FNAN 401: Advanced Financial Management Master Syllabus
Course Instructor:
Office Number:
Office Hours:
Email:
Course Meeting Times:
Course Materials:
- 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
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.
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) |
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