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BA 3341-004 BUSINESS FINANCE FALL 2005

Instructor: Classroom: Time: Larry J. Merville SM 1.107 Wednesday 2:00-4:45 p.m.

Office: SM 3.612 (972-883-2711) Office Hours: By appointment. TA: Text: Sinan Goktan (SM 3.607) Ross, Westerfield and Jordan, Fundamentals of Corporate Finance, Irwin-McGraw-Hill, 7th edition (standard). Merville, Class Notes, Business Finance, UT-Dallas. Wall Street Journal. A financial calculator or PC spreadsheet is not required for the course but is recommended for problems and exams. EXAM I (EXI) EXAM II (EXII) FINAL EXAM (FIN) 300 points 300 points 400 points

Optional:

Calculator/PC:

Grading:

You must take the comprehensive Final Exam to receive a grade in the course. The exams will be multiple choice. Dates of the exams are marked in bold on the Course Outline page of the syllabus. Students are strongly encouraged to take all of the exams. The exact procedure for receiving a grade in the course will be explained early in the semester..

Instructional Support: See Appendix.

Notice of Policy on Cheating: Policy on Cheating: 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.

Hand-Held Calculators: Selected 1. 2. 3. Texas Instruments BA-II Plus Hewlett-Packard 10B Sharp EL-733

The above calculators have all of the functions that you will need for this course (e.g., bond valuation, net present value (NPV), and internal rate of return (IRR) functions). These calculators are all excellent choices for introductory finance. However, you should study the Manual which comes with your calculator early in the course. Also, try to work the Recommended Problems using your calculator where appropriate. Remember, practice improves your understanding of how your calculator works.

Recommended Learning Regimen: * Outside of Class -- Read Assigned Chapter(s) -- Review Class Notes -- Work on Recommended Problems -- Check Problems in Solutions Manual -- Listen to WebCT Lectures -- Meet with TA -- Form Study Groups. During Class -- Attend Lectures -- Study Covered Recommended Problems.

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COURSE OUTLINE TEXTBOOK
DATE 8/24 8/31 TOPIC(S) Overview Financial Analysis, Funds Statements, Depreciation, Cash Budgets, Taxes Operating Leverage & Breakeven Analysis Time Value of Money CHAPTER(S) 1 2, 3, 11(pp. 337-351), 19 (pp. 614-622)

9/7

5, 6

9/14

Capital Budgeting under Certainty

9, 10

9/21

Capital Budgeting under Risk

12, 13

9/28

Working Capital Management

19 (pp. 614-619), 20, 21 Lectures, Problems

10/5

Review

10/12

EXAM I

10/19

Cost of Capital

7, 8, 15

10/26

Capital Structure and Leverage

17

11/2

Near and Long-Term Financing

16 (pp. 520-524), 19 (pp. 622-626)

11/9

EXAM II

11/16

Dividend Theory and Practice

18

11/23

Strategic Planning

13 (pp. 398-402) 22 All Assigned Chapters

11/30

FINAL EXAM

Omit all chapter appendices except 20A and 21A. Recommended problems will not be collected. Work several chapter problems.

RECOMMENDED PROBLEMS Chapter 1 2 3 5 6 7 8 9 10 11 12 13 15 16 17 18 19 20 20A 21 21A 22
Source: Fundamentals of Corporate Finance: 7th edition, Ross, Westerfield, & Jordan (standard)

Problems -18 26 6, 11 44, 69 10, 30 6 1, 14, 17 16 9 7 2, 7, 11, 13, 14 1, 15 1 1, 16 12, 14 7, 11, 12 1 1 1 1 6, 8 .

APPENDIX

INSTRUCTIONAL SUPPORT

* LEARNING OBJECTIVES ---------Understanding Goal of the Firm Determining Time Value of Money Measuring Risk Calculating Value Evaluating Capital Proposals Optimally Selecting Capital Funds Determining Dividend Payments Understanding Strategic Capital Management Learn WebCT.

* EXAM SUPPORT ---Copy of Instructor's Solution Manual on reserve in Library WebCT Lectures Copies of Class Notes on reserve in Library and also at Off Campus Books located at 581 W. Campbell Road Copies on reserve in Library of "Notation and Terms" and "Grading Procedures." Practice Exams: www.utdallas.edu/~merville/ (see exams).

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