Texts: 1) Fundamentals of Financial Management, Ninth Edition, Brigham and Houston; 2) How To Read A Financial Report, Fifth Edition, Tracy
Financial Calculator: It is essential that you have a financial calculator. I suggest and use the Texas Instruments BA II Plus (about $30). The authors’ of the book suggest the HP-10B. If you buy that you must have the manual and learn how to operate it yourself.
Recommended Periodicals and Newspapers: Wall Street
Journal, Economists, and Business Week. (Once you register online, most of the
web editions are free)
Course Description: This course examines the theory and practice of corporate finance. An introductory course in the principles of financial analysis directed at developing the tools necessary for sound financial decision making. Major topics include an overview of the financial environment, valuation, financial forecasting, and capital budgeting.
Course Objective: Finance is the cornerstone of the enterprise system. General financial management is vitally important to the economic health of business firms and, hence, to the nation and world. Because of its importance, finance should be thoroughly understood. The course objective is to obtain a better understanding of general financial theory and financial management.
Student Expectations: Students are expected to read, comprehend and discuss the assigned chapter; be able to answer questions that appear in the chapter; and, work the assigned problems or cases for each chapter. It is expected that students will have read the chapter before the class period in which it is discussed. Students who are not prepared to present assigned problems or cases for each chapter or cannot answer questions in class regarding the assigned chapter will have their grade penalized accordingly.
Attendance Policy: Excessive absences may adversely affect grade. More than four absences are considered excessive. Each additional absence may reduce grade by 10%. The only excused absences are for official Birmingham-Southern College business.
Grading Policy: Grades will be determined by total points received on participation, assignments, and exams. Class attendance is strongly encouraged and will affect your participation grade.
Participation & Homework
& Quizzes 15%
Midterm I (1-5)
Midterm II (6-7)
Final Exam (Cumulative) 25% May 15, 6-9pm
There will be no opportunities to make-up assignments. I will not accept late homework and you may not makeup a missed quiz. If you miss a midterm then your final exam will count 45% of your course grade.
Mission Linked Goals for Division of Business
In support of the educational goals of the College, each of the majors offered through the Division of Business is based on two layers of student learning goals. The first set, mission-linked goals, ties the learning outcome of the majors directly to the liberal arts mission of the College. The mission-linked goals of the Division are:
The second set of student learning goals, disciplinary depth goals, defines the overall contents and skills expectations within each major. The disciplinary depth goals are:
Students Completing the Accounting Major Should
Students Completing the Business Administration Major
Student Completing the Economics major Should
Statement of Professional Responsibility
The faculty of the Division of Business and Graduate Programs, both collectively and as individual professors, feel that students should be accountable for developing the work habits and personal discipline which will be expected of them after graduation as professional members of the business community. It is just as important that students reach satisfactory standards of written and oral communication skills as it is that they learn a satisfactory amount of accounting or management or marketing or finance. It is just as important that students learn integrity and professional responsibility as it is that they learn economics or statistics.
Students are responsible for knowing and strictly abiding by the BSC Honor Code contained in the student Handbook. When in doubt regarding any assignment, clarify instructions with the professor.
Part I: Introduction to Financial Management
Chapter 1 – An Overview of Financial Markets
Chapter 2 – Financial Statements, Cash Flow, and Taxes
Chapter 3 – Financial Statement Analysis
Chapter 4 – Financial Planning and Forecast
Chapter 5 – The Financial Environment
Part II: Fundamental Concepts in Financial Management
Chapter 6 – Risk & Rates of Return
Chapter 7 – Time Value of Money
Part III: Financial Assets
Chapter 8 – Bonds and Their Valuation
Chapter 9 – Stocks and Their Valuation
Part IV: Investing in Long-Term Assets: Capital Budgeting
Chapter 10 – The Cost of Capital
Chapter 11 – The Basics of Capital Budgeting
Chapter 12 – Cash Flow Estimation and Risk Analysis
Chapter 13 – Other Topics in Capital Budgeting
Part V: Capital Structure and Dividend Policy
Chapter 14 – Capital Structure and Leverage
Chapter 15 – Distribution to Shareholders: Dividends and Share Repurchases