BA 340 - Finance
Spring 2005

Instructor: Jim Nielsen, Bexell 429, Office Phone 737-3226

Office Hours: MON 1:00 - 2:00

TUES 9:00 - 10:00

WED 2:00 - 3:00

and by appointment

Prerequisite: ECON 201, BA 213 or BA 215, and junior standing

Required text: Gitman, Principles of Managerial Finance, (Brief), Third Edition, Addison-Wesley, 2003.

Optional Material: Wall Street Journal

Course Objectives:

The purpose of the course is to enable the student to (1) develop an understanding of financial theory and (2) become familiar with the application of analytical techniques to a number of areas of financial decision-making.

In keeping with these objectives, the course will expose the student to a number of readings, lectures, problems, and exams. In other words, exams are also considered to be part of the learning experience.

Examinations and Grading Policy:

Two exams will be given during the term (a midterm and a final). Each exam will be composed of problem type questions and will be weighted equally. I do not give make-up exams. As a result, if you miss the midterm examination your course grade will be determined on the basis of the final (weight 70%) and homework (weight 30%).

This paragraph applies only to those students who miss the midterm. Homework problems assigned prior to the midterm will be due on May 2nd. The remaining homework problems will be due on the day they are scheduled. These assignments must be turned in at the beginning of class and late assignments will not be collected.

Everyone should understand that missing the midterm and turning in the homework is NOT an option. I only allow this to happen in situations where students are not able to come on the day of the midterm due to a serious illness, death in the family, etc. When this does happen, the only reason I collect homework is to see whether the student has been working in the class. As far as I am concerned, copying my classroom presentation and turning it in as your homework is graded as an F.

If you have a question regarding your grade on the midterm exam, you must discuss this with me during my office hours by May 9th. After this date, no changes will be made.

Academic Dishonesty:

See AR 15 in the Schedule of Classes.

If you are caught cheating in this class, you will be given an “F” for the course.

HANDOUT

DATE TOPIC CHAPTERS PROBLEMS

Mar 28 Introduction 1

30 Long Term Funds 6 (228-243), 7 (264-279)

Apr 4 Operating/Financial Leverage 11 (421-434)

6 Financial Statement Analysis 2 1

11 Margin and Turnover/ 3 (86-97) 2

Funds Statements

13 Cash Budgeting 3 (97-114) 3

18 Working Capital/Forecasting 13 (492-500) 4

20 Cash Management 13 (515-521)

25 A/R Management 13 (505-515) 5

27 MIDTERM

May 2 MIDTERM DISCUSSION

4 Present Value 4 IN CLASS

9 Capital Budgeting 8, 9 (340-359) 6

11 Capital Budgeting 7

16 Stock and Bond Valuation 6 (243-253), 7 (279-290)

Chapter 5 (review)

18 Short Term Financing 14 8, 9

23 Underwriting / Cost of Capital 10 10

25 Optimal Capital Structure 11 (434-452)

30 Memorial Day (No Class)

Jun 1 EBIT-EPS Analysis 11

FINAL EXAM – Thursday, June 9^th at 7:30 AM

(Location to be announced in class)

NOTES: You are also highly encouraged to do the following:

1. Review the material presented in Chapter 12 prior to the final exam. This material will be discussed in various classes throughout the term but not in the degree of detail presented in the textbook.

2. Review the problems which are presented at the end of each chapter. Focus only on those problems which relate to material presented during the class lecture. As these problems will not be discussed in class, three copies of the instructor’s manual have been placed on reserve at the library. If you have questions on any of these solutions, please see me during my office hours.