BA340 Syllabus - Spring 2005

BA 340 - Finance
Spring 2005

Instructor: Bob Johnson Prerequisites: ECON 201, BA 213 or BA 215

Phone: 737-2663 Class Schedule: U & H - 2:00 pm-3:50 pm

Office: Bexell 402a Office Hours: W - 3:00 pm-5:00 pm

E-mail: johnsonr@bus.oregonstate.edu & by appointment

About This Course

Managerial Finance is a vital subject in the business curriculum. Managers in all areas of the organization have found that they must understand finance concepts and applications if they are to manage effectively. The rising importance of managerial finance is due not just to advances in theory and practice. In the contemporary, competitive business environment, the successful, effective financial analyst/manager is a fully integrated business partner with the functional area(s) he or she supports. Accordingly, the financial analyst/manager must have a thorough understanding of the operational processes within the enterprise.

Consistent with the preceding, the principal objectives of this course will be to:

· Establish the foundation of finance theory

· Develop an understanding of the analytical tools available to the financial analyst

· Develop skills in the application of managerial finance concepts and practices

· Develop a thorough understanding of the role of the financial analyst in today’s enterprises

Instructional Approach

The course will be a blend of current finance theories and practices. A variety of instructional media will be used, including lecture, discussion, problem solving and case study analysis. The topics will be related to current business practice whenever possible

Text: Principles of Managerial Finance (brief), Addison-Wesley, 3e, Gitman (required)

Study Guide to Accompany Principles of Managerial Finance (brief) (optional)

The Wall Street Journal (optional)

Financial Function Calculator: e.g. TI Business Analyst II or HP 10bII (optional)

Evaluation: Portion of Course Grade

Problem Sets, & Class Participation 1/3

Midterm Examination 1/3

Final Examination 1/3

Review Questions and Problems from the text are called out in the class schedule that follows. Each student is expected to work the Review Questions and Problems prior to the class meeting for that topic. The assigned Review Questions and Problems will be covered in class, as time permits. Course materials will be distributed on Blackboard (starting after March 29^th). Please check the course Blackboard web page regularly for updates.

Four Problem Sets will be distributed. These will be collected on the dates indicated in the class schedule and graded. You are welcome to collaborate on the Problem Sets in small groups (5 or fewer students per group) and submit one assignment for your group. Late assignments will not be accepted. You may e-mail me your Problem Set by the due date/time, if you will be unable to deliver it in person. Problem Sets will be distributed in class and they will be posted to the course web page on Blackboard. Solutions to each Problem Set will be posted to Blackboard after they are collected.

Appeals of grades on Problem Sets, Examinations, etc. must be made within one week from the date that the assignment/exam is returned. Please submit a written explanation of why you feel that your grade is in error. Final exam schedule conflicts must be resolved by April 7^th.

Tentative Class Schedule

Date	Subject	Reading	Review Questions, Problems & Problem Sets
3/29/05	Introduction	Ch. 1	RQ 11,14,17,19,22,25 P 4,8
3/31/05	Financial Statements & Ratio Analysis	Ch. 2	RQ 3,7,10,13,15,17 P 3,5,14,17
4/5/05	Cash Flow Analysis & Financial Planning	Ch. 3	RQ 2,6,11 P 4,7,11
4/7/05	Interest Rate Mathematics	Ch. 4	RQ 8,12 P 5,11,14,16,21,27,42
4/12/05	Markets & the Valuation of Risky Assets	Ch. 5	RQ 6,8,11,13,14 PS #1 due P 2,5,10,13,14,19
4/14/05	Valuation of Debt Securities	Ch. 6	RQ 4,6,9,10,17,19 P 3,9,11,18
4/19/05	Valuation of Equity Securities – I	Ch. 7	RQ 4,11,12,13,14,18 P 2,5,6,9,18
4/21/05	Valuation of Equity Securities – II	TBD
4/26/05	Catch-up & Review		PS #2 due
4/28/05	MIDTERM EXAMINATION (covering Chapters 1 - 7)
5/3/05	REVIEW MIDTERM EXAMINATION
5/5/05	Capital Budgeting – I	Ch. 8	RQ 4,5,9,14,15 P 1,2,5,7,9,10,15,18,21
5/10/05	Capital Budgeting – II	Ch. 9	RQ 3,4,5,9,13 P 5,8,14,17,26
5/12/05	Capital Budgeting – III	TBD
5/17/05	Cost of Capital	Ch. 10	RQ 1,4,10,11 P 1,2,4,6,10
5/19/05	Capital Structure	Ch. 11	RQ 3,4,5,8,10,11,14 PS #3 due P 2,7,10,18
5/24/05	Dividend Policy	Ch. 12	RQ 3,4,8,9 P 3,6,13
5/26/05	Working Capital Management – I	Ch. 13	RQ 1,3,4,7,8,13 P 1,5
5/31/05	Working Capital Management – II	Ch. 14	RQ 2,4 P 2,5,7
6/2/05	Course Review & Wrap-up		PS #4 due
6/9/05	FINAL EXAMINATION: 7:30am – 9:20am (covering Chapters 8 – 14)