FINC-150 Fundamentals of Finance

Georgetown University Qatar

Fall 2020

 

Instructor: Dennis C. McCornac, Ph.D.               Email: dm1231@georgetown.edu

 

Office Hours: Available in Zoom conferencing. Please email me if you would like to meet in Zoom.  Refer to the Zoom address in Canvas under Office Hours.

 

Course Description: This course is a survey course, designed to explore the major concepts in corporate finance. Topics include Time Value of Money; Net Present Value/Internal Rate of Return; Valuation of Stocks and Bonds; Financial Statements/Ratios; Managing Growth; Discounted Cash Flow; Risk, Return and the Cost of Capital; Capital Structure; Dividends; Raising Capital/Going Public; Mergers and Acquisitions; and Corporate Restructuring.

 

The course focuses on applications of finance to assist students outside the Business School to understand financial statements, apply financial analytical techniques, and learn the basics of the capital markets. Note: students will not be expected to have prior knowledge of course concepts.

 

Goals of the Course:

·       Gain understanding of the financial environment in which firms operate

·       Mastery of the time value of money concept and its applications such as bond and stock valuation,

·       An understanding of the risk and return relationship in the financial market

·       An understanding of the corporate capital budget, capital structure, and working capital management decision making process

·       Read and understand information from popular financial media.

 

Students are expected to prepare for class by completing all readings PRIOR to each class meeting. Thoughtful and constructive class participation is expected, as it will both help you to better understand the material and enhance the learning process for all.  In addition, students will be expected to read news websites on a daily basis to keep abreast of financial events.

 

Required Text: Required Text: Essentials of Corporate Finance with Connect, 9th Edition. By: Stephen Ross, Randolph Westerfield and Bradford Jordan. Publisher: McGraw-Hill Higher ISBN: 9781259697456, 2017. The E-book version of the text is available in Canvas.

 

Web Presence: The class web page contains the important information for the course.

 

http://dcmccornac.com/AFINC150Fall2020/Finance150outlineFall2020.htm

 

Problems Sets and Practice Problems: A number of Text Chapter Questions and Practice Problems are assigned. You are expected to complete these assignments prior to the examinations. Although these assignments will not be graded, you may be asked to present these problems in class. The extent to which you participate will be reflected in your class participation grade.

 

 

Grading Scale:

 

Exam dates will be posted on the course website. Exams must be taken at the times designed except in the case of illness with a physician's excuse. Make-up exams and quizzes will only be allowed for serious medical or personal problems.

Method of Evaluation

Points Possible

Exam 1

20

Exam 2

20

Exam 3

20

Class Participation

10

Final Exam

30

TOTAL

100

 

Attendance Requirements:  Students are expected (required) to attend every class session and participate in class discussions.

 

Class Policies: Cellphone use is prohibited during class. Laptop use during class is permissible for viewing course readings only. Surfing the internet, chatting, or working on other projects is prohibited. I reserve the right to alter this policy and ban laptop use entirely if conditions make it necessary.

 

Honor Code: Every student has the responsibility to abide by the GU Honor Code.  Review it at http://qatar.sfs.georgetown.edu/academic-affairs/honor-system/sfs-q-honor-system. Suspected infractions of the Honor System will be referred to the Honor Council.  If a student is found in violation of the Honor System, I reserve the right to award a failing grade on the assignment or the course as a whole, in addition to any sanction that the Honor Council and the Dean may apply.

 

Title IX & Non-Discrimination:

 

As faculty at Georgetown University, we are committed to our responsibilities under Title IX, as well as the University’s non-discrimination policies.  For details of University policies, please refer to the following links:

 

https://titleix.georgetown.edu/#

https://www.qatar.georgetown.edu/campus-life/title-ix

https://bulletin.georgetown.edu/regulations/antidiscrimination

 

Use of Cameras During Online Classes:

 

There is no university policy on camera use in online classes. However, students are strongly encouraged to turn on their computer/device cameras when participating in class. Students are required to understand and abide by the university's policy on virtual learning security which prohibits any student from photographing or videorecording another student's image via Zoom or another online platform, as well as the dissemination of any such photographs or video recordings. Violations are subject to adjudication under the Code of Student Conduct.