FINC-150 Fundamentals of Finance

Georgetown University School of Foreign Service in Qatar

Summer Session 2017

 

Instructor: Dennis C. McCornac, Ph.D. Office: 0D44

E-mail: dm1231@georgetown.edu

 

Office Hours:  Email or talk to me before or after class for an appointment.

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: Essentials of Corporate Finance with Connect, 9th Edition. By: Stephen Ross , Bradford Jordan , Randolph Westerfield. Publisher: McGraw-Hill Higher ISBN: 9781259697456, 2015

 

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

 

http://dcmccornac.com/FMSFSQ/Finance150outline.htm

 

In addition, we will be using , a fully integrated homework and tutorial system. We will discuss in class how to register.

 

http://connect.mheducation.com/class/d-mccornac-gu-sfsq

 

Textbook Companion Website (8th Edition):

 

http://highered.mheducation.com/sites/0078034752/student_view0/index.html

 

Assignments and Self Study Quizzes: Learn Smart Assignments and Chapter Self-Quiz and Study exercises for each chapter are available in Connect. The grades will not be recorded and you may do as many times as you wish.

 

Problem Sets: A number of Text Chapter Questions and Problems are assigned. You are expected to complete this assignment by the due dates. Although these assignments will not be graded, you may be asked to present these problem in class. The extent to which you participate will be reflected in your class participation grade.

 

Exams: There will be three exams during the term and a final exam on the last day of class. The final exam will be cumulative. Each exam will be given on the dates indicated in the syllabus. There will be no make-up exams. If you are not in class the day of the exam, your grade for that exam is zero unless you can prove you have a legitimate (e.g., illness, emergency, scheduled College-sponsored activities) and verifiable reason.

 

Grading Scale:

 

Method of Evaluation

Points Possible

Exams 1, 2 and 3

20 points each

Class Participation

10 points

Final Exam

30 points

TOTAL

100 points

 

Attendance Requirements: Students are 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.

 

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.