Baruch College XXXXXXXXXXSection: NFA
The City University of New York XXXXXXXXXXPrinciples of Finance
FIN 3000
Principles of Finance
Course Description
This course provides students with a rigorous introduction to the fundamental principles of finance. The primary concepts covered include the time value of money, principles of valuation and risk, and the nature and characteristics of domestic and international financial securities and markets. Specific applications include the valuation of debt and equity securities and capital budgeting analysis.
Prerequisite: ECO 1001, ECO 1002, STA 2000, and ACC 2101
Credits: 3
Instructor:
Shajan Ninan
Email:
XXXXXXXXXX
XXXXXXXXXX
Classroom:
Zoom
Office:
Zoom
Term
Spring 2021
Phone:
XXXXXXXXXX
Class Time
2:30 pm – 5:25pm
Class Days
Fridays
Notice
This course syllabus is subject to change.
Course Learning Goals
Time Value of Money
Students will understand how compounding and discounting concepts are utilized when calculating the value of money. Students then will be able to estimate the prices of bonds and stocks.
Risk and Return
Students will understand the concept and measurement of risk. Students will study the relationship between risk and return of assets.
Characteristics of Domestic and International Financial Securities and Markets
Students will understand the key characteristics of different financial securities and markets, across different countries. Students will be able to identify security types based on the characteristics given.
Assurance of Learning
Analytical Skills
Students will possess the analytical and critical thinking skills to evaluate issues faced in business and professional careers.
Technological Skills
Students will possess the necessary technological skills to analyze problems, develop solutions and convey information.
Communication Skills: Oral
Students will have the necessary oral communication skills to convey ideas and information effectively and persuasively.
Communication Skills: Written
Students will have the necessary written communication skills to convey ideas and information effectively and persuasively.
Civic Awareness and Ethical Decision-making
Students will have the knowledge base and analytical skill to guide them when faced with ethical dilemmas in business. Students will have an awareness of political, civic and public policy issues affecting business.
Global Awareness
Students will know how differences in perspectives and cultures affect business practices around the world.
Proficiency in a Single Discipline
Students will possess a deep understanding of and intellectual competence in at least one business discipline.
BBA Majors: Finance
Corporate Finance
Students will develop an understanding of the key concepts of time value of money, corporate finance models for project valuation, and basic capital structure and dividend theory.
Investments
Students will be able to define and calculate standard risk and return measures, value simple equity and bonds securities, and explain the modern portfolio theory and the capital asset pricing model.
Derivatives
Students will understand the basic applications of derivatives in investments and corporate finance and will be able to discuss the characteristics of derivative products.
Data Analysis
Students will be able to analyze data and estimate models for project valuation to support business decisions
Required Materials
Text Book
(Baruch College) Principles Finance FIN 3000 Selected Chapters Connect 10th edition.
The bookstore also ca
ies the custom edition. This edition is around $65 after tax. You do not need the “fancy” complete version the cost of which ranges from $130 to $200 depending on the choice of either print book or e-book.
The book contains an activation code to Connect, the online tool that we will be using throughout the semester. The register link for this class is:
https:
connect.mheducation.com/class/s-ninan-spring-2021-1
Registration will be open on January 29, 2021. Copy and paste this address to your web
owser. You should see a large “Welcome” sign on the left. On the right, there should be (from top to bottom) book name, instructor (make sure it is me, Xiaoyu Zhu), book image and information (remember this book looks a little different than the one you will purchase). Then you should see “Enter your email to join this class:”. Simply input your email address (Baruch email accounts are prefe
ed) and hit “BEGIN” to proceed to the create account step. Please create the account based on your true information (I need this information to upload your grade on Blackboard). Without the activation code, you can use this website for a short period of time. After you have received the text book, you can input the activation code and you will have access to this course for the whole semester.
Calculato
A financial calculator is necessary for this class. We will have quantitative financial questions that require the use of a financial calculator. Texas Instruments BA II Plus is the best choice (You do not need to buy the professional version). I will show you how to use this calculator in class. You MUST
ing your own financial calculator to exams. If you are not willing to purchase a financial calculator or you forget it on an exam day, remember that the calculators are available to bo
ow from the li
ary. I will not lend you a calculator on an exam day.
Course Structure and Policies
Class Sessions
Class sessions combine
· Topic lectures
· Problem solving
Homework
Homework will be assigned on Connect. Each homework is offered with two trials. You can work either individually or with your classmates. Remember you must submit your answers to receive the credit. Late homework will not be accepted. No extensions will be given.
