Finc3132 Business Finance Ii

Revised 01/01/2017 FINC3132- BUSINESS FINANCE II Spring2017 CRN21130 (TR 09:30 – 10:45, Atkinson 106)

Note: It is your responsibility to read, understand and abide by all of the course information and policies listed below. Failure to do so could result in your failing this course or being withdrawn from the course by your instructor or by the Department of Economics and Finance. The course syllabus provides a general plan for the course and deviations may be necessary.

Instructor: Dr. Leng Ling Office: 414 Atkinson Hall Telephone: (478) 445-2587 Course website: http://lengling.gcsu.edu E-mail: [email protected] Office Hour: TR 11:00 – 12:00; other time by appointment only.

Course prerequisite 1. FINC3131 Business Finance I

All students, regardless of degree program (graduate or undergraduate) or status (transient or post- baccalaureate), must have completed all the prerequisites with a grade of "D" or better. There are no exceptions. Those students who have not met these requirements must withdraw from this course immediately. The Department of Economics and Finance will disenroll you if you have not successfully completed all prerequisites. This action will result in a financial loss and a final grade of "WF" for the course in some circumstances.

Topics The course offers an in-depth analysis of contemporary decision techniques related to business finance. Topics to be covered may include the risk-return framework, review of financial statements, valuation of firms, financial planning, capital budgeting, capital structure, dividend policies, and working capital management. This course has been designed to enhance finance students’ knowledge on the functions of corporate financial management in most industrial firms.

Outcomes The students will be able to 1. Calculation and analyze financial ratios. 2. Employ the time value of money theory to find the intrinsic value of firms. 3. Evaluate the risk-return framework in financial decision-making. 4. Use various methods including NPV, PI, IRR, MIRR, and DPP for capital budgeting. 5. Understand and use the real option method for capital budgeting. 6. Understand and apply the theories on capital structure decisions. 7. Understand the advantage and disadvantage of dividends vs. repurchases. 8. Understand and apply the techniques used in working capital management.

1 Required textbook Intermediate Financial Management ( 12th Edition) by Brigham and Daves ISBN: 978-1-285-85003-0

All supplementary materials are posted on the course website. Supplementary materials include teaching slides, solutions to assigned homework, etc. Students should print out slides and take them to class because there is NO time in class to copy slides to your notebook.

Calculator It is necessary that you have a financial calculator to use throughout the course. A scientific calculator without financial functions does NOT work for this course. I use Texas Instruments BA II Plus and will demonstrate how to use it to solve problems. I do not know how to use other models. Bring your calculator to each class as we will have a lot of in-class exercises. An App of calculator in cellphone is not permitted in exams!

Attendance policy Each student is expected to attend ALL scheduled class meetings for the entire duration of the class meeting. It is your responsibility to sign the attendance sheet. If you do not sign up for any reason, you will be considered as being absent. The attendance sheet may be circulated at any time during the class period. Students arriving more than 15 minutes late are not permitted to sign the attendance sheet.

Students who missed 4 classes for whatever reasons will earn a “F” for this class. Students who missed no more than two classes will earn 2 points of extra credit added to the course grade.

Grading structure Your final grade for the course will be assigned according to the following grade weight schedule. Extra credit may be earned on solving in-class problems.

Exam One 25% Exam Two 25% Exam Three 25% Final Exam 25% Group project (extra) 5% 105% A – 90% + B – 80% + C – 70% + D – 60% + F – Below 60%

Exam policy The exams will consist of questions covering concepts and mostly numeric problems. Students will be allowed to write key formulas on an 8x11 sheet and use it on the in-class tests. The formula sheet should not contain any worked out problems or numbers, otherwise 0 will be assigned to the test. The formula sheet should have the name of the student and be turned in to the instructor at the end of the test.

Cellphone is not allowed during exams.

If you are not able to take an exam on the scheduled date but with a valid excuse, you can take the exam 2 earlier or on the following day if you informed me in time so that I can arrange the make-up exam. If you missed the exam with valid excuse and informed me much later so that I do not have enough time to arrange the make-up on the following day, the weight of that exam will be added to the last exam. If you cannot show the proof of a valid excuse such as the note from a doctor and an accident report from the police, then you will earn zero for the exam. If you miss more than one exam, except for the first one with a valid excuse, all others will be assigned zero.

If you take the exams in the testing center, then you need to arrange the test earlier and return the finished exam to me no later than 5 pm on the date of class exam. Otherwise, you will earn zero.

Course outline The course syllabus and course calendar are TENTATIVE. Depending on our progress, some topics may be covered in greater depth and for longer periods, some topics may be given less coverage and less time, and some topics may be dropped altogether. It is your responsibility to be aware of all administrative announcements (e.g., exam information, schedule and/or assignment changes) made any time during scheduled class period regardless of whether or not you are in attendance.

