Course Number: Finance 302
Course Title: Intermediate Financial Management
Term, Level, and Credit: Fall 1999, Upper Division, 3 Semester Hours
Course Description: An advanced course in financial management designed to cover the theory and practice of the nagement of the finance function in corporations. Topics covered include capital budgeting, the theory and practice of capital structure, leasing, capital asset pricing model, long-term financing, expansion and synthetic securities.
Course Text and Required Materials: Fundamental of Corporate Finance, 4th Edition, by Ross, Westerfield and Jordan.
Course Objective: To learn the advanced decision making processes in the management of the finance function of corporations. Students will learn about long-term investing techniques, the theory and practice of long-term financing of capital investments, theory and practice of corporate capital structure, mergers and acquisitions, nature and uses of options, warrants, convertible securities and other derivative securities. Additional topics that may be covered included pension fund management, financial distress and risk management.
Course Requirements: There will be three exams (including
the final exam) consisting of true/false, multiple choice,
problems and short-answer essay questions. The dates for the
exams are set; the exact chapters to be covered on each exam may vary from
those listed on the course outline. Material for the exams will come
from the text and class material. The final exam may be comprehensive.
The course averages will be curved.
Students are required to complete and turn in assigned case studies.
The case are used to give students some experience in applying the material
covered in class. Exact assignments and due dates will be announced
during the semester. Students are encouraged to use a
spreadsheet (such as Lotus 1-2-3) and the Internet to work the cases.
The case solutions are to be typed, double spaced . Late case solutions
will be reduced one letter grade for each day late.
Letter grades for the course will be assigned based on the weighted average of the scores for exams and cases using the following weights:
Exam
1
25%
Exam
2
25
Final Exam
25
Problems and Cases
20
Class discussion
05
100%
If an exam must be missed, the student must give notice before the exam
date. The weight of the missed exam will be added to the weight of
the final exam. Any exam missed without notice before the exam date
will receive a score of zero and the student will receive a failing grade
for the course. No make-up exams will be given. There will
be no extra credit projects. There will
be no incomplete grades given, except under the most severe circumstances.
Class Attendance and Academic Honesty: It is the responsibility and the expectation that each student will attend class. Each student bears the responsibility for all material covered in class and each assignment whether the student is in class or not. Each student is responsible for knowing and understanding the material, and the consequences for not attending class. Any student found cheating will be assigned a failing grade for the course and will be reported to the Vice Chancellor for Student Affairs and to the Dean of the School of Business Administration for further disciplinary action.
Withdrawal Dates:
September 10 - Last day to drop with a WD.
October - 01 - Last day to drop with a WP or WF.
September- 06- “Labor day”
October -11- and -12- “Fall Break”
November -25- and -26- “Thanksgiving Holiday”
December -03- “Study Day"
Course Syllabus
Course Number, Section, Semester: Finance 302, Section 01, Fall 1999
Instructor: Dr. Mahmoud M. Haddad
Office Location: Business Administration Building, Room 24
Office Telephone: 587-7249, Fax: 587-7241
email: mhaddad@utm.edu URL: http://www.utm.edu/~mhaddad
Office Hours: 9:00 to 10:00 a.m., and 3:00 to 5:30 p.m. M W F., other times by appointment.
Tentative Schedule
Chapter
Topic
*Work All Odd Problems*
Introduction
5
Review of Time Value of Money
6
Review of Discounted Cash Flow Valuation
7
Interest Rate and Bond Valuation
7
Interest Rate and Bond Valuation
7
Interest Rate and Bond Valuation
8
Stock Valuation
8
Stock Valuation
8
Stock Valuation
9
Net Present Value and other Investment Criteria
9
Net Present Value and other Investment Criteria
9
Net Present Value and other Investment Criteria
Review
*** Exam I ***
10
Making Capital Investment Decisions
10
Making Capital Investment Decisions
10
Making Capital Investment Decisions
11
Project Analysis and Valuation
11
Project Analysis and Valuation
13
Risk, Return and the Security Market Line
13
Risk, Return and the Security Market Line
14
Cost of Capital
14
Cost of Capital
Review
*** Exam 2 ***
16
Financial Leverage and Capital Structure Policy
21
Risk Management and Financial Engineering
21
Risk Management and Financial Engineering
22
Options and Corporate Securities
22
Options and Corporate Securities
23
Mergers and Acquisitions
23
Mergers and Acquisitions
24
Leasing
24
Leasing
Review
***** Final Exam ***** Wednesday December 08, 1999, 7:45am -9:45am