates. Refer to the schedule at the end of this syllabus for more information.

METHOD OF EVALUATION: Discussion threads 5 points each (Due each Sunday by midnight) = 60 points total Assigned Homework 100 points total (Due each Sunday by midnight) Weekly Quizzes 5 points each (Due each Sunday by midnight) = 45 points total Exams 100 points each = 300 points total Final Exam (Comprehensive) 100 points (Proctored Exam) California Critical Thinking Skills 30 points Total Points for Course 635 Points ASSIGNMENT OF GRADES: All grades will be posted in the student grade book in Blackboard and will be assigned according to the following or similar scale:

A 90 – 100% (635-571 Points) B 80 – 89% (570-508 Points) C 70 – 79% (507-444 Points) D 60 – 69% (443-381 Points) F 59% and below (380 & Below Points)

Postings: I post grades in Blackboard, in the Gradebook. FA: “FA” indicates the student failed due to attendance. This grade will be given to any

student who disappears from the course for three or more weeks. See the Attendance section of this syllabus for additional information.

Final Grade Policy: Please note that all final grades are calculated on a cumulative point system, not a percentage system. That is, there are 635 available points in the course. If a student has accumulated a total of 565.15 points (89.00 percent) at the end of the course, the final grade will be recorded as a B.

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Unless there is an error in your final grade calculation, do not contact me after the final exam to request that your letter grade be changed. I will not give an extra assignment or change grades for any reason except in cases where there is an error in the calculation of the final grade. No exceptions. Students who ignore this policy will forfeit one letter grade. Important Dates: Monday, January 13, 2014 – Last day to drop, add a class, or withdraw without financial penalty. Tuesday, April 29, 2014 – Last day of class. Monday, May 5, 2014 – Final Exam, 147 Bibb Graves Hall, 11:00 AM – 1:00 PM. SUBMITTING ASSIGNMENTS:

• The assignments for the discussion will be submitted in the discussion board by mid-night of the due date (note: Blackboard and I operate on central US time).

• Include your names on the assignments. Points will be deducted for failure to follow the format requirements.

EXAMINATION SCHEDULE & INSTRUCTIONS:

• The quizzes/exams will have multiple choice & true/false questions. Formula sheets will be provided in blackboard.

• See the Course Schedule in the back of this syllabus for the dates during which time the quizzes/exams will be available.

• The exams will be delivered in class. The quizzes will be found in the Assessments section. The quizzes/exams will be timed.

Exam Policy: There will be three exams and a cumulative final exam administered during the course. All exams will be held during regular class hours. Exam dates are noted in the class schedule at the end of the syllabus. Exam dates are fixed and will not be changed unless the University is closed. Each student is expected to adjust his or her schedule to fit these exam times. A missed exam will result in a zero for the exam unless the student presents a legitimate, university approved excuse at least 24 hours prior to the scheduled exam. If the excuse is verifiable and falls under the university’s policy, the cumulative final exam will substitute for the missed exam. TECHNOLOGY REQUIREMENTS: Students must have: • A TROY e-mail account that you can access on a regular basis (see "TROY email" above) • E-mail software capable of sending and receiving attached files. • Access to the Internet with a 56.9 kb modem or better.

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• A personal computer capable of running Netscape Navigator 7.0 or above, Internet Explorer 6.0 or above, or current versions of Firefox or Mozilla. Students who use older browser versions will have compatibility problems with Blackboard.

• Microsoft WORD software. (I cannot grade anything I cannot open! This means NO MS-Works, NO Wordpad, NO Wordperfect)

• Virus protection software, installed and active, to prevent the spread of viruses via the Internet and email. It should be continually updated!

Internet Access: Students must have access to a working computer and access to the internet. Students can use the

TROY computer lab, a public library, etc., to insure they have access. “Not having a computer” or “computer crashes” are not acceptable excuses for late work. TECHNICAL SUPPORT INFORMATION: If you experience technical problems, you should contact the Blackboard Online Support Center. You can do this in two ways. First if you can log onto the course simply look at the tabs at the top of the page. You will see one entitled, “Tech Support.” If you click on this tab, you will see the information below. You can click on the “Blackboard Support Center” link and receive assistance. If you cannot log onto the course, simply contact the center by calling toll free the number listed below. Assistance is available 24 hours a day/7 days per week.

