Lake Superior State University Spring Semester 2013
FINC 245-001, Principles of Finance (3, 0) 3 Credits
Wednesday, 6:00 - 9:00 p.m. at CAS 310
Prerequisites: (1) ACTG 132, or ACTG 230, or OFFC 119, and
(2) MATH 086 or equivalent/satisfactory score on ACT or placement exam
Instructor: C. Christopher Lee, Ph.D., Associate Professor of Management
www.cchristopherlee.com
Office: Library 319
E-mail:
Office Phone: 906-635-6682
Home Phone: 906-259-1254
Office Hours: 5:00 – 6:00 p.m. Monday - Thursday at Library 319
9:00 - 9:30 p.m. Wednesday at classroom.
Other times are available by appointment.
Course Description:
An introduction to the principles of business finance. Topics include math of finance, working capital management, financial planning and forecasting, debt and leasing, common and preferred stock, leverage and capital structure, capital budgeting, cost of capital. Students with credit in FINC341 may not enroll in this course. Prerequisites: ACTG132, or ACTG230, or OFFC119, and MATH086 or equivalent/satisfactory score on ACT or placement Exam. (3,0) 3 3.000 Credit hours; 3.000 Lecture hours
Course Goals:
Course Objectives: By the end of the course, the student should be able to:
· Describe the economic, institutional, and tax environments in which firms operate.
· Discuss the interrelationships between financial management, financial markets, and investments.
· Assess the financial condition of firms by examining their recent financial statements, and describe the steps involved in forecasting future financial statements.
· Apply time value of money concepts to cash flow streams from real and financial assets.
· Compute rates of return, and understand various risk measures, of financial assets.
· Apply the basic frameworks used to value equities and fixed income instruments.
· Employ different approaches to assess the relative attractiveness of potential capital investment projects and determine which projects should be undertaken.
· Describe and estimate the costs of various sources of long term capital for firms, and show how to determine the firm's weighed average cost of capital.
· Describe the consequences for the firm of changes in operating leverage and/or financial leverage.
· Describe how each of the components of working capital affects the firm's financial condition, and discuss the costs and benefits of various sources of short term financing.
Textbook & Calculator:
· Textbook (Required): Brooks, “Financial Management - Core Concepts, 2nd Edition,” Pearson.
· Calculator (Required): Texas Instrument BA II Plus
Grading Scale and Policies:
Exams/Graded Labs
Final grade will be a weighted average of Exams (30%), homework & group projects (20%), attendance & participation (10%). You must take all four exams to pass the course.
Homework
Homework will be assigned on a regular basis. Homework is for your benefit to assist in comprehending the material as well as preparing you for quizzes and exams.
Attendance
Attendance and class participation is expected. Please notify me in advance if you will be absent for an exam so other arrangements can be made.
Computer
You will need access to a PC equipped with Microsoft Excel. The School of Business Computer Lab is in CAS 103 and is available for your use.
Grading
Your final course grade will be based on your final overall percentage, according to the scale below. The following conventions will be used to determine final grades, but are subject to the instructor’s discretion:
A / 93.3 - 96.6% / B / 83.3 - 86.6% / C / 73.3 - 76.6% / D / 63.3 - 66.6%
A- / 90.0 - 93.2% / B- / 80.0 - 83.2% / C- / 70.0 - 73.2% / D- / 60.0 - 63.2%
Ground Rules:
1. Completing assignments on time and keeping up with the class material is important for success in this course and in college. Late assignments will not be accepted except for legitimate pre-approved reasons as determined by the instructor. Examples of legitimate reasons are: severe illness, death in family, etc.
LSSU sanctioned travel related absences (athletics, conference presentations, conference attendance) are approved by the Provost. You are expected to make arrangements with the instructor before the travel occurs. Failure to do so may result in “F” grades being assigned for the missed work.
2. Students are expected to perform all assigned work themselves unless otherwise noted. Any form of cheating or plagiarism will be handled in accordance with the Honor Code Procedures. Violations of the Honor Code may result in an F for the course grade.
3. Use of head phones, cell phones and/or hats during exams is prohibited.
4. Cell phones must be turn off for all class sessions. THIS MEANS NO TEXTING TOO!
University Policies and Statements:
The Americans with Disabilities Act & Accommodations
In compliance with Lake Superior State University policies and equal access laws, disability-related accommodations or services are available to students with documented disabilities.
If you are a student with a disability and you think you may require accommodations you must register with Disability Services (DS), which is located in the KJS Library, Room 130, (906) 635-2355 or x2355 on campus. DS will provide you with a letter of confirmation of your verified disability and authorize recommended accommodations. This authorization must be presented to your instructor before any accommodations can be made.
Students who desire such services should meet with instructors in a timely manner, preferably during the first week of class, to discuss individual disability related needs. Any student who feels that an accommodation is needed – based on the impact of a disability – should meet with instructors privately to discuss specific needs.
IPASS (Individual Plan for Academic Student Success)
If at mid-term your grades reflect that you are at risk for failing some or all of your classes, you will be contacted by a representative of IPASS. The IPASS program is designed to help you gain control over your learning through pro-active communication and goal-setting, the development of intentional learning skills and study habits, and personal accountability. You may contact 635-2887 or email if you would like to sign up early in the semester or if you have any questions or concerns.
Tentative Schedule*
1 / Chapter 1 Financial Management
2 / Chapter 2 Financial Statements
3 / Chapter 3 The Time Value of Money (Part 1)
4 / Chapter 4 The Time Value of Money (Part 2)
5 / Chapter 5 Interest Rates
6 / Chapter 6 Bonds and Bond Valuation
7 / Chapter 7 Stocks and Stock Valuation
8 / Spring Break (2/22 - 3/03/2013)
9 / Chapter 8 Risk and Return
10 / Chapter 9 Capital Budgeting Decision Models
11 / Chapter 10 Cash Flow Estimation
12 / Chapter 11 The Cost of Capital
13 / Chapter 12 Forecasting and Short-Term Financial Planning
14 / Chapter 13 Working Capital Management
15 / Chapter 14 Financial Ratios and Firm Performance
Chapter 15 Raising Capital
16 / Final Exam
* Note: This schedule is subject to change at the instructor’s discretion.Courses
· Production and Operations Management [OTHER TITLES OF INTEREST] (Industrial Engineering)
· Operations Management [COMPREHENSIVE TEXTS] (Decision Science)
Previous Editions
1. Operations Management, 9/E
Heizer & Render
ISBN-10: 0132342715 • ISBN-13: 9780132342711
©2008 • Cloth, 888 pp • Instock
Suggested retail price:$240.00 • Net price:$180.00?
More info
Study Group & Teamwork:
· Students are suggested to form a team of three or four members. Each team is encouraged to meet & communicate often. Members of the team are going to study together, do homework together, and prepare for exams together.
· Industry wants a team player! Let’s help each other!
A Few Words from Your Favorite Instructor:
· This course is not an easy one. It takes a lot of time to comprehend materials presented by the textbook and lecture. Please budget your time on this course preparation.
· Do not get behind the textbook reading schedule.
· If you have any constructive suggestions, feel free to give them to me. I want to improve my teaching continuously.