Fin 3320 – MooreSyllabus – Spring - 2013
Finance 3320 Syllabus
Spring - 2013
Module Topic-Financial Management: A Survey of Finance
Dr. Mark E. Moore311W-Rawls School of Business (806-834-1789)
Department of FinanceEmail:
TexasTechUniversityWeb Page:
Course Meeting Times:
Section 1Tuesday and Thursday 8:00 – 9:20BA CR 105
Section 2Tuesday and Thursday 9:30 – 10:50BA CR 105
Common Exam Days – Wednesdays – 6:00 – 8:50 (Exam from 6-8pm)
Office Hours: Wednesday 10-12 and 2-4;
Graduate Assistant: Mr. Artem Meshcheryakov
Fin3320 “Help Desk”: Mon., Tues., andThurs.6-8pm in BA CR 101
Wednesday Evenings 6-9pm BA CR 101
Prerequisites:ACCT 2300, 2301, ECO 2301, 2302, and MATH 2345, and a minimum 2.75 Texas Tech GPA
Introduction
This course is designed to provide any student in the College of Business, regardless of intended major, a fundamental understanding of the various main themes in the field of finance. We will be examining these main themes of financial management from a Corporate (business) perspective; a Capital Markets and Investment perspective; and, finally, examine the role and mechanisms of financial institutions that link businesses and capital markets.
Unit objectives
This unit has been designed to be relevant for a broad group of customers representing all majors in the College of Business (Accounting, Finance, ISQS, International Business, Management, and Marketing. As a subject and profession, Finance is an applied subject grounded in fundamentaleconomic theory. Hence, this course will provide you the skills to tackle practical financial problems while having a reasonable theoretical background and understanding to guide your approach to analysis.
Broad learning outcomes
On completion of this course, you should be able to:
1)Know the advantages and disadvantages of different organizational forms
2)Understand the finance goal of the firm
3)Know the different types of financial markets and securities
4)Understand corporate financial statements (balance sheet and income statement) and their relation to financial ratios and corporate cash flows
5)Understand the difference between accounting net income and taxable income
6)Understand how to value a set of cash flows using time value of money formulas
7)Understand how to use time value of money formulas to value stocks and bonds
8)Understand the determinants of market interest rates
9)Know how to use net present value, internal rate of return, and payback methods for evaluating new projects and understand why the net present value method is the best evaluation method
10)Understand the basics of estimating project cash flows and a project’s cost of capital
11)Know how to calculate the risk and return of a financial security
12)Obtain a historical perspective of risk and return in the financial markets
13)Understand the theoretical relation between risk and return
14)Understand market efficiency
15)Understand how a firm raises capital by borrowing money and issuing securities
16)Understand the role of investment banks in helping firms issue new securities and the role of commercial banks in accepting deposits and providing capital to individuals and businesses
17)Understand how firms and individuals can manage risk using derivative securities
Required:
Textbook:
Titman, Keown, Martin – Financial Management: Principles and Applications 11th edition
Custom Edition prepared for Texas Tech – Loose Leaf Binding Style with Accompanying software and learning Technology Access.
Learning Technology Included: Pearson Publishing MyFinanceLab
Publisher: Pearson Custom PublishingISBN: 049596512x
Calculator:Texas Instruments BA II Plus Calculator
Grade Determination and Components:
Exams: There are 4 regularly scheduled exams. Three will take place during the semester and the fourth exam takes place during the scheduled final exam period. Each exam will cover new material. Although the exams are not cumulative, the concepts in the course are. The dates of the exams are indicated in the course timetable. They are common evening exams for both sections and are scheduled on Wednesday evenings, beginning at 6pm. All four of these exams will be used in the determination of your final course grade. Plan your schedule around these exam dates as late exams or make-up exams will neither be offered nor accepted.
On-Line Homework and Quiz Assignments: Online assignments will come from the MyFinanceLab technology that Pearson Publishing bundles with the textbook. The homework assignments will primarily be due on Sunday nights or late in the school week. They are designed to better prepare you for the course exams.
PercentCourse Total
- Exams:4 @ 20%80%
- Online Assignments20%
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Course Total 100%
Final Course Grade Policy:
100 – 93A89 – 82B79 – 72C69 – 62D
92 – 90A-81 – 80B-71 – 70C-61 – 60D-
MyFinanceLab is a wonderful technology application that is a gateway to the course and material. It was developed by Pearson as an alternative to Blackboard. We will use this technology for the online assignments (homework) and as a repository of relevant course information and supplements. Please explore this site.
MyFinanceLab Registration: Once you have purchased the textbook from the Pearson Web Store, you will receive your text at an evening information session that is held at the beginning of the semester. Bring your laptop to the session and, with the help of the Finance Association, we will help you register your technology at
Textbook Purchase Instructions: Titman, Keown and Martin is a Custom Published text that comes bundled with the MyFinanceLab learning technology. In order to control costs for you, the students, we are only making this material available for purchase at the Publisher’s web store. The purchasing instructions are on my course web site: Follow these directions carefully. Be sure to use the tab that indicated Texas Tech University as the shipping address.