Communication Outside of the scheduled class times, I may need to communicate with either the entire class or individual students via e-mail. I send emails to your email registered in PAWS. Every day check your email account.

Student Opinion Surveys

Near the end of the semester, you will be asked to complete an online survey. Your responses are valued because they give important feedback to instructors to help improve student learning. All responses are completely confidential and your name is not stored with your responses in any way.

Religious Observance Policy

Students are permitted to miss class in observance of religious holidays and other activities observed by a religious group of which the student is a member without academic penalty. Exercising of one’s rights under this policy is subject to the GC Honor Code. Students who miss class in observance of a religious holiday or event are required to make up the coursework missed as a result from the absence. The nature of the make-up assignments and the deadline for completion of such assignments are at the sole discretion of the instructor. Failure to follow the prescribed procedures voids all student rights under this policy.

Assistance for Student Needs Related to Disability

If you have a disability as described by the Americans with Disabilities Act (ADA) and the Rehabilitation Act of 1973, Section 504, you may be eligible to receive accommodations to assist in programmatic and physical accessibility. Disability Services, a unit of the GCSU Office of Institutional Equity and Diversity, can assist you in formulating a reasonable accommodation plan and in providing support in developing appropriate accommodations to ensure equal access to all GCSU programs and facilities. Course requirements will not be waived, but accommodations may assist you in meeting the requirements. For documentation requirements

3 and for additional information, we recommend that you contact Disability Services located in Maxwell Student Union at 478-445-5931 or 478-445-4233.

Academic Honesty

The integrity of students and their written and oral work is a critical component of the academic process. The submission of another’s work as one’s own is plagiarism and will be dealt with using the procedures outlined in the Student Academic Dishonesty section in the undergraduate catalog. Remember that allowing another student to copy one’s own work violates standards of academic integrity.

Please note the graduate link is: http://catalog.gcsu.edu/en/2014-2015/Graduate- Catalog/Academic-Policies/Student-Code-of-Conduct/Student-Academic-Dishonesty .

Also see the student Honor Code at the following website: Link.

Fire Drills

Fire drills will be conducted annually. In the event of a fire alarm, students will exit the building in a quick and orderly manner through the nearest hallway exit. Learn the floor plan and exits of the building. Do not use elevators. If you encounter heavy smoke, crawl on the floor so as to gain fresh air. Assist disabled persons and others if possible without endangering your own life. Assemble for a head count on the front lawn of main campus or other designated assembly area.

Turnitin This course (or section) may use plagiarism prevention technology. Students have the option of submitting papers online through a plagiarism prevention service or allowing the instructor to submit hard copies of these papers. The papers may be retained by the service for the sole purpose of checking for plagiarized content in future student submissions.

Software Creation The intellectual property of class assignments and other materials developed using university resources that are commercialized are reviewed under the USG and GC policies to determine ownership and/or payment rights. USG policies can be found at http://www.usg.edu/policymanual/section6/policy/6.3_intellectual _properties/ and GC policies can be found at http://gcsu.smartcatalogiq.com/en/Policy-Manual/Policy-Manual/Academic- Affairs/EmploymentPolicies-Procedures-Benefits/Faculty-Professional-Development- Opportunities/Faculty-Research/Intellectual-Property-Policy-and-Procedures .

Academic Grievances or Appeals

An academic grievance or appeal is an allegation by a student of substantial and/or unjustified deviation, to the student’s detriment, from policies, procedures and/or requirements regarding admission, grading policies, special agreements, instructor’s requirements and academic 4 requirements of the University. Students shall have the right to file academic grievances or appeals according to the following procedures approved by the University. Academic Grievances or Appeals link

Graduate Student Petition: http://www.gcsu.edu/registrar/docs/GraduatePetition.pdf

Undergraduate Student Petition: http://www.gcsu.edu/registrar/docs/Student_Petition_Undergraduate.pdf

My Suggestions 1. Textbook chapters should be read before and after the class. If you do not read textbook, you will fail the class. 2. There are a lot of in-class exercises that need your participation. Please do not let go these opportunities to practice. Otherwise, you are just wasting your time and money. 3. Work hard. Spend at least 9 hours every week (outside classroom) on this course to read the textbook, review slides, redo in-class exercises, do practice assignments. 4. This course is at least 2X tougher than Business Finance I. 5. Please make sure you fully understand the topics that I cover during the lecture. I will be very pleased to explain again the same concept or problem if you ask for it. If you are confused during the lecture, please do not hesitate to stop me immediately. 6. The questions in exams are similar to those in my slides, on the whiteboard, in practice and homework. However, I usually do not just copy my examples or homework questions and paste to exams. I do not cover all topics in the textbook because of time constraint. 7. You are welcome to email me or drop by my office during the office hours to ask any question. Please set up an appointment first if you want to visit me at other time.