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FIN 333 - Introduction to Financial Management
Policies and Procedures

Spring 2005 online 
Instructor: Reynolds Griffith
Office: BUS 392o

Office hours: I will not have regular oncampus office hours since I am teaching only web courses.
Virtual office hours (email checked & replied frequently):  MTThF 8:30-9:30 A.M, W 12:00-1:00P.M.
(This means you should get a reply to any email question no later than the end of the next virtual
office hours.)

 
Office phone: 468-1883  Home phone: 940-898-0101 (please do not call after 9:00 pm)
E-mail: RGRIFFITH@SFASU.EDU
Web home page: titan.sfasu.edu/~F_Griffith/
Fax: 936-468-1447

Text:   Gitman, Principles of Managerial Finance,Brief 3rd Edition (This is the same text used in the Spring 2004 semester, oncampus sections are using a different text for the Spring 2005 semester.) 
Available from University Bookstore or other sources
There is an accompanying website for the text. The access code for signing up for the text site is in the front of the text.(The access code is not necessary to use some of the materials - e.g. the self assessment quizzes)
The Wall Street Journal is recommended, but not required - see information on student subscriptions, which include access to The Wall Street Journal online.

EXAMS.There will be three exams, including the final, plus the mastery exam described below.  Each will be given on campus on a pre-announced evening .  If you are not within easy driving distance of the campus, you may arrange for a proctored exam. 
Contact me at least a week before the exam to work out the details and get the forms sent to the proctor. Each of these exams will be weighted equally at 30%. Sample exams are on reserve in the Library. Sample exams should not be used as the primary study guide - use the outlines & objectives. Exams are returned after grading (bring or send a stamped, addressed envelope with 2oz postage on it). Exams are a combination of short answer and discussion questions, problems, definitions, and multiple choice questions. Bring a Scantron form and notebook paper for each exam.

There will also be a "mastery exam" over Interest and Present Value Calculations. This exam will be online and consists of problems . You must demonstrate your mastery of these topics by scoring at least 80% on this exam in order to pass the course. If you fail to score 80% on the exam, you will be given additional opportunities to do so.

Attendance at exams is required. An unexcused absence from an exam will result in an F for that exam. An absence is considered excused only if you were in the hospital or had some equally drastic reason for being absent. (Less stringent standards may be applied if advance arrangements are made with the instructor.)

PROBLEMS, including discussion list participation will count 10% of your semester's grade. The lowest score will be dropped in calculating your problem average.

Problems should be turned in when due. A penalty may be assessed for problems turned in late. You will not receive any credit for a problem turned in after the solution is posted. Your calculations or reasoning should always be clearly shown.

If you need course adaptations or accommodations, please send me an email as soon as possible.

For TOPICS and reading assignments see the Outline below.

The PURPOSE of a basic course such as this is to give the non- finance major a general knowledge and understanding of financial decision making and in addition to provide the finance major with a foundation to build on in later courses. The three major elements of this knowledge are:

1. The language of finance - this means learning definitions of terms is very important.

2. Structure and environment - this includes the economy and institutions (which we will review somewhat), types of financial instruments, etc.

3. Tools and framework for analysis - a basic understanding of financial principles and how financial decisions are made, especially for the business firm.

PREREQUISITES - ACC 231 or equivalaent are required as background for this course. From having studied this course, you should be able to do at least the following:

Identify whether a financial statement item goes on the income statement or the balance sheet and, if on the balance sheet, what part of the balance sheet.

Construct a balance sheet and income statement, given a list of financial statement items.

Calculate a given ratio or percentage of a number and what ratio or percentage one number is of another.

Calculate the amount of interest earned or paid on an investment or loan, given the terms and calculate the present value of a future amount.

GENERAL OBJECTIVES (specific objectives for each part will be provided) - on completion of the course you should be able to:

Identify the goal of financial management and tell why it is superior to other possible goals.

Describe the functions and operations of the financial markets, the role of institutions, expectations, and taxes and the relation of the financial markets to the economy and financial management.

Construct and use the tools of financial analysis and forecasting, including ratios, pro-forma financial statements, and cash budgets.

Explain the concepts of risk, return, and time value of money, including the application of these concepts to securities, portfolios, and capital budgeting by the corporation.

Describe and calculate the value of or rate of return on the different types of securities issued by a corporation.

Explain and calculate the cost of capital, including the component costs and the overall cost of capital, for a firm (including its marginal cost), its relation to the firm's capital structure, and how it interacts with the capital budgeting decision.

Describe and compare the sources of funds which a company might use to finance its operations.

 

OUTLINE OF COURSE TOPICS AND ASSIGNMENTS

         Topic(s)                          Reading Assignment  
I. Introduction to course; the scope and environment of finance   
   A. The role of finance                      Chapter 1
                                                    
   
   B. Legal forms of organization              pp 4-7          
                                                             
   C. The tax environment                      pp 25-29
                                                             
   D. The economic environment                 review          
                                                             
   E. Financial markets                        pp 18-24,229-34                                               except pp 43-55          
                                                             
                                                           
II. Basic tools of finance                                 
                                                             
   A. Concepts and principles                  Chapters 4,5 
                                                             
   B. Financial analysis                       Chapter 2       
                                              
   C. Financial planning and control           Chapter 3    
                                                             
III. Valuation of financial assets  
   A. Valuation of bonds                       Chapter 6  
   B. Valuation of stocks                      Chapter 7
 
  
IV. Long-term asset decision making                        
                                                             
   A. The cost of capital                      Chapter 10  
     
   B. Capital budgeting: ranking and selecting                 
        projects                               Chapter 9
     
   C. Capital budgeting: other aspects         Chapter 8   
V. Financial structure and long-term financing                                             
                                                             
   A. Risk, leverage, and capital structure    Chapter 11  
                                                             
   B. Internal financing                       Chapter 12                            
      
   C. Securities markets & selling securities  pp 23,272-78                    
                                                             
   D. External sources: bonds and stocks       Review Chs 6,7,&11

       
VI. Working Capital Management                
                                                             
   A. Introduction & managing current assets   Chapter 13      
    
   B. Short-term financing                     Chapter 14