Course BA 3341 - Business Finance

Course # Course # 10206 - 002 SOM1.217

Professor Bob Bender
Term Spring, 2009
Class Hrs Mondays & Wednesdays 1:30 pm - 2:45 pm

Professor's Contact Information

Office Phone 972-883-4748
Other Phone N/A
Office Location SOM 4.207
Email Address bob@thebenders.com
Office Hours Mondays & Wednesdays 10:30 am to 1:30 pm
Tuesdays & Thursdays 8:00 am - 10:00 am / 11:30 am - 12:30 pm

General Course Information

Pre-requisites: AIM 2301, AIM 2302, MATH 1326, MATH 2333
Pre-requisites, Co-requisites
Co-requisites: STAT 3360

Students should be proficient in (1) basic statistics, (2) accounting & financial
Other Restrictions
statement analysis, and (3) spreadsheet modeling using Microsoft Excel

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;
Course Description
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
Learning Outcomes estimate it.
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, 8th Edition, 2008

Required Texts & Materials
Suggested Readings
by Stephen Ross, Randolph Westerfield, and Bradford Jordan
Students will need a financial calculator. Texas Instruments Business Analyst II
Plus is recommended.
Wall Street Journal

Grading & Student Evaluation

AVERAGE OF THREE TESTS * 75 %
Grading Criteria CLASS PROJECT 15 %
HOMEWORK 5%
CLASS PARTICIPATION 5%
* Many problems on tests are graded right or wrong with no partial credit awarded for
incorrect answers.
A+ 98+
A 93 - 97
A- 90 - 92
B+ 88 - 89
Converting % to
B 83 - 87
Grades:
B- 80 - 82
C+ 78 - 79
C 73 - 77
C- 70 - 72 etc
Make-up Exams Only On Next Scheduled Exam Date / See Professor
 BA 3341 BUSINESS FINANCE
SPRING, 2009

CLASS SCHEDULE *

MON / WED 1:30 pm to 2:45 pm SOM 1.217

CL DAY DATE CHAPTERS TOPICS
1 Mon Jan 12 N/A Introduction to Business Finance
2 Wed Jan 14 Chapter 1 Corporate Finance Overview
Mon Jan 19 MARTIN LUTHER KING HOLIDAY / NO CLASS
3 Wed Jan 21 Chapter 2 Financial Statements & Cash Flow
4 Mon Jan 26 Chapter 2 Financial Statements & Cash Flow
5 Wed Jan 28 Chapter 3 Working with Financial Statements
6 Mon Feb 2 Chapter 3 Ratio Analysis
7 Wed Feb 4 Chapter 4 Financial Planning
8 Mon Feb 9 TEST 1
9 Wed Feb 11 Chapter 5 Time Value of Money
10 Mon Feb 16 Chapters 6 Discounted Cash Flow
11 Wed Feb 18 Chapter 9 NPV & Capital Investment Criterion
12 Mon Feb 23 Chapter 10 Capital Investment Decisions
13 Wed Feb 25 Chapter 10 Capital Investment Decisions
14 Mon Mar 2 Chapter 11 Project Analysis & Evaluation
15 Wed Mar 4 Chapter 11 Project Analysis & Evaluation
16 Mon Mar 9 All the Above Practice Problems
17 Wed Mar 11 All the Above REVIEW
Mon Mar 16 N/A * * * SPRING BREAK * * *
Wed Mar 18 N/A * * * SPRING BREAK * * *
18 Mon Mar 23 TEST 2 (Comprehensive)
19 Wed Mar 25 Chapter 7 Bonds & Bond Evaluation
20 Mon Mar 30 Chapter 12 Capital Market History
21 Wed Apr 1 Chapter 13 Risk, Return & CAPM
22 Mon Apr 6 Chapter 15 Cost of Equity & WACC
23 Wed Apr 8 N/A Practice Problems
24 Mon Apr 13 Page 171 - 176 Loans and Loan Amortization
25 Wed Apr 15 Chapter 26 Lease vs Buy Analysis
26 Mon Apr 20 N/A Personal Finance
27 Wed Apr 22 N/A Misc Topics in Corporate Finance
28 Mon Apr 27 N/A Current Financial issues
29 Wed Apr 29 All the Above REVIEW
30 Mon May 3 TEST 3 (Comprehensive)
Wed May 5 MY OFFICE SOM 4.207 / Grade Review
* CLASS SCHEDULE IS FLEXIBLE AND WILL BE MODIFIED AS NEEDED