maymester (3w1 2016 monday thursday 8:30 to … mcdaniel...instructor: lisa k. mcdaniel, cfa office...

FINA3770.007IntroductiontoFinanceMaymester(3W1)2016

Monday-Thursday8:30to12:20,BLB155Instructor:LisaK.McDaniel,CFAOfficeHours:Monday&Wednesday1:30–2:30pmorbyappointmentOffice:BLB331ETelephone:940-565-3059E-mail:lisa.mcdaniel@unt.eduPleaseusemyUNTemailratherthantheBlackboardemailfunction,asIcheckthisregularlyandwillbeabletorespondmorequicklytoyourconcerns.Youmustreferencethecourse(FINA3770)inthesubjectofyouremail.

PleasenotethatemailsenttomyUNTemailaddressmayoccasionallybesenttoaspamfolder.Ifyoudonothearbackfrommewithinafewdayspleasecontactmeagainorseemeinclass.AlsonotethatnoinformationaboutyourgradescanbediscussedorrelayedotherthaninpersonorthroughBlackboard.

Ifyoucallmyofficeandreceivemyvoicemail,pleaseleaveamessageincludingyourname,telephonenumberandreasonforcallingifyouwantmetoreturnyourcall.Idonotreturnmissedcallsifthereisnovoicemail.

CourseMaterialsText(REQUIRED):FundamentalsofCorporateFinance,3rdeditionbyBerk,DeMarzoandHarford.Thereareafewdifferentoptionsforpurchase.YoucanbuythebookattheUNTbookstore,oryoucanpurchaseeitheraprintorelectroniceditiondirectlyfromPearson’swebsite:

http://www.mypearsonstore.com/bookstore/fundamentals-of-corporate-finance-9780133507676?xid=PSED OptionalMyFinanceLabisanonlinemodulethatcanbeusedforpracticehomework.Youcanpurchasethiswithyourtextbookorseparately.YouwillneedthefollowingCourseIDtologin:mcdaniel69639.

Calculator(REQUIRED)Afinancialcalculatorisrequiredforin-classuse,forquizzesandforexams.Yourcalculatorshouldbeabletosolveforinternalratesofreturnusingunevencashflows,suchastheTIBAIIPluscalculatorortheHP12C.However,noprogrammableinformationisallowedinthecalculatorthatyouuseforexams.Youwillberequiredtoclearthecalculatorofanyprogrammedinformationbeforestartingtheexam.

IwillusetheTI-BAIIPlusinclass.Tutorialsonhowtousethiscalculatorcanbefoundhere:http://www.atomiclearning.com/ti_ba2

BlackboardLearnThiscoursewilluseBlackboardLearnforassignments,lecturenotes,grades,etc.Youareresponsibleforcheckingregularlyforannouncementsandnewcontent.Togetstartedwiththecourse,pleasegoto:https://learn.unt.edu

YouwillneedyourEUIDandpasswordtologintothecourse.IfyoudonotknowyourEUIDorhaveforgottenyourpassword,pleasegoto:http://ams.unt.edu.

CourseObjectives:Thecourseisintendedtoprovidestudentswithanoverviewofthebasicconceptsandprinciplesofcorporatefinanceandfinancialmathematics,withparticularemphasisonrisk,ratesofreturn,valuationandfinancialanalysis,andtheopportunitytopracticeproblem-solvingskillstosolvecommonfinancialproblems.

CourseDescription:Thiscourseisanintroductiontofinanceandfinancialmathematics.Itisdesignedforallbusinessstudents,notjustfinancemajors.Itprovidesanoverviewofthefollowingconcepts:

• moneyandthebankingsystem• interestandpresentvaluecalculations• financialinformationanalysis• financialdecision-making• securitymarkets.

Prerequisites:Completionofpre-businessrequirements,includingACCT2010andACCT2020orequivalentwithgradesofCorbetter.

TheFIRELDepartmentrequirescompletingallprerequisitespriortotakingFINA3770.TheFINA3770syllabusandthefinancetextbookaredesignedaroundtheassumptionthatstudentspossesstheequivalentknowledgeofastudentthathassuccessfullycompletedallofitsprerequisites.FINA3770cannotreplacetheknowledge,skills,andmindsetdevelopedinthesecoursessostudentswithouttheprerequisitecourseshave,inthepast,haddifficultyincompletingthecourserequirementsofFINA3770successfully.

