ELMIRA COLLEGE

SYLLABUS
TERM I – Fall 2015

COURSE: FIN 3010 – Corporation Finance CREDITS: 3

INSTRUCTOR: Dr. Robert Irons OFFICE: McGraw Hall 236B
PHONE: 607-735-1874 E-MAIL: [email protected]
OFFICE HOURS: T Th 11:30 AM – 12:30PM, W 4:00 – 5:00 PM

TEXTBOOK: Foundations of Financial Management, Fifteenth edition, by Stanley B.

Block, Geoffrey A. Hirt, and Bartley R. Danielson, McGraw-Hill Irwin, 2014.

COURSE DESCRIPTION: FIN 3010 is a one-semester course in financial

management. The course builds a conceptual and analytical framework focused on the
creation of shareholder value. Students develop significant expertise in applying finance
principles to the analysis of complex business problems and situations using Excel.

You will not be required to use a financial calculator in this class. You may use one if
you have one, but it is not required for the material we will cover. Instead, you will be
expected to solve many of the problems mathematically, using algebra as well as
financial and statistical formulas. Much of the material in this class will emphasize the
solving of word problems, which requires not only basic math skills, but critical thinking
skills as well. These skills are essential for problem solving in today’s business
environment.

You will be required to have access to a computer that has MS Excel, as well as access
to the internet. You will be given spreadsheet-oriented computer assignments
throughout the class. Spreadsheet skills may be the single most important computer-
based skill you take from this program. You will be expected to use Microsoft Excel for
these assignments. All assignments will be turned in via email as well as in hard copy
format. All emailed files must be thoroughly checked for viruses before turning them in
for grading. Failure to do so will negatively impact your grade on the assignment.

STUDENT LEARNING OUTCOMES: Students who successfully complete this course

will be able to:
1. Prepare and analyze the balance sheet, income statement, and statements of
cash flows.
2. Calculate financial ratios for a company and interpret the results of those ratios.
3. Understand financial forecasting and the budgeting process.
4. Calculate both the operating and financial leverage for a company.
5. Understand cash management and the utilization of current assets.
6. Describe sources of both short-term and long-term financing.
7. Understand the time value of money.
8. Calculate the cost of capital and describe the various methods of evaluating
capital projects.
9. Use statistics to calculate risk in capital projects.
PREREQUISITES: Two semesters of accounting principles and one semester of
management principles. As a 3000 level course, this course assumes a working
knowledge of the concepts and methods taught in the prerequisite courses. It is the
responsibility of the student to make up any deficiencies in prerequisites.

METHOD OF INSTRUCTION: Lecture, discussion, and problem solving. The student

will be expected to read assigned materials prior to class and to be prepared to take an
active part in classroom discussions and in the solution of assigned problems.

ACADEMIC INTEGRITY: Refer to your copy of The Elmira College Bulletin and
Student Handbook for information regarding academic integrity. A student caught
cheating is subject to course failure.

ATTENDANCE: Any student who misses more than six classes will receive a grade of
WF. The only excused absence will be for students who are quarantined and on the
SIC list.

OTHER IMPORTANT POLICIES: Cell phones are prohibited in the class. If you
happen to bring it to class, it must be put away in your bag and turned off. NO
EXCEPTIONS.

I believe in holding you to the same standard that I hold myself to. Since I will always
be on time for class, I expect you to do the same. NO EXCEPTIONS.

GRADING/EVALUATION OF STUDENTS. A numerical final class average for each

student will be calculated as a weighted average of the following evaluation criteria:

Homework Problems & Quizzes 10%

Spreadsheet projects (2) 30%
Exams (3) 60%

There is a maximum of 100 achievable points. After all the criteria are evaluated, an
appropriate grade distribution based on final class averages will be constructed.
Students with final class averages conforming to the traditional 90/80/70/60 breakpoints
will earn grades equal to A/B/C/D. In general, grades of A are awarded to students who
display consistent excellence in terms of attendance, attitude, preparation, commitment
and achievement. Grades of B are awarded for above average achievement and a
determined commitment to excel in the course. Grades of C are awarded for average
work, and for students that demonstrate commitment but may not be performing at the
highest levels. Grades of D are awarded for below average work, and for students that
display less than adequate commitment to mastering the material. Grades of F indicate
failing work, and/or an inadequate commitment to mastering the course material.
A 93% +
A- 90% - 92.9%
B+ 87.1% - 89.9%
B 83% - 87%
B- 80% - 82.9%
C+ 77.1% - 79.9%
C 73% - 77%
C- 70% - 72.9%
D+ 67.1% - 69.9%
D 63% - 67%
D- 60% - 62.9%
F < 60%

Grades are not rationed. There is no limit to the number of grades in any grading
category that can be awarded. Grades are determined only by the items listed in this
syllabus. There are no "extra credit" projects or alternative methods of evaluation.
Grades are based on observable outcomes such as exam performance, project quality,
and students' contribution to creating a positive class environment. Unobservable
inputs such as study time or effort do not affect course grades.

EXAMINATIONS: Examinations will consist of a balanced amount of multiple choice

and quantitative problems. Students with a valid excuse (usually medical) for missing
an exam can make up an exam by prior arrangement. Students who miss an exam
without an acceptable excuse will receive a zero. NOTE: If you have a valid excuse for
missing an exam, you must notify me before the exam. If you notify me after the exam,
you will receive a zero on the exam.

BRIEF OVERVIEW OF MY TEACHING/EDUCATION PHILOSOPHY: Business schools

are professional schools. Programs should focus on developing competent and ethical
practitioners of business, similar to the way medical schools develop competent doctors
and law schools develop competent attorneys. Students are best served by courses
that include cases and projects that simulate real-world business problems and
situations and highlight the skills students have acquired. These skills should directly
contribute to improved professional performance. Theory is useful when it provides a
conceptual framework that helps students identify classic business themes and break
down complex situations into more manageable components so that problem-solving
and analysis become easier.

