UNIVERSITYOFTEXASATDALLAS SCHOOLOFMANAGEMENT FIN6301:FINANCIALMANAGEMENT FALL2011

Instructor:Dr.ArzuOzoguz Office:SOM3.613 Phone:(972)8835867 Email:ozoguz@utdallas.edu Classroom:SOM2.902 OfficeHours:Wednesday4:005:30pm,orbyappointment I.CourseDescriptionandObjectives

Welcome to FIN 6301! I am looking forward to working with you. I hope we will have an enjoyablelearningexperiencetogetherthisspring. Thiscourseisdesignedtoteachthefundamentalanalyticaltoolsofbusinessfinance.Thefocus willbeonapplyinganalyticaltoolstosolvemultistepfinancialproblems.Thecourseconsistsof two parts. In the first part, we will begin by introducing the concept of time value of money. Then,wewilldiscusshowtousethisconcepttocalculatethevalueofstocksandbonds.Next, wewillturntoportfoliotheoryandanalyzethetradeoffbetweenriskandreturnbydeveloping andusingtheCapitalAssetPricingModel(CAPM). In the second part, we will briefly review analyzing financial statements; we will then look at capitalbudgetingdecisions,theprocessfirmsusetomakeinvestmentdecisions,concentrating on the Net Present Value (NPV) rule. We will pay special attention to determining cash flows, andappropriatelycorrectingforriskandleverage.Finally,wewillfinishthecoursewithalookat capital structure theory. If time permits, we will also take a brief look at futures and options (alsoknownasderivatives). Whilethecourseismostlylecturebased,ourfocusthroughoutthecoursewillbeonapplying analyticaltoolstosolvemultistepfinancialproblemsandwewilldevoteasubstantialamount ofclasstimetoproblemsolving.Itisveryimportantthatyounotethatjustknowinghowtoplug numbersintoformulasormemorizingproblemswillnotbesufficientforapassinggradeinthis course. Note also that there are many variations of the basic problems and concepts that we cannotallcoverinclass,soitisveryimportantthatyouunderstandhowtoapplytheconcepts aswellastheanalytictools.Inaddition,therewillbeareasonableamountofmaterialthatyou willberesponsibleforthatwewillnothavetimetocoverinclass.Hopefully,mostofthiswillbe moreinformationorientedratherthanrelatedtoproblemsolving. Attheendofthecourse,youshouldbeableto: Applythetimevalueofmoneyconcepttovalueassets Incorporatetheeffectofriskintovaluationofstocks,bondsandcapitalinvestments

Identifythedeterminantsofafirm'scostofcapital Estimateafirm'scostofcapital Evaluatecorporateinvestments Adjustvalueestimatestoreflectafirm'sfinancingchoices

II.OfficeHours
Isetasideofficehoursfrom4:00to5:30pmonWednesdaystoaccommodateyourquestions. MyofficenumberisSOM3.613.Ifyoucannotmakethesetimesforofficehours,youcanalways makeanappointmentforadifferenttime.Iamprettygoodatrespondingtoquestionsonemail aswell.Myemailaddressisozoguz@utdallas.edu.Iencourageyoutocontactmetoclarifyany questionsasearlyaspossible.

III.Prerequisites
Thecourserequiresabasicunderstandingofaccounting,algebraandstatistics(OPRE6301and AIM6201).IwillalsoexpectyoutobefamiliarwithEXCELatabasiclevel.

