Syllabus FIN 3361

Spring 2017

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FIN 3361-

Financial Management

Spring 2017

Course Description/Overview

Course Description

This course is designed to develop critical thinking and financial skills necessary for financial

policy decisions. Upon completion of this course, you should be able to solve financial problems,

gather and analyze financial data, develop critical thinking, ethical awareness, and

communication, collaboration and presentation skills. Topics include financial management of

the firm, time value of money, valuation of the firm, bond and stock valuations, working capital

policy, capital budgeting, cost of capital, and long-term financing.

Prerequisite Knowledge

Students should have junior or senior standing at the university level. A basic understanding of

the principles of economics and accounting is strongly advised.

Prerequisites: Accounting 2302 and Economics 2301 and 2302

Course Technology

Use of blackboard is required. It is essential that students familiarize themselves with the use of

blackboard.

Students must have access to a reliable computer that connects to the Internet. The course

materials are only accessible online by logging in to http://blackboard.angelo.edu . In addition to

a competent level of computer and Internet literacy and capability, certain minimum technical

requirements must be met to enable a successful learning experience in blackboard. Please

review the important technical requirements and Web browser configuration information on the

blackboard home page. Blackboard support may be contacted by calling (325) 486-6263 or by

email at elearning@angelo.edu.

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Class Meeting Times

Monday & Wednesday 03:00 pm-04:15 pm

This course will be taught as a “hybrid” course. A hybrid course merges the face-to-face

instruction of a traditional course with computer-based learning. In this hybrid course, parts of

the course learning will be online and as a result, the amount of classroom seat time is reduced.

This course will include some required on-campus class meetings (at the discretion of the

instructor) PLUS required project work. The instructor will make announcement on blackboard

at least one week in advance for class meetings.

Technical Support

The Technology Service Center (TSC) may be contacted by calling (325) 942-2911 or

1-866-942-2911 or by email at helpdesk@angelo.edu.

Faculty/Instructor Information

Name: Biqing Huang, Ph.D.

Title: Associate Professor of Finance

Office: RAS 249

Phone: (325) 486-6447

E-Mail: biqing.huang@angelo.edu

Office Hours: Please call or email the instructor.

You are welcome to send emails to or call the instructor (or leave a

voice mail) if you have any questions.

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Course Objectives

Learning Objectives:

The essential objectives of this course are for the student to learn techniques of financial

management. Topics include using financial statements in decision making, time value of money,

valuation of stocks and bonds, risk and return, capital budgeting analysis, cost of capital,

short-term and long-term financing, capital structure, capital markets, dividend policy,

derivatives, international financial management, and other topics associated with successful

business finance decisions in an internationally competitive environment. Upon completion of

this course, students will be able to:

1. Understand the concept and theory of Time Value of Money, and be able to apply it to bond

and stock valuation. Develop business skills such as analytical thinking, critical analysis,

creativity and problem solving. Incorporate the use of excel.

2. Demonstrate competency in interpersonal, and written communications.

3. Demonstrate knowledge of contemporary theory and practice in finance. Understand the

concept of Risk/Return Tradeoff and be able to apply it to investment choices.

4. Understand advanced topics in finance such as dividend payout policy, capital structure and

leverage, options, mergers and acquisitions.

5. Demonstrate knowledge of basic international finance.

Assessment Methods:

Goal 1 is assessed through take-home assignments, and quizzes.

Goal 2 is assessed through take-home assignments.

Goal 3 is assessed through take-home assignments, quizzes, and exams.

Goal 4 is assessed through take-home assignments and online discussions.

Goal 5 is assessed through take-home assignments and online discussions.

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Course Textbook and Required Readings

Required Text:

Practical Financial Management

Edition: 8th

Author: Lasher

ISBN: 9781305637542

Copyright Year: 2017

Publisher: Cengage South-Western

NO ACCESS CODE IS NEEDED.

Recommended Readings: The Wall street Journal, Financial Times, The Economist

Other readings are assigned each week and are provided to you in WORD, EXCEL, PPT, or PDF

format, or will link you directly to the web site of interest.

Additionally, where possible, videos are utilized to enhance student learning.

Required Calculator: Hewlett-Packard 10B-II, or Hewlett-Packard 10B-II Plus

The Hewlett-Packard 10B-II (HP 10B-II), or Hewlett-Packard 10-BII (HP 10B-II Plus)

calculator is strongly recommended. All examples shown on lecture notes will use this calculator.

If you choose to use another, it is your responsibility to learn to use it. Bring the calculator to

every class, starting with the second class.

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Course Policies:

1. Communication with Your Professor and Fellow Students:

Communications about your course will be in the format of ASU email, announcements on

blackboard, and discussion boards. I strongly suggest that you check blackboard and your

ASU email at least once for every two days. Usually I will email you if there are any updates

of the course (new materials, new HWs, quizzes, exams, etc).

Usually, I check my ASU email very often during Monday through Friday, and respond in 24

hours. Email is the preferred way of communication. You may also communicate with me by

phone or leave a voicemail.

I strongly suggest that you check blackboard and your ASU email at least every two days to

receive the most updates for this course.

The best way to reach me is via email.

Besides emails, you can participate in the course via the blackboard discussion board. You

can find the discussion board in the tab of “Collaboration”). The board allows you to

communicate with your fellow students and with me. This forum is monitored by your

professor. I will respond to your questions on discussion board in three hours if I am not in

any classes.

This course does not require synchronous communication.

Email manners: Please include subject, titles or name of the person you are writing to,

content, and your names. Usually the instructor will respond within three hours. The

instructor will not respond to emails that are not written in good manners.

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2. Policy on Server Unavailability or Other Technical Difficulties

Angelo State University is committed to providing a reliable online course delivery system to

all users. However, in the event of any unexpected blackboard server outage or any ASU or

MyEconLab technical difficulty which prevents students from completing a time sensitive

activity, I will extend the due date and provide an appropriate accommodation based on the

situation. The accommodations will be made as soon as the ASU IT Department or

MyEconLab confirms that there was such a problem. Students should report any problems to

the professor through their ASU email account and also email www.elearning@angelo.edu.

Note that this does not apply to individual technical problems that you may encounter on

your personal computer. It is the responsibility of the student to work with a reliable

computer and Internet connection and plan ahead.

Policies of student submissions:

Students will need to submit their exams and quizzes on blackboard using the test format. The

students will need to hit the “submit” button at the end in order to submit successfully.

Technical Problems with Exams and Exam Policy:

Please plan to take your HWs on a reliable computer. Wireless and dial-up connections tend to

cause problems with quizzes and exams. Do not use these. You should take your quizzes and

exams with DSL broadband or cable Internet connections. I highly recommend using the MCS

microcomputer lab. No make-ups will be offered for any of your assignments.

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Grading Policies

This course employs the following to measure student learning. Grades may consist of exams,

assignments, attendances, quizzes, and project(s). Specific due dates for each will be announced

in a timely manner on blackboard. Students are responsible for being aware of the information.

Course grades will be based on a weighted composite of the following (Please be aware that the

instructor reserves the right to change the weights of each grading component):

Exam I: 20%

Exam II: 20%

Final Exam: 30%

Others (Quizzes, assignments, class citizenship, project): 30%

Your grade will be assigned to the following achievements. The instructor reserves the right to

change the cutoffs presented below.

Letter Grade %

A 90% and above

B 80% - 89.99%

C 70% - 79.99%

D 60% - 69.99%

F Below 60%

Class Citizenship:

Students are expected to log on to this course at least once a week via the blackboard. Also, at the beginning of the semester the students need to make a brief introduction about themselves. Please read announcements on blackboard about it.

