Timetable (Subject to Change)

Fin 3320 – Moore Syllabus – Summer I - 2014 Finance 3320 Syllabus Summer I - 2014

Module Topics - Financial Management - Survey of Finance

Dr. Mark E. Moore 311-W Rawls School of Business (834-1789) Department of Finance Email: [email protected] Texas Tech University Web Page: http://mmoore.ba.ttu.edu/

Course Meeting Times: Section 1 Mon – Fri 10:00 – 11:50

Office Hours: Wednesday 12:00–1:00; and by appointment

Graduate Assistant: Mr. Eric Sisneros - W-307 - RCOBA

Fin3320 “Help Desk”: Monday through Friday 2:00 – 5:00pm in BA 03

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 fundamental economic 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.

June 1, 2014 - 1 - Fin 3320 – Moore Syllabus – Summer I - 2014 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 Materials:

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 Publishing

Calculator: Texas Instruments BA II Plus Calculator

June 1, 2014 - 2 - Fin 3320 – Moore Syllabus – Summer I - 2014 Grade Determination and Components:

Weekly Exams: The first three Mondays, beginning June 9 and on Thursday, 3 July, there will be an exam covering the previous week’s material. Exam 4 is scheduled on the Final exam date (Thursday, July 3rd). As indicated in the course timetable, you will have the opportunity to take four (4) such exams. All four of these exams will be used in the determination of your final course grade. Late exams or make-up exams will neither be offered nor accepted. Exams will take the entire class period.

On-Line Quiz Assignments: Online assignments will come from the MyFinanceLab technology that Pearson Publishing bundles with the textbook. The chapter quizzes will be due throughout the week and on weekends. They are designed to better prepare you for the weekly exams.

Percent Course Total  Weekly Exams: 4 @ 25% 100%  Online Quiz Assignments 0% ------Course Total 100%

Final Course Grade Policy:

100 – 93 A 89 – 82 B 79 – 72 C 69 – 62 D 92 – 90 A- 81 – 80 B- 71 – 70 C- 61 – 60 D-

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 http://myfinancelab.mathxl.com/login_finance.htm

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: http://mmoore.ba.ttu.edu/Fin3320/Fin3320.html Follow these directions carefully. Be sure to use the tab that indicated Texas Tech University as the shipping address.

June 1, 2014 - 3 - Fin 3320 – Moore Syllabus – Summer I - 2014 Timetable (Subject to Modification)

Date Material Covered Topic and Assignments Tue–Jun 03 1 Chapter 1 Course and Financial Mgmt. Overview Wed–Jun 04 2 Chapter 1 Financial Management Overview Chapter 2 Firms and Financial Markets Thu– Jun 05 3 Chapter 2 Firms and Financial Markets Chapter 3 Financial Statements, Tax, Cash Flows Fri.– Jun 06 4 Chapter 3 Financial Statements, Tax, Cash Flows

Mon–Jun 09 5 Exam 1 (Ch 1-3) Tue–Jun 10 6 Chapter 4 Financial Analysis Wed–Jun 11 7 Chapter 4 Financial Analysis Chapter 5 Time Value of Money Basics Thu–Jun 12 8 Chapter 5 Time Value of Money Basics Chapter 6 Advanced Time Value of Money Methods Fri.–Jun 13 9 Chapter 6 Advanced Time Value of Money Methods

Mon–Jun 16 10 Exam 2 (Ch 4-6) Tue–Jun 17 11 Chapter 7 Risk and Return – Basics Wed–Jun 18 12 Chapter 7 Risk and Return – Basics Chapter 8 Risk and Return – Capital Market Theory Thu–Jun 19 13 Chapter 8 Risk and Return – Capital Market Theory Chapter 9 Debt Valuation and Interest Rates Fri–Jun 20 14 Chapter 9 Debt Valuation and Interest Rates

Mon–Jun 23 15 Exam 3 (Ch 7-9) Tue–Jun 24 16 Chapter 10 Stock Valuation Wed–Jun 25 17 Chapter 10 Stock Valuation Chapter 11 Investment Decision Criteria Thu–Jun 26 18 Chapter 11 Investment Decision Criteria Chapter 12 Project Cash Flows Fri–Jun 27 19 Chapter 12 Project Cash Flows

Mon–Jun 30 20 Chapter 14 Cost of Capital Tue–Jul 01 21 Chapter 14 Cost of Capital Wed–Jul 02 Thu–Jul 03 Exam 4 – 8am (Ch 10-12 and 14) Fri–Jul 04 Celebrate

Important Dates:

June 1, 2014 - 4 - Fin 3320 – Moore Syllabus – Summer I - 2014 Monday June 10 - Exam 1 Chapters 1-3 Monday June 17 - Exam 2 Chapters 4-6 Monday June 24 - Exam 3 Chapters 7-9 Wednesday July 3 - Exam 4 Chapters 10-12 and 14

Student Disabilities Policy: Any student who, because of a disability, may require special arrangements in order to meet course requirements should contact the instructor as soon as possible to make any necessary arrangements. Students should present the appropriate verification from Student Disability Services during the instructor’s office hours. Please note instructors are not allowed to provide classroom accommodations to a student until appropriate verification from Student Disability Services has been provided. For additional information, you may contact the Student Disability Services office in 335 West Hall or 806-742-2405.

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. http://www.depts.ttu.edu/studentjudicialprograms/AcademicIntegrity.htm

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.

June 1, 2014 - 5 -