DEPARTMENT OF FINANCE, INSURANCE AND LAW COLLEGE OF BUSINESS ILLINOIS STATE UNIVERSITY FALL 2007 College of Business Mission To be a highly respected college of business that develops professionals with the personal dedication, ethics and lifelong learning capabilities needed to succeed professionally and to serve society. We work as a diverse community promoting excellence in learning, teaching, scholarship, and service. Academic Integrity Students enrolled in College of Business classes are expected to maintain high standards of ethical conduct within the classroom and when completing assignments, projects, and/or exams. Plagiarism and other forms of academic dishonesty such as cheating will not be tolerated. Students are expected to provide appropriate citations for non-original writing even if the original work is paraphrased. Penalties for plagiarism and other forms of academic dishonesty may be severe. COURSE INFORMATION Instructor: Keldon Bauer, PhD Course Number & Title: FIL 240, Business Finance Prerequisites: ACC 132; MQM 100; ECO 101/102 or 105. Credit Hours: 3.0 Time and Location: TR 3:35-4:50 PM, COB 150 INSTRUCTOR INFORMATION Phone: 438-7991 E-mail: [email protected] Web Site: http://www2.cob.ilstu.edu/kjbaue2/fil240/ Office Location: COB 417 Office Hours: TR 10:00-11:00 AM; TR 2:00-3:00 PM RESOURCES/MATERIALS Textbook: Principles of Managerial Finance by Lawrence J. Gitman, 4th Edition, 2006. Calculator: In addition, students should have a calculator for the financial mathematics component of the course. I would recommend a TI BA II, or a HP 10 B. Clicker: Necessary for the class participation grade. COURSE DESCRIPTION This course is designed to familiarize business students with the essentials of finance from a managerial perspective. Part of the coursework will include theoretical concepts such as financial markets, institutions, interest rate determinants, and debt and equity markets. Other portions of the course will focus on calculations including time value of money, net present value and internal rate of return. The objective of the course is to blend the theoretical/conceptual with the computational, familiarizing the student with how to apply these tools, techniques and concepts to day-to-day business decision making. These blended concepts include financial statement analysis, financial planning, cash flow analysis, cost of capital and capital structure. COURSE COMPETENCIES The student who completes this course with a meaningful degree of achievement should be able to: Understand the information presented in a balance sheet and income statement Draw inferences on a company’s financial strengths and weaknesses by analyzing a series of financial ratios Do basic time value of money computations, such as those involving: Rates of return Loan payments Retirement savings TRApply capital budgeting tools Computing cost of capital Doing computations for payback/NPV/IRR analysis Understanding strengths and weaknesses in payback/NPV/IRR analysis Understand our capital (stock and bond) markets Nature and functions of the markets Risk and rates of return, including foreign exchange issues Diversification, including international considerations Compute stock and bond values with traditional models Understand basic short-term financial management issues Cash and marketable securities Receivables and payables issues Inventory Make basic use of spreadsheets as a financial management tool COURSE REQUIREMENTS Assignments/Homework: Nearly all chapters have homework assigned. These account for 15% of the final grade. Exams: Three exams will be given (each accounting for 25% of the final grade). Clicker: Necessary for the class participation grade (accounting for the remaining 10% of the grade). GRADING POLICIES No make-up homework or exams will be accepted except for official university activities (and must be accompanied by verification)! Any exceptions to this policy are at the discretion of the professor, and must be accompanied by corroborating documentation (doctor’s note, funeral program, etc.) Grades will be assigned according to the schedule on this syllabus. PLEASE don’t ask me to adjust your grade for reasons other than errors in grade calculation or the way an exam or a paper was graded, as that would be unfair to everyone else in the class. No matter how sad a story you may present, grades based on your performance may be the best education you can get in college. Grades will be based on two exams, a term project and homework. The final grade will be a weighted average of the scores on each component. The weights will be as follows: Midterm Exam I 25% Midterm Exam II 25% Final Exam (Dec. 11 @ 3:10 PM) 25% Homework 15% Participation 10% 100% During exams, students will be asked to remove any hats, and store cell phones, pagers, PDAs, iPods, and any other electronic devices (except their calculators) out of sight. Any violation of this ban will be defined as cheating. Final grades will be assigned according to the following schedule: 90% of points possible or more A 80% to (but not including) 90% B 70% to (but not including) 80% C 65% to (but not including) 70% D Less than 65% of points possible F ACCOMMODATION FOR STUDENTS WITH DISABILITIES Any student in need of a special accommodation should contact the staff in the Office of Disability Concerns at 438-5853 (voice) or 438-8620 (TDD). COURSE SCHEDULE See course