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Course Policies

Academic Honesty and Integrity

Angelo State University expects its students to maintain complete honesty and integrity i

n their academic pursuits. Students are responsible for understanding and complying with

the university Academic Honor Code (www.angelo.edu/content/files/17358-university-hono

r-code) and the ASU Student Handbook(http://www.angelo.edu/content/files/17187-2014-15-

student-handbook).

It is the professor’s intention to be as fair and impartial as is humanly possible. Therefore, all

students will be asked to adhere to the same set of guidelines and rules UNLESS there are

disabilities or documented extenuating circumstances that have been discussed with the professor

and the Student Life Office. Please make sure you inform the professor as soon as any situation

arises. Do NOT wait until the problem is compounded by poor class performance, poor attendance,

etc.

Academic integrity is expected. This includes, but is not limited to, any form of cheating,

plagiarism, unauthorized sharing of work, or unauthorized possession of course materials. The

professor assumes that all students can be trusted. Please do not violate this trust. Violation of

academic integrity will result in a failing grade for the course.

Courtesy and Respect

Courtesy and Respect are essential ingredients to this course. We respect each other's opinions and

respect their point of view at all times while in our class sessions. The use of profanity &

harassment of any form is strictly prohibited (Zero Tolerance), as are those remarks concerning

one's ethnicity, life style, race (ethnicity), religion, etc., violations of these rules will result in

immediate dismissal from the course.

Accommodations for Disability

As stated in the Angelo State University Operating Policy and Procedure (OP 10.15 Providing

Accommodations for Students with Disabilities), the Student Life Office is the designated

campus department charged with the responsibility of reviewing and authorizing requests for

reasonable accommodations based on a disability, and it is the student's responsibility to initiate

such a request by contacting the Student Life Office at (325) 942-2191 or (325) 942-2126

(TDD/FAX) or by e-mail at Student.Life@angelo.edu to begin the process. The Student Life

Office will establish the particular documentation requirements necessary for the various types of

disabilities.

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Student absence for religious holidays

As stated in the Angelo State University Operating Policy and Procedure (OP 10.19 Student

Absence for Observance of Religious Holy Day), a student who intends to observe a religious

holy day should make that intention known in writing to the instructor prior to the absence. A

student who is absent from classes for the observance of a religious holy day shall be allowed to

take an examination or complete an assignment scheduled for that day within a reasonable time

after the absence.

Course Drop

The last day to drop this class is the March 31, 2017.

To view information about how to drop this course or to calculate important dates relevant to

dropping this course, you can visit

http://www.angelo.edu/services/registrars_office/course_drop_provisions.php

Incomplete as a Course grade

As stated in the Angelo State University Operating Policy and Procedure (OP 10.11 Grading

Procedures), the grade of “I” is given when the student is unable to complete the course because

of illness or personal misfortune. An “I” that is not removed before the end of the next long

semester automatically becomes an “F”. A graduate student will be allowed one year to remove a

grade of “I” before it automatically becomes an “F”. To graduate from ASU, a student must

complete all “I”’s.

Grade Appeal Process

As stated in the Angelo State University Operating Policy and Procedure (OP 10.03 Student

Grade Grievances), a student who believes that he or she has not been held to appropriate

academic standards as outlined in the class syllabus, equitable evaluation procedures, or

appropriate grading, may appeal the final grade given in the course. The burden of proof is upon

the student to demonstrate the appropriateness of the appeal. A student with a complaint about a

grade is encouraged to first discuss the matter with the instructor. For complete details, including

the responsibilities of the parties involved in the process and the number of days allowed for

completing the steps in the process, see Operating Procedure 10.03 at:

http://www.angelo.edu/content/files/14196-op-1003-grade-grievance.

Course Revision: Any revisions to this syllabus will be announced in class and supercede this

syllabus. Students are responsible for being aware of these changes.

