FIN 408 – 10 (CRN# 23722) Finance for Decision Makers

Syllabus COURSE INFORMATION: Spring 2015 Office Hours: Course Credit Hours: 3 By appointment Meeting Time: Wed 6:00 pm – 8:30 pm Classroom: WB 616 Instructor: Andrew Paul Acosta Telephone: (888) 316-8499 Email: aacosta@roosevelt.edu TEXT: Gitman, L. and Zutter, C. (2015). Principles of managerial finance. ISBN: 978-0-13-350769-0.

Pearson, 14th edition. CATALOG DESCRIPTION: FIN 408 - FINANCE FOR DECISION MAKERS Financing problems facing business; general principles of accounting and economics applied to solution of these problems. Time value of money applied to the pricing of securities, firms' capital budgeting decisions, financial statement analysis, forecasting immediate cash flow problems, financing of the firm, and consequences for the firm's decision-making process. PREREQUISITES: Students are required to have completed ACCT 405 with a minimum grade of C-., AND BADM 401 with a minimum grade of P and MGMT 403 with a minimum grade of C-.or ECON 436 with a minimum grade of C-. COURSE OBJECTIVES: Upon successful completion of this course the student should be able to develop an understanding of the time value of money and be able to apply it in cases of investments and capital budgeting. The course also discusses and incorporates various ethical perspectives into financial decision-making. STUDENT LEARNING OBJECTIVES: Upon completion of this course, a student should be able to:

• Develop an understanding of the firm’s financial management. • Identify the characteristics of the different types of entities. • Understand and calculate the cost of money. • Analyze the financial statements. • Understand the concepts for Time Value of Money and how to calculate their values. • Compute and differentiate the sources of capital to arrive at the firm’s cost of capital

for decision making.

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• Utilize the principles of capital budgeting to recommend investment decisions for the organization.

• Recognize and calculate the firm’s capital structure. • Examine ethical perspectives in the financial management decision-making process.

STUDENT LEARNING OUTCOMES:

• Quantitative Techniques • Business Discipline Principles • Communicate • Frame & Make Ethical Decisions

COURSE REQUIREMENTS: Student success results from an understanding of assigned reading materials, lectures, class exercises and discussions. Class attendance and participation, as well as the timely completion of all assignments/projects, are required components in this process. Students are responsible for presenting oral and written concepts. COURSE FORMAT: This course will include lectures, homework, quizzes, exams, and class participation. Students are expected to be well prepared for each class meeting and be able to provide insightful opinions into the discussions. GRADING CRITERIA: In-Class Participation ............................................................................................................... 10% Quizzes .................................................................................................................................... 10% Final Paper .............................................................................................................................. 20% Midterm Exam .......................................................................................................................... 20% Final Exam .............................................................................................................................. 40% TOTAL ................................................................................................................................... 100% GRADING SCALE: 93.0% - 100.0% A 73.0% - 76.9% C 90.0% - 92.9% A- 70.0% - 72.9% C- 87.0% - 89.9% B+ 67.0% - 69.9% D+ 83.0% - 86.9% B 63.0% - 66.9% D 80.0% - 82.9% B- 60.0% - 62.9% D- 77.0% - 79.9% C+ 59.9% & BELOW F BLACKBOARD WEBSITE: You are required to log into Blackboard on a regular basis because it is the forum that serves as the primary means of communication with the class. All handout reading, quizzes, and exams are distributed and scored through Blackboard. You will submit your final paper through a process called Turnitin, which measures the paper’s level of originality as a measure against plagiarism. It also makes observations on grammar, style, syntax, mechanics, and spelling. At least one online discussion will be created on Blackboard, for which you are required to participate for full credit in the in-class participation score. It is strongly advised that you proofread your written work and comply with editorial standards. ATTENDANCE POLICY: Because the classroom experience is an essential part of the course work, students are expected to attend every class. However, should a student miss a class, they are solely responsible to demonstrate a grasp and understanding of the concepts covered in the missed session in all subsequent classes. If a class is missed, it is the student’s responsibility to obtain notes and assignments from another student. Coming to class late is a distraction to both the students and to the instructor.

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QUIZZES: (10% of Final Grade)

There will be quizzes throughout the semester and are based on information covered in the class lectures and discussions, as well as in the assigned reading material. Quizzes will be available online via Blackboard. FINAL PAPER: (20% of Final Grade) You will choose an existing publicly trading company to research. • Give a brief synopsis of what the company offers including products and services. • Include who the Board of Directors and Officers are and a brief background on their

accomplishments. • State in which market the stock is trading at and its trading abbreviation. • Prepare an informational chart (graph) that depicts the closing price of the stock for each

trading day from January 1, 2014 thru December 31, 2014. • Prepare a graph depicting and comparing the closing price of the stock along with one or

more indexes. • State the lowest and highest price the stock ever traded during the last 12 months.

(Starting with January 1, 2014 and ending with December 31, 2014) • Investigate what happened at each of those times that caused the stock to reach their

lowest and highest level. Did they introduce a new product? Was the economy in a slump? Was there a legal action brought against them?

