FNAN 401 Master Syllabus

FNAN 401: Advanced Financial Management Master Syllabus

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Textbook: Ross, Westerfield, Jaffe and Jordon, Corporate Finance, 2019, 12th edition, McGraw-Hill. You must also purchase/obtain access to Connect. Connect access includes the ebook and it can be purchased directly from McGraw Hill (be sure to select the 12th edition).
It is also recommended that you read The Wall Street Journal on a regular basis. In addition, during the term you may be asked to read articles in current business periodicals (e.g., Business Week).

Course Website: Canvas

Course Description

The primary focus of this course is advanced financial management. Topics to be covered include time value of money, discounted cash flow, taxes and capital investment, risk analysis, the Capital Asset Pricing Model, capital structure theory, the relationship between leverage and risk, information asymmetries, and agency problems.

General Course Outline

Introduction and Financial Statements
Time Value of Money
Security Valuation
Principles of Capital Budgeting
Portfolio Theory
Cost of Capital
Capital Market Efficiency
Capital Structure Decisions
Dividend Policy

Learning Goals

Our students will demonstrate an understanding of the social, global, ethical, and legal contexts of business and will be able to reflect on the role of the individual in business.
Our students will demonstrate an understanding of and the ability to apply knowledge of professional skills necessary for success in business including effective business writing.
Our students will demonstrate technical and analytic skills appropriate for success in business.
Our students will demonstrate an understanding of and the ability to apply knowledge of core business disciplines including accounting, finance, information systems, management, marketing, and operations management.
Our students will demonstrate knowledge and skills appropriate for specialization in their majors.
Our students will demonstrate an understanding of how research in the business disciplines contributes to knowledge and how such research is conducted.

Course Requirements and Grading

Specific week-by-week assignments are on the attached page. While we may deviate slightly from this schedule, it provides the basic structure for the course.

During the term, you will be evaluated on the basis of SmartBook learning modules, graded homework assignments and four exams. All assignments must be completed by the date due. You are expected to adhere to the Honor Code. No late assignments will be accepted.

SmartBook (SB) and Homework assignment will be completed on the McGraw Hill Connect website.

SmartBook (SB) Learning Modules: There will be Learning Modules posted on Connect to be completed for each chapter. They are due on the same date as the corresponding homework assignment.
Homework: There will be four graded homework assignments posted on Connect. You may work with others when solving the problems, although each student must submit his/her own set of solutions for grading. You are allowed to attempt each homework assignment three times.
Exams: There will be four exams during the term. Exams 1, 2, and 3 will last 90 minutes each and may be taken at a time convenient to you on Monday, Tuesday, or Wednesday of the week the exam is due. The 4th exam is a 2 hour comprehensive final exam. Exams will primarily contain multiple choice questions. Exams will be taken on Canvas and will require the use of Respondus Lockdown browser and a webcam. The webcam can be built into your computer (internal webcam) or can be the type of webcam that plugs in with a USB cable (external webcam). Students are responsible for ensuring that their computer is adequately set up to take exams using this method.
Exam make-up policy: If, for a valid reason (medical emergency, death in the family, etc.), you are unable to take Exams 1, 2 or 3, your grade on (comprehensive) Exam 4 will substitute for the missed exam grade.

Grade Determination (using the +/- system):

SmartBook	10%
Homework Assignments	20%
Exams #1, #2 and #3 (equally weighted)	45%
Final Exam #4**	25%
	100%

** note: if a student’s grade on Final Exam #4 is higher than the average of their grades on the Exams #1 and #2, and #3, the final exam will be given a weight of 30% and Exams #1, #2, and #3 will be given a weight of 40%.

Calculators

For this course you will need a financial calculator capable of performing present value/future value-type analysis. For example, the Texas Instruments BA II Plus calculator meets these criteria. Many other calculators are also suitable.

Office of Disability Services

If you are a student with a disability and you need academic accommodations, please see me and contact the Office of Disability Services (ODS) at (703) 993-2474. All academic accommodations must be arranged through the ODS.

Schedule (Sample)

Week (Sample)	Topic	Chapter
Jan 25 - 29	Introduction/Time Value of Money	4
Feb 1 - 5	Time Value of Money, cont’d/Valuing Stocks and Bonds	4, 8, 9
Feb 8 - 12	Valuing Stocks and Bonds, cont’d Homework 1 (Due Feb 14)	8, 9
Feb 15 - 19	Exam 1 (Chs 4, 8, 9) (90 min exam to be completed by Weds) Capital Budgeting Techniques	5
Feb 22 - 26	Capital Budgeting	6
Mar 1 - 5	Capital Budgeting, cont’d Homework 2 (Due Mar 7)	6
Mar 8 - 12	Exam 2 (Chs 5, 6) (90 min exam to be completed by Weds) Capital Market History	10
Mar 15 - 19	Portfolio Theory and the CAPM	11
Mar 22 - 26	Portfolio Theory and the CAPM, cont’d/Cost of Capital Estimation	11, 13
Mar 29 - Apr 2	Cost of Capital Estimation/Capital Market Efficiency Homework 3 (Due Apr 4)	13, 14
Apr 5 - 9	Exam 3 (Chs 10, 11, 13) (90 min exam to be completed by Weds) Capital Market Efficiency	14
Apr 12 - 16	Capital Structure Theory	16, 17
Apr 19 - 23	Capital Structure Theory/Dividends and other Payouts	16, 17, 19
Apr 26 - 30	Dividends and other Payouts, cont’d Homework 4 (Due May 2)	19
May 6	Comprehensive Exam 4 1:30 – 3:30 (Make-up date: May 8, 10:30 – 12:30)

School of Business Recommendations for Honor Code Violations

Approved May 2016

UG-Non Freshman Students (including transfer students)
Type of Violation	First Offense	Second Offense
Plagiarism Failure to cite/attribute sources Representing someone else’s work as the student’s own (e.g., copying and pasting)	An F in the class; referral to Writing Center; and Academic Integrity Seminar completion	An F in the class; referral to the Writing Center; Academic Integrity Seminar completion; termination from the School of Business; and at least one semester suspension or expulsion
Cheating On a minor assignment (e.g., homework, quizzes) Cheating on a major assignment or exam, submitting course work from another course as original work	An F in the class; and Academic Integrity Seminar completion An F in the class; and Academic Integrity Seminar completion, and at least one semester suspension	An F in the class, Academic Integrity Seminar completion; termination from the School of Business; and at least one semester suspension or expulsion
Lying (e.g., providing fraudulent excuse documents, falsifying data)	An F in the class; and Academic Integrity Seminar completion, and at least one semester suspension	An F in the class; Academic Integrity Seminar completion; termination from the School of Business; and at least one semester suspension or expulsion
Egregious Violation (e.g., stealing an exam; submitting coursework from another class as original work across multiple courses; lying to an employer about academic performance, false identification or posing as another, in person or online)	An F in the class, Academic Integrity Seminar completion; termination from the School of Business; and at least one year suspension	An F in the class; Academic Integrity Seminar completion; termination from the School of Business; and expulsion

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