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Tentative class schedules

*Please note that except the final, the course and exam schedules listed below represent the best

information available at the time of course registration. They are tentative and may change at

any time. Adjustments will be made if necessary based on actual progress. I will announce the

dates of exams/quizzes/assignments at least one week in advance on blackboard.

Important Dates (Detailed information regarding the submissions can be found on

blackboard)

Things to be Due Due Date

HW 1 Feb 12, 2017

HW 2 Feb 23, 2017

HW 3 Feb 27, 2017

Exam I Mar 1, 2017

HW 4 Mar 19, 2017

HW 5 April 3, 2017

Exam II April 5, 2017

Final Exam May 10, 2017

Again, dates listed above are just tentative. Please check blackboard announcements for

the actual due dates.

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TENTATIVE SCHEDULE

Week 1, Jan 17-20, 2017, Chapter 1, Module 1

Chapter Topics

1 Foundations

Learning Objectives:

Students should gain an understanding of the following concepts:

1. The basic nature of financial assets (securities) and the organization and operation of

financial mark;

2. The role and responsibility of financial management in corporations;

3. The relationships between finance and accounting and between finance and economics, along

with the importance of cash flow in finance;

4. The financial implications of the proprietorship and corporate forms of business organization

including the true role of limited liability;

5. The need for a top level managerial goal and why maximizing shareholder wealth works;

6. Stakeholder groups and conflicts of interest especially between management and

stockholders.

Week 2, Jan 23-27, 2017, Chapter 2, Module 2

Chapter Topics

2 Financial Background

Learning Objectives:

Students should:

1. Reacquaint the basic accounting concepts and procedures which they may have forgotten;

2. Develop an understanding of federal tax fundamentals, and the ability to calculate simple

taxes.

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Week 3, Jan 30- Feb 3, 2017, Chapter 3, Module 3

Chapter Topics

3 Cash Flows and Financial Analysis

Learning Objectives:

Students should:

1. Gain a thorough understanding of cash flow principles and the mechanics of constructing

cash flows from the balance sheet and income statement;

2. Develop an appreciation of financial analysis.

Important Event: HW 1 is due on Feb 12 by 11:59PM.

Please read the detailed instructions on blackboard.

Week 4, Feb 6-10, 2017, Chapter 5, Module 4

Chapter Topics

5 The Financial System, Corporate Governance, and Interest

Learning Objectives:

Students should:

1. Gain an understanding of the basic financial flows around an industrialized economy and

how those flows are made possible by organized financial markets;

2. Acquire a working knowledge of how the stock market functions and understand how to read

stock quotations;

3. Develop an understanding of the concepts underlying interest including the pure rate,

inflation, and various risk elements;

4. Come to appreciate the idea of corporate governance and the ethical issues faced by

executives;

5. Develop an understanding of the reasons behind the crisis of 2008 and a familiarity with the

major events and bailouts that took place as it developed.

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Week 5, Feb 13-17, 2017, Chapter 6, Module 5

Chapter Topics

6 Time Vale of Money

Learning Objectives:

Students should:

1. Develop an understanding of discounted cash flow concepts and a facility for solving

problems;

2. Extend their problem solving ability to relatively complex applications.

Important Event: HW 2 is due on Feb 23 by 11:59PM.

Please read the detailed instructions on blackboard.

Week 6, Feb 20-24, 2017, Chapter 6, Module 6

This week please continue on Chapter 6.

Chapter Topics

6 Time Vale of Money

Important Event: HW 3 is due on Feb 27 by 11:59PM.

Please read the detailed instructions on blackboard.

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Week 7, Feb 27-Mar 3, 2017, Week for Test I, Module 7

Learning Objectives:

This week is a study week for Test I. Exam I will cover Chapter 1, 2, 3, 5, and 6. Please study those chapters.

Important Event: Exam I on Wednesday, March 1

Please read announcements on blackboard for detailed information of Exam I.