Excel Project
See Appendix A for details.
Exam Policies
1. Midterms will be given in-class online. There will be two midterms. Midterms will not be cumulative and will be related to recent studies. Each midterm accounts for 25% of your grade. Each midterm is 1 hour and 15 minutes.
2. Final exam will be cumulative. It will account for 30% of your grade. Final will be departmental. See Appendix B for specific topics.
3. Exams will be given in different versions.
4. Exams will be in closed-book fashion. A formula sheet will be provided by the instructor, along with scratch papers. You only need to
ing pencils, erasers, a financial calculator, and your Baruch student ID. Please be sure that all phones are powered off and put away. Restroom
eaks are allowed, but your cellphone(s) must be left behind with the instructor during the restroom
eak.
5. If you miss an exam, you can only take the make-up exam if you provide a ‘valid document proof’. The make-up exam will generally be harder than the one you miss.
Attendance
(online quiz)
Attendance will account for 5% of your grade. I will administer online blackboard quiz during the class time as a way to check attendance. I will allow for two absences. Any pre-approved absence will not be included in these two times. You need to email me before class to get approved. Each additional absence will lower your grade by 1% until you lose all 5% of your attendance grade. Late absence excuses will not be accepted. If you miss a considerable amount of the classes, I will treat it as a factor of your grade
Other Polices
1. Blackboard and email will be used primarily for announcements. Please check your email and Blackboard frequently to keep in pace with the class.
2. Class documents will be available on Blackboard or Connect.
3. Electronic devices are allowed in class but must be muted.
4. Food and drinks are allowed in class but must be consumed subtly.
5. There will be a short
eak each class, around 10 – 15 minutes.
Final Exam (30%): Sunday, May 23th 8:00 am – 10:00 am
Online Proctoring System: By the time of this class’s midterm or final exams, CUNY faculty might be given access to an online proctoring system. If we are, we plan to make use of the system for our final (and/or midterm) examination. All members of the class will be asked to turn on their web cameras in order to take the exam(s).
Make-up policy for the final exam. Please note that the date and time for the final exam cannot be changed as this is a departmental level standardized exam for all sections of FIN XXXXXXXXXXIf you miss the final exam, you will receive a zero for this exam, and your final grade for the course will include this. If you will miss the final exam, you should send me an e-mail before the final exam with a valid reason (determined by the instructor) with supporting documentation. If it is determined by the instructor to be a valid reason, you may attend a makeup exam scheduled by your instructor with a different set of questions, or may receive an incomplete for the course. This incomplete comes with the understanding that your only opportunity to take the final exam (and receive a grade for this course) will be at the end of the Spring 2021 semester (May XXXXXXXXXXPlease keep this in mind as you make plans for this course.
Grading Policies
Homework
10%
Excel Project
5%
Attendance
5%
Midterm 1
25%
Midterm 2
25%
Final Exam
30%
Total
100%
Grading Criteria
Grades
Grades Percentage
GPA
A
93% – 100%
4.00
A-
90% – 92.9%
3.67
B+
87.1% – 89.9%
3.33
B
83% – 87%
3.00
B-
80% – 82.9%
2.67
C+
77.1% – 79.9%
2.33
C
73% – 77%
2.00
C-
70% – 72.9%
1.67
D+
67.1% – 69.9%
1.33
D
60% – 67%
1.00
F
59.9% and below
0.00
Chapters Covered
Chapter 1
Goals and Governance of the Corporation
Chapter 2
Financial Markets and Institutions
Chapter 3
Accounting and Finance
Chapter 4
Measuring Corporate Performance
Chapter 5
The Time Value of Money
Chapter 6
Valuing Bonds
Chapter 7
Valuing Stocks
Chapter 11
Introduction to Risk, Return, and the Opportunity Cost of Capital
Chapter 12
Risk, Return and Capital Budgeting
Class Schedule (Preliminary)
Class 1
January 29
Course Organization and Chapter 1
Class 2
Fe
uary 5
Chapter 2 and Chapter 3
Class 3
Fe
uary 12
Chapter 3 and Chapter 4
Class 4
Fe
uary 19
Chapter 4 and Chapter 5
Class 5
Fe
uary 26
Midterm 1 and Chapter 5
Class 6
March 5
Chapter 5
Class 7
March 12
Chapter 6
Class 8
March 19