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)

Additional Articles: Forms of Business Entities

Websites: YahooFinance, Qatar Stock Index, World Stock Indexes

Videos: What Is Corporate Finance?     Forms of Business Organization     The Goal of Financial Management     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

 

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

Videos:  How to Read a Balance Sheet     How to Read an Income Statement     Cash Flow Statement 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

September

6, 8

Working with Financial Statements Cont’d

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

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

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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: Discounted Cash Flow Calculator

Calculating Present Value Extended

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

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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 6

September

27, 29

Text: (RWJ) Reading: Chapter 5

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

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Week 7

October

4, 6

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

Mid-term holiday break, no classes

Week 9

October

18, 20

Interest Rates and Bond Valuation Cont’d

Exam 2 on October 20

Text: (RWJ) Reading: Chapter 6

Chapter 6 Lecture - Interest Rates and Bond Valuation con’t     (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 Stock Valuation    Summary of Investment Criteria

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

Week 11

November

1, 3

Net Present Value and Other Investment Decisions Cont’d

 

Making Capital Investment decisions

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

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

Chapter 9 Lecture - Making Capital Investment Decisions     (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)

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)     (Calculating Expected Value)     (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)

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

November

15, 17

Risk and Return Cont’d

 

Catching-up time and Review for Exam

Exam 3 on November 17

Chapter 11 Lecture - Risk and Return     (PPT

Exam 3 – November 17 (Covers Chapters 8 -11)

Week 14

November

22, 24

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

November 29

December 1

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

Final Exam

Exam Time: