Finance 323
Fundamentals of Finance
Fall
2009
Professor: Dr. Song Office: SS 3357
Office Hour: 8:30am – 9:30am (Tue/Thur) Phone: 594-5334 or by appointment E-mail: moon.song@sdsu.edu
I. Course Description
To obtain an
understanding and ability to use basic business financial management concepts
and tools of analysis such as valuation, risk-return relationships, financial
statement analysis, capital budgeting, cost of capital, capital structure, and
working capital management. To become familiar with the
various types of financing available to a firm.
II. Finance Department
Student Learning outcomes for FIN323
1.
Demonstrate
a knowledge of domestic financial markets and institutions and how firms obtain
funds in the financial markets and at what costs.
2.
Demonstrate
an understanding of basic valuation concepts and how to apply them to valuing
various types of cash flow streams.
3.
Demonstrate
an understanding of what determines the value of a firms securities and how
management can influence these values.
4.
Demonstrate
an understanding of how to measure a firms’ risk, what determines this risk,
and how this affects the value of a firm.
5.
Analyze a
firm’s performance to determine its strengths and weakness, and use financial
analysis to make suggestions for improving performance.
6.
Forecast a
firm’s financial needs.
7.
To know the
various methods for analyzing projects, how to apply them, and what to do if
there are conflicting recommendations.
8.
Demonstrate
an understanding of the tradeoffs involved and the techniques used to manage
working capital.
9.
Demonstrate
a knowledge of what leverage is, how a firm influences
its leverage, and how leverage affects a firm.
10. Demonstrate a knowledge
of how firms raise money in foreign markets and the additional types of risks
that multinational firms are exposed to.
11. To know and be able to the finance terminology
in the above areas.
III. Course Materials
Text: Ross Westerfield and Jordan, Fundamentals of Corporate
Finance, McGraw-Hill/Irwin, ninth edition.
IV. Grades, Assignment, and Exams
Final grades
will be based on homework (10%), midterm I (30%), midterm II (30%) and final
exam (30%).
*. Late assignment will be depreciated.
*. Exams are closed book and will consist
of numerical problems.
*. No make-up exam is allowed.
*. All exam and graded assignments will be
kept by the professor.
*. November 24th is a
Furlough Day. There will be a no class.
COURSE
OUTLINE
Chapter 1 Introduction
to Corporate Finance
Chapter 5 Introduction
to Valuation the Time Value of Money
Chapter 6 Discounted Cash Flow Valuation
Chapter 7 Interest
Rate and Bond Valuation
Chapter 8 Stock
Valuation
Chapter 2 Financial
Statements, Taxes, and Cash Flow
Midterm
I Exam: October 1st
Chapter 3 Working
with Financial Statements
Chapter 9 Net
Present Value and other Investment Criteria
Chapter 10 Making
Capital Investment Decisions
Chapter 18 Short-Term Finance and
Planning
Chapter 19 Cash
and Liquidity management
Midterm
II Exam: November 5th
Chapter 20 Credit
and Inventory Management
Chapter 13 Return,
Risk, and Security Market Line
Chapter 14 Cost
of Capital
Chapter 16 Financial
Leverage and Capital Structure Policy
Chapter 21 International
Corporate Finance