Principles of Financial Management
Course Description Fall 2018 Syllabus
Finance 3403 is a junior level course in finance designed to provide exposure to the theory and practice of corporate financial management and to demonstrate how financial management techniques are applied in decision-making. We will cover topics such as financial statements, financial ratio analysis, the time value of money, risk and return, capital budgeting, capital structure, the cost of capital, securities markets, sources and uses of financing, and international markets.
Professor: Dr. Scott Barnhart
Office Location: Kaye Hall 132
Office Phone: 561-297-2539( Please use e-mail)
Wednesday: 3:45pm – 5:30pm
Friday: 3:45pm – 4:30pm
Or by appointment
Quick Course Reference List
Canvas Contains in the Modules Tab:
Answers to all chapter homework problems
Link to Connect (click on any HW, LS or Practice)
Material on Honorlock for 2nd Exam and Final Exam (see below)
Link to LCVS Videos
Link to my Videos
Exams 1-3 23.83% each, 71.5% total OPEN 2PM-2PM FOLLOWING DAY
Quizzes 12% of grade: Due at 11:59pm on dates listed below
Practice Homework 0% of grade
Homework 11% of grade: Due at 11:59pm on dates listed below
Learn Smart 5.5% of grade: Due at 11:59pm on dates listed below
Required Text and Materials
Text and Connect
You are required to purchase access to the digital platform Connect by McGraw-Hill using a credit card directly through your instructor’s Connect or Canvas section:
Connect for Fundamentals of Corporate Finance (360 day access), Ross, Westerfield, Jordan, 12th ed., ISBN: 9781259918957.
This platform gives you access to the Connect website which contains the following items:
- eBook [SmartBook] which allows you to read online and offline, print pages, highlight text, and annotate with your own notes.
- Back of chapter homework problems.
- Note: You are not required to have a print text, but if you want a hard copy of the book you can either buy a used print copy or opt to purchase a loose-leaf color text on the Connect website to be sent to your address for $40. Note that if you buy a used textbook you still need to buy the Connect access.
Connect codes will also be available in the bookstore, but the price is higher. The bookstore may have some packages of the Connect code bundled with the printed loose-leaf text if you prefer this option.
- Honorlock. There will be two online exams proctored by Honorlock, study the material on CV and take the practice exam.
- Financial Calculator. Make it easy on yourself and buy what I use, a Hewlett Packard 10BII+. I will not review how to use anything other than the 10BII+ in class. You can buy the calculator from HP directly: https://store.hp.com/us/en/pdp/hp-10bii-financial-calculator-p-nw239aa-aba--1 or many office supply stores.
- Computer: You must have a stable and dependable access to the Internet (with Internet Explorer or Mozilla Firefox, and for Honorlock you need a Chrome extension).
- Canvas: You must use Canvas (CV) to retrieve class notes, and to take quizzes and tests to receive class e-mails from me. Go to the site: http://canvas.fau.edu/.
- READ the note “Taking Quizzes and Tests on CV” to make sure you set your computer up and navigate through CV correctly.
- E-mail: You need to check your FAU e-mail on a DAILY basis. Not checking your e-mail is no excuse.
Your instructor for this course is known to have a dry sense of off-the-wall humor and sometimes can spend time discussing things un-related to class material. If this is a problem for you, please sign up for another section.
Finance 3403 is a hands-on, problem oriented, demanding course that is difficult and/or very time consuming for most students. It is much like a math class, so be prepared to be challenged and work hard! Normally, students should spend at least 2 - 3 hours outside class for each hour spent in class for a total of 9-12 hours per week in a normal semester, REALLY! In this course you must know and apply general concepts and you must solve detailed problems correctly to the second decimal. If you have a full slate this semester with job, family and a full class load, it might be advisable to take it at a later date when you can devote more time.
“According to Florida State Statute 6A-10.033, students must spend a minimum 2,250 minutes of in class time during a 3-credit course. Additionally, students enrolled in a 3-credit course are expected to spend a minimum of 4,500 minutes (of out-of-class-time specifically working on course-related activities (i.e., reading assigned pieces, completing homework, preparing for exams and other assessments, reviewing class notes, etc.) and fulfilling any other class activities or duties as required.” The course schedule for this course reflects this expectation of students.
Course Prerequisites and Credit Hours and Class Time Commitments
ACG 2021, ACG 2071 and the Canvas entry course.
Course Learning Objectives
- Interpret and apply financial ratio and common size analyses to financial statements and other financial disclosures to evaluate the financial health and performance of a company.
- Facilitate financial decision-making by applying financial math and valuation principles to value securities, capital projects, and other assets.
- Assess the risk associated with a financial or capital asset and identify, identify the relevant risk, and estimate the cost of capital for financial decision-making purposes.
