Finance 5311-001 Business Finance Summer 2012, MW 5:30 7:50 p.m., COBA 153 Instructor Han-Sheng Chen, Ph.D.

. Office 623 Business Building Email han-sheng.chen@mavs.uta.edu Phone (817)272-1020 Website Course materials will be posted on Blackboard Office Hours 8:00 8:30 p.m. on class meeting days and by appointment Time and Place of Class Meetings: Monday and Wednesday 5:30 7:50 p.m., COBA 153 Required Text: Fundamentals of Corporate Finance, Jonathan Berk, Peter DeMarzo, and Jarrad Harford, 2nd Edition, 2012. Prentice Hall. ISBN-13: 978-0-13-214823-8. ISBN-10: 0-13-214823-4. Web Resources: For class materials (Blackboard): http://elearn.uta.edu/ Required Calculator: A financial calculator is a necessity in this course. Texas Instruments (TI) BA II Plus model is strongly recommended. I will talk about how to use this calculator only. For any other financial calculators, students are responsible for reading the instructions and learning how to master the calculators by themselves. Students should bring the calculator to each and every of the classes and exams. Note that a non-financial calculator cannot replace the financial calculator required. Course Description This course is designed for graduate students who have none or little experience in finance. The students will be introduced to the basic tools, techniques, and theories in making sound decisions for modern firms. The topics in this course include: time value of money, security valuation, capital budgeting, risk and return, among others. Student Learning Outcomes The student will be able to know and be familiarized with the basic foundations of finance for subsequent courses in corporate finance, security analysis, investments, fixed income securities, speculative markets, and real estate finance. The student will be able to understand and evaluate the discussion of financial issues in everyday life and in press, and have a framework for analyzing the major types of financial decisions made by corporations.

Course Prerequisites ECON 2306 or ECON 2301, ACCT 2302, MATH 1316 or MATH 1426 (or permission of instructor), and 60 credit hours. Class Attendance Students are required to attend each class and exam and are expected to come to each class with their assignments completed. Anything discussed in class is testable. Any student who must miss a class is responsible for securing any and all assignments for coursework missed. Classroom Etiquette Please respect your fellow students and the instructor by doing only class-related activities inside the classroom. This may include, but is not limited to, silencing your cell phones and refraining from non class-related talking during class time. Late arrivals or leaving the classroom early will also negatively impact your final grade (also refer to grading policies below). Make-up Exams Make-up exams will NOT be given under any circumstance. Students who miss an exam with excuse(s) approved by the University policies MUST contact the instructor for further instruction of grade re-distribution (in most cases, the grade of final exam will be assigned to the exam the student missed). The student who will miss an exam is responsible to submit such as a documented excuse in writing to the instructor BEFORE (not after) the exam, except for extreme emergencies (supporting documents must be provided thereafter in such cases). Otherwise, zero point will be given to the exam. For all other scenarios of missing exams, zero point will be given to the corresponding exam. Grading Policies Grade Components: The final numerical grade will be determined by the following parts: Three Exams (30% each) 90% Term Project 10% Total 100% The instructor, at his discretion, reserves the right to negatively adjust up to 5 course points (5% of total score) depending on your class performance including, but not limited to, attendance, degree of class participation and class etiquette (see above for details). Course Grade: Your letter grades are assigned based on the calculation of your final grade. The scale is 90+ A 80-89.99 B 70-79.99 C 60-69.99 D Below 60 F

Exams: All the materials in the lecture as well as in the textbook could be on the exam. NO textbooks or class notes are allowed in all exams; however, students may prepare a cheat sheet, up to half page of letter size paper, and bring it to the exam. The final exam will consist of only multiple-choice questions. SCAN-TRON form 882 (available from UTA bookstore) must be supplied by the students, along with #2 pencils and erasers. However, the use of erasers is NOT recommended due to potential grading error. A financial calculator is needed for the final exam. Projects: A term project will be announced later in the semester. It is expected to be an individual project, which each student is expected to turn in his/her own work independently. Important Dates: June 3 June 17 July 1 July 15 July 24 July 29 First date of class Exam 1 Exam 2 Exam 3 Last day of class, term project due Final Exam (5:30 - 8:00 p.m.)

Tentative Course Schedule Depending on the overall course progress and due to the possibilities of unforeseeable events, this course schedule (including both dates and topics) is tentative and subject to change with verbal and/or written notice before/during assigned class time.
Dates Week 1 & Week 2 Topics Syllabus/Introduction Time Value of Money Time Value of Money Mon., June 17 Week 3 & Week 4 Mon., July 1 Week 5 & Week 6 Mon., July 15 Week 7 & Week 8 Mon., July 29, 2013 Exam 1 Valuing Bonds Valuing Stocks Exam 2 Introduction of Risk and Return Exam 3 Investment Decision Rules Cost of Capital Final Exam (5:30 8:00 p.m.) CH3-4 CH4-5 CH3-5 CH6 CH7 CH6-7 CH11-12 CH10 CH8 CH13 Readings

Syllabus Addendum Academic Dishonesty: All students are expected to pursue their scholastic careers with honesty and integrity. It is the philosophy of this Department, this instructor, and the University of Texas at Arlington that academic dishonesty is a completely unacceptable mode of conduct and will not be tolerated in any form. All persons involved in academic dishonesty will be disciplined in accordance with University regulations and procedures. Discipline may include suspension or expulsion from the University. Academic dishonesty includes, but is not limited to, cheating, plagiarism, collusion, the submission for credit of any work or materials that are attributable in whole or in part to another person, taking an examination for another person, or any act designed to give unfair advantage to a student or the attempt to commit such acts. (Regents Rules and Regulations, Part One, Chapter VI, Section 3.2, Subsection 3.2, Subdivision 3.22). Institutional procedures regarding charges of academic dishonesty are outlined in Part II, Chapter 2, of the Handbook of Operating Procedures of The University of Texas at Arlington. Copies of the Handbook are available at more than 75 locations on campus, including the Student Congress office, the Library, and the Finance/Real Estate Department office (room 434 in COBA). Americans with Disabilities Act (ADA): The University of Texas at Arlington is on record as being committed to both the spirit and the letter of the ADA to make reasonable adjustments in the classroom necessary to eliminate discrimination on the basis of disability. Students requesting an accommodation based on disability should meet privately with the instructor during the first week of class to discuss their special needs, and advise the instructor of any special needs, abilities or limitations and to discuss the instructors expectations in class participation, performance and work standards. Any disclosure by the students of their need for accommodations is recognized to be extremely sensitive and all conversations and other communications will be protected and confidential and disclosed on a need-to-know basis only. Students are responsible for contacting and consulting with the Universitys Office for Students with Disabilities prior to contacting the instructor about any disabilities. The student should provide the instructor with some form of written documentation of the disability from an acceptable, external source (such as a doctor, psychiatrist etc.) and from the Office for Students with Disabilities. Attendance Policy: Students are expected to attend each class and to do so with their assignments completed. Any student who must miss a class is responsible for securing any and all assignments for coursework missed.

Drop Policy: These policies include by reference all provisions for grade adjustment or drop policies included in the applicable Graduate or Undergraduate Catalog in effect at the start of the semester. It is the students responsibility to complete the course or withdraw from the course in accordance with University regulations. No student will be dropped from the class rolls for absences. Students are strongly encouraged to verify their grade status before dropping a course after the first withdrawal date. A student who drops a course after the first withdrawal date may receive an F in the course if the student is failing at the time the course is dropped. Drop for Non-Payment: It is the policy of the University of Texas at Arlington that students who have not paid by the census date and are dropped for non-payment cannot, under any circumstances, receive a grade for the course. Therefore, a student dropped for non-payment who continues to attend the course will not receive a grade for that course. Emergency loans are available to help students pay tuition and fees. Students can apply for emergency loans by going to the Emergency Tuition Loan Distribution Center at E.H. Hereford University Center (near the southwest entrance). Distribution of Grades: The distribution of grades for the semester will normally adhere to the guidelines of the Department of Finance and Real Estate. These guidelines are generally based on College of Business Administration averages for similar courses. Student Evaluation of Teaching: The following appears in Administrative Memorandum No. 98-5, dated August 21, 1997, from the President to academic and administrative offices: Beginning in Fall 1997, teaching evaluations will be conducted in every class every semester for every instructor on record. College of Business Bomb Threat Policy: Effective April 8, 1996, the College of Business Administration adopted a policy to deal with the classroom disruption caused by bomb threats in the building. Section 22.07 of the Texas Criminal Law states that a Class A misdemeanor is punishable by (1) a fine not to exceed $4,000, (2) a jail sentence of not more than one year, or (3) both such a fine and confinement. If anyone is tempted to call in a bomb threat, be aware that UTA has the technology to trace such phone calls. Every effort will be made to avoid cancellation of presentations/tests caused by bomb threats to the Business Building. Unannounced alternate sites will be available for these classes. If a student who has a class with a scheduled test or presentation arrives and the building has been closed due to a bomb threat, the student should immediately check for the alternate class site notice which will be posted on/near the main doors on the south side for the Business Building. If the

