BA 340 - Finance
Fall 2005

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

Office Hours: MON 1:00 - 2:00

TUES 11:00 - 12:00

WED 12:00 - 1:00

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

Required text: Brooks, Financial Management: A Modern Approach (Preliminary Edition), Addison-Wesley, June 2005.

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 students who miss the midterm. For these students, homework problems assigned prior to the midterm will be due on October 31^st. 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 November 7^th. After this date, no changes will be made.

Academic Dishonesty: See AR 15 in the Schedule of Classes.

HANDOUT

DATE TOPIC CHAPTERS PROBLEMS

Sep 26 Introduction 1

28 Long Term Funds 6 (136-152), 7 (165,176,

193-195)

Oct 3 Operating/Financial Leverage 12 (321-332)

5 Financial Statement Analysis 15 1

10 Margin and Turnover/ 10 (263-274) 2

Funds Statements

12 Cash Budgeting 13 (353-357) 3

17 Working Capital/Forecasting 13 (347-353) 4

19 Cash Management 13 (357-367)

24 A/R Management 5

26 MIDTERM

31 MIDTERM DISCUSSION

Nov 2 Time Value of Money 2, 3 IN CLASS

7 Capital Budgeting 9, 10 (274-288) 6

9 Capital Budgeting 7

14 Stock and Bond Valuation 6 (127-136), 7 (166-192)

Chapter 5 (review)

16 Short Term Financing 4 8, 9

21 Underwriting / Cost of Capital 11 (295-308) 10

23 More on Bank Loans

28 Cost of Capital Continued

30 EBIT/EPS Analysis 12 (323-328) 11

FINAL EXAM – Monday, DECEMBER 5^th at 4:00 PM

(location to be announced)

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

1. Review the material presented in Chapter 14 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. If you have questions on any of these problems, please see me during my office hours as the end of chapter problems will not be discussed in class.