Timetable (Subject to Modification)
Date / Material Covered / Topic and AssignmentsThu–Jan17 / 1 / Chapter 1 / Course and Financial Mgmt. Overview
Tue–Jan22 / 2 / Chapter 1 / Financial Management Overview
Thu–Jan24 / 3 / Chapter 2 / Firms and Financial Markets
Tue–Jan 29 / 4 / Chapter 2 / Firms and Financial Markets
Thu-Jan31 / 5 / Chapter 2 / Firms and Financial Markets
Tue– Feb 05 / 6 / Chapter 3 / Basic Financial Statements
Thu–Feb07 / 7 / Chapter 3 / Basic Financial Statements
Tue–Feb 12 / 8 / Chapter 4 / Financial Statement Analysis
Thu–Feb 14 / 9 / Chapter 4 / Financial Statement Analysis
Tue–Feb 19 / 10 / Chapter 5 / Time Value of Money Basics
Wed–Feb20 / Exam 1 / Evening Exam on Chapters 1-4
Thu–Feb 21 / 11 / Chapter 5 / Time Value of Money Basics
Tue–Feb 26 / 12 / Chapter 6 / Time Value of Money Applications
Thu–Feb 28 / 13 / Chapter 6/7 / Time Value of Money Applications
Introduction to Risk and Return
Tue–Mar 05 / 14 / Chapter 7 / Introduction to Risk and Return
Thu–Mar 07 / 15 / Chapter 7 / Introduction to Risk and Return
Tue–Mar 12 / Spring Break
Thu–Mar 14 / Spring Break
Tue–Mar 19 / 16 / Chapter 8 / Risk and Return – Capital Market Theory
Wed–Mar20 / Exam 2 / Evening Exam on Chapters 5-7
Thu–Mar21 / 17 / Chapter 8 / Risk and Return – Capital Market Theory
Tue–Mar 26 / 18 / Chapter 9 / Debt Valuation and Interest Rates
Thu–Mar 28 / 19 / Chapter 9 / Debt Valuation and Interest Rates
Tue–Apr 02 / 20 / Chapter 9 / Debt Valuation and Interest Rates
Thu–Apr 04 / 21 / Chapter 10 / Stock Valuation
Tue–Apr 9 / 22 / Chapter 10 / Stock Valuation
Wed–Apr10 / Exam 3 / Evening Exam on Chapters 8-10
Thu–Apr 11 / 23 / Chapter 11 / Capital Budgeting – Decision Criteria
Timetable (Subject to Modification) – Cont…
Date / Material Covered / Topic and AssignmentsTue–Apr 16 / 23 / Chapter 11 / Capital Budgeting – Decision Criteria
Thu–Apr 18 / 24 / Chapter 12 / Analyzing Project Cash Flows
Tue–Apr 23 / 25 / Chapter 12 / Analyzing Project Cash Flows
Thu–Apr 25 / 26 / Chapter 14 / Cost of Capital
Tue–Apr 30 / 27 / Chapter 14 / Cost of Capital
Thu–May2 / 28 / Chapter 20 / Corporate Risk Management
Tue–May7 / 29 / Chapter 20 / Corporate Risk Management
Mon–May13 / Final Exam Day / Section 1 (8:00 Class) – 7:30 – 9:30am
Thu–May 9 / Final Exam Day / Section 2 (9:30 Class) – 7:30 – 9:30am
Important Dates: (Exams 1 – 3 are from 6pm to 8pm)
WednesdayFeb20-Exam 1 Chapters 1-4
WednesdayMarch20-Exam 2Chapters 5-7
WednesdayApril10-Exam 3Chapters 8-10
Exam 4Chapters 11, 12, 14, 20 (Section 1)
Exam 4Chapters 11, 12, 14, 20 (Section 2)
Student Disabilities Policy:
Any student who, because of a disabling condition, may require special arrangements in order to meet course requirements should contact the instructor as soon as possible. Students should present the appropriatedocumentation from AccessTech verifying their disability, and outlining the special arrangements required. No accommodations will be provided disabled students prior to completion of this approved University process.
Student Academic Integrity Policy:
Ethical conduct is an important component of any profession. The Texas Tech University Code of Student Conduct is in force during all elements of this course. Students violating any portion of the Academic Code will be sanctioned and prosecuted to the fullest extent provided by the University. Ours’ should be a self-monitoring profession. Your reputational capital is the greatest asset you will bring to the market. It is hard to gain, too easy to tarnish, and nearly impossible to recover. It is the obligation of all students to report violations of the honor code in this course.
“Academic dishonesty" includes, but is not limited to, cheating, plagiarism, collusion, falsifying academic records, misrepresenting facts, and any act designed to give unfair academic advantage to the student (such as, but not limited to, submission of essentially the same written assignment for two courses without the prior permission of the instructor) or the attempt to commit such an act.
Texas Tech Student Handbook, 2005-2006, Code of Student Conduct, Part IX, Section B, item number 3.
Consequences of Cheating:
- You are expected to do your own work. Any student submitting copied material for grading or otherwise cheating on graded material will receive an “F” in the class and I will seek your expulsion from the university. The Department of Finance adheres to the University’s policy on academic honesty as contained in the University Catalog.
Behavior:
Troublesome behavior, as defined by the university, is anything that disturbs the professor or the students during the class period. I will not tolerate disrespectful behavior in my class or in any correspondence you might have with me.
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