Week 8, March 6-10, 2017, Chapter 7, Module 8

Chapter Topics

7 The Valuation and Characteristics of Bonds

Learning Objectives:

Students should:

1. Gain an understanding of the basis for valuation of traditional and convertible debt

securities;

2. Develop the ability to calculate bond prices and yields.

Important Event: HW 4 is due on Mar 19 by 11:59PM.

Please read the detailed instructions on blackboard.

Week 9, March 13-17, 2017, Spring Break, Module 9

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Week 10, March 20-24, 2017, Chapter 8, Module 10

Chapter Topics

8 The Valuation and Characteristics of Stocks

Learning Objectives:

Students should:

1. Appreciate the difference between stock and bond valuation understanding that

estimating the value of a stock is far more subjective;

2. Understand and be able to apply growth model valuation techniques including the

relatively complex two stage model;

3. Gain an overall understanding of investment banking and the IPO process including the

dynamics of pricing;

4. Comprehend the nature of preferred stock and its valuation;

5. Appreciate the idea of securities analysis including the difference between fundamental

and technical analysis and the message behind the EMH;

6. Understand the basics of stock options and warrants.

Week 11, March 27 –31, 2017, Chapter 9, Module 11

Chapter Topics

9 Risk and Return

Learning Objectives:

Students should:

1. Understand than that higher long-term returns are available on equity than on debt but that

there's an associated risk, and the objective of investing is to take advantage of the high

returns of equity while avoiding as much risk as possible, and that this is done by investing

in diversified portfolios;

2. Have a good understanding of the relationship between risk and return in both everyday

terms and in the more precise terms of the CAPM.

Important Event: HW 5 is due on April 3 by 11:59PM.

Please read the detailed instructions on blackboard.

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Week 12, April 3 - 7, 2017, Week for Test II, Module 12

This week is a study week for Test I. Exam I will cover Chapter 7, 8, and 9. Please study those chapters.

Important Event: Exam II on Wednesday, April 5

Please read announcements on blackboard for detailed information of Exam II.

Week 13, April 10-14, 2017, Chapter 10 & 11, Module 13

Chapter Topics

10 Capital Budgeting

Learning Objectives:

Students should:

1. Appreciate the discounted cash flow basis of capital budgeting theory, and

2. Be able to make the computations associated with the major capital budgeting techniques.

Chapter Topics

11 Cash Flow Estimation

Learning Objectives:

Students should:

1. Be able to make estimates of cash flows in the context of capital budgeting in fairly complex

situations;

2. Be fully aware of the difficulties and uncertainties associated with estimation as well as the

biases that people bring to the process.

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Week 14, April 17-21, 2017, Chapter 13 & Investment Implications, Module 14

Chapter Topics

13 Cost of Capital

Learning Objectives:

Students should be able to:

1. Appreciate the details of the weighted average cost of capital concept;

2. Be able to calculate component capital costs, and develop the WACC as well as an MCC

schedule.

Chapter Topics

Investment Implications

Learning Objectives:

Students should understand the concept of efficient markets, and different forms of efficiency.

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Week 15, April 24-28, 2017, Chapter 15& 18, Module 15

Chapter Topics

15 Dividends

Learning Objectives:

Students should be able to:

1. Understand the role of dividends in financial management, and particularly appreciate the

uncertainty involved in the trade-off between paying dividends and using the cash to

enhance a firm's prospects for growth;

2. Gain a thorough grounding in the following procedural issues:

Cash dividend payments Payment Restrictions

Dividend policies Stock repurchases

Stock splits and dividends Signaling

Chapter Topics

18 International Finance

Learning Objectives:

Students should gain a working knowledge of exchange rates and international transactions.

They should also become conversant with the concepts behind exchange rate risk and hedging.

Week 16, May 1-5, 2017, Final Exam, Module 16

This week is a week for final exam. The final will cover Chapter 10, 11, 13, 15, 18, and Investment Implications.

Important Event: Final exam on Wednesday, May 10

Please read announcements on blackboard for detailed information of final exam.