Pre-requisites: AIM 2301, AIM 2302, MATH 1326, MATH 2333 Pre-requisites, Co-requisites Co-requisites: STAT 3360 Students should be proficient in (1) basic statistics, (2) accounting & Other Restrictions financial statement analysis, and (3) spreadsheet modeling using Microsoft Excel BA 3341is an introductory course in the fundamentals of corporate finance. This class focuses on the use of discounted cash flow analysis in the evaluation and selection of capital investment projects. Course Description Additional topics include cost of capital; risk return trade-off in financial markets; financial leverage & capital structure; portfolio theory; capital asset pricing model (CAPM); leasing; analysis of mergers & acquisitions; and financial statement analysis. 1. Students will be able to apply time value of money concepts to various valuation problems. 2. Students will be able to describe what drives a firm's cost of capital Learning Outcomes and how to estimate it. 3. Students will be able to analyze investment in real and financial assets using various methodologies. FUNDAMENTALS OF CORPORATE FINANCE, 7th Edition, 2006 Required Texts & Materials by Stephen Ross, Randolph Westerfield, and Bradford Jordan Students will need a financial calculator. Texas Instruments Business Analyst II Plus is recommended. Suggested Texts, Readings & Wall Street Journal Materials
Grading & Student Evaluation
AVERAGE OF THREE TESTS 60% FINAL EXAM Grading (credit) Criteria 30% HOMEWORK / CLASS PARTICIPATION / OTHER 10%
Make-up Exams Only On Next Scheduled Exam Date / See Professor
Extra Credit None Available Late assignments turned in up to one week late will incur a 10 point Late Work penalty. Assignments turned in more than one week late will incur a 20 point penalty. Class attendance is an important part of the learning experience. Class Attendance Students are expected to attend all classes. BA 3341 Business Finance Spring, 2007
CL DAY DATE CHAPTERS TOPICS
1 Tues Jan 9 Course Introduction & Schedule 2 Thurs Jan 11 Chapter 1 Corporate Finance Overview 3 Tues Jan 16 Chapter 2 Income Statement & Balance Sheet 4 Thurs Jan 18 Chapter 2 Cash Flow Analysis 5 Tues Jan 23 Chapter 3 Accounting Statement of Cash Flow 6 Thurs Jan 25 Chapter 3 Ratio Analysis & Mini-Case 7 Tues Jan 30 Chapter 4 Financial Planning 8 Thurs Feb 1 Practice Problems / Review 9 Tues Feb 6 TEST # 1
10 Thurs Feb 8 Chapter 5 Time Value Of Money
11 Tues Feb 13 Chapter 6 Discounted Cash Flow 12 Thurs Feb 15 Chapter 9 Net Present Value 13 Tues Feb 20 Chapter 9 Other Investment Criteria 14 Thurs Feb 22 Chapter 10 Capital Investment Decisions 15 Tues Feb 27 Chapter 10 Capital Investment Analysis 16 Thurs Mar 1 Chapter 11 Project Analysis 17 Tues Mar 6 Practice Problems / Review 18 Thurs Mar 8 SPRING BREAK - NO CLASS 19 Tues Mar 13 TEST # 2
20 Thurs Mar 15 Chapter 7 Bond Evaluation
21 Tues Mar 20 Chapter 8 Stock Valuation 22 Thurs Mar 22 Chapter 12 Capital Market History 23 Tues Mar 27 Chapter 13 Risk & Return and SML 24 Thurs Mar 29 Chapter 15 Cost of Capital 25 Tues Apr 3 Chapter 17 Capital Structure 26 Thurs Apr 5 Chapter 26 Lease / Buy Analysis 27 Tues Apr 10 Practice Problems / Review 28 Thurs Apr 12 TEST # 3