Northeastern State University

College of Business and Technology

Department of Finance

INSTRUCTOR:

 

Dr. Michael F. Toyne  Office: PA 109

 

Office Hours: MWF 9:00 -10:00, MW 12:00 - 1:00, W 4:30 - 5:30, T Th 11:00 - 12:00.        

                                                                                                                        

Telephone: (918) 456-5511 ext. 2908   FAX: (918) 458-2337  e-mail: toyne@nsuok.edu

 

Personal web page: http://arapaho.nsuok.edu/~toyne/

 

COURSE TITLE AND NUMBER:

                                                                                                           

FIN 3213 - Principles of Finance       

      

PREREQUISITES:

 

Acct. 2103, Acct. 2203, Math 1513, Econ 2113, Econ 2213

 

CATALOG DESCRIPTION OF COURSE:

 

Financial management in a modern international corporation.  Focus on the professional and ethical responsibilities of a financial manager operating in an uncertain global environment and include financial analysis and planning, the use of discounted cash flow techniques in the investment and financing decisions of the corporation and in the valuation of financial assets.

 

COURSE PURPOSE:

 

The overall purpose of this course is to give students a basic understanding of the concepts and tools used in both personal and business financial decision making.  Emphasis is placed on mastering the fundamental concepts and applying them in a problem solving context.

 

EXPECTED COURSE OUTCOMES:

 

Students completing this course should

 

1.  Develop an understanding of the responsibilities that corporate managers have to their stockholders and society.

2.  Be aware of the environment and constraints (including taxes) that face business managers.

3.  Develop an understanding of the function and purpose of financial markets.

4. Be able to apply time value of money mathematics to problems dealing with lump sums, annuities, loans, bond and

    stock valuation, mortgage decisions, and the investment of funds.

5. Be able to estimate a firm’s weighted average cost of capital and apply that estimate to corporate decisions.

6. Be able to use basic capital budgeting tools (e.g., Net Present Value and Internal Rate of  Return)  to determine the

    desirability of capital investments. 

7. Demonstrate an understanding of the components of risk, the role of risk in portfolios, and be able to estimate the risk

    of   individual investments.

8.  Be able to analyze financial statements using basic tools (i.e., statement of cash flows, ratio analysis, and DuPont     

     analysis) and perform a basic financial forecast.

9. Develop an understanding of  the impact of capital structure decisions and be able to perform a  financial break-even

    analyses

10.  Acquire and appreciation for the importance of ethical behavior in business and the financial markets.

 

INSTRUCTIONAL MATERIALS:

 

Fundamentals of Corporate Finance, by Brealey, Myers, and Marcus, 5th ed., Irwin McGraw Hill.

 

A "Financial Calculator" is required. See the note regarding calculators on the next page.

 

Copies of transparencies used in class may be downloaded from the “I Drive”.

 

 

INSTRUCTIONAL PROCEDURES:

 

The course consists of a series of lectures and problem solving sessions.  Student interaction is encouraged and enhances the learning process.

 

                                                                      Tentative Calendar - Fall 2007

 

             Week                     Material Covered

 

                1          Opening Remarks

                            The Firm and the Financial Manager - Ch. 1

                            The Financial Environment - Ch. 2

 

                2          Review of Accounting Principles - Ch. 3

                            Financial Statement Analysis - Ch. 17

                           

              3 - 4       Parts of Long-term Financial Planning - Ch. 18

                          Time Value of Money - Ch. 4

                            Exam 1

 

              5 - 6       Valuing Bonds - Ch. 5

                            Valuing Stock - Ch. 6

 

              7 - 9       Net Present Value and Other Investment Criteria - Ch. 7

                            Introduction to Risk, Return, and the Opportunity Cost of Capital - Parts of Ch. 10

                            Parts of Risk, Return, and Capital Budgeting - Ch. 11

                            Exam 2

                       

            10 - 12    Using Discounted Cash Flow Analysis to Make Investment Decisions - Ch. 8

                            Parts of Project Analysis - Parts of Ch. 9

                            Cost of Capital - Parts of Ch. 12

     

            13 - 15    An Overview of Corporate Financing - Ch. 13

                           How Corporations Issue Securities - Ch. 14

                           Working Capital Management and Short-Term Planning - Parts of  Ch. 19

                            Exam 3        

 

                            Final Exam - Check Finals Week Schedule

 

STUDENT PERFORMANCE ACTIVITIES:

 

Attendance:

Students desiring to receive the maximum benefit from the course should attend class regularly. A seating chart will be used and attendance will be monitored.

 

Calculators:

The use of a "Financial Calculator" is mandatory in this course. Understanding how to effectively use a calculator will provide students with advantages both during the course and in the future. As a point of reference, a Texas Instruments BA-II Plus will be used for demonstration purposes in class. Hewlett-Packard also makes a comparable model. The campus bookstore carries all major brands at competitive prices. Other area retail stores carry most major brands. Effective use of a calculator takes some practice. Do not wait until the night before the first exam to purchase yours.

 

            Regardless of the model chosen, be sure to read the instruction manual carefully and practice operating the machine prior to using it in the classroom. While advice can be obtained from students and the instructor, extensive training is not part of the course curriculum. In addition, the text used in the course provides some explanation.                                                                                       

 

Additional Notes

            If a student elects to drop the class after April 6th, a W (withdrawn passing) will only be assigned if all course requirements up to the official date of withdrawal have been completed and your average test scores are equal to or greater than 60% of available points. If you choose to drop the course be sure to follow university procedures to officially drop the course.  This is not done through the instructor. It requires a trip to the basement of the Administration Building. Be sure that you have documentation proving that you have dropped the course.

 

ASSIGNMENT DUE DATES:

 

Performance is significantly enhanced by completing homework assignments prior to the start of class.

 

STUDENT EVALUATION:

 

Grades will be based on three interim exams (100 points each) and a comprehensive final exam (100 points). If a student misses one of the first three exams, the missed exam will be made up during the final exam period. Each additional missed exam will be assigned a grade of zero. Students must take the final exam.

 

Letter grades will be awarded using the following schedule;

                          360 - 400   A

                          320 - 359   B

                          280 - 319   C

                          240 - 279   D

                            < 240       F

 

In order to respect the privacy of student information, grades will not be disclosed or discussed via the internet or over the phone.  Students wishing to receive final grade information in advance of the University’s normal grade report must present, in person, a self addressed card or envelope with postage to the instructor prior to the end of the course.

 

 AMERICANS WITH DISABILITIES ACT COMPLIANCE:

 

            If any member of the class feels that they have a disability and needs special accommodations of any nature, the instructor will work with you and the University Office of Student Affairs to provide reasonable accommodations to ensure that you have a fair opportunity to perform in this class. Please advise the instructor of such a disability and the desired accommodations at the first class.

 

                                                                       

INCLEMENT WEATHER POLICY:

 

The following are basic premises for the inclement weather policy at Northeastern State University:

 

1. Classes are expected to be held if at all possible.

2. It is the student’s responsibility to receive the information when weather is questionable.

3. Neither students nor faculty are expected to risk life or limb.

4. Faculty members are obligated to hold classes if the University is not closed, unless the faculty member is unable to get to campus.

 

Policy:           

During times of inclement weather, decisions concerning day classes will be made by 6:00 a.m. in order for the media to be notified and for students to receive the announcement before they leave home.  Decisions concerning night classes will be made by 3:00 p.m.

 

The following media will be notified regarding closing of the campus:

 

Radio Station:                                                         Television Station:

KRMG 740 AM      Tulsa                                         KJRH   Channel 2    Tulsa

KAYI 107 FM         Tulsa                                         KOTV Channel 6     Tulsa

KTLQ 1350 AM      Tahlequah                                 KTUL  Channel 8     Tulsa 

KEOK 102 FM        Tahlequah                                 KFSM  Channel 5     Fort Smith

KBIX 1490 AM       Muskogee                                 Cable   Channel 96   Tahlequah

KMMY 97 FM        Muskogee   

KVOO 1170 AM     Tulsa

 

The automated attendant message on (918) 456-5511 will be modified to include information concerning campus operations during inclement weather.