IV.RequiredTextbookandSuggestedMaterials
Therequiredtextbookforthiscourseis: Ross,WesterfieldandJaffe,CorporateFinance,9thedition,Irwin/McGrawHill(RWJ). You should always reinforce the lectures by doing the assigned readings. You will notice that some topics that I consider to be very important will be covered in great detail (e.g. NPV). However,youareresponsibleforallthematerialcoveredinallassignedreadings.Everystudent isalsoexpectedtokeepupwithcurrenteventsinthebusinessworld.Onewaytodothisisby reading, on a regular basis, publications such as The Economist, Wall Street Journal, Business Week,ortheFinancialTimes.Thisisanessentialpracticethatyoushoulddevelopgoingforward intoyourbusinesseducation. Allothermaterial,includinglecturenotes,problemsetsandsolutionkeyscanbedownloaded fromtheBlackboard. All assignments and discussions will be tailored to working out problems with a standard calculatorand/orexcel.Youmay,however,finditinyourinteresttolearnhowtouseafinancial calculatororspreadsheetsforfinancialproblems,particularlyifyoudecidetopursueacareerin finance or accounting. A financial calculator may allow you to focus on what you are doing, insteadofkeepingtrackofthearithmetic.YoumayconsidertheHP10BIIHP12C,TIBAIIPlusor theTIBAIIPlusProfessional,asthesecalculatorscanbeusedonmostcertificationexams(e.g. CPA,CFAetc.)IpersonallyownandliketheHP12C,whichisaclassic.Ifyouuseacalculator, thenyouwillberesponsibleforknowinghowtouseit.

V.Grading
The final course grade will be based on your scores takehome problem sets, quizzes, one midtermexamandonefinalexam.Theweightsassignedtoyourscoresontheseassignments willbeasfollows: Quizzes(3) 10% TeamProblemSets(3) 15%

TeamCaseAnalysis Midtermexam FinalExam

15% 25% 35%

Quizzes
Frequentquizzeswillbescheduledtogiveyouafrequentsourceoffeedbackonyourprogress. Therewillbethreeshortquizzesduringthefirstfifteenminutesofclass.Thesewillbequestions mostly selected from the assigned homework problems and practice problem sets that I may givetoyou.Myintentionisnottooverloadyouwithwork,butrathertomakesurethatyoudo notfallbehind.Thequizzesallcountthesame,andthelowestonewillbedropped.

TeamProblemSets
Allmembersoftheteamareexpectedtoparticipateontheteamassignment.Groupmembers are expected to monitor the performance of other members and to provide assistance when necessary.Therewillbethreeproblemssetstobedoneingroupsoffourstudents.Eachgroup should submit only one copy of the assignment, with the names of all group members clearly indicated on the first page. I attach high value to exposition difficult to read and follow solutionswillnotbegraded.Allproblemsaredueatthebeginningoftheclasstimeonthedue date.Nolateassignmentswillbeaccepted.

TeamCaseAnalysis
Allmembersoftheteamareexpectedtoparticipateonthecaseassignment.Groupmembers are expected to monitor the performance of other members and to provide assistance when necessary.Wordprocessedwriteup(threetofivepagesplussupportingmaterialsuchastables andfigures)isdueatthebeginningofthecasediscussion.Thecaseforwhichyouareexpected towriteateamreportis: MarriottCorporation

The case will be presented by groups that I will call on randomly and discussed in an open, roundtabletypeofdiscussion.Thisrequiresthatallstudentscometoclassreadytodiscussthe relevantissuesfortheassignedcase.Toensurethatallgroupmemberscontributetothecase analysisandwriteup,eachofyouwillbeaskedtoevaluatetheeffortoftheothermembersof thegroupattheendofthecourse.Thisevaluationwillbeafactorinassigninggrades. Foreachcase,Iwillprovideyouwithahintsheettofocusyouranalysis.Thequestionsoutlined are meant to be suggestive, but not exhaustive, and therefore, neither the substance nor the organization of your writeup should be limited because of the hint sheet. The following are someguidelinesforpreparingcasewriteups: Highlightyourmainconclusioninanexecutivesummary(nomorethanonepage)that containsthespecificresultsfromyouranalysis Identifytheobjectiveandthemainissuesofthecase The main body of your analysis should be selfexplanatory and reasonably self contained.Thatis,thereadershouldbeabletoreplicateyourresultsbytracingthrough thewriteups/spreadsheets.

State clearly the inputs to your analysis and the chosen methodology. If you feel that certain assumptions need to be made to justify a solution technique or a parameter choice,pleasemaketheassumptionexplicit. Justify your findings by providing the intuition. Where appropriate, perform sensitivity analysisanddiscusstherobustnessofyourresults.

MidtermandFinalexams
ThemidtermexamwilltakeplaceonWednesday,October5th.Itwillcovermaterialdiscussed inthecourseupuntilthedateofthemidtermexam.Thefinalexamdateistobedetermined. Thefinalexamwillbecomprehensiveandcoverallthematerialinthecourse.

