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

 

August

23, 25

Introduction to

Financial Management

Text: (RWJ) Reading: Chapter 1

Chapter 1 Lecture - Introduction to Financial Management  (PPT)

Websites: Qatar Stock Index     World Stock Indexes     YahooFinance

Videos: Agency Problem and Control of the Corporation     Financial Markets and the Corporation

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

Week 2

 

August 30

September 1

Financial Statements,

Taxes, and Cash Flow

Text: (RWJ) Reading: Chapter 2

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

Resources: Beginners' Guide to Financial Statements     Cash Flow Summary     How to Read a Financial Report (No Need to Download)

Videos: Cash Flow From Assets Further Explained     How to Read a Balance Sheet     How to Read an Income Statement 

Article: Lebanese banks told to boost capital or exit market by end of Feb     _____________________________________________________________________________________

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

 

September

6, 8

Working with Financial Statements

Practice Online Quiz on September 8

 

 

Practice Online Quiz – September 8

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     How and Why Do Companies Pay Dividends?

Websites: Financial Ratios Calculator     Investing.com     Reuters     YahooFinance

Videos: Financial Ratio Analysis

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

Week 4

 

September

13, 15

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

Videos: Calculating FV (Future Value) in Excel     Calculating RATE (Interest or Discount Rate) in Excel   

Calculating PV(Present Value) in Excel     Calculating the Number of Periods (NPER) in Excel

Problems: Some Practice Problems   (Word)

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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

 

September

20, 22

 

Discounted Cash Flow Valuation

 

Exam 1 on September 22

 

 

Text: (RWJ) Reading: Chapter 5

Chapter 5 Lecture - Discounted Cash Flow Valuation   (PPT)

Resources: Summary of Annuity and Perpetuity Calculations

Websites: Calculating Present Value Extended     Discounted Cash Flow Calculator    

Videos: Using the PMT function in Excel to calculate loan payments   PMT, PPMT, IPMT in Excel

Exam 1 – September 22 (Covers Chapters 1 – 4)

Week 6

 

September

27, 29

Discounted Cash Flow Valuation Continued

Text: (RWJ) Reading: Chapters 5 and 6

Chapter 5 Lecture - Discounted Cash Flow Valuation   (PPT)     Perpetuities

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

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

Week 7

 

October

4, 6

Interest Rates and

Bond Valuation

Text: (RWJ) Reading: Chapter 6

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

Resources: Summary of Bond Calculations

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

Videos: Bond Pricing, Valuation, Formulas, and Functions in Excel (Does not use pull-down menus, but helpful)

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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, Sunday Oct 11, 2020 – Thursday, Oct 15, 2020

Mid-term holiday break, no classes

Week 9

 

October

18, 20

Equity Markets and Stock Valuation

Exam 2 on October 20

Text: (RWJ) Reading: Chapter 7

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

Exam 2 – October 20 (Covers Chapters 5 and 6)

Week 10

 

October

25, 27

Equity Markets and Stock Valuation

 

Net Present Value and Other Investment Decisions

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 Investment Criteria     Summary of Stock Valuation   

Videos:  Constant Growth Model     Stock Valuation 

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

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

Week 11

 

November

1, 3

Net Present Value and Other Investment Decisions Cont’d

 

Making Capital Investment decisions

Text: (RWJ) Reading: Chapters 8, 9 (Sections 9.1, 9.2, 9.6), and 10

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

Chapter 9 Lecture - Making Capital Investment Decisions  (PPT)

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

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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)   (Answers) 

Week 12

 

November

8, 10

Some Lessons from Capital Market History

 

Risk and Return

(RWJ) Reading: Chapters 10 and 11

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

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

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

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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)     (Answers)

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)     (Answers)

Week 13

November

15, 17

Risk and Return Cont’d

Review for Exam

(RWJ) Reading: Chapters 11 and 12

Chapter 11 Lecture - Risk and Return  (PPT)

Week 14

November

22, 24

Exam 3 on November 22

 

The Cost of Capital Cont’d

 

Leverage and Capital

Structure

Exam 3 – November 22 (Covers Chapters 7 -11)

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

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

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

Week 15

 

November 29

December 1

Leverage and Capital

Structure Cont’d

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

Chapter 13 Lecture - Leverage and Capital Structure   (PPT)

Some MOre practice Problems 12 and 13

Chapter 15 Lecture- Raising Capital   (PPT) – For your information – NOT on exam.

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Just concentrate on understanding the notes (No assignment)

Week 16

Final Exam

Exam Day and Time: Thursday, December 10 at 4:00 pm – 6:00 pm