Fi302 Business Finance, Summer 2010 (13May2010)

COMMON SYLLABUS FOR SECTIONS USING THE STRUCTURE OF FINANCE LEARNING MODULES

Official course website: http://bama.ua.edu/~fi302 Learning module textbook & resources: http://bama.ua.edu/~tdowns Keep your scores in the scoresheet available at the Syllabus Collection on the course website

1. Communication: We communicate mostly through the eLearning Discussion Boards, Standings pages, eLearning emails, and/or office hour/classroom chats. The Standings show class scores and rankings for all students submitting Learning Module assessments. Messages or reminders about deadlines sometimes appear in the Standings pages, too. You should monitor the Standings pages and Discussion Boards. The DB are the best venue to ask questions about content. Most questions just need a knowledgeable answer. Freely share information. A classmate may be able sometimes to answer a question faster and better than a teacher. Posting content or links in the Discussion Board allows everyone to browse answers for all questions, find opinions for every issue, and sometimes see eloquent discourse or entertaining media. The teaching staff browse Discussion Boards and provide responses once every businessday. Many postings never require teacher reply because a classmate provides a knowledgeable answer or because the posting is a simple sharing of information. Office hours for the Fi302 teaching staff are on the eLearning site (click Course information) and at the Reception desk in Alston 200 (348-7842). While Discussion Boards provide good answers for content and administration questions, sometimes emails are needed. Send timely emails to your teacher only within the eLearning email system. Your teacher will send a few important emails this term so remain timely with your eLearning email. Fi302 emails sent outside eLearning may be ignored/lost. 2. Learning Module textbook: Lessons about the Structure of Finance by Thomas Downs, Pearson Custom Publishing, 2nd Edition, 2005, ISBN 0536915156. To enter the buy-side now or sell-side later visit these or several other sites
http://www.amazon.com/exec/obidos/ASIN/0536915156/domainsherloc-20/0536915156 or http://www.universitysupplystore.com/site_textbook.asp?mscssid=D926FB9E5A1B440ABB3F04E5B58D76CB or http://www.facebook.com/topic.php?topic=7836&uid=45750294610#/group.php?gid=45750294610&ref=ts or read/search the textbook at http://bama.ua.edu/~tdowns

3. Prerequisites: EC 110 and AC 210 (or AC 201 plus AC202) 4. Course catalog description FI302 is about the study of financial objectives of business enterprises, sources of capital, and the financial management of business assets. Emphasis is on establishing a framework for making financing, investing, and dividend decisions. 5. Course structure and resources (1) The course content partitions into four learning modules and each concludes with an online eExam. Content for each Learning Module covers about 3 textbook chapters that organize into about 7 Lecture Guides. Lecture Guides culminate with an online anytime/anywhere eQuiz accessible in eLearning during the quiz availability window. Assessments for the 4 Learning Modules sum to 4 exams and 27 eQuizzes. (2) Submit eQuizzes and proctored eExams to earn points. Access these in eLearning: Home page > "Exam 1, Quizzes 1-to-7, and Self-tests" &c. To direct your study efforts the Learning Module Resource Guide lists ALL of the questions that are on ALL of the eQuizzes and exams. (3) Each quiz or exam question can be practiced as an ungraded and unlimited self-test. The self-tests appear as codes in each Learning Module. Click the question code to launch the self-test. Question codes also appear in the textbook, Lecture Guides, videos, solution documents, &c. (4) Find solutions for the problems from many sources. The Learning Module Resource Guide includes hints, solutions, and links to videos, documents, textbook, and lecture recordings explaining content for figuring out these and other puzzles.