VI.CoursePolicies
Wewillkeepalaptopsdownandcellphonesoffpolicyinthiscourse.UnlessIannouncein advance, you will not need to bring in your laptops. I expect you to work through problems I assigninclassandparticipateactivelyinallclassdiscussions. TherewillbenomakeupexamsunlessIdetermineyouhaveavalidschedulingconflict.Inthe eventthatastudentisunabletoattendthemidtermexam,itishis/herresponsibilitytonotify the instructor prior to the exam. At the discretion of the instructor, and only in extraordinary circumstances, the student may be granted authorization to be absent from the examination, butwillhavetocompletetheexambeforehand. Noonewillbeabletoearnextracredit.Allstudentswillcompletethesameassignmentsand examsandyourgradeswillbebasedentirelyontheseassignments/exams. Iwillnotacceptanylateassignments. Iwillnotkeeptrackofyourattendance.Youareresponsibleforthematerialthatiscoveredin anyclassyoumiss. Pleasebringnametagstoeachclass.Thiswillhelpme,especiallyearlyinthecourse,togetto knowyournamesquickly.

VII.AcademicIntegrity
Thefacultyandadministrationofthe SchoolofManagementexpectfromourstudentsa high levelofresponsibilityandacademichonesty.Becausethevalueofanacademicdegreedepends upontheabsoluteintegrityoftheworkdonebythestudentforthatdegree,itisimperativethat a student demonstrate a high standard of individual honor in his or her scholastic work. We want to establish a reputation for the honorable behavior of our graduates, which extends throughouttheircareers.Bothyourindividualreputationandtheschoolsreputationmatterto yoursuccess. Duringtestsandquizzes,studentsinthissectionarenotallowedtohavewiththeminvisibleink pens, or electronic devices, including IPads, IPhones, IPods, MP3 Players, earphones, radios, smart phones, cameras, calculators, multifunction timepieces, or computers. When possible, studentsshouldsitinalternatingseats,faceforwardatalltimes,andremoveanyclothingwhich might conceal eye movements, reflect images of anothers work, or hide course material for copying. Exam proctors will monitor any communication or signaling between students by talking,whispering,ormakingsounds,orbyusingyourhands,feet,otherbodymovements,the testpaperitselforyourwritingimplement.

Plagiarismonwrittenassignments,especiallyfromtheweb,fromportionsofpapersforother classes,andfromanyothersourceisunacceptable.Onwrittenassignments,thiscoursewilluse theresourcesofturnitin.com,whichsearchesthewebforplagiarizedcontentandisover90% effective. Whatispermitted: 1. Individual assignments are meant to be completed individually by each student. Even thoughworkingwithpeerstounderstandgeneralconceptsisencouraged,discussionof specificproblemsetproblemswithpeersisnotallowed. 2. Youmayconsultwithyourstudygrouponcases. 3. You may seek help for grammar or composition, especially if you are an international student.Youmaynot,however,seekhelponanyotheraspectoftheassignment. 4. You may consult with me regarding any question you have with respect to whether a proposed action is permitted in my class. Your failure to consult with me regarding questionable or dubious behavior shall be considered should I decide that you have violatedtheHonorCode. Whatisnotpermitted: 1. Youmay notconsultwithanyotherpersononanyaspectofa quizorexam.Allwork mustbeyourown,includinggrammarandcomposition.

2. You may not use or read any previously assigned homework or exam from this course
withoutmypermission.Idonotcirculatesuchmaterials,butitispossiblethatsomemay have come into your possession through some other means. Please note that you are forbiddentoreadorusesuchmaterial. In addition, the Judicial Affairs website lists examples of academic dishonesty. Dishonesty includes, but is not limited to cheating, plagiarism, collusion, facilitating academic dishonesty, fabrication, failure to contribute to a collaborative project and sabotage. Some of the ways studentsmayengageinacademicdishonestyare: Coughingand/orusingvisualorauditorysignalsinatest; Concealingnotesonhands,caps,shoes,inpocketsorthebackofbeveragebottlelabels; Writinginbluebookspriortoanexamination; Writinginformationonblackboards,desks,orkeepingnotesonthefloor; Obtainingcopiesofanexaminadvance; Passinginformationfromanearlierclasstoalaterclass; Leavinginformationinthebathroom; Exchangingexamssothatneighborshaveidenticaltestforms; Havingasubstitutetakeatestandprovidingfalsifiedidentificationforthesubstitute; Fabricatingdataforlabassignments; Changingagradedpaperandrequestingthatitberegraded; Failingtoturninatestorassignmentandlatersuggestingthefacultymemberlostthe item; Stealinganotherstudentsgradedtestandaffixingonesownnameonit; Recordingtwoanswers,oneonthetestform,oneontheanswersheet; Markingananswersheettoenableanothertoseetheanswer; Encirclingtwoadjacentanswersandclaimingtohavehadthecorrectanswer; Stealinganexamforsomeoneinanothersectionorforplacementinatestfile;

Usinganelectronicdevicetostoretestinformation,ortosendorreceiveanswersfora test; Destroyingorremovinglibrarymaterialstogainanacademicadvantage; Consultingassignmentsolutionspostedonwebsitesofpreviouscourseofferings; Transferringacomputerfilefromonepersonsaccounttoanother; Transmitting posted answers for an exam to a student in a testing area via electronic device; DownloadingtextfromtheInternetorothersourceswithoutproperattribution; Citingtofalsereferencesorfindingsinresearchorotheracademicexercises; Unauthorizedcollaboratingwithanotherpersoninpreparingacademicexercises. Submitting a substantial portion of the same academic work more than once without writtenauthorizationfromtheinstructor.

http://www.utdallas.edu/judicialaffairs/UTDJudicialAffairsBasicexamples.html Updated:August,2011 Students in this course suspected of academic dishonesty are subject to disciplinary proceedings,andiffoundresponsible,thefollowingminimumsanctionswillbeapplied: 1. HomeworkZerofortheAssignment 2. QuizzesZerofortheQuiz 3. GroupWorkZerofortheAssignmentforallgroupmembers 4. TestsFforthecourse Thesesanctionswillbeadministeredonlyafterastudenthasbeenfoundofficiallyresponsible foracademicdishonesty,eitherthroughwaivingtheirrightforadisciplinaryhearing,orbeing declaredresponsibleafterahearingadministeredbyJudicialAffairsandtheDeanofStudents Office. Intheeventthatthestudentreceivesafailinggradeforthecourseforacademicdishonesty,the student is not allowed to withdraw as a way of preventing the grade from being entered on theirrecord.WhereastudentreceivesanFinacourseandchoosestotakethecourseoverto improve their grade, the original grade of F remains on their transcript, but does not count towardscalculationoftheirGPA. TheSchoolofManagementalsoreservestherighttoreviewastudentsdisciplinaryrecord,on filewiththeDeanofStudents,asoneofthecriteriafordeterminingastudentseligibilityfora scholarship. JudicialAffairsProcedures Under authority delegated by the Dean of Students, a faculty member who has reason to suspectthatastudenthasengagedinacademicdishonestymayconductaconferencewiththe studentincompliancewiththefollowingprocedures: (i)thestudentwillbeinformedthathe/sheisbelievedtohavecommittedanactoractsof academicdishonestyinviolationofUniversityrules; (ii)thestudentwillbepresentedwithanyinformationintheknowledgeorpossessionofthe instructorwhichtendstosupporttheallegation(s)ofacademicdishonesty; (iii)thestudentwillbegivenanopportunitytopresentinformationonhis/herbehalf; (iv) after meeting with the student, the faculty member may choose not to refer the allegation if he/she determines that the allegations are not supported by the evidence;or