Blackboard Support Center Blackboard Online Support Center for Troy University provides Customer Care Technicians who are available to support you 24 hours a day/7 days a week.

Call 1-888-383-6206 for live assistance If you are experiencing technical difficulties with your coursework or with features in Blackboard that are generating errors, please click the link below. Blackboard Support Center: http://troy.edu/bbhelp. NON-HARASSMENT, HOSTILE WORK/CLASS ENVIRONMENT: Troy University expects students to treat fellow students, their instructors, other TROY faculty, and staff as adults and with respect. No form of “hostile environment” or “harassment” will be tolerated by any student or employee.

AMERICANS WITH DISABILITY ACT (ADA): Troy University recognizes the importance of equal access for all students. In accordance with the Americans with Disabilities Act and Section 504 of the Rehabilitation Act of 1973, the University and its Adaptive Needs Program seeks to ensure that admission, academic programs, support services, student activities, and campus facilities are accessible to and usable by students who document a qualifying disability with the University. Reasonable accommodations are available to students who: • are otherwise qualified for admission to the University

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• identify themselves to appropriate University personnel • provide acceptable and qualifying documentation to the University. Each student must provide recent documentation of his or her disability in order to participate in the Adaptive Needs Program. Please visit the Adaptive Needs Website @ http://trojan.troy.edu/etroy/studentservices/adaptiveneeds.html to complete the necessary procedure and forms. This should be accomplished before the beginning of class. Students who have special needs as addressed by the Americans with Disabilities Act should speak with the instructor, contact the Office of Adaptive Needs Program (Wright Hall 226), or call 334.670.3220/3221. Various accommodations are available through the Adaptive Needs Program. The faculty in the Sorrell College of Business makes every effort to accommodate unique and special needs of students with respect to speech, hearing, vision, seating, or other possible disabling conditions. Please notify the instructor as soon as possible of requested accommodations or ways to help. HONESTY AND PLAGIARISM: The awarding of a university degree attests that an individual has demonstrated mastery of a significant body of knowledge and skills of substantive value to society. Any type of dishonesty in securing those credentials therefore invites serious sanctions, up to and including suspension and expulsion (see Standard of Conduct in each TROY Catalog). Examples of dishonesty include actual or attempted cheating, plagiarism*, or knowingly furnishing false information to any university employee. *Plagiarism is defined as submitting anything for credit in one course that has already been submitted for credit in another course, or copying any part of someone else’s intellectual work – their ideas and/or words – published or unpublished, including that of other students, and portraying it as one’s own. Proper quoting, using strict APA formatting, is required, as described by the instructor. All students are required to read the material presented at: http://troy.troy.edu/writingcenter/research.html • Students must properly cite any quoted material. No semester paper, business plan, semester project,

case analysis, or assignment may have more than 20% of its content quoted from another source. Students who need assistance in learning to paraphrase should ask the instructor for guidance and consult the links at the Troy Writing Center.

• This university employs plagiarism-detection software, through which all written student

assignments are processed for comparison with material published in traditional sources (books, journals, magazines), on the internet (to include essays for sale), and papers turned in by students in the same and other classes in this and all previous semesters. The penalty for plagiarism may range from zero credit on the assignment, to zero in the course, to expulsion from the university with appropriate notation in the student’s permanent file.

Academic dishonesty is not tolerated. All occurrences of academic misconduct will be addressed in accordance with guidelines and procedures outlined in the ORACLE: Student Handbook and Troy University approved Honor Code that applies to all students. The code is as follows: "As a Troy University student I will conduct myself with honor and integrity at all times. I will not lie, cheat, or steal, nor will I accept the actions of those who do." Upon accepting admission to Troy University, a student immediately assumes a commitment to uphold the Honor Code, to accept responsibility for learning, and to follow the philosophy and rules of the Honor