(5) Sometimes students want an outside tutor. Usually spending more time studying is a better use of time and money. To resolve confusions try first by posting a thoughtful question on the discussion board and hopefully find free answers. If all else fails, graduate students wishing to earn extra income as tutors register at our department office in 200 Alston Hall. Graduate students are prohibited from tutoring courses they currently teach; such assistance must be freely rendered during normal office hours. Contracting between you and the tutor does not involve the department in any way. Teachers cannot recommend specific tutors. The Center for Teaching and Learning at 121 Osband Hall sometimes offers free tutors for Fi302. Visit their website at www.ctl.ua.edu for further details. (6) Learning Business Finance Fi302 sometimes is easier when you infer analogies with lessons from consumer finance. UA has created for you the Office for Student Financial Success to help students learn how to improve their financial wellbeing. As a part of the Healthy Campus Initiative, the SFS provides unbiased lessons on personal finance to equip students with the financial knowledge needed to succeed in a consumer society. Visit their site at http://sfs.sa.ua.edu/. (7) Library Services: All students, on campus and from a distance, have access to the resources available at the UA Libraries. Please visit the UA Libraries Distance Education web site at http://www.lib.ua.edu/distanceed. 6. Grade determination The Weighted course average (WCA) computes from these scores. 1. Exam 1 17% 2. Exam 2 17% 3. Exam 3 17% 4. Exam 4 (Final) 17% 5. Wildcard for best exam score 10% 6. Weighted quiz average (WQA) 10% 7. Trading Game project 10% TOTAL Weighted course average (WCA) 100% A 10 percent wildcard automatically applies to your highest exam score. Your Course Score equals the WCA plus these Timeliness factors: 1 points for timely exam submissions (all sections); 3 points for class attendance (only available for sections with classes). The Course Score receives a letter grade according to the schedule below. There is never extra credit. 95.0 average A+ 92.0 average < 95.0 A 72.0 average < 77.0 C 89.5 average < 92.0 A69.5 average < 72.0 C87.0 average < 89.5 B+ 67.0 average < 69.5 D+ 82.0 average < 87.0 B 62.0 average < 67.0 D 79.5 average < 82.0 B59.5 average < 62.0 D77.0 average < 79.5 C+ average < 59.5 F All grades are recorded to the significance level of tenths not integers. For example, an exam score of 77.2 is recorded as 77.2, not 77. Likewise, a course average of 76.8 receives a letter grade of C. 76.8 does not receive a C+ because it is not rounded to 77.0 . Download scoresheet.xls to record the points that you earn on quizzes and exams. Your grade depends on your scores, so check and know your course standing and rank. According to current C&BA academic policies, FI 302 does not count towards fulfillment of the C&BA core requirement if a grade of D+ or lower is received. 7. Attendance policies (1) For online sections (901, 902, 904, and 909) there is no monitoring of attendance. There is, however, an open door policy for all classrooms teaching Fi302 Business Finance. Any student can attend any class from any member of the teaching staff. Guest attendance in classrooms is always subject to seating availability. (2) Sections with classes require and monitor attendance. Attendance at your registered section satisfies requirements. Missing 2 or fewer classes, regardless of

reason, adds a 3 point Timeliness factor to the Course Score. After 2 absences each additional missed class reduces your Timeliness factor by point. The maximum loss from absences is a 3 point reduction in Course Score. 8. Quiz policies (1) eQuizzes are available online in eLearning this semester (only) aytime/anywhere from the beginning until the end of the final exam period. (2) There are 27 different eQuizzes. You may attempt any eQuiz up to four times during the availability window. Each quiz score is an average of all attempts on that quiz. You can take quizzes in any order that you want (e.g., you might choose to take quiz 2 before taking quiz 1). Even after you go on to subsequent quizzes you still can come back and re-attempt previous available quizzes. If you get 100% on the first attempt of a quiz then probably you should not attempt it again (but you can). If you get a poor score, say 40% on the first attempt, and a 100% the second attempt, that quiz score is 70 points, a C-minus. Perhaps youll still want to attempt it a third or fourth time in order to increase that quiz average even further. Perhaps not! It probably is easier to go forward to the next quiz and continuously improve! (3) By the end of the semester you should have a minimum or 15 and a maximum of 27 quiz scores. The top 15 quiz scores determine your Weighted Quiz Average (WQA). The bottom 12 quiz scores, even zeroes, are set equal to the 15th highest quiz score. This formula determines your WQA: Weighted Quiz Average = (sum of top 15 scores + 12x15th highest score) 27 If after taking the 15th quiz your WQA is acceptable then you need not submit remaining quizzes but you can. On the other hand, if your WQA is below target then go forward and raise your performance level or go back and raise your 15th highest score! 9. Exam policies (1) Each exam is multiple choice format, 90 minutes in duration, and is accessible online in eLearning. A formula sheet is provided during each exam, you may not bring your own. Formula sheets are viewable in the Learning Module Resource Guide. (2) For each exam you may submit from 1 to 3 online eExams. If several of the same exams are submitted then only your best attempt determines the score. If none is submitted the score is zero. (3) You may request a paper exam for testdate times and places shown in eLearning (see Course Information). You must request the paper exam at least 48 hours before the testdate. You may be denied admission if you arrive more than 15 minutes late or if you did not request one. The paper exam is 75 minutes in duration (even exam 4 during Exam week). (4) Online eExams must be submitted in a proctored setting. On-campus you can submit online tests at the C&BA TestLab without reservations. Just stop by when open. See the schedule at http://bama.ua.edu/~fi302/proctorschedule.htm. (5) Students in online sections unable to drop by the TestLab may arrange a proctor pursuant to Academic Outreach policies (348-7642). Distance students may use a proctor from any regionally accredited 2- or 4-year college or university. You can use a current staff or faculty member at that institution if no specific testing center is available. In some instances, a local librarian may serve as a proctor. Military personnel only may take examinations under the supervision of a commissioned officer. After identifying your proctor, print and complete this form: Proctor Form (http://aohs.ua.edu/cm/general/forms/proctor/proctor_form.pdf Acquire all appropriate signatures and return the form to the Academic Outreach Office at the address or fax number provided on the form at least 48 hours prior to your test. Testing information will then be provided directly to your proctor by the Academic Outreach office. You must schedule your testing date and time directly with the proctor. Make sure they have received the testing information prior to your arrival.

(6) The exam score computes by applying cutoff points per Table 1 below.
Entries in columns 2 & 3 equal the number of RawPoints that convert into a score of 90 (A-minus) and 70 (C-minus). The maximum score is 100 and minimum is 0. Each score depends totally on your best submission. Submit each exam online up to 3 times and/or request a paper exam (for times/places see eLearning > Course Information). The Timeliness factor adjusts your Course Score and depends exclusively on the date of first exam submission. The factor per exam equals + point on/before the 11pm deadline and - point after. For exam 4 (only) the timeliness factor equals zero since all are timely. For sections -901, -904, and -909 the minimum timeliness factor equals 0.

exam# 1 2 3

Maximum raw points -1115 115 117

A-minus cutoff
(score = 90)

C-minus cutoff
(score = 70)

Timeliness deadlines
+ point before - point thereafter

-284 92 86

-355 62 58

-4June 8 Summer 1 classes June 16 Online full summer July 13 Summer 2 classes June 16 Summer 1 classes July 5 Online full summer July 21 Summer 2 classes June 24 Summer 1 classes July 23 Online full summer July 29 Summer 2 classes July 1 Summer 1 ends August 6 full summer ends August 6 Summer 2 ends

119

94

68

TABLE 1: EXAM CUTOFF POINTS AND TIMELINESS DEADLINES

To get a C-minus on exam 1, for example, requires getting 55 points out of 115, that is, 55 raw points convert to a score of 70. Likewise, 84 raw points convert to a score of 90 which is the A-minus cutoff. The fact that 55/115 equals 47.8% or that 84/115 is 73.0% is largely irrelevant. The two cutoff points in the table linearly transform the raw points from your in-class or online submission into your Exam Score. Note that 100 is the maximum score and 0 the minimum on any assessment. 10. Withdraw, Extensions, Incompletes, and Drop/Add policies (1) You may change sections through normal add procedures through the end of the add period. Once the add period is over no further changes can be made. The last day to drop the course without appearance on your transcript is the end of add period. (2) See your mybama.ua.edu account and check the Registrars Academic Calendar for the last date to normally drop a course. To withdraw from Fi302 on or before this date (midnight), go into your account and drop the course. A "W" will then appear on your transcript immediately after you complete this transaction. (3) After the normal drop date students are not permitted to drop a course without submitting a written petition to the Director of Undergraduate Programs in #10 Bidgood. Petitions must be accompanied by significant supporting documents to verify extenuating circumstances. Claims cited in the petition are subject to verification by the Director and such processes take time. One is deemed passing Fi302 if the average score on all attempted quizzes and exams exceeds 60. (4) At the end of your term (July 1 for Summer 1, August 6 for online and Summer 2) a Course grade is submitted to mybama based on scores to-date (no I). Every student in online sections 901 & 902 own an Extension option for submitting further eQuiz and eExam attempts (not Trading Game) after August 6 and improve his/her Course grade. The Extension option is automatically available in all Fi302 Fall, Spring & online sections but is not available in Summer 1 or Summer 2 sections except with preapproval from your teacher. The Extension grade change option can be exercised

