Finance 150 – FUndamentals of Finance

All readings should be completed prior to lecture)

 

Syllabus  (PDF)          Grading Scale     Calculators             

 

DATES

TOPICS

READINGS AND ASSIGNMENTS

Week 1

January

7, 9

(Jan. 9 follows a  Sunday Schedule)

Introduction to

Financial Management

Text: (RWJ) Reading: Chapter 1

Chapter 1 Lecture - Introduction to Financial Management     (PPT)

Additional Articles: Forms of Business Entities

Websites: YahooFinance, Qatar Stock Index, World Stock Indexes

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Assignment: (Does not need to be handed in). Peruse the websites of some of the major stock indexes. 

Week 2

January

12, 14

Financial Statements,

Taxes, and Cash Flow

 

Working with Financial Statements

Text: (RWJ) Reading: Chapters 2 and 3

Chapter 2 Lecture – Financial Statements, Taxes, and Cash Flow     (PPT)

Chapter 3 Lecture – Working with Financial Statements     (PPT)

Resources: Cash Flow Summary, How to Read a Financial Report (No Need to Download)

Cash Flow From Assets Further Explained

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Assignment: Practice Problems Chapter 2 (Material will be on Exam 1     (Answers)         Chapter Review and Self-Test Problem

Income and Balance Sheet Problem  

Week 3

January

19, 21

Quiz 1 – January 21

 

Working with Financial Statements Continued

Quiz 1 – January 21

Text: (RWJ) Reading: Chapter 3

Chapter 3 Lecture – Working with Financial Statements     (PPT)

Who Uses Financial Statement Analysis?     (PPT)

Financial Ratio Example – Norton Corporation     (PPT)

Resources: Common Financial Ratios

Websites: Financial Ratios Calculator, Investing.com, Reuters, YahooFinance

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Assignment:  Text Chapter 3 - Questions and Problems: Question 35     (Answers)

Week 4

January

26, 28

Introduction to Valuation: The Time Value of Money

Text: (RWJ) Reading: Chapter 4

Chapter 4 Lecture - Introduction to Valuation: The Time Value of Money     (PPT)

Resources: Summary of Time Value Calculations

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Assignment:  Text Chapter 4 - Questions and Problems: Questions 1, 2, 3, 4, 5, 24     (Answers)

Practice Problems for Exam 1 (Covers Chapters 1 – 4)      (Answers)

Week 5

February

2, 4

 

Discounted Cash

Flow Valuation

 

Exam 1 - February 2

 

 

Text: (RWJ) Reading: Chapter 5

Chapter 5 Lecture - Discounted Cash Flow Valuation     (PPT)

Resources: Summary of Annuity and Perpetuity Calculations

Websites: Discounted Cash Flow Calculator

Exam 1 - February 2 (Covers Chapters 1 – 4)

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Assignment:  Text Chapter 5 - Questions and Problems: Questions 1, 2, 3, 4, 6, 14, 15     (Answers)

Week 6

February

9

Discounted Cash

 Flow Valuation

 Continued

Text: (RWJ) Reading: Chapter 5

Chapter 5 Lecture - Discounted Cash Flow Valuation con’t     (PPT)

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Assignment: Practice Problems Chapter 5 (Material will be on Exam 2)     (Answers)  

Week 7

February

16, 18

Interest Rates and Bond Valuation

Text: (RWJ) Reading: Chapter 6

Chapter 6 Lecture - Interest Rates and Bond Valuation     (PPT)

Resources: Summary of Bond Calculations

Websites: FINRA Bond Quotes,  Investopedia Bond Price Calculator, Credit Rating Countries, A.M. Best Ratings ______________________________________________________________________________________

Assignment: Text Chapter 6 - Questions and Problems: Questions 1, 3, 6, 7, 9     (Answers)

Practice Problems Chapter 6 (Material will be on Exam 2)    (Answers)

Week 8

February

23, 25

Interest Rates and Bond Valuation Continued

Exam 2 – February 25

Text: (RWJ) Reading: Chapter 6

Chapter 6 Lecture - Interest Rates and Bond Valuation con’t     (PPT)

Exam 2 – February 25 (Covers Chapters 5 and 6)

Week 9, March 1 - 5 (Spring Break)

