TITLE: PRINCIPLES OF FINANCE
 

Content Outline

Grading Procedures

Text & References

Prerequisites

1. CATALOG DESCRIPTION:
   Principles of Finance (3). A comprehensive study of the field of finance, covering institutions, financial markets, investments, financial theory and techniques relating to financial decisions in business. Prerequisites: ACC 201 and at least junior standing.
2. PURPOSE:
   To familiarize students with the basic financial tools and techniques used in the financial management function.
3. COURSE OBJECTIVES:
   
   1. To develop both a conceptual and an analytical understanding of the role of the finance function and the financial manager in today's corporate business environment.
   2. To introduce the basic techniques used in the finance function: time value of money, analysis of financial statements, capital budgeting, firm valuation, and long-term and short-term financing decisions.
   3. TENTATIVE COURSE OUTLINE:
      

      Week 1	Overview of Finance (Ch. 1)
      Week 2	No class Institutions and Markets (Ch. 2)
      Week 3	Institutions and Markets (Ch. 2) Financial Statements (Ch. 3)
      Week 4	Financial Statements (Ch. 4)
      Week 5	Time Value of Money (Ch. 5) Exam 1 (Chapters 1-4)
      Week 6	Time Value of Money (Ch. 5)
      Week 7	Risk and Return (Ch. 6)
      Week 8	Bond and Stock Valuation (Ch. 7)
      Week 9	Bond and Stock Valuation (Ch. 7) Exam 2 (Chapters 5-7)
      Week 10	No Class
      Week 11	Capital Budgeting (Ch. 8)
      Week 12	Capital Budgeting (Ch. 9)
      Week 13	Cost of Capital (Ch. 11) Leverage & Cap Structure (Ch. 12)
      Week 14	Financial Planning (Ch. 14) Exam 3 (Chapters 8-9, 11-12)
      Week 15	Working Capital Mgmt (Ch. 15-17)
      Week 16	International Finance (Ch. 20)
      Week 17	Exam 4 (Chapters 14-17, 20, plus some comprehensive material)

4. INSTRUCTIONAL ACTIVITIES:
   Course material will be presented by combining lectures with active classroom discussion, case discussions and solutions, and outside problems with a particular emphasis on building problem-solving skills on matters pertinent to basic finance principles.
5. FIELD, CLINICAL, AND/OR LABORATORY EXPERIENCES:
   None
6. RESOURCES:
   Textbook: Gitman, Principles of Managerial Finance, 9th Ed., Addison Wesley Longman, 2000.
   
   Blackboard: PowerPoint slides and all course handouts are available on Blackboard at bb5.murraystate.edu. You should find a plethora of useful materials there, some of which is duplicated on my website.
   
   Other Resources: Financial calculator (recommended are the TI BA-II Plus or HP 10B, both available for around $30, and the TI-83 Plus if you have one from a previous math/statistics class). DO NOT BUY the TI BA-35 or TI Solar BA-35, which will not handle some of the calculations we will be making.
   
   You must have an e-mail account and access to the Internet, specifically the Blackboard system. I frequently communicate via Blackboard or e-mail, especially to provide additional information on class topics, PowerPoint lecture notes, homework answer keys, homework assistance, etc. Access to and use of computer spreadsheet software is also expected. The ability to summarize and manipulate data with a spreadsheet is a skill assumed of all college graduates.
7. GRADING PROCEDURES:
   Your grade will reflect your performance on four examinations, homework assignments, a short writing assignment, and class participation that may be included as a possible bonus.


1. The grading weights are as follows:

   Exams (4)	400 points
   Homework	50 points
   Writing Assignment	50 points
   Total	500 points

   
   
2. Final grades will be based on the following scale:

   Total Points		Grade
   450-500 (90%)		A
   400-449 (80%)		B
   350-399 (70%)		C
   300-349 (60%)		D
   Less than 300		E

   
   To receive a grade of AU for auditing this class, you must take the exams, and have at least a 60% average. Otherwise, you will receive a failing grade.
   
   Make-Up Policy: You will only be allowed to take a make-up in the event of an excused absence. This means that you must personally notify me in advance that you are going to miss a scheduled exam because of illness, death of an immediate family member, job interview, university trip or some job related commitment. Even if you have a valid excuse, but fail to notify me, I reserve the right not to grant a make-up exam.


8. ATTENDANCE POLICY:
   Attendance is expected, although your grade is not lowered directly because of missing classes. However, missing class activities may negatively affect your performance on the exams.
9. ACADEMIC HONESTY POLICY:
   Academic dishonesty such as plagiarism and cheating on exams will not be tolerated. Academic dishonesty will be discouraged by enforcing the College of Business Academic Dishonesty Policy that is posted in each classroom.
   
   Specific examples of cheating that I find particularly troubling include using work product supplied by other students, copying from another student's exam, and using language from other's work without proper citation.
10. HANDICAP PROVISIONS:
    Students with disabilities that might inhibit them from full and equal participation in class and in demonstrating their full potential and abilities should contact me immediately. Necessary accommodations may then be arranged to assist the student's participation in the class.

11. PREREQUISITES:
    None