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University of Southern Indiana

Finance 461.001 (CRN: 11475), MWF 11:00-11:50 pm. BE1033


Spring 2017

Instructor: Jong C. Rhim


Office: BE 2067
Office Hours: 12:00-1:00 pm, MWF; other times by appointment
Phone: (812) 465-1637
E-mail: jrhim@usi.edu

Required Text:
Fundamentals of Corporate Finance Plus NEW MyFinanceLab with Pearson eText -- Access Card Package, 3/E
Jonathan Berk, Stanf
Peter DeMarzo, Stan
Jarrad Harford, Uni

ISBN-10: 0133576876
ISBN-13: 9780133576
Publisher: Prentice Ha
Copyright: 2015

You are encouraged to spend time each week reading the Wall Street Journal, Business Week, Forbes,
and other business publications to help relate course material to the current business environment.

See Student Registration Handout for FIN461.001 Spring 2017 on page


6 (also see at USI BlackBoard Course Website MyFinanceLab).

Financial Calculator
A business financial calculator is required. There are several brands available; prices range from
about $30 to about as much as you want to spend. At the minimum, your machine should be able to
solve for a present value, future value, annuity payment, interest rate, and number of time periods.
TI BAII Plus will be used in the classroom for demonstration purpose.

Other Supplements: Pearsons MyFinLab is also required.

Prerequisites: FIN 305

Credit Hours: 3 hours

Course Description/Objectives
This course is the upper level undergraduate course in financial management. It provides an
overview of financial theories and their applications in the corporate environment. It examines the
decision-making processes of investment, financing, and distribution decisions. After studying the
major topics in this course the student should be able to:

Understand and explain major financial decisions and objective of financial management
Identify an agency relationship and explain the implications of agency problems/costs
Understand and explain functions of financial markets and intermediaries

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Analyze financial statements and perform ratio analysis
Explain time value of money concept and use it in Discounted Cash Flow Valuation
Explain and perform capital budgeting investment decision
Explain the importance of risk diversification (Portfolio Theory)
Estimate systematic risk () and use it in an asset pricing model (CAPM)
Explain and estimate cost of capital (component cost of capital; WACC)
Explain and evaluate capital structure financing decision
Explain and evaluate distribution policy dividend decision

College of Business Skill Development


Consistent with the colleges goal that students develop basic skills, this course will assess analytical
problem solving skill. The analytical problem solving skill will be assessed by the application of
relevant corporate finance theory in evaluating and making various financial decisions.

Access to Course Material


This DE course is delivered entirely via Internet using Pearsons MyFinanceLab and USI Blackboard
system. Pearsons MyFinanceLab (see Multimedia Library and Chapter Resources) includes an access
to most course materials including eText, chapter outline, financial calculator, set of exercise
questions and problems at the end of each chapter from the textbook, videos, animations,
spreadsheets, and weblinks. All chapter review homework assignments and tests will also be
administered via MyFinanceLab. You may find dates for availability and due of homeworks and test
from Assignment Schedule on the last page of this syllabus. Solutions will be available for students
review after the due of homework assignments and tests.

Course Webpage on USI Blackboard (see Course Materials) contains PowerPoint slides and solutions
to End-of-Chapter questions and problems.

Although course materials are posted and delivered online, students are encouraged to communicate
with the instructor via email (jrhim@usi.edu) E-mail will be responded within 48 hours during
work days.

ABI/INFORM
The USI library subscribes this data source on CD-ROM. It provides great convenience to
search/browse the literature of your interest.

Grading
90-100% A
86-89% B+ 80-85% B
76-79% C+ 70-75% C
66-69% D+ 60-65% D
Below 60% F

Basis for Grades


Exam I 10% 80 pts (F, 1/27)
Exam II 15% 120 pts (R-F, 3/2-3)
Exam III 25% 200 pts (R-F, 4/6-7)
Exam IV (Final) 25% 200 pts (R-F, 4/28-29)
Homework Assignments 25% 200 pts
___ ___
100% 800 pts

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Exams
No make-up exams will be given. If you are going to miss an exam due to unexpected personal
urgency and official school functions, please contact me so that arrangements can be made. The
makeup exam may not necessarily have the same format as the actual exam, and the student should
expect the level of difficulty to be significantly higher.

Important Dates
March 17 (Friday) is the last day to drop a class or withdraw from the university without evaluation.

Attendance
All students are expected to attend class regularly and punctually. While students are strongly
encouraged to attend class, there will be no explicit grade given for attendance. However, it could
prove critical in determining the final grades. Also, consistent punctual attendance, participation in
class discussions, careful attention to the course material, and preparedness before coming to class
should greatly and logically improve your grades.