• State the types of shares the company has (common, preferred, etc.) as well as the number of authorized, issued, and outstanding shares for each type and the types of bonds issued.

• Summarize the company’s Balance Sheet, Income Statement and Statement of Cash Flows.

• Do a detailed analysis of the company’s financial statements using ratios and explaining what these numbers represent.

• State whether you would invest in the company you selected, and why you made that choice. State in great detail what factors influenced your decision.

• If you would not invest, state what are some of the areas in which the company would have to improve upon so that you would invest.

The instructor reserves the right to modify this syllabus if necessary. STUDENT CODE OF CONDUCT / ACADEMIC INTEGRITY AND HONESTY POLICY: Academic dishonesty will not be tolerated. This includes issues related to lying, cheating, plagiarism, recycling, fabrication and facilitating academic dishonesty. Students found in violation of academic policy will be dealt with according to University procedures. It is this instructor’s policy that plagiarism, copying, cheating and/or other misconduct shall not be tolerated. Anyone caught committing or attempting to commit any of the preceding indiscretions shall be asked to leave the class immediately and receive a failing final grade as well as be reported to the school’s academic discipline committee.

v Plagiarism Policy: http://www.roosevelt.edu/Plagiarism.aspx

v Student Code of Conduct:

http://www.roosevelt.edu/Policies/CodeOfConduct.aspx

RELIGIOUS HOLIDAYS POLICY: Roosevelt University respects the rights of students to observe major religious holidays and will make accommodations, upon request, for such observances. Students who wish to observe

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religious holidays must inform their instructors in writing within the first two weeks of each semester of their intent to observe the holiday so that alternative arrangements convenient to both students and faculty can be made at the earliest opportunity. Students who make such arrangements by the deadline will not be required to attend classes or take examinations on the designated days, and faculty must provide reasonable opportunities for such students to make up missed work and examinations. However, all work missed for such absences, including papers and examinations, must be made up. Students who do not arrange for excused absences by the deadline are not entitled to such accommodations. http://www.roosevelt.edu/~/media/Files/pdfs/Policies/HumanResources/ReligiousHoliday.ashx ADDITIONAL IMPORTANT INFORMATION:

v Important Dates: http://www.roosevelt.edu/Registrar/ImportantDates.aspx

v Library Services:

http://www.roosevelt.edu/library

v Student Services: http://www.roosevelt.edu/StudentServices.aspx

v Withdrawing from the Class: http://www.roosevelt.edu/Registrar/Courses/Withdraw.aspx

v Americans with Disabilities Act:

http://www.roosevelt.edu/StudentServices/Disability/Discrimination.aspx

v Accommodation of Persons with Disability Policy: http://www.roosevelt.edu/Policies/Disabilities.aspx

v Blackboard Support – Help Desk:

http://www.roosevelt.edu/ITS/ServiceCatalog/Blackboard.aspx

Tentative Class Schedule

CLASS ONE January 14, 2015 Class Lectures/Discussion: Topics: Class Overview The Role of Managerial Finance Business Ethics: The Sarbanes Oxley Act of 2002, and others Text: Chapter 1 CLASS TWO January 21, 2015 Class Lectures/Discussion: Topics: Financial Statements and Ratio Analysis Cost of Money (Interest Rates) Text: Chapters 3 and 6 CLASS THREE January 28, 2015 Class Lectures/Discussion: Topics: The Time Value of Money (PV/FV) Text: Chapter 5 CLASS FOUR February 4, 2015 Class Lectures/Discussion: Topics: Yield Curve Models Text: Chapter 6 Discussion of Final Paper CLASS FIVE February 11, 2015 Class Lectures/Discussion: Topics: The Time Value of Money (PVA/FVA) Text: Chapter 5 CLASS SIX February 18, 2015 Class Lectures/Discussion: Topics: Bond Valuation Text: Chapter 6 CLASS SEVEN February 25, 2015 Class Lectures/Discussion: Topics: Stock Valuation Text: Chapter 7 CLASS EIGHT March 4, 2015 MIDTERM EXAM March 11, 2015 NO CLASS – SPRING BREAK

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CLASS NINE March 18, 2015 Class Lectures/Discussion: Discussion of Midterm Exam Topic: Capital asset pricing model Text: Chapter 10 CLASS TEN March 25, 2015 Class Lectures/Discussion: Topics: Risk Management Text: Chapter 12 CLASS ELEVEN April 1, 2015 Class Lectures/Discussion: Topics: The Cost of Capital Text: Chapter 9 CLASS TWELVE April 8, 2015 Class Lectures/Discussion: Topics: Risk and Return Text: Chapter 8 CLASS THIRTEEN April 15, 2015 Class Lectures/Discussion: Topics: The Capital Budgeting Decision Text: Chapter 10 CLASS FOURTEEN April 22, 2015 Final Paper Due Class Lectures/Discussion: Review for FINAL EXAM CLASS FIFTEEN April 29, 2015 FINAL EXAM Chapters 8 – 10

The Topical Outline is subject to change. Students will be informed in class of Changes to this Outline.