AbouttheCourse:Inthisclasswecombinereadingswithpractice.Iwillalsointroducesomematerialthatisnotinthetextbook,soattendanceisimportant.Homeworkisanessentialpartoftheclasseventhoughitisnotgraded.Aftereachlecture,youwillworkproblemsdesignedtoreinforceyourunderstandingandabilitytousetheinformationcovered.Doingsowillhelpyoumasterthequizzesandexamsthataregraded.

Homework&quizzesfocusonmaterialpresentedinthelecture,majorchapterconcepts,andtextbookexamples.Thequizzeswillalsointroduceyoutothetypesofquestionsyouwillseeontheexams.

GradingPolicy:

Quizzes 25%

MidtermExams(2) 50%

FinalExam 25%

GradingScale:

90%-100% A

80-89.9% B

70-79.9% C

60-69.9% D

59.9%orbelow F

MyExpectations:• Iexpectyoutoreadthetextandtakenotes,attendclassandparticipateindiscussionduring

class,mastertheweeklyhomeworksets,taketheweeklyquizzesandexamsthroughouttheterm.

• Readeachchapterbeforethelecture.

• ARRIVETOCLASSONTIME.On-timearrivalshowsrespectforbothfellowstudentsandfacultyandenhanceslearningbyreducingdistractions.Onceyouareinclass,staythere.Donotwalkinandoutorleaveearly.

• Listen,takenotesandaskquestionsduringthelecture.Theslidesprovidedareintendedasanoverviewofchapterconceptsbutarenotsufficientnotesontheirown.

• Aftereachlecture,reviseyournotesasneeded,andthenattemptthechapter’shomeworkproblems.Usetheanswerkeys,MyFinanceLab,discussionboards,amemberofyourstudygroup,orphoneorvisitmeduringmyofficehourstomasterthemoredifficultproblems.

• Classparticipationiscrucialforyourunderstandingofthekeyconcepts,examplesandquestions.Wewillspendtimeinclassworkingexamplesandproblemsbothasaclassandinsmallgroups.Thiswillgiveyoutheopportunitytoaskmeforhelpwithyourspecificconcerns.

• Iholdyouresponsibleforallmaterialcoveredduringclass,includingchangestothesyllabus,courseschedule,andcoursematerials.Ifyoumissaclass,itisyourresponsibilitytoobtainanyhandoutsornotesfromotherstudentsinclass.

Teamwork:YourSkillsandBackgroundsDiffer.Asfaculty,weassumeadequateknowledgeofeconomics,algebra,calculusandspreadsheetandwordprocessingskillswillexistinallbusinessschoolstudentssowewilldevelopsomeofthoseskillsinthisclass.Whileeverythingthatyouneedtorememberfromothercoursesisreviewedbrieflyintheappropriatesectionofthiscourse,youmayneedtorefertoothertextbooks,theresourcesavailableinthelibrary,andyourfellowclassmatestobeabletomastereveryconceptinthiscourse.Istronglyrecommendthatyouworktogetherinstudyteams.However,thereisnocollaborationallowedonquizzesorexams.

FinanceTutorLabHomeworkAssistance:TheFinanceAcademicAssistanceLabhashoursduringtheweekandoffersemailaccess.Itisagreatplacetogotolearnfinance.PleasedropbytheFinanceTutorLabtodoyourhomeworkinaplacewhereyoucanaskfellowstudentssomequestions.Thelab(BLB132)islocatedinthenortheastcornerofthefirstfloorintheBusinessLeadershipBuilding.Moreinformationisavailableathttp://www.cob.unt.edu/lab/tutor.php.

GeneralPolicies:

Exams:Wewillhavetwomidtermexamsandonecomprehensivefinalexam(proctoredinaclassroomoncampus,onpaper,closed-book,closed-note).THEREWILLBENOMAKEUPEXAMS.Areferencesheetwithanynecessaryformulaswillbeprovidedforyou.PleasenotethatIwillnotanswerexam-related

questionsinthe24-hourperiodbeforeanexam.

Afinancialcalculatorwithallprogrammabletextclearedisrequiredforeachexam.Nootherinformationcanbeusedonthemidtermsorfinalexam,unlesspreviouslyauthorized.Cellphonesarenottobeusedasasubstituteforacalculator.

