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BA 3341 - 502

BUSINESS FINANCE Course Syllabus

Spring 2005

Time : Room : Instructor Office Phone Email Webpage Office Hours : : : : : :

Thursday, 7:00 - 9:45 p.m. SOM 2.106 Rabih Moussawi SOM 3.608 (972) 883-4884 rabih@utdallas.edu www.utdallas.edu/~rabih MW, 11:00-12:00 p.m. or by appointment The purpose of this course is to introduce students to corporate finance and provide them with a good basic understanding of the valuation tools used in corporate financial decision making. The risk-return trade-off, corporate financing decisions, and dividend policy are also discussed. S. Ross, R. Westerfield, and B. Jordon, Fundamentals of Corporate Finance, McGraw-Hill, 6th edition, 2003 (ISBN 0-07-246974-9). Performance is evaluated based upon attendance and class participation, homework based quizzes, a midterm, and a final as follows: Attendance and Class Participation 10% Quizzes Midterm Final
Attendance and Class Participation

Objective :

Text : Grading :

20% 30% 40%
Students are expected to come to class prepared to discuss the material to be covered and to ask questions if something covered is unclear.

Homeworks and Quizzes To help develop your understanding of the material, some end-ofchapter problems will be recommended after each session. No homework submission is required. Rather, I will occasionally give a quiz based on these assignments. The lowest grade of your quizzes will be dropped out in computing your final score. You should work as many of the end-of-chapter problems as you feel you need to thoroughly understand the material. The more problems you work the better you will understand the material. I also recommend working the Chapter Review and Self-Test Problems at the end of each chapter and going over the Concepts Review and Critical Thinking Questions. Midterm and Final While the midterm tests your understanding of the material covered prior to the exam, the final is comprehensive, yet focuses on the material covered after the midterm exam. The midterm and final exams are multiple choice. Dates of both exams are marked in bold on the Course Outline page of the syllabus. During these tests, one cheat-sheet is allowed: Letter size 8.5”x11”, front and back. Students are responsible to furnish a Scantron Form No: 882-E for both exams.

Using these final scores, I will assign letter grades according to the following scale: A: 90 to 100, B: 80 to 89, C: 70 to 79, D: 60 to 69, and F: 59 and below.

Financial Calculator :

A financial calculator is not required for the course but is strongly recommended for problems and exams. Texas Instruments BA II Plus is advised. You are responsible to learn how to use your calculator by going over your the calculator manual, and by studying the “financial calculator notes” and “Appendix D”, which are posted online in the course webpage. Try to work problems using your calculator wherever appropriate. Practice improves your understanding on how your calculator works. WebCT will not be used for this course. Rather, all lecture notes, recommended homework problems and their solutions, in addition to other materials (like current and previous exam and quiz solutions) will be posted on the course webpage, which you can access through my website. You are expected to check the course webpage frequently and keep updated with class events. Students are expected to be above reproach in all scholastic activities. Students who engage in scholastic dishonesty are subject to disciplinary penalties, including the possibility of failure in the course and dismissal from the University. "Scholastic dishonesty includes but is not limited to cheating, plagiarism, collusion, the submission for credit of any work or materials that are attributable in whole or in part to another person, taking an examination for another person, any act designed to give unfair advantage to a student or the attempt to commit such acts." Regents' Rules and Regulations, Part One, Chapter VI, Section 3, Subsection 3.2, Subdivision 3.22.

Course Webpage :

Policy on Cheating :

Course outline :

Week
01/13 01/20 01/27 02/03 02/10 02/17 02/24 03/03 03/10 03/17 03/24 03/31 04/07 04/14 04/21 04/25 04/28, 7:00 p.m. 05/04

Material Introduction
Introduction, chapters 1 and 2

Financial Statements and Planning
Chapters 3 and 4

Principles of Valuation
Chapter 5 Chapter 6

Bond and Stock Valuation
Chapter 7 Chapter 8

Capital Budgeting
Chapter 9 Midterm Exam Spring Break! Chapters 10 and 11

Risk and Return
Chapters 12 and 13

Cost of Capital
Chapters 15 and 16

Capital Structure and Dividend Policy
Chapter 17 Chapter 18 Review Last Day of Classes Final Exam Final Grades