only once. Section 901 & 902 students (only) unable to drop by the C&BA TestLab may utilize the Distance Proctor Authorization process offered by the College of Continuing Studies. Send an email to your teacher when you find your exercise date and (a) state the semester & section for your course, (b) tell your new scores, and then (c) the teacher will verify and submit to mybama a change of grade. 11. Extenuating circumstances, special accommodations, and Code of Conduct (1) The teachers obligation is to maintain as level a playing field as possible. All students must be treated the same and grades must be based exclusively on classroom performance. This leaves little room for extenuating circumstances to affect performance assessments. While any one of many possible unfortunate events is real and perhaps unavoidable, it is important that each student evaluate his/her own costbenefit trade-offs. If an unfortunate event occurs to you, and you overcome this personal hurdle, you presumably derive benefits. Sometimes, unfortunately, there is a cost that reveals itself as a decline in classroom performance. Feel free to discuss extenuating circumstances with your teacher or University counselors (Counseling Center 348-3863; see http://www.sa.ua.edu/Counseling/screenings.html). Fi302 grades, however, depend only on assessment instruments this syllabus describes. (2) Students with disabilities are encouraged to register with the Office of Disability Services, 348-4285. Registered students are invited to discuss special needs accommodations with his/her teacher. Accommodations for exams require prearrangement. (3) This Code of Academic Conduct must be contained in all course syllabi at the University of Alabama: All students in attendance at the University of Alabama are expected to be honorable and to observe standards of conduct appropriate to a community of scholars. The University expects from its students a higher standard of conduct than the minimum required to avoid discipline. Academic misconduct includes all acts of dishonesty in any academically related matter and any knowing or intentional help or attempt to help, or conspiracy to help, another student. For Fi302 the applicable C&BA policy on academic misconduct is viewable at http://cba.ua.edu/handbook/section6/HonorCode.php. In particular, students should be aware that they can be denied admission to the College or can be terminated from a College degree program for academic misconduct at home, class, or TestLab. Such infractions may result in notations in the C&BA permanent record or expulsion. 12. Contact Information for Technical Issues (1) To obtain assistance with technical issues such as removing pop-up blockers, trouble opening pages or quizzes in eLearning, etc., please contact the Bama Help Desk at A-203 Gordon Palmer Hall, 205-348-4357 or email Help.Desk@ua.edu. (2) Online students with other technical problems may contact techsupport@ccs.ua.edu or call (205) 348-9157 or tollfree at 1-866-205-1011. 13. Brief List of Learning Module Content Learning module 1 Chapter 1 : Introduction to the study of finance Chapter 2 : Financial fundamentals of accounting Chapter 3 : Accounting for growth EXAM 1 Learning module 2 Chapter 4 : Time value and relations between returns Chapter 5 : Future and present values of annuities Chapter 6 : Time value application 1: Capital budgeting

EXAM 2 Learning module 3 Chapter 7 : Time value application 2: Bond valuation Chapter 8 : Time value application 3: Stock valuation Chapter 9 : Buy-side demand, sell-side supply, and rationale for financial market equilibrium Chapter 10 : Measuring risk, return, and diversification benefits EXAM 3 Learning module 4 Chapter 11 : Determination of equilibrium returns Chapter 12 : Financial arbitrage EXAM 4 14. Statement of Learning Outcomes for Structure of Finance Learning Modules Advanced knowledge of the questions that appear on all assessments might tempt one to study only specific solutions. That is not the best way to learn finance. The overall course objective is for you to learn finance so that you can use finance to make sense of real-world observations in business and homelife. Some financial puzzles will be very important to you. This course teaches fundamental finance concepts and often focuses attention on problem solving. Problem repetition (i.e., time spent thinking about finance) reinforces conceptualization. Remember that the objective for me is to encourage you to understand underlying Lessons about the Structure of Finance. Read the textbook, utilize the extensive Learning Module resources, and figure out finance! 1. Students learn about the business environment and market backdrop for which financial decisions and variables affect real economic outcomes. 2. Students learn the fundamental financial processes that link income statements with balance sheets. 3. Students learn to compute the effects of mergers on shareholder wealth based on a conditional analysis of balance sheets. 4. Students learn to conduct elementary breakeven analyses from financial statements. 5. Students learn how company growth affects financing needs. 6. Students learn fundamental time value concepts and computational mechanics. 7. Students learn time value relationships for annuity cash flow streams. 8. Students learn fundamental capital budgeting concepts. 9. Students learn the difference between net present value and the internal rate of return. 10. Students learn basic pricing principles for credit market securities such as bonds. 11. Students learn about the fundamental determinants of shareholder rates of return. 12. Students learn how to generate an ordinary least squares estimate of the dividend growth rate consistent with the constant growth dividend valuation model. 13. Students learn the importance of the risk premium concept. 14. Students learn the importance of asset allocation and feasible investment sets. 15. Students learn the mechanics that determine the market clearing price per unit of risk. 16. Students learn that currencies and other financial securities create arbitrage value. 17. Students learn that futures and options are risk management tools.