School of Business

Claflin University

Orangeburg, South Carolina 29115

BUSINESS FINANCE (FINC 311-01)

Fall 2019

Syllabus

Instructor: Dr. Harpal S. Grewal

Office: Trustee Hall Room #4

E-MAIL:

Office Phone: (803) 535-5202

CELL PHONE: (803) 479-8906

CLASS HOURS/ROOM: 9:00 am-9:50 am; MWF; GTK 121

OFFICE HOURS: : Monday: 11:00 am-1:00 pm

Tuesday: 10:00 am-12:00 pm

2:00 pm-4:00 pm

Wednesday: 11:00 am-1:00 pm

Friday: 11:00 am-2:00 pm

or by appointment for all other times.

Required Materials:

1. Texts: Ross, Westerfield, & Jordan, Essentials of Corporate Finance, 10th Edition McGraw Hill Company, (ISBN: 978-1-259-27721-4)

2. Minimum requirement : standalone Connect Access Card (ISBN: 1259120554)

Every student in this class should have access to CONNECT

3. Financial/Scientific Calculator Recommended.

Course objectives and description:

Course Description: Surveys the basic tools of financial management. Topics include analysis of corporate performance, management of short-term assets, decision framework for capital budgeting, an analysis of the cost and sources of long term capital, time value of money, and integration of concepts of financial management into a total systems approach to business decision making.

Business Finance deals with two types of questions:1) what to do with money, and 2.) How to raise money? The first question involves a choice between consuming and investing, and identifying and analyzing various investment opportunities. The second question requires a financing decision. Both individuals and corporations function as investors, who invest in real assets and financial assets. Financial assets are of particular interest because they involve both an investment decision for the buyer and a financing decision for the seller, or issuer. A number of concepts and methodologies will be explored including the time value of money, net present value, and adjusted present value.

Expected Learning Outcomes:

1. After completion of this course, students understand what role financial manger plays and what kinds of financial goals they seek for.

2. Students should be able to understand the concept of time value of money and apply this concept to stock and bond valuation.

3. Students should be able to understand how to use decision rules to make investment decisions.

4. Students should be able to understand the relation between risk and return in financial decisions

5. Students will learn leadership skill of effective written and oral communications and team work.

Course Policies: The following format for classes will be used in this course: Class day 1: Students will make group presentation on the chapter and show 15 minutes video. Class 2: Instructor will teach various concepts and methodologies of topics. Class 3: Students will do end of the chapters questions in groups.

It is recommended that you study the chapters as assigned and work on the homework problems in a timely manner. Finance is a progressive course that means what you have learned in the earlier chapters is applicable in the later chapters. There will be several quizzes. The quizzes will include theory and concepts and financial analysis, and are multiple choices. Each quiz has a one -hour time limit. Final Examination will be for two hours. The other two examinations will be for 50 minutes each.

Attendance:

Class attendance is mandatory. Inadequate attendance may result in grade reduction or “F” grade in the course. As per the University rule, a student may miss three unexcused classes. Any additional unexcused absence will result in a penalty of 5 (five) points from the Final Grade Score. Make-up exams are rarely given. To qualify for a make-up exam, a student must inform his/her professor prior to the scheduled exam period and have a legitimate, documented reason and University approved excuse for missing the class.

Tests: Each test will consist of multiple-choice questions and problems. Students may use relevant tables from the text. In addition, students will be allowed to construct a formula sheet and notes on one 5″ x 8″ index card per exam. No other notes or scrap paper will be permitted

during the exams. Students will need to have their own calculator and pencil/pen for the tests. Any other materials will be considered as unauthorized and may constitute academic misconduct.

Course Grade: The course grade will be computed as follows:

Chapter Summaries—————————-10 percent

End of the Chapter questions—————–10 percent

Class Quizzes———————————–10 percent

Special Project———————————-10 percent

Three Examinations—————————-60 percent

Total 100 percent

Grading Scale

The following grading criterion as listed in the University Catalog will be is used.