Alllaptops,tablets,cellphones,pagers,two-waycommunicationsdevices,andanyelectronicdeviceotherthanthefinancialcalculatorsapprovedforthisclassmustbeturnedoffandputawayduringtheexams.Hatsmustberemovedandearphones/earbudscannotbeusedduringtheexam.

Youarenottoleavetheclassroomduringanexamunlessthereisanemergencyandyoureceivepermissionfromtheproctororme.

Youarenotallowedtocollaborateonanymidtermexamoronthefinalexam.Unauthorizedcollaborationistreatedasacademicdishonesty.

ExamRetention:Ikeepallquizandexampapers.Onceyoufinishaquizorexam,youwillhandinyouranswersheet.Iwillgothroughthequizorexamimmediatelyafteritconcludes.Oncetherecapiscomplete,youmusthandinyourexamaswell.IfIfindanyexamcopiesmissingyourgradewillbepermanentlychangedto0.Youarealwayswelcometocometomyofficetoreviewpastexams.

IncompleteGrades:AgradeofincompletecanonlybeassignedifyouareincompliancewiththeUniversitypolicyregardingincompletegrades.Youmustseemetoarrangeanincompletebeforethefinalexamisadministered.

Extracredit:Thereisnoopportunityforextracreditormake-upworktoraiseyourgrade.Pleasedonotask.

Attendance:Youwillneedtochooseaseatandstaytherefortheentiresemester.Aseatingchartwillbecreatedduringthesecondweekofclass.Ireservetherighttochangetheseatingpatternduringexams.Theclassisinteractive,andyourparticipationinclassdiscussionsisimportant.Failingtoparticipatewilldirectlyimpactyourgrade.

E-mailaccounts:AllstudentsshouldactivateandregularlychecktheirEagleConnect(e-mail)account.EagleConnectisusedforofficialcommunicationfromtheUniversitytostudents.ManyimportantannouncementsfortheUniversityandCollegearesenttostudentsviaEagleConnect.ForinformationaboutEagleConnect,includinghowtoactivateanaccountandhowtohaveEagleConnectforwardedtoanothere-mailaddress,visithttps://eagleconnect.unt.edu/.

TechnicalRequirements/Assistance:Thefollowinginformationhasbeenprovidedtoassistyouinpreparationforthetechnologicalaspectofthecourse.

UITHelpDesk:http://www.unt.edu/helpdesk/index.htmHardwareandsoftwarenecessarytouseBbLearn:http://www.unt.edu/helpdesk/bblearn/Browserrequirements:http://kb.blackboard.com/pages/viewpage.action?pageId=84639794ComputerandInternetLiteracy:http://clt.odu.edu/oso/index.php?src=pe_comp_litNecessaryplug-ins:http://goo.gl/1lsVFInternetAccesswithcompatiblewebbrowser

AccommodationforDisabilities:TheCollegeofBusinessAdministrationcomplieswiththeAmericanswithDisabilitiesActinmakingreasonableaccommodationforqualifiedstudentswithdisabilities.IfyouhaveanestablisheddisabilityasdefinedintheAmericanswithDisabilitiesActandwouldliketorequestaccommodation,pleasenotifymeassoonaspossible.ForadditionalinformationseetheOfficeofDisabilityAccommodationwebsiteathttp://disability.unt.edu.Youmayalsocontactthembytelephone

at(940)565-4323.

AcceptableStudentBehavior:Studentbehaviorthatinterfereswithaninstructor’sabilitytoconductaclassorotherstudents'opportunitytolearnisunacceptableanddisruptiveandwillnotbetoleratedinanyinstructionalforumatUNT.StudentsengaginginunacceptablebehaviorwillbedirectedtoleavetheclassroomandtheinstructormayreferthestudenttotheDeanofStudentstoconsiderwhetherthestudent'sconductviolatedtheCodeofStudentConduct.Theuniversity'sexpectationsforstudentconductapplytoallinstructionalforums,includinguniversityandelectronicclassroom,labs,discussiongroups,fieldtrips,etc.TheCodeofStudentConductcanbefoundathttp://deanofstudents.unt.edu.

AcademicDishonesty:Studentscaughtcheatingorplagiarizingwillreceivea"0"forthatparticularassignmentorexam.Additionally,theincidentwillbereportedtotheDeanofStudents,whomayimposefurtherpenalty.Inmyclasses,theappropriationoruseofoldtestsorpublishertestbanksforanypurposeisnotauthorizedandthereforeconstitutescheating.