Academic Misconduct
Review the Student Rights and Responsibilities section of USIs 2015-2017 Bulletin and the
University Handbook that outline definition of academic misconduct and disciplinary action. The
policies cover a variety of forms, including cheating, fabrication, and plagiarism. Make sure you turn
off cell phones during class and during exams.

Professional Demeanor
Students are to act in a professional manner. Cell phones should be turned off before class starts and
should remain off during lecture time. Having a conversation with a classmate during lecture time on
any topic, including course material is considered a disruptive behavior and will not be tolerated. Any
questions and/or comments should be strictly directed to the instructor. All deadlines for assignments
and projects should be respected. Late work will not be accepted and therefore, will result in a zero.

Available Support Services


The University Division provides tutoring services through Academic Skills located in room ED
1111A. More details are provided at the following link: http://www.usi.edu/university-
division/academic-skills/tutoring.

Students with Disabilities


If you have a disability for which you may require academic accommodations for this class, please
register with Disability Resources (DR) as soon as possible. Students who have an accommodation
letter from DR are encouraged to meet privately with course faculty to discuss the provisions of those
accommodations as early in the semester as possible. To qualify for accommodation assistance,
students must first register to use the disability resources in DR, Science Center Rm. 2206, 812-464-
1961, http://www.usi.edu/disabilities. To help ensure that accommodations will be available when
needed, students are encouraged to meet with course faculty at least 7 days prior to the actual need for
the accommodation. However, if you will be in an internship, field, clinical, student teaching, or other
off-campus setting this semester please note that approved academic accommodations may not apply.
Please contact Disability Resources as soon as possible to discuss accommodations needed for access
while in this setting.

Title IX Policy
USI does not tolerate acts of sexual misconduct, including sexual harassment and all forms of sexual
violence. If you have experienced sexual misconduct, or know someone who has, the University can
help. It is important to know that federal regulations and University policy require faculty to

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promptly report incidences of potential sexual misconduct known to them to the Title IX Coordinator
to ensure that appropriate measures are taken and resources are made available. The University will
work with you to protect your privacy by sharing information with only those who need to know to
ensure we can respond and assist. If you are seeking help and would like to speak to someone
confidentially, you can make an appointment with a counselor in the University Counseling Center.
Find more information about sexual violence, including campus and community resources
at www.usi.edu/stopsexualassault.

Career Advising
Students are encouraged to see their advisors for career advising information. This is especially
important to keep on-track in meeting their graduation objectives.

Email Policy
All emails that are not properly addressed, professionally written, or sent to the wrong email address,
will not be responded to. Emails that meet the above requirements will be answered within 48 hours.
Please be specific in your questions so you may receive specific answers.

Note: The instructor reserves the right to make changes to the syllabus as necessary.

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Tentative Assignment Schedule
FIN461.001
Spring 2017

Homework/ Homewor
Test Test
Week Date Day Topic Chapter Available (12:00am) Due (11:5
1 1/9 M Corporate Finance and the Financial Manager 1 1/9 1/25 (10 p
Introduction to Financial Statement Analysis 2 1/9 1/25 (10 p
2 1/16 M MLK Day No Classes
2 1/16 Time Value of Money: An Introduction 3 1/9 1/25 (10 p
Time Value of Money: Valuing CF Streams 4 1/9 1/25 (10 p
3 1/23 M Interest Rates 5 1/23 2/27 (10 p
3 1/25 W Due: Homework 1-4
3 1/27 F Test 1 (90 minutes) 1-4 1/27 1/27 (80 p
4 1/30 M Bonds 6 1/23 2/27 (15 p
5 2/6 M Bonds, Stock Valuation 6, 7
6 2/13 M Stock Valuation 7 1/23 2/27 (15 p
7 2/20 M Investment Decision Rules 8 2/20 4/3 (15 po
8 2/27 M Due: Homework 5-7
8 3/2-3 R,F Test 2 (150 minutes) 5-7 3/2 3/3 (120 p
9 3/6 M Spring Recess No Classes
10 3/13 M Fundamentals of Capital Budgeting 9 2/20 4/3 (15 po
11 3/20 M Stock Valuation: A Second Look 10 2/20 4/3 (15 po
12 3/27 M Risk and Return in Capital Markets 11 2/20 4/3 (15 po
13 4/3 M Systematic Risk and the Equity Risk Premium 12 3/27 4/26 (15 p
13 4/3 M Due: Homework 8-11
13 4/6,7 R,F Test 3 (210 minutes) 8-11 4/6 4/7 (200 p
14 4/10 M The Cost of Capital 13 3/27 4/26 (15 p
14 4/14 F University Closed No Classes
15 4/17 M Capital Structure 16 3/27 4/26 (15 p
16 4/24 M Payout Policy 17 3/27 4/26 (15 p
16 4/26 W Due: Homework 12,13,16,17
16 4/27-28 R, F Final - Test 4 (210 minutes) 12,13,16,17 4/27 4/28 (200

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