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BA 340 – Finance

Spring Sections 1 and 2

 

INSTRUCTOR:                                  Prem Mathew                                                                                           

                                                            Bexell 422B                                                                                      

                                                            737-6066, prem.mathew@bus.oregonstate.edu

                                                 

OFFICE HOURS :                             Tuesday  9:00 – 10:00

                                                            Wednesday 12:00 – 1:00,

                                                            Thursday 1:00 – 2:00, or by appointment.    

 

COURSE DESCRIPTION:                BA 340 is designed to introduce students to the fundamentals of finance.  This course will familiarize students with basic finance concepts such as time value of money, the risk and return relationship and security valuation.  Students will also be introduced to issues relating to capital budgeting, cost of capital, financial statement analysis and long- and short-term financial planning.  This course serves as a stepping stone to advanced courses in finance.

 

PREREQUISITES:                            ECON 201:  Introduction to Microeconomics;

BA 213 or BA 215: Managerial Accounting or Fundamentals of Financial Accounting;

Junior Standing 

 

REQUIRED MATERIALS:              Financial Management: A Modern Approach, by Raymond M. Brooks, Ph.D.

 

Additional materials, such as articles, websites, etc. will be provided in class as they become relevant. All course documents can be accessed through the COB course materials website at http://classes.bus.oregonstate.edu/ba340/mathew and through the links above.

 

CALCULATOR:                                   Although not required, I would strongly recommend that you purchase a financial calculator. I would suggest a Texas Instruments (TI) BAII Plus Advanced Financial Calculator (between $25 and $35 depending on where you purchase), however, there are others that would serve the purpose.

 

GRADING:                                         Your final grade will be will be determined by the following weights. 

 

Two Midterm Exams: 20% each

Five Quizzes (of which the top four scores will be counted towards your final grade): 5% each

Final Exam: 40%

 

Assignments and Exercises:  Assignments will be provided on a weekly basis. Students are not required to turn these assignments in but they will serve as a preparatory tool for the exams.

           

            Quizzes:  Quizzes will be given on most non-exam Wednesdays to ensure that students are keeping up with the material.

 

Midterm and Final Exams:  Students that cannot make an exam must notify me prior to the day of the exam.  Mid-term exams will be non-cumulative. The final exam will be cumulative.

 

ACADEMIC DISHONESTY:            For information about academic integrity and the University's policies and procedures in this area, please refer to the Student Conduct web site at:  http://www.orst.edu/admin/stucon/achon.htm  and the section on Academic Regulations in the OSU Schedule of Classes.

 

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.

 

COURSE OUTLINE:                         The following serves as a tentative outline for the course.  All chapters listed will be covered to some extent, time permitting.  Please make note of the midterm exam dates.  Students will only be responsible for sections of chapters covered in class. 

 

Week of                      Topic                                                                           Chapter

 

Apr 3                            Course Introduction

                                                                                                Financial Management                                                   1

 

Apr 10                          Time Value of Money                                                    2 and 3   

                                                                       

Apr 17                          Interest Rates                                                               4

                                    Risk and Return                                                            5

 

Apr 24                          Bonds and Bond Pricing                                                 6

 

Apr 26                         Midterm 1                                                                   Ch. 1-5                  

 

May 1                           Stock Valuation                                                             7

 

May 8                           Portfolio Management                                                   8

Capital Budgeting Decision Models                                 9

 

May 15                         Project Cash Flow – Incremental Cash Flow                   10

Weighted Average Cost of Capital                                 11

 

May 24                        Midterm 2                                                                   Ch. 6-10

 

May 29                         Memorial Day – no class (29th)

                                    Capital Structure                                                           12

 

Jun 5                            Working Capital Management                                        13

 

Jun 14 (Wednesday)   Final Exam 07:30 – 9:20 a.m.­­­ (both sections)