FIN 303: Managerial Finance

Professor: Wendell Licon

W.P. Carey School of Business
Arizona State University
Course Outline: Spring 2015

Class Time and Location:

13205: T,Th, 9:00 10:15 AM, BA L1- 31

Office:

BAC 583

Telephone:

480-965-3258

Email:

wendell.licon@asu.edu

Office Hours:

M,W 1:00 2:00 PM and by appointment.

Required Text:

Ross, Westerfield and Jaffe, Corporate Finance, 10th

Edition, McGraw-Hill Irwin, 2013.

Description of the Course: This course addresses the theory and practice of financial
management. The course has the following principal objectives:

To provide a good grounding in corporate finance, including net present value,

capital budgeting, cost of capital and capital structure, and raising capital.

To establish a finance mindset that views finance as applied microeconomics in

a business policy context, with value creation as a central concept;

To develop skills in financial analysis, planning and decision making; and

To develop perspective and judgment in business decisions and an appreciation

for decision-making in a complex world.

Topics to be covered in the course are shown in the attached course outline. The course
will be conducted using a combination of lecture and discussion.

Project: The project will be analyzed individually and due on the dates indicated in the
Class Schedule below. The project will be an in depth problem involving the material
that we will cover during the semester. The project will be assigned later in the semester
when you have enough knowledge to able to complete it.
Homework: Homework will be assigned and 3 of the assignments will be collected
during the semester on an unpredictable basis. Assignments will be posted at the end of
each set of notes and can be downloaded from Blackboard. The answer key to the
homework problems can also be downloaded after the point when I might collect that
chapters homework assignment which is the class period after I have completed the
lecture on the given material. A few of the problems (randomly selected) on the
assignment will be graded and you will receive a 10, a 5 or a 0 on your homework based
upon your level of effort for those problems, the correct answer, and neatness. I highly
encourage you to make a serious effort on the homework as the exam content will be
derived from the material stressed in the homework problems as well as from the
lectures. Note that the content will be derived from the homework. This does not mean
that the exam questions are a replication of the homework problems.
Excel Tutorial: You will be required to complete an online Excel tutorial in Blackboard.
There are 3 completion milestones that must be met on January 30th, February 6th, and
13th. This is not a difficult task but rather an assignment to ensure that your Excel
knowledge is adequate.
Class Participation: In order to do well in this course, I strongly suggest that you miss
as few classes as possible. In order to properly motivate you, I will assign you a class
participation grade on a scale from 0 to 5 based upon your overall class participation.
That evaluation begins with class attendance and also covers your questions and
discussions of the material that we will be covering. Everyone benefits from your
questions and comments and that is why I expect a high level of participation from each
student. Do not be concerned about asking irrelevant questions as there are none. You are
here to learn and the best way do understand the lecture is to participate. I will also
periodically ask questions in class. Therefore, you should come to class prepared to
participate.
Determination of Grade:
Project:
Homework
Excel Tutorial
Class Participation:
Exams:
Total:

20%
10%
5%
5%
60%
100%

Exams: The exams will consist of short-answer essay questions and problems. The
exams will be held during class on the dates indicated in the class schedule below. The

final exam is comprehensive. Makeup exams are only allowed for absences with prior
notification.
Phones and wireless devices are turned off. Weve all heard the annoying ringing in the
middle of a meeting. Not only is it not professional, it cuts off the flow of discussion
when the search for the offender begins. When a true need to communicate with someone
outside of class exists please dismiss yourself from class and attend to the issue at hand.

Academic Dishonesty
I have no tolerance for acts of academic dishonesty. Such acts damage the reputation of
the school and demean the honest efforts of the majority of students. The minimum
penalty for an act of academic dishonesty will be a zero for that assignment or exam.
The responsibilities for students with regard to the Honor Code for undergraduate
students enrolled at the W.P. Carey School of Business are described on
https://my.wpcarey.asu.edu/academic-integrity/upload/Undergraduate-Honor-Code.pdf.
In addition, please review the Arizona State University Student Integrity Policy available
at the following link:
https://provost.asu.edu/sites/default/files/AcademicIntegrityPolicyPDF.pdf
By taking this course, you agree to observe all of the student responsibilities of the Honor
Code as well as the ASU Student Integrity Policy. You have also previously signed the
Honor Code in another course.
Disability Resource Center
Any student requesting accommodation for a disability must be registered with the
Disability Resource Center (DRC) and submit appropriate documentation from the DRC.
I reserve the right to make changes to the above policy and the tentative schedule
that follows:

Spring 2015

Fin 303: Managerial Finance

Date of
Week beginning

Topic
Reading and Assignments

Jan 13

Ch. 1 Introduction, Ch. 4 DCF Valuation

Jan 20

Ch. 4 Contd

Jan 27

Ch. 8, 9 Stock and Bond Valuation

First Excel Tutorial Milestone Completed: Jan 30th

Feb 3

Ch. 8, 9 Contd, Ch. 10 Risk and Return: Market History

Second Excel Tutorial Milestone Completed: Feb 6

Feb 10

Ch. 10 Contd, Ch. 11 Return and Risk: CAPM

Third Excel Tutorial Milestone Completed: Feb 13

Feb 17

Ch. 11 Contd, Exam 1: Feb 19 (Thursday)

Feb 24

Ch.2 Fin Statements and Cash Flow

Mar 3

Ch. 3 Fin Statement Analysis and Financial Models

Mar 10

Spring Break

Mar 17

Ch. 5 Capital Budgeting Rules

Mar 24

Ch. 6 Capital Investment Decisions, Exam 2: Mar 26

(Thursday)

Mar 31

Ch. 16, 17 Capital Structure

Apr 7

Ch. 16 and 17 Contd, Ch. 13 Cost of Capital

Apr 14

Ch. 19 Dividend Policy

Apr 21

Ch. 22 Options (I will introduce forward contracts first)

Apr 28

Ch. 23 Options: Applications and Extensions

May 7

Project Due at Final Exam: Thur, May 7th, 7:20 9:20