AccordingtotheUNTcatalog,theterm"cheating"includes,butisnotlimitedto:a)useofanyunauthorizedassistanceintakingquizzes,tests,orexaminations;b)dependenceupontheaidofsourcesbeyondthoseauthorizedbytheinstructorinwritingpapers,preparingreports,solvingproblems,orcarryingoutotherassignments;c)theacquisition,withoutpermission,oftestsorotheracademicmaterialbelongingtoafacultyorstaffmemberoftheuniversity;d)dualsubmissionofapaperorproject,orresubmissionofapaperorprojecttoadifferentclasswithoutexpresspermissionfromtheinstructor(s);ore)anyotheractdesignedtogiveastudentanunfairadvantage.

Theterm"plagiarism"includes,butisnotlimitedto:a)theknowingornegligentusebyparaphraseordirectquotationofthepublishedorunpublishedworkofanotherpersonwithoutfullandclearacknowledgment;andb)theknowingornegligentunacknowledgeduseofmaterialspreparedbyanotherpersonoragencyengagedinthesellingoftermpapersorotheracademicmaterials.

ModificationsduringtheSemester:AlthoughIdonotintendtovarysubstantiallyfromthissyllabus,Imaychangeparticularpoliciesandassignmentslistedonthissyllabusduringthesemestertobetterenhancelearninginthisclassortocorrecttypographicalerrors.AllofthesechangeswillbeannouncedinclassandonBlackboard.Pleasewatchtheannouncementstoinsurethatyoufindoutifanypoliciesorduedatesforassignmentshavebeenchangedoradded.

YourSuccess:UNTendeavorstoofferyouahigh-qualityeducationandtoprovideasupportiveenvironmenttohelpyoulearnandgrow.And,asafacultymember,Iamcommittedtohelpingyoubesuccessfulasastudent.Here’showtosucceedatUNT:Showup.Findsupport.Takecontrol.Beprepared.Getinvolved.Bepersistent.

Tolearnmoreaboutcampusresourcesandinformationonhowyoucanachievesuccess,gotosucceed.unt.edu.

StudentPerceptionsofTeaching(SPOT)Studentfeedbackisimportantandanessentialpartofparticipationinthiscourse.ThestudentevaluationofinstructionisarequirementforallorganizedclassesatUNT.TheshortSPOTsurveywillbemadeavailableMay30th–June1sttoprovideyouwithanopportunitytoevaluatehowthiscourseistaught.Forthespring2016semesteryouwillreceiveanemailonMay30th(12:01a.m.)from"UNTSPOTCourseEvaluationsviaIASystemNotification"(no-reply@iasystem.org)withthesurveylink.PleaselookfortheemailinyourUNTemailinbox.Simplyclickonthelinkandcompleteyoursurvey.Onceyou

completethesurveyyouwillreceiveaconfirmationemailthatthesurveyhasbeensubmitted.Foradditionalinformation,pleasevisitthespotwebsiteatwww.spot.unt.eduoremailspot@unt.edu.

Schedule(tentativeandsubjecttochange)Class Date Chapter Topic AssignmentDue

1 16-May Introduction,reviewofsyllabus1CorporateFinanceandtheFinancialManager ReadCH1&2

2 IntrotoFinancialStatementAnalysis HomeworkCH1&2

2 17-May34

QuizCH1&2TimeValueofMoney:AnIntroductionTVMValuingCashFlowStreams

ReadCH3&4HomeworkCH3&4

3 18-May45

QuizCH3-4TVMValuingCashFlowStreamsInterestRates

ReadCH5HomeworkCH5

4 19-May1-56MidtermExam1Bonds

ReadCH6HomeworkCH6

5 23-May78

QuizCH6StockValuationInvestmentDecisionRules

ReadCH7&8HomeworkCH7&8

6 24-May9

10

QuizCH7-8FundamentalsinCapitalBudgetingStockValuation:ASecondLook

ReadCH9&10HomeworkCH9&10

7 25-May6-10

11MidtermExam2RiskandReturninCapitalMarkets

ReadCH11HomeworkCH11

8 26-May 12QuizCH11SystematicRiskandtheEquityRisk

ReadCH12HomeworkCH12

30-May MemorialDay

9 31-May 13QuizCH12TheCostofCapital

ReadCH13HomeworkCH13

10 1-Jun13 TheCostofCapital

QuizCH1311 2-Jun 11-13 FinalExam