FIN 6301

Sec 501

FINANCIAL MANAGEMENT
Spring 2006

Instructor: Amal El-Ashmawi

Office: SOM 3.228 / 972-883-6276 (E-mail is a better way to contact me)
Email: Through WebCT / ahe0013000@utdallas.edu

Classroom: SOM 2.902

Time: Monday 7:00 PM – 9:45 PM

Office Hours: Monday 6:00 – 7:00 PM and after class

Prerequisites: AIM-6301 (Financial Accounting)

AIM-6205 (Accounting for Managers)
Co-requisite: OPRE6301 (QUAN INT TO RISK & UNCERT IN BUSINESS)

Text: Ross, Westerfield and Jaffe, Corporate Finance, 7th edition

Calculator: A financial calculator is a necessity in this course. You should get

your calculator and learn how to use it this week – don’t wait until
the first exam. I will work with you on using the TI BA II PLUS
(about $30)

Withdrawal Deadlines and other dates to remember:

Last day to withdraw with an automatic “W” is Friday, Mach 25th.
M.L King Jr. Day. January 9, 06 (No class)
Spring Break, March 6, 06 (No class)
Final Exam Monday, May 1, 06 (regular time and classroom)

Grading:
Midterms (2 x 27% each) 54%
Final Exam 36%
Assignments (sets of problems) 7%
Participation 3%
The course will focus on theories, concepts, and principles as opposed to institutional
material, although some institutional background is needed.

Exams will consist of conceptual and problem solving questions. Use of financial
calculators is allowed, but no other electronics are permitted during exams. All cell
phones, PDAs, Computer notebooks and other wireless and communication devices must
be turned off and put away. All exams are closed book and closed notes. Each student
may use ONLY ONE 4” x 6” index card to hand write formulas that may be referenced
during exams. Your index card may not include worked examples or detailed notes.

Problem sets will be assigned during the semester, and will account for 7% of your
semester grade.
Participation will also include attendance and short quizzes, and will account for 3% of
your semester grade.

Under normal circumstances no makeup exams will be given. If you miss one of the first
two exams due to an emergency a comprehensive final will count for 63% of your
semester grade, provided you make arrangements with me prior to missing the exam.
Final exam is comprehensive and you must attend it to receive a passing grade in this
class. Final grades awarded will be letter grades (no +/- will be given)

NOTICE OF POLICY OF CHEATING:

In accordance with the Rules and Regulations of the Regents of the University of Texas
System, students are expected to be above reproach in all scholastic activities. Students
who engage in scholastic dishonesty are subject to disciplinary penalties, including the
possibility of failure in the course and dismissal from the university. “Scholastic
dishonesty includes but not limited to cheating, plagiarism, collusion, the submission for
credit of any work or materials that are attributable in whole or in part to another person,
taking an examination for another person, any act designed to give unfair advantage to a
student or the attempt to commit such acts.”

End-of chapter problems:

Even though end-of-chapter problems will not be turned in for a grade, it is strongly
recommended that you work them out. The more problems you work the better
understanding of the material you will gain.
 TENTATIVE COURSE OUTLINE

1/9/06 Course Organization

Overview of Financial Management and the
Financial Environment (RWJ, Chapter 1)

1/16/06 NO CLASS (M. L. King Jr. Day)

1/23/06 Financial Statements, Cash Flow, and Taxes

Financial Planning (RWJ, Chapter 2, 3)
Time Value of Money concept

1/30/06 Capital Budgeting under Certainty

Net Present Value (RWJ, Chapter 4)

2/6/06 Bond and Stock Valuation (RWJ, Chapter 5)

2/13/06 Exam I

2/20/06 Net Present Value Continued

Some alternative to NPV analysis
Incremental cash flow (RWJ, Chapter 6,7)

2/27/06 Incremental cash flow Continued

Risk Analysis and Capital Budgeting
Overview, Capital Market Theory (RWJ, Chapter 7,8)

3/13/06 Risk and Return (RWJ, Chapter 9,10)

3/20/06 Risk, Continued

Asset Pricing Models (RWJ, Chapter 10,11)

3/27/06 Exam II

4/3/06 Cost of Capital

Efficient Markets (RWJ, Chapter 12,13)

4/10/06 Long Term Financing (RWJ, Chapter 14, 15)

4/17/06 Capital Structure (RWJ, Chapter 16, 17)

4/24/06 Long Term Financing (RWJ, Chapter 19, 20)

5/1/06 Final Exam (Semi-comprehensive)

 OPTIONAL SURVEY

In order for me to better organize the course, and adapt the material to your
background, I would like to know more about you:

Your name: _____________________________________________________________

Your email address and phone number: _____________________________________

Your Job: ______________________________________________________________

When did you obtain your undergraduate degree and in what field:
__________________________________________________________________

Classes you had or having this semester (Please indicate if it is undergraduate or

graduate and when you took them):

Finance: ________________________________________________________________

Accounting: _____________________________________________________________

Statistics and Math: ______________________________________________________

Economics: _____________________________________________________________

Other related courses: ____________________________________________________

* Do you read financial newspapers, such as the Wall Street Journal, the
Financial Times, or the financial section of the New York Times, etc.?
Often__________ Occasionally__________ Never__________

* Do you read financial magazines, such as Money Magazine, Business Week,

Forbs, etc.? Often__________ Occasionally__________ Never__________

* Do you watch financial programs such as Nightly Business Report, CNBC,

Wall Street Week, etc.? Often______ Occasionally_______ Never__________

* What do you hope to get out of this class? (Use the back if you need more
space)

* Comments: (Use the back if you need more space)