(v)aftermeetingwiththestudent,thefacultymembermayrefertheallegationstothedean ofstudentsalongwithareferralformandallsupportingdocumentationofthealleged violation.Underseparatecover,thefacultymembershouldforwardtheappropriate gradetobeassessedifastudentisfoundtoberesponsibleforacademicdishonesty; (vi) the faculty member may consult with the dean of students in determining the recommendedgrade; (vii) the faculty member must not impose any independent sanctions upon the student in lieuofareferraltoJudicialAffairs; (viii) the faculty member may not impose a sanction of suspension or expulsion, but may makethisrecommendationinthereferraldocumentation If the faculty member chooses not to meet with the student and instead forwards the appropriatedocumentationdirectlytothedeanofstudents,theyshouldattempttoinformthe studentoftheallegationandnotifythestudentthattheinformationhasbeenforwardedtothe OfficeofDeanofStudentsforinvestigation. The student, pending a hearing, remains responsible for all academic exercises and syllabus requirements.Thestudentmayremaininclassifthestudentspresenceintheclassdoesnot interferewiththeprofessorsabilitytoteachtheclassortheabilityofotherclassmembersto learn.(SeeSection49.07,pageV494forinformationregardingtheremovalofastudentfrom class). Upon receipt of the referral form, class syllabus, and the supporting material/documentation from the faculty member, the dean shall proceed under the guidelines in the Handbook of Operating Procedures, Chapter 49, Subchapter C. If the respondent disputes the facts upon whichtheallegationsare based,afair andimpartialdisciplinary committeecomprisedof UTD facultyandstudents,shallholdahearinganddeterminetheresponsibilityofthestudent.Ifthey find the student in violation of the code of conduct, the dean will then affirm the minimum sanctionasprovidedinthesyllabus,andsharethisinformationwiththestudent.Thedeanwill reviewthestudentspriordisciplinaryrecordandassessadditionalsanctionswhereappropriate to the circumstances. The dean will inform the student and the faculty member of their decision.

VIII.TechnicalSupport
If you experience any problems with your UTD account you may send an email to: assist@utdallas.eduorcalltheUTDComputerHelpdeskat9728832911.

IX.FieldTripPolicies
Therewillbenofieldtripsinthisclass.

X.StudentConduct&Discipline
TheUniversityofTexasSystemandTheUniversityofTexasatDallashaverulesandregulations fortheorderlyandefficientconductoftheirbusiness.Itistheresponsibilityofeachstudentand each student organization to be knowledgeable about the rules and regulations which govern studentconductandactivities. The University of Texas at Dallas administers student discipline within the procedures of recognizedandestablisheddueprocess.ProceduresaredefinedanddescribedintheRulesand Regulations of the Board of Regents of the University of Texas System, Part 1, Chapter VI,

Section3,andinTitleV,RulesonStudentServicesandActivitiesoftheCourseSyllabusPage8, Universitys Handbook of Operating Procedures. Copies of these rules and regulations are availabletostudentsintheOfficeoftheDeanofStudents,wherestaffmembersareavailableto assiststudentsininterpretingtherulesandregulations(SSB4.400,972/8836391). Astudentattheuniversityneitherlosestherightsnorescapestheresponsibilitiesofcitizenship. He or she is expected to obey federal, state, and local laws as well as the Regents Rules, university regulations, and administrative rules. Students are subject to discipline for violating thestandardsofconductwhethersuchconducttakesplaceonoroffcampus,orwhethercivilor criminalpenaltiesarealsoimposedforsuchconduct.

XI.CopyrightNotice
The copyright law of the United States (Title 17, United States Code) governs the making of photocopies or other reproductions of copyrighted materials, including music and software. Copying, displaying, reproducing, or distributing copyrighted works may infringe the copyright owners rights and such infringement is subject to appropriate disciplinary action as well as criminalpenaltiesprovidedbyfederallaw.Usageofsuchmaterialisonlyappropriatewhenthat usageconstitutesfairuseundertheCopyrightAct.AsaUTDallasstudent,youarerequiredto followtheinstitutionscopyright policy(PolicyMemorandum84I.346). Formoreinformation aboutthefairuseexemption,see http://www.utsystem.edu/ogc/intellectualproperty/copypol2.htm

XII.EmailUse
TheUniversityofTexasatDallasrecognizesthevalueandefficiencyofcommunicationbetween faculty/staff and students through electronic mail. At the same time, email raises some issues concerning security and the identity of each individual in an email exchange. The university encourages all official student email correspondence be sent only to a students U.T. Dallas emailaddressandthatfacultyandstaffconsideremailfromstudentsofficialonlyifitoriginates fromaUTDstudentaccount.Thisallowstheuniversitytomaintainahighdegreeofconfidence in the identity of all individual corresponding and the security of the transmitted information. UTDfurnisheseachstudentwithafreeemailaccount thatis tobeusedinallcommunication with university personnel. The Department of Information Resources at U.T. Dallas provides a methodforstudentstohavetheirU.T.Dallasmailforwardedtootheraccounts.

