Western Michigan University

Haworth College of Business

Fall 2002

FCL 320-31657

Business Finance

Instructor:  Onur Arugaslan
Office: SCHDL 3325
Phone: 387-5981
E-Mail:  onur.arugaslan@wmich.edu
Time: MWF, 9:00–9:50 a.m.
Classroom:    SCHDL 1235
Office Hours:    MW, 2:00–5:00 p.m. (and by appointment)
Prerequisites:   ACTY 210 and MATH 216 

Textbook:  Fundamentals of Financial Management: Concise Third Edition by Eugene F. Brigham and Joel F. Houston, Harcourt College Publishers, 2001.

Supplements:   a.. Study Guide for Fundamentals of Financial Management: Concise Third Edition by Eugene F. Brigham, Joel F. Houston, and Dana Aberwald Clark, Harcourt College Publishers, 2001.

b. Wall Street Journal and other business publications

Grading Base: 

25% MIDTERM 1
30% MIDTERM 2
35% FINAL EXAM (comprehensive)
10% HOMEWORK ASSIGNMENTS

Grading Scale: 

90-100 A
85-89 BA
80-84 B
75-79 CB
70-74 C
65-69 DC
60-64 D
0-59 E

General:        

a. The objective of this course is to understand the basic principles of business finance. In doing so, you will learn how the financial theory concepts and techniques are applied to business decisions. Important topics to be covered include but are not limited to the time value of money, bond valuation, stock valuation, capital budgeting, and risk-return relation.

b. You will be assigned homework problems from the book. Working on these problems will increase your understanding of the material.

c. A financial calculator with time value of money features (present value (PV), future value (FV), net present value (NPV), internal rate of return (IRR) etc.) is required.

d. Exams will be closed book and consist of problems and multiple-choice questions. You are allowed to bring a one-page formula sheet for the exams. You can have any information you want on both sides of this sheet.

e. Makeup exams will only be given if a proof of emergency is provided. Late homework assignments will not be accepted unless there is a valid reason. In both cases, it is highly recommended that you notify me ahead of time.

f. Attendance and participation are very important and in your best interests. You are responsible for all the information you miss out if you do not attend. You are allowed three unexcused absences and further absences may affect your final grade adversely.

g. For information on incomplete policy, please refer to p. 28 of the 2001-2003 University Undergraduate Catalog.

h. For information on academic honesty, please refer to pp. 268-270 of the 2001-2003 University Undergraduate Catalog.

i. Please note that the last day to withdraw without a grade is Monday, October 28th.  

Course Schedule:

Date                            Topic                                           Chapter          

September 4                 Course Overview

September 6                 Overview of Financial Management                             1

September 9                 Overview of Financial Management                             1

September 11               Financial Statements, Cash Flow, and Taxes               2

September 13               Financial Statements, Cash Flow, and Taxes               2

September 16               Financial Statements, Cash Flow, and Taxes               2

September 18               Analysis of Financial Statements                                3

September 20               Analysis of Financial Statements                                3

September 23               Analysis of Financial Statements                                3

September 25               Financial Planning and Forecasting                               4

September 27               Financial Planning and Forecasting                               4

September 30               Financial Planning and Forecasting                               4

October 2                    Markets, Institutions, and Interest Rates                5

October 4                    Markets, Institutions, and Interest Rates                5

October 7                    Markets, Institutions, and Interest Rates                5

October 9                    Risk and Rates of Return                                      6

October 11                  Risk and Rates of Return                                      6

October 14                  Risk and Rates of Return                                      6

October 16                  Risk and Rates of Return                                      6

October 18                  MIDTERM 1

October 21                  Time Value of Money                                                 7

October 23                  Time Value of Money                                                 7

October 25                  Time Value of Money                                                 7

October 28                  Time Value of Money                                                 7

October 30                  Bonds and Their Valuation                                              8

November 1                 Bonds and Their Valuation                                              8

November 4                 Bonds and Their Valuation                                              8

November 6                 Bonds and Their Valuation                                              8

November 8                 Stocks and Their Valuation                                              9

November 11               Stocks and Their Valuation                                              9

November 13               Stocks and Their Valuation                                              9

November 15               Stocks and Their Valuation                                              9

November 18               MIDTERM 2

November 20               The Basics of Capital Budgeting                                 11

November 22               The Basics of Capital Budgeting                                 11

November 25               The Basics of Capital Budgeting                                 11

November 27               The Basics of Capital Budgeting                                 11

November 29               No Class (Thanksgiving)

December 2                 The Cost of Capital                                                 10

December 4                 The Cost of Capital                                                 10

December 6                 The Cost of Capital                                                 10

December 9                 No Class                                                   

December 11               No Class                                                               

December 12               FINAL EXAM            (Thursday, 10:15-12:15 p.m.)        

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