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Code. Students will be required to state their commitment on examinations, research papers, and other academic work. Ignorance of the rules does not exclude any member of the Troy University community from the requirements or the processes of the Honor Code. Plagiarism, cheating, or dishonesty will cause a student to get a course grade of “F” and may result in suspension from the university for a specific or indefinite period of time. LIBRARY SUPPORT: The Libraries of Troy University provide access to materials and services that support the academic programs. The address of the Library Web site is https://uclibrary.troy.edu/. This site provides access to the resources of all Campus and Regional Libraries, as well as to resources such as the Library’s Catalog and Databases. Additionally, the Library can also be accessed by choosing the “Library” link from the University’s home page, www.troy.edu, or through the eLibrary tab within Blackboard. FACULTY EVALUATION: In the 15th week of each semester, students will be notified of the requirement to fill out a course evaluation form. These evaluations are completely anonymous and are on-line. Further information will be posted in the Announcements section in Blackboard. Additional Requirements and Policies: A business-like demeanor is expected of all students in all aspects of the course, e.g., attendance, tardiness, preparation, class discussion, assignments, and examinations. Students are not permitted to use a recording device (audio or video) in class unless approved by the instructor. Students may not wear headgear of any kind during an exam. Students who must wear headgear for medical reasons are exempt from this policy upon written documentation of medical necessity from a qualified medical physician. Students who miss a class, for whatever reason, should obtain all notes and assignments from a fellow classmate. I do not give out my lecture notes to anyone for any reason. In addition, I do not support cramming, thus I will not answer questions about homework on the day it is due. I also require evidence of your work on an assignment before providing direction or advice. Cell Phone Policy: Unless you have prior approval for a specific class day, please turn off all cell phones when you enter the classroom. Violations of this policy will not be tolerated. If a student’s cell phone rings during a lecture he or she will be excused from class for the remainder of the class day. Cell phones and Bluetooth devices should not be visible during an exam. If the instructor sees or hears a student’s cell phone during an exam the student will be excused from the exam with a zero. COURSE SCHEDULE:

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MODULE 1: INTRODUCTION & FUNDAMENTAL CONCEPTS TO FINANCIAL MANAGEMENT

Thursday January 9 Introduction Course Introduction

Tuesday January 14 Chapter 1 Lecture Chapter 1 – Overview of Financial Mgt.

Thursday January 16 Chapter 1 Lecture Chapter 1 – Overview of Financial Mgt.

Tuesday January 21 Chapter 2 Financial Markets and Institutions

Thursday January 23 Chapter 2 Financial Markets and Institutions

Tuesday January 28 Chapter 3 Financial Statements, Cash Flow, and Taxes

Thursday January 30 Chapter 3 Financial Statements, Cash Flow, and Taxes

Tuesday February 4 Chapter 3 Financial Statements, Cash Flow, and Taxes

Thursday February 6 Review Exam Review

Tuesday February 11 Exam I Exam I: 10:00 AM – 11:15 AM

MODULE 2: FUNDAMENTAL CONCEPTS AND FINANCIAL ASSETS

Thursday February 13 Chapter 4 Analysis of Financial Statements

Tuesday February 18 Chapter 4 Analysis of Financial Statements Thursday February 20 Chapter 4 Analysis of Financial Statements

Thursday February 27 Chapter 5 Time Value of Money

Tuesday March 4 Chapter 5 Time Value of Money

Thursday March 6 Chapter 5 Time Value of Money

Tuesday March 11 Holiday Spring Break

Thursday March 13 Holiday Spring Break

Tuesday March 18 Chapter 6 Interest Rates

Thursday March 20 Chapter 6 Interest Rates Tuesday March 25 Review Exam Review

Thursday March 27 Exam II Exam II: 10:00 AM – 11:15 AM

MODULE 3: VALUING FINANCIAL ASSETS

Tuesday April 1 Chapter 7 Bonds and Their Valuation

Thursday April 3 Chapter 7 Bonds and Their Valuation

Tuesday April 8 Chapter 8 Risk and Rates of Return

Thursday April 10 Chapter 8 Risk and Rates of Return

Tuesday April 15 Chapter 9 Stocks and Their Valuation

Thursday April 17 Chapter 9 Stocks and Their Valuation

Tuesday April 22 Chapter 9 Stocks and Their Valuation / Exam Review Thursday April 24 Exam III Exam III: 10:00 AM – 11:15 AM

Tuesday April 29 CCTST Exam CCTST Exam

MODULE 4: COMPREHENSIVE FINAL EXAM

Monday May 5 Exam IV Comprehensive Exam IV: 11:00 AM – 1:00 PM

END OF COURSE

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