XIII.WithdrawalfromClass The administration of this institution has set deadlines for withdrawal of any college level courses. These dates and times are published in that semester's course catalog. Administrationproceduresmustbefollowed.Itisthestudent'sresponsibilitytohandle withdrawalrequirementsfromanyclass.Inotherwords,Icannotdroporwithdrawany student.Youmustdotheproperpaperworktoensurethatyouwillnotreceiveafinal gradeof"F"inacourseifyouchoosenottoattendtheclassonceyouareenrolled. XIV.StudentGrievanceProcedures
ProceduresforstudentgrievancesarefoundinTitleV,RulesonStudentServicesandActivities, oftheuniversitysHandbookofOperatingProcedures.

In attempting to resolve any student grievance regarding grades, evaluations, or other fulfillmentsofacademicresponsibility,itistheobligationofthestudentfirsttomakeaserious effort to resolve the matter with the instructor, supervisor, administrator, or committee with whomthegrievanceoriginates(hereaftercalledtherespondent).Individualfacultymembers retain primary responsibility for assigning grades and evaluations. If the matter cannot be resolvedatthatlevel,thegrievancemustbesubmittedinwritingtotherespondentwithacopy oftherespondentsSchoolDean.Ifthematterisnotresolvedbythewrittenresponseprovided bytherespondent,thestudentmaysubmitawrittenappealtotheSchoolDean.Ifthegrievance is not resolved by the School Deans decision, the student may make a written appeal to the Dean of Graduate or Undergraduate Education, and the deal will appoint and convene an AcademicAppealsPanel.ThedecisionoftheAcademicAppealsPanelisfinal.Theresultsofthe academic appeals process will be distributed to all involved parties. Copies of these rules and regulationsareavailabletostudentsintheOfficeoftheDeanofStudents,wherestaffmembers areavailabletoassiststudentsininterpretingtherulesandregulations.

XV.IncompleteGradePolicy
Asperuniversitypolicy,incompletegradeswillbegrantedonlyforworkunavoidablymissedat the semesters end and only if 70% of the course work has been completed. An incomplete grade must be resolved within eight (8) weeks from the first day of the subsequent long semester.Iftherequiredworktocompletethecourseandtoremovetheincompletegradeis not submitted by the specified deadline, the incomplete grade is changed automatically to a gradeofF.

XVI.DisabilityServices
ThegoalofDisabilityServicesistoprovidestudentswithdisabilitieseducationalopportunities equal to those of their nondisabled peers. Disability Services is located in room 1.610 in the Student Union. Office hours are Monday and Thursday, 8:30 a.m. to 6:30 p.m.; Tuesday and Wednesday,8:30a.m.to7:30p.m.;andFriday,8:30a.m.to5:30p.m. ThecontactinformationfortheOfficeofDisabilityServicesis: TheUniversityofTexasatDallas,SU22 POBox830688 Richardson,Texas750830688 (972)8832098(voiceorTTY) disabilityservice@utdallas.edu Ifyouanticipateissuesrelatedtotheformatorrequirementsofthiscourse,pleasemeetwith the Coordinator of Disability Services. The Coordinator is available to discuss ways to ensure your full participation in the course. If you determine that formal, disabilityrelated accommodations are necessary, it is very important that you be registered with Disability Servicestonotifythemofyoureligibilityforreasonableaccommodations.DisabilityServicescan then plan how best to coordinate your accommodations. It is the students responsibility to notifyhisorherprofessorsoftheneedforsuchanaccommodation.DisabilityServicesprovides students with letters to present to faculty members to verify that the student has a disability and needs accommodations. Individuals requiring special accommodation should contact the professorafterclassorduringofficehours.

