BA215H - Honors Money & Investment Management:

Manager, Lender, Investor Viewpoint

Spring 2008

Madeleine Brady Romero

[Schedule] [215 Problem Sets] [215 Problem Set Solutions] [Honors Assignments & Solutions]

Office: Bexell Hall 311	Spring 2008
Office Hours: Tu10-11; Th 11-12 & 4-5	CRN: 37144
E-mail: Madeleine.Romero@bus.oregonstate.edu Website: www.bus.oregonstate.edu/services/ (click on Course Materials;BA215H; Romero)	Course Credits: 4 Lecture: 4 hrs/week Tu & Th 8-9:50

COURSE DESCRIPTION

This honors course is designed exclusively for non-business students and business minors, integrating financial accounting and financial management from managers’, lenders’, and investors’ perspectives. Student will gain knowledge of both corporate and personal financial statements, including income statements, balance sheets, and cash flow statements. Emphasis is placed on the current application of accounting and finance principles to real-world companies. Investment management topics include: time value of money valuation techniques (to determine present and future values of cash flow streams, evaluate investments, calculate loan payments, determine rates of return, etc.); the functions of capital markets and securities, investment (stocks, bonds, and mutual funds) selection and evaluation; and other personal finance applications.

PREREQUISITES

(1) No prior coursework required.

(2) Open to all students (Freshman through Senior standing).

(3) Non-business students or business minors only.

(4) University Honors College student.

MEASURABLE LEARNING OUTCOMES

· Comprehend cash flow versus accrual accounting concepts.

· Analyze basic business transactions and determine effect on accounts & financial statements.

· Develop and interpret corporate income statement, balance sheet, and cash flow statements from a managers’ perspective (for planning, performance, and control), a lenders’ perspective (for credit assessment), and an investors’ viewpoint (for current and projected performance evaluation).

· Evaluate the financial positions of organizations through the calculation, application, and interpretation of basic financial ratios, utilizing time-series and cross-sectional analyses.

· Construct and analyze personal financial statements to understand money tracking and management.

· Formulate Excel computer spreadsheets for both corporate and personal financial statements.

· Calculate and apply time value of money problems to corporate and personal finance, utilizing a financial calculator and Excel financial functions.

· Comprehend capital market transactions and financing from both the corporate and investor side.

· Synthesize the interrelationships between personal and corporate financial management, especially as it applies to invest-ments.

· Understand investment securities (including bonds, common stocks, and mutual funds), proper asset allocation, and be able to research and select securities on-line.

Course Learning Objectives Unique to Honors Section:

· Apply accounting & finance principles to financial analyses of New York Stock Exchange companies.

· Develop effective business communication and interaction skills.

· Foster a multi-disciplinary, team approach to problem solving.

· Encourage critical thinking and student involvement in the application of course material to evaluate complex, current real-world corporate situations and problems.

· Investigate Internet resources to research and analyze investments in stocks and mutual funds.

· Construct and analyze an appropriate investment portfolio

· Develop Excel spreadsheets to compile and examine data for effective decision-making.

REQUIRED TEXT & MATERIALS

1) Honors Money & Investment Management: Manager, Lender, Investor Viewpoint,

Custom Publication for BA215 Honors, McGraw Hill Primis

2) Finance for Non-Financial Managers, by Gene Siciliano

3) Romero Lecture Notes, Cases, & Problem Sets– available in class or on my website.

4) Financial Calculator-HP12C,HP10B,or TI BA2+ required. Tutorials on my website and at:

http://wps.aw.com/aw_gitman_pmfbrief_3/0,7003,526589-,00.html

5) EXCEL Tutorial - available on reserve at OSU library. Other suggested website for interactive tutorial:

http://www.baycongroup.com/tutorials.htm

GRADING PROCEDURE

MIDTERM 30%

COMPREHENSIVE FINAL 30%

HONORS HOMEWORK ASSIGNMENTS (5) 20%

215 PROBLEM SETS (3) 5%

HONORS INVESTMENT PROJECT 10%

CLASS CASE DISCUSSIONS/PARTICIPATION 5%

You are guaranteed at least the following grade if your weighted average course score falls within the following percentiles:

A 93-100	B+ 87-90	C+ 77-80	D+ 67-70
A- 90-93	B 83-87	C 73-77	D 60-67
	B- 80-83	C- 70-73	F below 60

Additionally, a curve may be applied to these scores. Class participation is encouraged, and may be used in the final grade evaluation if the student is border-line between two grades.

NO MAKE‑UP EXAMS WILL BE GIVEN. The course outline lists TENTATIVE dates for the exams. You are responsible to take the exam whenever it is given, even if the tentative date changes.

ASSIGNMENTS - NO LATE WORK ACCEPTED!

Honors Homework Assignments (5): These are in-depth problems that are graded for accuracy and completion, and are critical to the comprehension and application of course material. Work must be individual and original.

215 Problem Sets (3): These are problems that are common with the regular 215 students, graded on a completion basis, with group work encouraged. Solutions posted on website after grading is done.

Honors Investment Project: Students will build and analyze an investment portfolio, given certain criteria for risk/return, asset allocation, diversification, size, etc. This will enable students to select and evaluate their own personal investment portfolio for current and future savings. No group collaboration.

COURSE POLICIES

1. Dates and terms for class withdrawal are as outlined in the 2008 OSU Course Schedule.

2. OSU student ID must be displayed during all exams. Personal digital assistants or any other type of mini-computer are NOT allowed for exams. Financial calculators ARE allowed (and required).

3. During class lectures, please TURN OFF ALL CELL PHONES AND PAGERS.

4. Failing to demonstrate honesty and integrity will result in a grade of ZERO for that exam.

See Statement of Expectations for Student Conduct at http://oregonstate.edu/admin/stucon/achon.htm

5. 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 instructor 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.

6. Students are held responsible for all announcements made in class.