UNIVERSITY OF COLORADO – LEEDS SCHOOL OF BUSINESS
BCOR2200: INTRODUCTORY FINANCE
SUMMER 2010
INSTRUCTOR: Bob Donchez
OFFICES/PHONES: Koelbel 423; 303 492-5916
CLASS HOURS: Sec. 200: MTWRF 9:15 – 10:50 – Koelbel 330
Sec. 201: MTWRF 11:00-12:35 – Koelbel 330
Sec. 202: MTWRF 12:45-2:20 – Koelbel 330
OFFICE HOURS: MTuTh 2:20 – 3:45; W 8:00 – 9:00 a.m.
and by appointment
E-MAIL:
WEBSITE: http://leeds-faculty.colorado.edu/Donchez/mainhomepage.htm
REQUIRED MATERIALS: The textbook is Berk, DeMarzo, and Harford, Fundamentals of Corporate Finance, (Pearson Prentice-Hall 2009). A financial calculator is a necessity and a HP-10B2 is used in class for this course.
PREREQUISITES: BCOR 2000, BCOR 2010, ECON 2010 or 2020. Corequisite: Second semester of ECON series.
COURSE OBJECTIVES: BCOR2200 follows BCOR2000. Together these courses attempt to integrate introductory accounting and finance. The courses were developed by the College of Business in response to the needs of employers and to provide students with an overall appreciation for the coordinated efforts within the business world. In today’s complex global economy, knowledge of accounting and finance is important, not only for majors in these areas, but also for all other business and many non-business majors. Whereas BCOR 2000 focused on Accounting, this course will focus on topics that are typically associated with the area of Finance. Accordingly, the principal objectives of this course are to provide you with:
· a working knowledge of the terminology and fundamental concepts and tools used in the business world,
· an understanding of the interrelationships between accounting and finance,
· an understanding of the interrelationships between business management and the entity’s financial statements, and
· an introduction to financial markets, the time value of money, risk and return, and the valuation of assets and business projects.
ADMINISTRATION: All University of Colorado and College of Business and Administration rules, policies and procedures will be followed in the course (including those related to grading and drop/add requirements). University policies regarding academic dishonesty are followed. Please review the newly implemented University of Colorado Student Honor Code and the Classroom Conduct Policy at http://www.colorado.edu/policies/index/html.
* Students with disabilities who qualify for academic accommodations must provide a letter from Disability Services (DS) and discuss specific needs with the professor, preferably during the first two weeks of class. DS determines accommodations based on documented disabilities. Disabilities Services: 303-492-8671, Willard 322, www.colorado.edu/sacs/disabilityservices
Homework: Finance and accounting are applied disciplines. In the real business world, both the “how to” and the “why” are important. The problems, questions and exercises listed on the following page represent the minimum level of work that you should complete in order to enhance your understanding of the course material. If you have trouble working any of the assigned problems, questions or exercises, please visit during office hours. I’m more than happy to assist students learn, so please bring attempted solutions along.
Business Expectations: Business courses prepare the student for the business world. In the real business world, one is required to show-up at work every day, on-time, ready and prepared to work. Therefore, the student is expected to attend class every day, prepared and ready to discuss the relevant material. In the real world, business meetings are seldom a monologue; rather there is a dialog among the attendees. Likewise, students should be prepared to participate by reading the relevant material the night prior to its discussion in class, and by attempting the assigned problems and questions. The text and calculator should both be brought to class each day.
· Cell phones ringing during business meetings are the quickest way to lose a client’s business. This is an unprofessional practice and is not acceptable during business meetings in the outside world. Likewise, cell phones will not be permitted in class. All cell phones should be disarmed prior to entering the meeting room.
Grading: There will be three quizzes worth each worth 30% of the summer session grade. Homeworks count for 6%. Class participation and attendance count for 4%. The quizzes will cover material assigned since the previous quiz. Since finance builds on previous material, it is important to master the material as it is presented. In order to perform well on subsequent quizzes, one must know the material from the previous quizzes. There are no makeup quizzes.
Summer “B” Term 2010
Date Day Lecture Assignment Problems Due:
7/6 T Ch. 1: Corp Finance & Financial Mgmt
7/7 W Ch. 2: Intro to Fin. Statement Analysis
7/8 T Ch. 2: Intro to Fin. Statement Analysis Ch 2: Probs 2, 5, 6, 7, 10
7/9 F Ch. 3: Valuation Principle Ch 2: Probs 11, 12, 13, 20
7/12 M Ch. 3: Valuation; Ch. 4: NPV & Time Value of Money Ch 3: Probs 6, 8, 9, 10, 11, 12
7/13 T Ch. 4: NPV & Time Value of Money Ch 4: Probs 3, 4, 5, 6, 7, 8, 9, 11, 13
7/14 W Ch. 4: NPV & Time Value of Money Ch 4: Probs 17, 18, 20, 28, 29, 32, 35
7/15 T QUIZ 1
7/16 F Ch. 5: Interest Rates; Ch. 6 Bonds
7/19 M Ch. 6: Bonds Ch 5: Probs 1, 2, 3, 5, 9, 10, 11
7/20 T Ch. 9: Valuing Stocks Ch 6: Probs 2, 5, 8, 9, 12, 13, 14, 19
7/21 W Ch. 9: Valuing Stocks Ch 9: Probs 2, 3, 5, 6, 7, 12
7/22 T Ch. 7: Investment Decision Rules Ch 9: Probs 13, 14, 16, 19
7/23 F Ch. 8: Fundamentals of Capital Budgeting Ch 7: Probs 13, 14, 20, 24
7/26 M Ch. 8: Fundamentals of Capital Budgeting Ch 8: Probs 1, 2, 3, 10, 14
7/27 T QUIZ 2
7/28 W Ch. 10: Risk & Return in Capital Markets
7/29 T Ch. 11: Systematic Risk & Equity Risk Premium Ch 10: Probs 1, 2, 3, 8, 9, 12
7/30 F Ch. 11: Systematic Risk & Equity Risk Premium Ch 11: Probs 1, 2, 4,13
8/2 M Ch. 12: Cost of Capital Ch 11: Probs 18, 20, 23, 24
8/3 T Ch. 12: Cost of Capital, Ch. 13: Raising Equity Capital Ch 12: P robs 1, 4, 6, 7, 9, 11, 12
8/4 W Ch. 14: Debt Financing Ch 12: Probs 13, 14, 15; Ch 13: Probs 1, 8, 9, 10
8/5 T Ch. 15: Capital Structure Ch 14 – Probs 1, 2, 5; Ch 15 –Prob 7,
8/6 F QUIZ 3
Changes to this syllabus will be announced during class sessions and all students,
whether present or not during the announcement, will be held accountable for the changes.