Finance 1150 – Fundamentals of Finance

All readings should be completed prior to lecture

 

Syllabus  (PDF)          Grading Scale          

 

DATES

TOPICS

READINGS AND ASSIGNMENTS

May

18

Introduction to

Financial Management

Text: (RWJ) Reading: Chapter 1

Chapter 1 Lecture - Introduction to Financial Management  (PPT)

Websites: Qatar Stock Index     World Stock Indexes     YahooFinance

Videos: Agency Problem and Control of the Corporation     Financial Markets and the Corporation

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Assignment: Peruse the websites of some of the major stock indexes.

May

19 and 20

Financial Statements,

Taxes, and Cash Flow

Text: (RWJ) Reading: Chapter 2

Chapter 2 Lecture – Financial Statements, Taxes, and Cash Flow  (PPT)

Resources: Beginners' Guide to Financial Statements     Cash Flow Summary     How to Read a Financial Report (No Need to Download)

Videos: Cash Flow From Assets Further Explained     How to Read a Balance Sheet     How to Read an Income Statement 

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Assignment: Practice Problems Chapter 2 (Material will be on Exam 1)   Income and Balance Sheet Problem (To be done in class)

May

21 and 22

Working with Financial Statements

 

Introduction to Valuation: The Time Value of Money

 

 

Text: (RWJ) Reading: Chapters 3 and 4

Chapter 3 Lecture – Working with Financial Statements (PPT)     Who Uses Financial Statement Analysis?  (PPT)

Financial Ratio Example – Norton Corporation  (PPT)

Chapter 4 Lecture - Introduction to Valuation: The Time Value of Money   (PPT)

Resources: Common Financial Ratios    

Websites: Financial Ratios Calculator     Reuters     YahooFinance

Videos: Financial Ratio Analysis

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Assignment:  Text Chapter 3 - Question 35    

May

25

Introduction to Valuation: The Time Value of Money Continued

Quiz 1 - (May 26)

Text: (RWJ) Reading: Chapter 4

Chapter 4 Lecture - Introduction to Valuation: The Time Value of Money   (PPT)

Resources: Summary of Time Value Calculations

Videos: Calculating FV (Future Value) in Excel     Calculating RATE (Interest or Discount Rate) in Excel   

Calculating PV(Present Value) in Excel     Calculating the Number of Periods (NPER) in Excel

Problems: Some Practice Problems (To be done in class)    

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Assignment:  Text Chapter 4 - Questions and Problems: Questions 1, 2, 3, 4, 5, 24   

Practice Problems for Exam 1 (Covers Chapters 1 – 4)      

May

26 and 27

 

 

Quiz 1

(May 26)

Discounted Cash Flow Valuation

Text: (RWJ) Reading: Chapter 5

Chapter 5 Lecture - Discounted Cash Flow Valuation   (PPT)   Perpetuities

Resources: Summary of Annuity and Perpetuity Calculations

Websites: Calculating Present Value Extended     Discounted Cash Flow Calculator    

Videos: Using the PMT function in Excel to calculate loan payments   PMT, PPMT, IPMT in Excel

Text Chapter 5 - Questions and Problems: Questions 1, 3, 4, 6, 14, 15

Practice Problems Chapter 5

May 28

Interest Rates and

Bond Valuation

Text: (RWJ) Reading: Chapter 6

Chapter 6 Lecture - Interest Rates and Bond Valuation   (PPT)     Bond Practice

Resources: Summary of Bond Calculations

Websites: FINRA Bond Quotes          

Videos: Bond Pricing, Valuation, Formulas, and Functions in Excel (Does not use pull-down menus, but helpful)

 

May 29

 

Review and Catching-up Time

June 1

Exam 1

Exam 1 June 1 (Covers Chapters 1 – 5)

June 2

Interest Rates and

Bond Valuation Continued

Text: (RWJ) Reading: Chapter 6

Chapter 6 Lecture - Interest Rates and Bond Valuation   (PPT)     Bond Practice

Resources: Summary of Bond Calculations

Websites: FINRA Bond Quotes          

Videos: Bond Pricing, Valuation, Formulas, and Functions in Excel (Does not use pull-down menus, but helpful)

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Assignment: Text Chapter 6 - Questions and Problems:  Questions 1, 3, 6, 7, 9  

Practice Problems Chapter 6 (Material will be on Final Exam)  

June 3

Equity Markets and Stock Valuation

Text: (RWJ) Reading: Chapter 7

Chapter 7 Lecture - Equity Markets and Stock Valuation   (PPT)

Resources: Summary of Stock Valuation   

Assignment: Text Chapter 7 - Questions and Problems: Questions 4, 5, 13

June

4 and 5

 

Net Present Value and Other Investment Decisions

Text: (RWJ) Reading: Chapter 8

Chapter 8 Lecture - Net Present Value and Other Investment  (PPT)

Resources: Summary of Investment Criteria    

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Text Chapter 8 - Questions and Problems: Questions 1, 5. 6, 8, 13

Practice Problems Chapters 7 and 8 (Material will be on Final Exam)

 

June 8 to June 12 - Eid Break

June

15

Making Capital Investment Decisions

Text: (RWJ) Reading: Chapters 9 (Sections 9.1, 9.2, 9.6)

Chapter 9 Lecture - Making Capital Investment Decisions  (PPT)

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June

16 and 17

Some Lessons from Capital Market History

 

Risk and Return

Quiz 2

(June 16)

Quiz 2 - (June 16) Covers Chapters 6, 7, 8

Text: (RWJ) Reading: Chapter 11

Chapter 11 Lecture - Risk and Return  (PPT)     Estimating Beta   

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Assignment: Text Chapter 11 - Questions and Problems Homework: Questions 2, 3, 5, 13, 14, 15   

Practice Problems Chapter 11 (Material will be on Final Exam) 

June

18

The Cost of Capital

Text: (RWJ) Reading: Chapters 12

Chapter 12 Lecture - The Cost of Capital  (PPT)    Assignment: Text Chapter 12 - Questions and Problems: Questions 9, 10, 14

June 19 - Juneteenth holiday

June

22 and 23

 

Leverage and Capital

Structure

Text: (RWJ) Reading: Chapters 12 and 13 (Sections 13.1, 13.2, 13.3, 13.4)

Chapter 12 Lecture - The Cost of Capital  (PPT)   

Chapter 13 Lecture - Leverage and Capital Structure   (PPT)   

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Practice Problems Chapters 12 and 13 (Material will be on the Final Exam) 

Some More Practice Problems 12 and 13 (We will go over in class)    

 June 24

 

Chapter 15 Lecture- Raising Capital   (PPT)

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June 25

Final Exam

The final Exam is ComprehensiveCatching-up Time and Review

June 26

TBD