Syllabus

BUS 220D            Financial Analysis and Markets                     Fall 2006

Instructor:                  Dr. Maretno Agus Harjoto (Augus)                          

Lecture:               November 1 – November 15, 2006
07:45am - 11:00am                              BBC Room 021

Office:                         BT857

Phone:                         408-924-3491                         

Email:                          harjoto_m@cob.sjsu.edu

Web page:                   http://www.cob.sjsu.edu/harjoto_m/BUS220.htm 

Office Hours:              MW: 3:00pm-4:30pm, Tuesday 4pm to 5pm  or  by appointments only

Course Objectives:

This course is designed to provide an understanding of financial decision-making from the viewpoint of the corporate financial manager. The course will illustrate a variety of techniques and applications of modern financial theory and practice. Each student will discover how managers are able to increase the value of the firm by obtaining capital in competitive financial markets in order to finance its investment activities. The valuation approach emphasizes the risk and return and how such an approach is consistent with the goal of shareholder wealth maximization. Students successfully completing this course should have the necessary tools and understanding of time value of money, stocks and bonds valuations, capital budgeting, risks and returns, and cost of capital.

Prerequisites: Officially enrolled in BUS220D.

Textbooks and equipment:

1. Fundamentals of Corporate Finance, by Brealey, Myers and Marcus, FIFTH Edition (2006) (ISBN: 0073226394).
2. Financial Calculator; and The Wall Street Journal. Supplemental Case Studies Handouts.

Teaching Methods:

            I look forward to teach this course and interacting with you throughout the semester about corporate financial analysis and other concerns related with this course that you might have.  Class time will be a mixture of lecture and active learning.  Discussion of cases will be used to motivate, clarify, extend, and synthesize the material.  Case Studies will be used to involve you in an active discussion of the principles in corporate finance and real world practices.  Regularly, you are encouraged work together with your classmates during the class and outside of the classroom.  I will ask you to compare answers to a problem or work together on a question with your neighbor or neighbors.  I will occasionally call on you individually to respond to questions. The homeworks, practice quizzes and power point slides are posted in our class website: http://www.cob.sjsu.edu/harjoto_m/BUS220.htm.

Course Expectations:

            Students are expected to read assigned reading materials prior to class lectures and participate in class discussion and homework assignments.  Do not be afraid to participate because of the size of the class and if you have a question, never let it go unanswered.  If you do not get an opportunity to ask your question during class, stop by during my office hours or feel free to contact me via electronic mail.  During the semester, I will establish our course web page as additional means of communicating with the class (check it frequently!). 

Tentative Course Schedules:

NOTE:

This schedule may change.  Any changes will be announced in class. 

Evaluation Criteria:

            Your final grade for the course is based on the distribution below and follows a standard 100 percent scale.  A(92-100); A-(88-91); B+(85-87); B(80-84); B-(77-79); C+(74-76); C(70-73); C-(67-69); D+(64-66); D(60-63); F(59.5 and below). Grading in the course will be based upon homeworks, quizzes, two mid-semester exams and a final exam.  Quizzes, and exams will include multiple choice questions and short essays based on both lecture material and assigned case studies. 

GRADING RULES:

1.      BRING YOUR OWN SCANTRON SHEETS (No. 882-E) for EXAMS.

2.      NO MAKEUP QUIZZES FOR ANY REASONS or EXCUSES.

3.      THERE IS NO EXTRA CREDITS OFFERED IN ANY FORMS.

4.      THERE IS NO CURVES IN QUIZZES AND EXAMS GRADES.

Exam Format:

            The two mid-semester exams and the final exam will consist of all multiple choices questions.  More precise details of the exam design will be given prior to each exam. The final exam is not cumulative, however it covers materials from the past lectures since the beginning of the course.  PLEASE BRING YOUR OWN SCANTRON SHEETS (No. 882-E) and CALCULATOR WHEN YOU ARE TAKING THE EXAMS.

Makeup Exam:

            Makeup exams are given only for excused absences or if the student has obtained the instructor's prior approval.  If you miss an exam with a non-excused absence you will receive a zero for the exam. The university defines the following as excused absences: illness of the student or death of a member of the student's immediate family; or major religious holidays.  In each foreseen case, written verification will be required at least one week before the scheduled exam and permission to miss an exam must be secured before the scheduled exam time unless the cause of the absence is unforeseen.  IF YOU MISS AN EXAM FOR AN UNFORESEEN REASON YOU SHOULD CONTACT ME AS SOON AS YOU ARE PHYSICALLY ABLE TO PICK UP THE PHONE AND CALL ME or EMAIL ME.   The makeup exam will be held at one time during the week following the regularly scheduled exam time.  While the difficulty level will not differ from the regular exam, the format of the makeup exam will be primarily essays to expedite administering and returning the exam. 

Cheating:

            Cheating and plagiarism are not tolerated at the San Jose State University.  Anyone caught cheating will be penalized severely.  The full penalty will be determined in consultation with the Chair of the Accounting and Finance. The minimum academic penalty is an "F" for the course and filing of a cheating report to the university (Read the Policy on Academic Dishonesty, Section 3.1.4).   I may require one stipulation (such as to take off you hat or to bring your picture ID) to reduce the potential for cheating during the exams.  I reserve the right to refuse credit to any student who cannot demonstrate to me that he/she understands the question/problem at issue.

Calculator:     

A financial calculator is required.  It is useful for solving present value and future value problems.  Any financial calculators will be fine.  You can find information about how to use financial calculators from our text (Appendix A).  The alternative choice is to use the present value tables.  The present value tables are available from our textbook (Appendix A).  Please bring your own calculator and I will give you the present value tables for the exams.

Returning Exams and Grievance Procedure:

            Graded exams will be returned one week after the scheduled day of the exam.  Anyone feeling that a dispute exists after the grading of an exam may submit a written grievance.  This grievance should identify the item in dispute and arguments supporting the student's position.  The grievance should be stapled to your exam and must be submitted within two class periods following the return of the assignment.  The instructor agrees to return a written response to the student's grievance within two class periods from receipt of the grievance.

Disabilities:    

If you have any condition, such as a physical or learning disability, that will require academic accommodations, please notify me in the first two weeks of the course with the proof from the university Disability Resource Center (DRC) at the Administration Building room 110.

Incomplete:

            An incomplete will be granted only in the most unusual circumstances and is not permitted simply to avoid a low grade.  If you would like to (confidentially) discuss problems you are having with me, do so early as soon as possible (and in particular) before exams.