Course BA 3341 - Business Finance

Course # BA 3341-005 SOM 2.722

Professor Bob Bender
Term Spring, 2011
Class Hrs Tuesdays & Thursdays 11:30 am to 12:45 pm
Professor's Contact Information
Office Phone 972-883-6276
Other Phone N/A
Office Location SOM 3.228
Email Address bob@thebenders.com
Office Hours Mon & Wed 11:00 am to 1:00 pm
Tue & Thur 9:00 am to 11:30 am and 3:30 pm to 5:30 pm

General Course Information

Pre-requisites: AIM 2301, AIM 2302, MATH 1326, MATH 2333 Co-
Pre-requisites, Co-requisites
requisites: STAT 3360
Students should be proficient in (1) basic statistics, (2) accounting & financial statement analysis, and
Other Restrictions
(3) spreadsheet modeling using MS Excel

Course Description
BA 3341is an introductory course in the fundamentals of corporate finance. This class focuses on the
use of discounted cash flow analysis in the evaluation and selection of capital investment projects.
Additional topics include cost of capital; risk return trade-off in financial markets; financial leverage &
capital structure; portfolio theory; capital asset pricing model (CAPM); leasing; and financial statement
analysis.

1. Students will be able to apply time value of money concepts to various valuation problems.

2. Students will be able to describe what drives a firm's cost of capital and how to estimate it.
Learning Outcomes
3. Students will be able to analyze investment in real and financial assets using various methodologies.

4. Students will construct excel spreadsheets to solve basic financial problems.

FUNDAMENTALS OF CORPORATE FINANCE, 9th Edition, 2010 by Stephen Ross, Randolph

Westerfield, and Bradford Jordan AND CONNECT PLUS ACCESS CARD. ISBN 978-0077388188.
Required Texts & Materials Students purchasing a used text must also purchase a Connect Plus Access card from McGraw-Hill at:
www.mcgrawhillconnect.com. Students also have the option of purchasing an e-textbook with Connect
Access.

Students must have a financial calculator. The Texas Instruments Business Analyst II Plus is highly
recommended.
Suggested Readings Wall Street Journal

Grading & Student Evaluation

Average Best Two of Three Tests * 65 %
Grading Criteria Comprehensive Final Exam 25 %
Homework 5%
Excel Assignments & CP 5%
* Many problems on tests are graded right or wrong with no partial credit awarded for incorrect answers.

A+ 98+ A 93 - 97
Converting % to
A- 90 - 92 B+ 88 - 89
Grades:
B 83 - 87 B- 80 - 82 etc.

Make-up Exams First missed test becomes dropped test score. Professor's Approval Required.
Extra Credit None Available
Late assignments turned in up to one week late will incur a 10 point penalty. Assignments turned in
Late Work
more than one week late will incur a 20 point penalty.
Class attendance is an important part of the learning experience. Students are expected to attend all
Class Attendance
classes.
 BA 3341 BUSINESS FINANCE
Spring, 2011

SOM 2.722
BA 3341 Business Finance Tue/Thur 11:30 am - 12:45 pm
CL DAY DATE CHAPTERS TOPICS
1 Tues Jan 11 N/A Introduction to Business Finance
2 Thurs Jan 13 Chapter 1 Corporate Finance Overview
3 Tues Jan 18 Chapter 2 Financial Statements & Cash Flow
4 Thurs Jan 20 Chapter 3 Working with Financial Statements
5 Tues Jan 25 Chapter 3 Ratio Analysis
6 Thurs Jan 27 Chapter 5 Time Value of Money
7 Tues Feb 1 Chapter 6 Discounted Cash Flow
8 Thurs Feb 3 Chapter 4 Financial Planning
9 Tues Feb 8 All the Above REVIEW
10 Thurs Feb 10 All the Above TEST 1
11 Tues Feb 15 Chapter 9 Capital Project Eval Methods
12 Thurs Feb 17 Chapter 9 Capital Project Eval Methods
13 Tues Feb 22 Chapter 10 Incremental Cash Flow
14 Thurs Feb 24 Chapter 10 Capital Investment Decisions
15 Tues Mar 1 Chapter 10 Capital Investment Decisions
16 Thurs Mar 3 Chapter 11 Project Analysis & Evaluation
17 Tues Mar 8 N/A Lease vs Buy Analysis
18 Thurs Mar 10 All the Above Practice Problems
Tues Mar 15 N /A NO CLASS / SPRING BREAK
Thurs Mar 17 N /A NO CLASS / SPRING BREAK
19 Tues Mar 22 All the Above REVIEW
20 Thurs Mar 24 All the Above TEST 2
21 Tues Mar 29 Chapters 7& 8 Bond & Stock Evaluation
22 Thurs Mar 31 Chapter 12 Capital Markets
23 Tues Apr 5 Chapter 13 Risk, Return & SML
24 Thurs Apr 7 Chapter 13 Capital Assets Pricing Model
25 Tues Apr 12 Chapter 14 Cost of Equity & WACC
26 Thurs Apr 14 Chapter 16 Leverage & Capital Structure
27 Tues Apr 19 All the Above Personal Finance
28 Thurs Apr 21 All the Above Current Financial issues
29 Tues Apr 26 N/A REVIEW
30 Thurs Apr 28 All the Above TEST 3
??? ??? All the Above Comprehensive Final Exam

CLASS SCHEDULE IS FLEXIBLE AND WILL BE MODIFIED AS NEEDED