DEPARTMENT OF FINANCE INSURANCE AND LAW COLLEGE OF BUSINESS ILLINOIS STATE UNIVERSITY FALL 2007 TR 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 12 35 1 50 PM COB 366 INSTRUCTOR INFORMATION Phone 438 7991 E mail kjbaue2 ilstu edu 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 Apply 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 10 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 website