NOTE: BA 340 is not offered during Summer 2008.
The course materials below are for reference purposes only.

BA 340: Finance

Spring 2008

Syllabus

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

Phone: 737-6044 Class Schedule: T,R 4:00pm – 5:50pm

Office: Bexell 339 Office Hours: T - 3:00, W - 10:00, R – 2:00

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

About This Course:

Welcome to Finance! Managerial Finance is a vital subject in the business curriculum. Employees in all areas of the organization have found that they must understand finance concepts and applications if they are to function 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. The Finance function is the one place in the organization where all contributions from the various functional areas, e.g. Marketing, Manufacturing, Engineering, Supply Chain, Research and Development, Human Resources, come together. 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

· Satisfy the extended BA340 Learning Objectives set forth on the College of Business web site

For many of you this will be the only Finance course you will complete. At the end of the course, you should take away a number of finance skills that you can apply in your personal lives, such as a command of interest rate mathematics, the framework for making investment decisions, the pervasive relationship between risk and return, the structure of the bond and stock markets, and basic valuation tools for debt and equity securities.

About Me:

I have taught Finance, Accounting and Economics at several universities. I was a regular Finance faculty member at OSU for five years in the 1980s, prior to going to work in Finance at Hewlett-Packard. I retired from HP in June 2004. Prior to pursuing graduate study in Finance, I worked as a Certified Public Accountant. I will seek to bring my business experience into the classroom, as appropriate. I would prefer to interact informally, so please just address me as “Bob”.

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. We will try to vary the proceedings in each class meeting. We will take a 5 minute break approximately halfway through each class period. Topics will be related to current business practices and current events whenever possible. When current events of substantive finance significance arise, we will devote class time to these topics. If I miss a current event that you discover, please share it with the rest of the class.

Text: Financial Management: A Modern Approach, Addison-Wesley, 2^nd Prelim. Edition, Brooks (required)

The Wall Street Journal (optional – will be used in class as relevant articles appear)

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

Electronic Spreadsheet Skills: Familiarity with elementary electronic spreadsheet techniques is expected.

Evaluation: Portion of Course Grade

Problem Sets (4 @ 25 points each) 100 points

Midterm Examination 100 points

Final Examination 100 points

Total points possible 300 points

Review Questions and Problems from the text are called out in the class schedule that follows. Each student is expected to complete the reading assignment and 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. Since much of the study of Finance is quantitative in nature, it is very important not to fall behind in the course work. Course materials will be distributed on Blackboard. Students may find it helpful to download course materials in advance of class. Advance materials for each class meeting will be posted to Blackboard by 6:00pm on the night before each class meeting. Printing out the PowerPoint files 3 slides per page leaves space in the right-hand part of the page to take notes. Many problems will be solved using Microsoft Excel. I will post these worksheets to Blackboard also. Usually, I will post a partly completed worksheet that you can use to solve the problems, as well as a completed worksheet (after the class meets) on which you can check your solutions. Please check the course Blackboard web page regularly for updates, announcements and new postings:

http://my.oregonstate.edu

Blackboard login is accomplished using your ONID email account name and password. After you’ve logged in, go to the BA340 web page for your section. I will post Problem Sets and solutions to the “Assignments” folder and all other materials to the “Course Information” folder.

Four Problem Sets will be distributed. These will be collected on the dates indicated in the class schedule and graded. Please submit your assignments in printed, rather than electronic, form. 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. Be sure to include the names of all group participants on the front page of the problem set. Late assignments will not be accepted. Problem Sets may be completed manually, as long as the writing is neat and legible. Problem Sets will be distributed in class and they will be posted to the course web page on Blackboard at least one week in advance of their due date. 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.

Examinations will consist of numerical problems, short essays and multiple choice questions. For each of the examinations, students will be allowed to bring a letter-sized (8 ½ “x 11”) page with notes, formulas, equations, etc. to be used on the examination. Both sides of the page may be used. The page of notes will not be collected. In addition to the page of notes, each student should bring the following to examinations:

• Electronic calculator
• Compound interest tables
• Pencil for marking multiple choice answer sheet.

Make up examinations will be given only under very extraordinary circumstances, e.g. documented illness, death in the family. I will make a determination on a case-by-case basis as to whether a make-up examination will be provided. Any final exam conflicts must be resolved by Friday, April 4^th.

Extra/supplemental credit is not offered in this course. Class participation may benefit your final course grade, if you are on the borderline of a grade cut-off point (see following). I strongly encourage you to ask questions in class. If something is puzzling you, there is a good chance that it is puzzling other members of the class also. I may call on students from time to time - not as a performance test, but just to check for overall understanding.

Be sure that both your ONID and College of Business email accounts are active and checked regularly, as I will use our College of Business group distribution list to communicate with the class. Correspondence may include forwarding articles of interest to the subject being covered.

I will use the following grading scale for this course.  These cut-off points may be lowered, but they will not be raised.