Grade Scale
100 – 90 A
89 – 86 B+
85 – 80 B
79- 76 C+
75-70 C
69-66 D+
65-60 D
Below 60 F
 
Minimum passing grade is “C” in this course

Tentative Class Schedule:

Weeks Topic(s) Chapter Home work Questions

1-4 Overview of Financial Management One 1.10; Chapter 1 Case

Accounting and Finance Two 10, 12, 15; Chapter 2 Case

Financial statement analysis Three 4,9,21;Chapter Case Q.1, 3

The Time Value of money Four 3, 10,17, 26

Examination I (Chapters 1, 2, 3, 4)

5-9 Discounted Cash Flow Valuation Five 1, 6, 20; Case Chapter 5 Q.

Interest Rates and Bond Valuation Six 3, 6; Chapter Case Q. 1 2, 7, 8

Equity Markets and Stock Valuation Seven 3, 6, 23; Chapter Case Q 1,

Net Present Value and

Other Investment Criteria Eight 1,5, 9; Chapter Case Q. 1, 2,5

Making Capital Investment Decisions Nine 5,8,10; Chapter Case Q 1,4

Examination II (Chapters 5, 6, 7, 8, 9)

10-15

Some Lessons from Capital Market Ten 3,8,10; Chapter Case Q 2,4

History

Risk and Return Eleven 4,7,9; Chapter Case Q 1, 3,5

Cost of capital Twelve 3, 8, 11 Chapter Case 2, 4

Capital Structure Thirteen 1, 4, 5 Chapter Case 1, 3

Working Capital management Fifteen 2, 4, 7 Chapter Case 2, 4

Final Examination (Chapters 10, 11, 12, 13, 15)

Statement Of Policy Concerning Academic Dishonesty

“Code of Honor Policy Statement

Claflin University prohibits all forms of academic or scholarly dishonesty, including written or oral examinations, term and research papers or theses, modes of creative expression, and computer-based work.

Scholarly dishonesty includes lying, cheating, plagiarism, collusion, and the falsification or misrepresentation of experimental data. (For social behavior, see Claflin University Student Handbook: Code of Conduct and Code of Ethics).

Code of Honor Definition of Violations

1. Academic Dishonesty – This includes any other act (not specifically covered in previous provisions) that compromises the integrity of a student or intrudes on, violates, or disturbs the academic environment of the University Community. Examples include attempting or agreeing to commit, or assisting or facilitating the commission of, any scholastic dishonesty, failing to appear or testify without good cause when requested by the Council for the Code of Honor, failing to keep information about cases confidential, supplying false information to the Council for the Code of Honor and accusing a student of a violation of this Code in bad faith.

2. Cheating – This act implies an intent to deceive. It includes all actions, electronic or other devices and deceptions used in the attempt to commit this act. Examples include, but are not limited to, copying answers from another student’s exam and using a cheat sheet or crib notes in an exam.

3. Collusion – This is the act of working together on an academic undertaking for which a student is individually responsible. Examples include, but are not limited to, sharing information in labs that are to be done individually.

4. Plagiarism – Plagiarism is representing the words or ideas of someone else as one’s own. Examples include, but are not limited to, failing to properly cite direct quotes, the false utilization of copyrighted material and the failure to give credit for someone else’s ideas.”

(2010-2011 Claflin University Catalog, pg. 39-40)

Claflin University Early Alert Program

As a part of our renewed focus on engaged learning, Claflin University has enhanced and expanded its current Early Alert Program. This program is designed to assist with your success and will be given a high priority as a strategy for this class.  Should the instructor determine that you might benefit from taking advantage of these support services and campus resources, you will be referred for such additional support as a means to assist with successful completion of this course.  It is further expected that you will comply with the referral and take advantage of the services offered.  Please understand that such referrals are not a form of punishment, rather, they are intended to help you reach and achieve your academic and personal goal.

Assurance Statement

If you need accommodations in this class related to a disability, please make an appointment as soon as possible. My office location and office hours can be found on page one of this syllabus.

In addition, classroom and testing accommodations should be discussed very early in the semester. Student should contact disability services–(Mrs. Sadie Jarvis Corson Hall Room 121—535-5285 or sjarvis@claflin.edu) regarding appropriate classroom accommodations.

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