bomb threat is received while class is in session, your instructor will ask you to leave the building and reconvene at another location. Students who provide information leading to the successful prosecution of anyone making a bomb threat will receive one semesters free parking in the Maverick Garage across the Business Building. UTAs Crimestoppers will provide a reward to anyone providing information leading to an arrest. To make an anonymous report, call 817/272-5245. Food/Drink in Classrooms: College policy prohibits food and/or drinks in classrooms and labs. Anyone bringing food and/or drinks into a classroom will be required to remove such items, as directed by the class instructor or lab instructor. UTA Student Success Programs: The University of Texas at Arlington supports a variety of student success programs to help you connect with the University and achieve academic success. They include learning assistance, developmental education, advising and mentoring, admission and transition, and federally funded programs. Students requiring assistance academically, personally, or socially should contact the Office of Student Success Programs at 817/272-6107 for more information and appropriate referrals. Business Career Services: (College of Business Administration, Room 106, 817272- 5201; Hours, Monday-Friday 8:00 a.m. to 5:00 p.m.) The following services are designed to assist students as they navigate through their college career. It is recommended that you visit the Business Career Services office early in your college career to take full advantage of all available services. Career Counseling/Job Search Skills: Individualized guidance on employment choices and techniques for gaining employment. Career Days: Events designed to allow students to meet company representatives to explore employment opportunities. Career Development Workshops: Group sessions where job search skills such as resume writing, employer research, dining etiquette, dressing for success, salary negotiations, and interview skills are taught. Specialized sessions on topics such as internships, diversity in the workplace, making wise job choices, first year job success tips, and interview skills for international students are also offered. Mentor Program: The opportunity for students to be paired with professionals in corporate settings to explore and/or solidify their major/job interests. This is done through informational interviews and/or job shadowing. Freshman and sophomore students are targeted for these opportunities. 6

Resume Critiquing: The opportunity for students to have their resume professionally critiqued by staff members who can make suggestions for improving and/or changing it to suit employers specifications. Internship Program: The opportunity for students to gain real-world work experience in their degree field prior to graduation. Some internships can be completed for academic credit. Junior, senior, and graduate students are targeted for these opportunities. Mock Interviews: An individual session where students can practice various types of interview questions that may be asked during an actual interview. A critique of students interview skills will be given, as well as tips for improvement. Career Classifieds: On-line job postings that students who are registered with Career Services are encouraged to review and respond to when seeking full-time, degree-related employment. Web Resume Book: Students who are registered with Career Services also have the option of having employers view their resume via the online system when they are seeking qualified candidates to fill available employment opportunities. Resource Library: Career, company and job search resources are available for students to use during regular office hours. Computers are available to assist in conducting job searches. Career Development Handouts: Materials covering various job search skills are available for students to take home and utilize as they are preparing for all facets of their job search. On-Campus Interviews: The opportunity for students who are registered with Career Services to interview with companies during the fall and spring semesters when corporate recruiters visit the campus.

Evacuation Procedures In the event of an evacuation of the College of Business building, when the fire alarm sounds, every one must leave the building by the stairs. With the fire alarm system we now have, the elevators will all go to the first floor and stay there until the system is turned off. All those in the North tower side of the building should proceed to the fire escape stairs located on the East and West sides of that wing.

FOR DISABLED PERSONS: please go to the Northeast fire stairs. We have an evacu track chair located on the 6th floor stairwell. We have people trained in the use of this chair and there will be someone that will go to the 6th floor to get the chair and bring it to any lower floor stairwell to assist disabled persons. Should this be a real emergency, the Arlington Fire Department and UTA Police will also be here to help.