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.)