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 4

 

 

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 4 (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

Quiz 2 – February 19

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)

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)

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

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

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

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

Week 12

March

22, 24

Risk and Return

Quiz 3 – March 24

(RWJ) Reading: Chapter 11

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

Websites: CAPM Calculator

Quiz 3 – March 24

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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

Review for Exam

Exam 3 – March 31

Exam 3 – March 31 (Covers Chapters 8 -11)

Thursday, April 7, 2020 - Last Day to Withdraw from Courses

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

Week 17

Final Exam

Exam Time: