Syllabus for Business Finance (BA 3341)

Spring 2011

Instructor: Nina Baranchuk TA: TBA

Office Hours: By appointment Office Hours:
Office: SOM 3.430 Office:
Email: nina.baranchuk@utdallas.edu Email:
Phone: (972) 883 – 4771 Phone:

COURSE DESCRIPTION
The goal of this course is to introduce students to the basic principles of corporate finance and
provide tools for securities valuation and financial decision-making. The emphasis will be on the
methods of project selection, consistent with the objective of maximizing the market value of the
firm. The course introduces students to the analysis of financial statements, project valuation, and
capital budgeting. Additional topics covered include securities markets, agency relationships,
mergers and acquisitions, foreign investment decisions, and the trade-off between risk and return.
The prerequisites for BA 3341 include high school Algebra, Accounting 2301, Statistics 3360,
and a working knowledge of a spreadsheet package such as Excel.

LEARNING OUTCOMES

1. Be able to apply time value of money concepts to various valuation problems.

2. Be able to describe what drives a firm’s cost of capital and how to estimate it.
3. Be able to analyze investment in real and financial assets using various methodologies.
4. Be able to construct excel spreadsheets to solve basic financial problems.

READINGS
The required textbook is ”Fundamentals of Corporate Finance”, Stephen A. Ross, Randolph W.
Westerfield, and Bradford D. Jordan, 8th edition (standard), 2005. I will also discuss articles from
The Wall Street Journal. Please notice that the reading material is not a substitute for lectures.
Homework assignments and examinations may contain questions on any topic covered in class,
even if it is not discussed in the textbook.

REQUIREMENTS AND GRADING

Your grade will be determined by your performance in homework assignments, three
midterm examinations and a cumulative final examination as follows: homework
assignments - 20%, midterms – 15% each, final – 35%. Students must complete the homework
assignment individually. Absolutely NO late homework will be graded.

All examinations will consist of both multiple-choice questions and worked problems,
closed book and closed notes. On each examination, including the final examination,
students may use a financial calculator. In case of approved conflict with any of the class
requirements, the missing points will be redistributed towards other examinations and
homework assignments in proportion to their weight in the final grade. There are
absolutely no make up tests or assignments. To receive a grade for the class, students
must complete at least 70% of all assignments.

POLICIES
Group discussion of the class material and practice problems is encouraged. This policy does not
extend however to the spreadsheet assignment, on which students are not allowed to collaborate,
and must work out individually.

Students are expected to be above reproach in all scholastic activities. Students who engage in
scholastic dishonesty are subject to disciplinary penalties, including the possibility of failure in
the course and dismissal from the university. “Scholastic 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, 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, Subsection 3.2, Subdivision 3.22.

TENTATIVE COURSE OUTLINE

Date Topics Chapters

Lecture 1 Financial Statement Analysis 1–4
Lecture 2 Future Value and Present Value 5,6
Lecture 3 Valuing Annuities and Perpetuities 6
Lecture 4 Bond and Stock Valuation 7,8
Lecture 5 Midterm Examination 1
Lecture 6 NPV and Other Investment Criteria 9
Lecture 7 Identifying Cash Flow 10
Lecture 8 Project Evaluation 11
Lecture 9 Midterm Examination 2
Lecture 10 Risk and Return 12
Lecture 11 CAPM 13
Lecture 12 Cost of Capital 15
Lecture 13 Capital Structure 16,17
Lecture 14 Midterm Examination 3
Lecture 15 Review
Lecture 16 Review
Check the Web
Final Examination Cumulative!!
For the date