- Apply the net present value, internal rate of return, and modified internal rate of return techniques to make project selection decisions in a capital budgeting context, and perform sensitivity analysis in capital project decision-making.
Your grades will be based on the plus/minus scale, e.g., 80-82.5=B-; 82.6-87.4=B; 87.5-89.9=B+, and so forth for all other grades A-D, except there is no A+, AND MOST IMPORTANTLY I do not give C- grades in this course, anything down to 70 is C.
Course Evaluation Method
Final grades are a function of three exams, 12 on-line quizzes, 11 Connect problem sets, and 10 Learn Smart assignments (each Quiz and Connect problem set is worth 1% of your final course grade, i.e., 12% for quizzes, 11% for Connect Homework, and Learn Smart is ½% or 5.5%; for a total of 28.5%). As the quizzes and problem sets count 28.5% of the course grade, the three exams count 71.5% of your final grade or 23.83% each. The tests are multiple choice: approximately 50% concepts and definitions and 50% problems. The third test will be given during finals week and is cumulative only with regard to the department assessment questions (6). Your final course score will be calculated as: Score = (T1+T2+T3(on scale of 100%)+all curves)*.23833+(Quiz%)*.12+(Connect Homework%)*.11+(Learn Smart%)*.055. Also note that if you earned 100 on each exam and blew off the quizzes, homework and Learn Smart, you would have only a 71.5%.
Additional Course Policies
The course is organized around Modules in Canvas that group different sets of assignments. The assignments in the Modules are to be covered according to the “estimated” dates listed under Tentative Course Outline below.
ALL QUIZZES ARE DUE AS INDICATED BELOW AT 11:59pm. The quizzes count 12% of your final grade (1% for each quiz). The quizzes will be the same format as the tests. You have three attempts on each quiz and each attempt has a time limit of 30 minutes. Your highest grade is the one CV uses. Quizzes will not be reposted.
READ the note “Directions for Taking Quizzes on CV.” Quizzes should be looked at as a “give-me” for you, they are there only for familiarity and are crucial to your grade. In addition, you get kicked out of CV you will not see your grade. I will collect quiz grades directly after the giving the final, so you must be done with them by then to get credit.
Homework: ALL HOMEWORK IS DUE AS INDICATED BELOW AT 11:59pm. End of chapter homework can be done directly from the book and I have posted answers on CV under the Modules titled ‘… Solutions Manual.’ However, to get credit you must also use McGraw-Hill’s Connect to do “Homework” at Connect site. Homeworks will not be reposted.
Go to Connect through one of the assignments in Canvas, do not go directly to the Connect URL.
There are two versions of problems for each chapter. The first is a static “Practice” version that is supposed to be exactly the same as the book problems and they do not count on your grade. The other version, labeled as “Homework,” you get credit for. Both versions you can work as many times as you want. Connect uses the highest score you make. To get feedback on these problems within Connect see the note on CV “Connect Screens.” Also, there is help for Connect at http://mhhe.com/support. The help phone number is: 800-331-5094. Finally, remember I have posted all solutions to problems on CV.
Finance Department Assessment:
The Finance Department Assessment is 7 questions on the final exam that is the only part of the final exam that is cumulative.
ONLY ONE ATTEMPT IS ALLOWED when taking an Exam, they are timed, there is one question at a time. There may or may not backtracking.
Exams are given within a time window of 2pm opening day-2pm the next day. Note that all exams must be submitted by 2pm on the following day or you will not get the full allotted time. If you cannot take the exams on the dates shown, you need to find a new section. The exams are similar in format to the quizzes. PLEASE PAY ATTENTION TO THE CV NOTE ON TESTS/QUIZZES.
Exam 2 and Final Exam:
Online Proctored Exams
The FAU College of Business has hired an outside company, Honorlock, to proctor your exam 2 and the final exam. This system offers two important benefits: 1) It allows you to take exams anywhere online, and 2) it helps to protect the academic integrity of the course by verifying your identity and ensuring that the exam is completed honestly by all students.
- Hardware requirements for taking the online proctored final exam include:
- A well-functioning computer.
- A stable Internet connection. A wired Internet connection is MUCH better than Wi-Fi.
- A webcam. Buy one if you don’t have one.
- Your FAU Owl Card (or other government-issued photo ID).
Please read the information on Honorlock (855-828-4004) for detailed information on setting up and taking online proctored exams.
A non-graded practice exam will be given a few days prior to the actual exam to allow you to familiarize yourself with the online proctoring system.
Missed Exams: You should not miss exams, aside from an emergency. If you must miss an exam I must be notified one week in advance with a legitimate excuse for you to be able to make up the exam. If I am not notified in advance with a legitimate excuse and you still miss an exam you will get either a 40% reduction in your grade or a zero on that exam at my discretion. In the event of a serious emergency, proof of visitation to a doctor or hospital is required.