Grade	Percentage Score
A	93 up to 100
A-	90 up to 93
B+	87 up to 90
B	83 up to 87
B-	80 up to 83
C+	77 up to 80
C	73 up to 77
C-	70 up to 73
D+	67 up to 70
D	63 up to 67
D-	60 up to 63
F	Less than 60

Statement Regarding Students with Disabilities
"Accommodations are collaborative efforts between students, faculty and Services for Students with Disabilities (SSD). Students with accommodations approved through SSD are responsible for contacting the faculty member in charge of the course prior to or during the first week of the term to discuss accommodations. Students who believe they are eligible for accommodations but who have not yet obtained approval through SSD should contact SSD immediately at 737-4098."

Link to Statement of Expectations for Student Conduct, i.e., cheating policies:
http://oregonstate.edu/admin/stucon/achon.htm

Attendance: While I don’t take roll, attendance at all class sessions is expected and necessary for success in the course. I will strive to make your attendance in class worthwhile for you. Virtually all exam questions will be drawn from material covered in class.

Instructor access: Your learning and success in the course are important to me. I will be available during the office hours listed above. Generally, I can meet with students on a “drop-in” basis, as well. If necessary, we can schedule another time to get together. Please see me, if you are having difficulty with any aspect of the course. Also keep in mind that office hours are not only a time to address problems. I’d be happy to talk with you about your areas of special interest, careers in Finance, etc. The best way to get in touch with me on weekends is by e-mail. I will check e-mail at least once per day on Fridays, Saturdays and Sundays.

Tentative Class Schedule

Date	Subject	Reading	Review Questions and Problems From Text
4/1/08	Introduction	Ch. 1	Q: 4,5,6,7,11
4/3/08	Interest Rate Mathematics - I	Ch. 2 Ch. 3	Q: 4,5,6,9,10 P: 5,7,9,10,15 Q: 1,7,9 P: 1,3,7,9,11,12,13
4/8/08	Interest Rate Mathematics - II
4/10/08	Interest Rate Characteristics	Ch. 4	Q: 4,7,9 P: 3,7,11
4/15/08	Valuation of Debt Securities	Ch. 5	Q: 3,5,7 P: 1,2,5,6,11 Problem Set #1 Due – 4:00pm
4/17/08	Valuation of Equity Securities	Ch. 14.1-14.4 Ch. 6	(none) Q: 3,7,9 P: 1,2,3,5,7,11
4/22/08	Risk and Return	Ch. 7	Q: 5,7,9,11 P: 1,3,5,6,7,17,21,23
4/24/08	Financial Statement Analysis	Ch. 9.1 Ch. 13	Q: 1 P: 1,3,5 Q: 5,6,7,8,9 P: 9,13-17
4/29/08	Catch up and review	None	Problem Set #2 Due – 4:00pm
5/1/08	MIDTERM EXAMINATION
5/6/08	REVIEW MIDTERM EXAMINATION
5/8/08	Capital Budgeting – I	Ch. 8	Q: 3,7 P: 1,7,9,11,13,15,19
5/13/08	Capital Budgeting – II	Ch. 9.2-9.5	Q: 7,8,9 P: 15,17,19
5/15/08	Cost of Capital	Ch. 10	Q: 2,3,5,7,9,10 P: 1,3,5,7,9,13,15,17
5/20/08	Capital Structure	Ch. 15	Q&P: 5,7,9,11,13
5/22/08	Dividend Policy	Ch. 16	Q&P: 7,9,11,13,15 Problem Set #3 Due- 4:00pm
5/27/08	Financial Forecasting	Ch. 11	Q: 5,6,7 P: 1,5,9,13,15-20
5/29/08	Working Capital Management	Ch. 12	Q: 3,4,5,6,7,10,11 P: 1,5,7,8,9
6/3/08	Special Topic – To Be Determined	TBD
6/5/08	Catch up and review		Problem Set #4 Due – 4:00pm
6/12/08 (Thursday)	FINAL EXAMINATION: 2:00pm – 3:50pm (covering material since midterm only)

Supplemental Internet Resource Links (used to introduce material covered in class meetings and for future reference):

http://www.bloomberg.com/

http://www.marketwatch.com/

http://corporateinformation.com (company profiles)

http://profiles.wisi.com/ (Wright Investors Service – company profiles)

http://www.fma.org/ (Financial Management Association)

http://www.afajof.org/ (American Finance Association)

http://www.businessfinancemag.com/ (Business Finance Magazine)

http://www.cfo.com/ (Chief Financial Officer Magazine)

http://www.sec.gov/ (access to S.E.C. filings)

http://moneycentral.msn.com/ (Microsoft personal finance site – receives high ratings in reviews of web sites)

http://www.hoovers.com/ (Company info, S.E.C. filings, research)

http://www.forbes.com/investing/ (research tools)

http://www.businessweek.com

http://www.marketguide.com/MGI/ (company info, research tools)

http://www.quicken.com/investments/ (company info, research)

http://www.money.com/

http://www.smartmoney.com/ (company info, research)

http://www.standardandpoors.com/ (company info, bond ratings)

http://finance.yahoo.com/ (yahoo finance site)

http://www.zacks.com/ (earnings estimates)

http://www1.firstcall.com/index.shtml (earnings estimates)

http://www.aaii.com/ (American Association of Individual Investors – good resource for investing basics)

http://www.fundadvice.com/ (excellent resource for mutual fund investing – good articles and model portfolios)