College is your opportunity to discover your best method of learning. College is

completely different from high school; in high school, you could get by with memorizing
the material long enough to recall it on the exam, and then let it go. In college you are
developing a specialty, such as accounting, finance, biology or political science.
Developing a specialty requires a holistic understanding of the material, the way it all
interacts, and how it can all be used to find solutions to problems. That means that all
of the tools you are given in this program are important, and you need to develop them
all in order to be an effective manager. A holistic understanding requires you to think
about how the theories and techniques you learn in the program interrelate on a deeper
level. It means that you develop your own, personal understanding of how these things
work together. It also means developing yourself into a student for life.

Much of the factual knowledge you will learn in the program is subject matter you are
teaching yourself -- the material in the textbooks. The textbooks are not there for
reference purposes. They are tools given to you to permit you to get a basic
understanding of the theoretical material in your classes. Your instructor's job is to
teach you how to think about the theoretical material, and help you develop a holistic
understanding of the material. Notice that, for your instructor to be able to do his or her
job effectively, it is imperative that you read the textbook material before the lecture is
given. The lecture is not given to introduce you to the material -- that introduction
should already have been made, by you, before the lecture. The lecture will guide you
in understanding the logic that underlies the theory, and how it can be used to solve
real world problems.

Thus, the biggest single skill you should develop during your college tenure is how to
learn. That is, how you learn best. In this way, you can prepare yourself to learn any
type of material you desire in the future, whether it is learning a new software package
to help you at work, or how to do simple repairs on your car, or how to play an
instrument. College gives you the opportunity to become a student of life, for life. It
gives you the chance to expand your horizons, and develop areas of expertise, long
after you have graduated.

HOMEWORK ASSIGNMENTS. Each week there will be problems assigned to be

solved. Failure to complete any homework assignment on a timely basis will result in a
zero score for that homework assignment. The final homework grade will be an
average of the grades on all of the homework assignments, with the lowest score
dropped.

SPREADSHEET PROJECTS: You will be given two projects over the semester that
you will be required to solve using Microsoft Excel. You will be expected to turn in both
hard copies and an email file with each project.

MAKE-UP POLICY. Students should not assume they will be granted automatic
extensions or make-ups if they miss homework and/or exam deadlines without advance
permission. Waivers from homework, exam, or other course requirements or deadlines,
including permission to miss and make up an exam at a later time will be granted in
writing, and only for extraordinary circumstances (see below). To avoid
misunderstandings, there will be no verbal waivers from course requirements or
deadlines.

EXTRAORDINARY CIRCUMSTANCES. Students encountering genuine emergencies

or other extraordinary circumstances should contact me as soon as circumstances
allow. Barring truly extraordinary circumstances, however, students are expected to
adhere to the course schedule and complete all exams, assignments, and other course
requirements on time. Students who fall out of contact for an extended period of time
and miss deadlines without advance explanation will be assigned a grade of "F."

COMMUNICATION CHANNELS. E-mail is the best way to contact me. Students are
always welcome to call me in the office, but if I don't answer the phone you might get a
faster call back by sending an e-mail with your contact phone numbers and preferred
contact times.

GRADING AND TIME COMMITMENTS. To earn a passing grade, students should

demonstrate a strong desire to obtain complete mastery of the subject matter in
accordance with the depth and breadth of my expectations. I expect everyone will give
this course high priority throughout the entire semester, and arrange their schedules so
they can devote whatever time is required to master the material. It would not be
unusual for some students to find they need to spend 7-10 hours or more per week on
the course, over and above the 3 hours per week spent in the classroom. A substantial
amount of the coursework must be completed independently. Class time focuses on
specialized and technical topics, and comprises only a small component of the total
course experience.

Note the following important dates for this term:

9/11 – last day to register for fall 2015 classes
9/18 – last day to add or drop a fall 2015 course
10/2 – 10/4 – family weekend
10/17 – 10/20 – fall mid-term break
11/1 – last day to file for June graduation (registrar)
11/2 – 11/13 – academic advising for winter classes
11/9 – 11/13; 11/19 – 11/20 – registration for winter classes
11/21 – 11/29 – Thanksgiving break
12/4 – 12/5 – holiday banquet & ball
12/12 – classes end
12/14 – 12/18 – final exams
12/19 – fall term ends
12/19/15 – 1/10/16 – holiday break

COURSE OUTLINE:
Date Chapter Topic Homework Due Project
s
9/9 Review Syllabus
3 Fundamental Principles of Finance
1 Goals & Activities of Financial Mgmt 9/16
9/16 2 Review of Accounting 9/23 Project 1
3 Financial Analysis 9/23 Assigned
9/23 4 Financial Forecasting 9/30
5 Operating and Financial Leverage 9/30
9/30 First Exam – Chapters 1-5
10/7 6 Working Capital and the Financing 10/14
Decision
7 Current Asset Management 10/14
10/14 8 Sources of Short-Term Financing 10/21 Project 1
Due
10/21 9 The Time Value of Money 10/28
TVM Models
10/28 10 Valuation and Rates of Return 11/4
Valuation Models
11/4 Second Exam – Chapters 6-10
11/11 11 Cost of Capital 12/2 Project 2
WACC Models Assigned
11/18 Thanksgiving Break (No Classes)
12/2 12 The Capital Budgeting Decision 12/10
Capital Budgeting Models
12/9 13 Risk and Capital Budgeting 12/15
12/16 Final Exam – Chapters 9-13 Project 2
Due