XVII.ReligiousHolyDays
TheUniversityofTexasatDallaswillexcuseastudentfromclassorotherrequiredactivitiesfor thetraveltoandobservanceofareligiousholydayforareligionwhoseplacesofworshipare exemptfrompropertytaxunderSection11.20,TaxCode,TexasCodeAnnotated. The student is encouraged to notify the instructor or activity sponsor as soon as possible regardingtheabsence,preferablyinadvanceoftheassignment.Thestudent,soexcused,willbe allowed to take the exam or complete the assignment within a reasonable time after the absence:aperiodequaltothelengthoftheabsence,uptoamaximumofoneweek.Astudent whonotifiestheinstructorandcompletesanymissedexamorassignmentmaynotbepenalized fortheabsence.Astudentwhofailstocompletetheexamorassignmentwithintheprescribed period may receive a failing grade for that exam or assignment. If a student or an instructor disagrees about the nature of the absence [i.e., for the purpose of observing a religious holy day]orifthereissimilardisagreementaboutwhetherthestudenthasbeengivenareasonable timetocompleteanymissedassignmentsorexaminations,eitherthestudentortheinstructor mayrequestarulingfromthechiefexecutiveofficeroftheinstitution,orhisorherdesignee. The chief executive officer or designee must take into account the legislative intent of TEC 51.911(b),andthestudentandinstructorwillabidebythedecisionofthechiefexecutiveofficer ordesignee. ThesedescriptionsandtimelinesaresubjecttochangeatthediscretionoftheProfessor.

Schedule
The following schedule shows the topics that will be covered in each session. This schedule should be considered tentative, as it may change during the course, depending on various factors. Should changes be made, they will be posted on course website, and announced in class. Session1(August24) Introduction;timevalueofmoney;netpresentvalue RWJ,chapter1 RWJ,chapter4 Session2(August31) Timevalueofmoney(contd);bondvaluation RWJ,chapter4 RWJ,chapter15.215.5 Problems: o Chapter4:121,25,27,28,30,32,34,36,44,46,48,51,52,53,57,65.

Session3(September7) Bondvaluation;termstructureofinterestrates RWJ,chapter8 Problems: o Chapter8:16,11,13,14,16,25

Session4(September14) ***QUIZ#1*** Stockvaluation RWJ,chapter15.1 RWJ,chapter9 Problems:

o Chapter9:18,10,11,13,14,16,18,23,26,27,33,35
Session5(September21) ***ProblemSet#1*** Portfoliotheory;CapitalAssetPricingModel(CAPM) RWJ,chapter10 RWJ,chapter11 Session6(September28) Portfoliotheory;CapitalAssetPricingModel(CAPM) RWJ,chapter10

RWJ,chapter11 Problems: o Chapter11:2,5,7,9,10,11,14,17,19,23,26,27,28,29,30,3138

Session7(October5)

***MIDTERMEXAM***
Session8(October12) Capitalbudgeting:Investmentdecisionrules RWJ,chapter5 Problems: o Chapter5:1,3,6,7,9,11,12,13,15,16,19,23,25

Session9(October19) ***Quiz#2*** Capitalbudgeting:capitalbudgetingwithtaxes;weightedaveragecostofcapital RWJ,chapter6 RWJ,chapter13 RWJ,chapter18.3 RWJ,chapter18.5 Problems: o Chapter6:13,710,1214,19,2425 o Chapter13:115

Session10(October26) Valuationandcapitalbudgetingfortheleveredfirm RWJ,chapter18 Session11(November2) ***ProblemSet#2*** Valuationandcapitalbudgetingfortheleveredfirm(contd);capitalstructure RWJ,chapter18 RWJ,chapter15.6 RWJ,chapter16 Problems: o Chapter18:1,3,4,5,13,14,15,17

Session12(November9) Capitalstructure(contd);costofdebt RWJ,chapter15.6 RWJ,chapter16

RWJ,chapter17 Problems: o Chapter16:1,3,6,7,8,9,14,17,19,22,24

Session13(November16) ***Quiz#3*** CaseMarriott Session14(November23) TBA Session15(November30) ***Problemset#3*** Review