FIN 301: MANAGEGERIAL FINANCE


Dr. Chong Y. Kim

Le Moyne College, Syracuse, NY, Spring 2002, Phone: (315)445-4391,
e-mail address: kim@lemoyne.edu Fax: 445-4787, Room: RH-309

  1. Prerequisites: ACT-203, STA-201
  2. Office: RH-309
  3. Phone:445-4391
  4. Office Hours: TTH 12:00-1:00 and by appointment

Required
Text: Brigham, E.F. Fundamentals of Financial Management, 9th (2001) ed., Dryden Press.
Recommended: Wall Street Journal, Business Week, Fortune, Forbes, The NY Times.

Course Description
This course serves as an introductory finance course, and is concerned with financial decision making. Virtually all management decisions have financial implications, and it is the effect on the value of the firm by which those managerial decisions are judged.

Classes will be balanced among discussions, lectures and problem solving. It is expected that the student will have read the assigned chapters and prepared the problems before coming to class. While problems may not be collected (except computer problems), their preparation is a major portion of the assignments. Failure to attempt them will prove detrimental to performance on subsequent tests.

Objectives

  1. To survey basic financial theories and to develop financial frameworks to be used in business decision making.
  2. To familiarize students with the basic financial concepts used in security markets, risk and return, interest rates and taxes.
  3. To help students understand how financial management can affect the value of the firm, and how the various topics interrelate with one another.

Grading

Midterm 1: 30%;
Midterm 2: 30;
Final: 30;
computer problem:5%;
attendance and class discussion: 5%.
Because grades are curved, there can be no makeup. If you have a valid excuse for missing a midterm, your course grade will be determined by dividing the weighted scores by (1-.1). If you miss the final with a valid excuse, you must make it up the following semester. If you do not have a valid excuse for missing an exam, it will count as a zero.

Attendance
Attendance is required. Maximum number of unexcused absence allowed is 3. Absences beyond those three will be treated as excused only upon written proof of serious illness, family emergency, or official college business. Wherever possible, you should give me prior notice of an excused absence. Athletic practices do not constitute a valid exucse for missing classes. Every unexcused absence beyond this maximum lowers the final grade by one letter grade.

Computer Assignment
I assume that each student is familiar with spreadsheet program, Microsoft Excel which is available in our Computer Labs. One computer problem is assigned during the semester. A diskette containing your solutions and printouts should be submitted by due dates for grading.

Assignment - Due by 2.12: Using MSExcel, (a) set up a loan amortization table for monthly payment for a 5-year, 7% mortgage in the amount of $50,000, (b) calculate the total amount of principal payment to be made in the first 3 months, and (c) calculate the total amount of interest to be paid during the 1st 6 months. Use the formlulas on Excel to calculate your answers.

Special Needs
In coordination with the Academic Support Center(ASC), reasonable accomodations are provided for qualified students with diabilities. Please see me or Director of the ASC office(x4118) within the first week of class for timely accomodations.

Schedule of Topics (Tentative)

Jan. 15, 17, 22, 24

ch. 1, 2: Overview, Financial Statement, Markets, Institutions

Jan. 29, 31, Feb. 5, 7,12

ch. 5,7: Financial Markets, Time Value of Money

Feb. 13: computer assignment is due.
Feb. 15 - Exam # 1: Ch. 1, 2, 5, 7

Feb. 19, 26, 28. Mar. 5, 7, 12, 14, 19.

ch. 8, 9,10,11: Bond and Stock Valuation, Cost of Capital, Capital Budgeting

Mar. 21 - Exam # 2: Ch. 8, 9, 10, 11

Apr. 2, 4, 9, 11, 16.

ch. 6, 12: Risk, Return, and Cash flow estimation

Apr. 18, 23, 25, 30.

ch. 14,19: Capital Structure, Leverage, Multinational finance

May 2

ch. 21: Mergers, LBOs