Week 10

March

8, 10

Equity Markets and Stock Valuation

Net Present Value and Other Investment

Text: (RWJ) Reading: Chapters 7 and 8

Chapter 7 Lecture - Equity Markets and Stock Valuation      (PPT)

Chapter 8 Lecture - Net Present Value and Other Investment     (PPT)

Resources: Summary of Stock Valuation    Summary of Investment Criteria

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Assignment: Text Chapter 7 - Questions and Problems: QUESTIONS 4, 5, 13     (Answers) 

Text Chapter 8 - Questions and Problems: Questions 1, 5. 6, 8, 13     (Answers)

Practice Problems Chapters 7 and 8 (Material will be on Exam 3)

Plan of Action for March 10 and the rest of the week.

1. Please reread Chapter 7 and start reading Chapter 8.

2. Look at slides since of the material will be on the slides for each chapter.

3. Start to familiarize yourself with the excel calculation for thing such as NPV and IRR.

4. Begin the questions and problems for both chapters.

5. Hope this all ends soon.

Week 11

March

15, 17

Making Capital Investment Decisions

 

Some Lessons from Capital Market History

Text: (RWJ) Reading: Chapter 9  (Sections 9.1, 9.2, 9.6) and 10

Chapter 9 Lecture - Making Capital Investment Decisions     (PPT)

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Assignment: Text Chapter 10 - Questions and Problems: QuestionS 1, 7      (Answers)

Practice Problems Chapters 9 and 10 (Material will be on Exam 3)

Plan of Action for March 15 and March 17.

1. Zoom sessions will be conducted online during the regularly scheduled class meeting time (3:30 pm). Please login on time.

2. On March 15 and most of March 17 we will go over the lecture notes and excel examples for Chapter 8 and work on some problems.

3. If we have time on March 17, we will also look at Chapter 9.

Week 12

March

22, 24

Risk and Return

Quiz 2 – March 24

(RWJ) Reading: Chapter 10 and 11

Plan of Action for March 22 and March 24.

1. Zoom sessions will be conducted online during the regularly scheduled class meeting time (3:30 pm). Please login on time.

2. On March 22 and most of March 24 we will go over the lecture notes for Chapter 10 and 11. Chapter 10 is pretty straight forward so most can be gained from reading the text. 

3. There will be a very short practice quiz on March 24 to make sure we can take the exam online.

Chapter 10 Lecture - Some Lessons from Capital Market History      (PPT)

Chapter 11 Lecture - Risk and Return     (PPT)     (Calculating Expected Value)     (Estimating Beta)

Websites: CAPM Calculator     What is the Difference Between Arithmetic and Geometric Averages?

Quiz 2 – March 24 (This will be a practice quiz only).

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Assignment: Text Chapter 11 - Questions and Problems Homework: Questions 2, 3, 5, 13, 14, 15     (Answers)

Practice Problems Chapter 11 (Material will be on Exam 3)

Week 13

March

29, 31

Catching-up time and Review for Exam

Exam 3 – March 31

Plan of Action for March 29 and March 31.

1. Zoom sessions will be conducted online during the regularly scheduled class meeting time (3:30 pm). Please login on time.

2. On March 29 we will finish Chapter 11 and go over problems and review.

3. Exam 3 – March 31 (Covers Chapters 7, 8, 11)

Week 14

April

5, 7

The Cost of Capital

Leverage and Capital Structure

Text: (RWJ) Reading: Chapter 12 and 13 (Sections 13.1, 13.2, 13.3, 13.4)

Chapter 12 Lecture - The Cost of Capital     (PPT)

Chapter 13 Lecture - Leverage and Capital Structure     (PPT)

Websites: WACCExpert, ValuePro

Videos: Leverage, Operating Leverage, Financial Crisis Explained, A Day in the Life of A Financial Advisor

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Assignment: Text Chapter 12 - Questions and Problems: Questions 9, 10, 14     (Answers)

Practice Problems Chapters 12, 13, and 15 (Material will be on the Final Exam)

Week 15

April 14

Raising Capital

Text: (RWJ) Reading: Chapter 15

Chapter 15 Lecture – Raising Capital     (PPT)

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Just concentrate on understanding the notes (No assignment)

Week 16

April

19, 21

Catching-up Time and Review

Quiz 3 – April 22

Quiz 3 – April 21

Week 17

Final Exam

Exam Time: