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Finance 221 Course Syllabus Academic Integrity The University of Illinois statement on your obligation to maintain academic integrity is: If you engage in an act of academic dishonesty, you become liable to severe disciplinary action. Such acts include cheating; falsification or invention of information or citation in an academic endeavor; helping or attempting to help others commit academic infractions; plagiarism; offering bribes, favors, or threats; academic interference; computer related infractions; and failure to comply with research regulations. Rule 33 of the Code of Policies and Regulations Applying to all Students gives complete details of the rules governing academic integrity for all students. You are responsible for knowing and abiding by these rules. IMPORTANT: Any infraction of Academic Integrity during the semester will result in a minimum penalty of a zero on the assignment or exam and the student won’t be allowed to take the optional final exam. Introduction to Finance 221 The course title for Finance 221 is Corporate Finance. While the focus of the course is on the corporation and its financial decision-making, many basic concepts and tools in Finance are introduced. These basic concepts and tools are useful in many areas of business or personal life. They include the notion of present value, the relationship between risk and expected return, a familiarity with financial analysis, the impact of financial leverage, and the characteristics of and determining the value of securities. My point is that the material covered in this course is useful to all, regardless of major and career choice. Much of what you can learn in this course can make you a more savvy and effective consumer whether it be learning how to calculate loan payments and rates or the fundamentals of security valuation. Therefore, it is my hope that you will view Finance 221 more as an opportunity to learn something useful and exciting, rather than merely a hurdle to be cleared.

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Page 1: Finance 221 - University Of Illinois · Finance 221 Course Syllabus ... Course Website: Fin 221 Illinois Compass BIF Emergency Procedures Because BIF is not a designated tornado shelter,

Finance 221

Course Syllabus

Academic Integrity

The University of Illinois statement on your obligation to maintain academic integrity is:

If you engage in an act of academic dishonesty, you become liable to severe disciplinary action. Such acts include cheating; falsification or invention of information or citation in an academic endeavor; helping or attempting to help others commit academic infractions; plagiarism; offering bribes, favors, or threats; academic interference; computer related infractions; and failure to comply with research regulations.

Rule 33 of the Code of Policies and Regulations Applying to all Students gives complete details of the rules governing academic integrity for all students. You are responsible for knowing and abiding by these rules.

IMPORTANT: Any infraction of Academic Integrity during the semester will result in a minimum penalty of a zero on the assignment or exam and the student won’t be allowed to take the optional final exam.

Introduction to Finance 221

The course title for Finance 221 is Corporate Finance. While the focus of the course is on the corporation and its financial decision-making, many basic concepts and tools in Finance are introduced. These basic concepts and tools are useful in many areas of business or personal life. They include the notion of present value, the relationship between risk and expected return, a familiarity with financial analysis, the impact of financial leverage, and the characteristics of and determining the value of securities.

My point is that the material covered in this course is useful to all, regardless of major and career choice. Much of what you can learn in this course can make you a more savvy and effective consumer whether it be learning how to calculate loan payments and rates or the fundamentals of security valuation. Therefore, it is my hope that you will view Finance 221 more as an opportunity to learn something useful and exciting, rather than merely a hurdle to be cleared.

Page 2: Finance 221 - University Of Illinois · Finance 221 Course Syllabus ... Course Website: Fin 221 Illinois Compass BIF Emergency Procedures Because BIF is not a designated tornado shelter,

The textbook and supporting materials are excellent. I have reviewed about all of the major textbooks on the market, and I feel that the text material selected from the Brigham & Houston Fundamentals of Financial Management textbook is outstanding. Also, I strongly recommend that you sign up for the Wall Street Journal. Discounted subscriptions to the paper and internet versions of the Wall Street Journal are available, and you will be able to subscribe in class. I encourage you to keep up with financial and business news and try to find stories that relate to the course, and I will point out and integrate relevant Wall Street Journal articles in class as we go through the semester. This semester continues with a blended learning approach to Finance 221. The two traditional lectures each week have been replaced with videos recorded during a summer seminar version of Fin 221. We will now meet as a large group once each week on Tuesday in addition with your smaller (35-40 students) discussion section on Thursday or Friday. In the Tuesday large meetings (that we will call Town Meetings or TM in the course schedule), I will address some of the most common questions on the current and previous week’s material and common problem areas or topics that are apparent from that week’s conceptual based (Monday) graded pre-flight assignment. The discussion section will consist of a beginning of the class group exercise followed by additional review and help. Our goal is to make these two meetings centered on aiding your learning of the class material. This approach will work best if you make the effort to read the textbook material, review the video material, and make a good effort on the pre-flight assignment BEFORE attending the class meetings. To help you in your preparation, we include featured video clips along with the pre-flight assignment and denote other recommended video clips for the week. At the end of each chapter we will test your understanding with a graded online quiz. More detail of required activities and your regular preparation for the course will be discussed throughout this syllabus. The elements of this Syllabus are designed to aid you as you undertake the study of Finance in this course. Use the contents of this syllabus (1) to know precisely what will be asked of you as a student in Finance 221, (2) to know the exact schedule of classes, assignments, and exams, and (3) to supplement and expand on the material presented in the textbook. I encourage your active participation in both the town meeting and discussion section. An active approach to learning with your mind engaged will enhance the payoff for you from this course. Be sure to relate the material of this course to the financial activity you see and read about in the world around you. When you raise issues and ask questions, you aid the learning process for all and emphasize the relevance of the material to everyday life. I wish you both success and fun in learning! Prof. Michael A. Dyer

Page 3: Finance 221 - University Of Illinois · Finance 221 Course Syllabus ... Course Website: Fin 221 Illinois Compass BIF Emergency Procedures Because BIF is not a designated tornado shelter,

Lecture and Discussion Times Finance 221 Corporate Finance Fall 2011 Town Meetings: 9, & 10 TUES in Deloitte Auditorium in BIF Discussion Section: TH/FRI Course Website: Fin 221 Illinois Compass

BIF Emergency Procedures

Because BIF is not a designated tornado shelter, in the event of a tornado warning please seek shelter in the Wohlers Hall basement or the Armory (the nearest designated University tornado shelters). If a tornado is imminent, the BIF basement stairwells can be used on an emergency basis. In the event of a fire in BIF, exit BIF and proceed to 141 Wohlers Hall. In the event of threat from a shooter on campus, lock down the classroom and move to a place of safety within the classroom. If you encounter a suspicious package, do not touch the package, alert campus security, and refrain from cell phone usage until the situation is resolved. More detailed information and action instructions are available in the BIF Building Emergency Action Plan.

Office Hours and Teaching Assistants

Professor Mike Dyer

Office: 343J Wohlers Hall Office Hours: 2-3:30 PM Tuesday and 10:30-noon Thursday.

Office Phone: 244-7807

E-mail: [email protected]

Teaching Assistants’ Office Hours Office Location 104 Survey Mail Box: 340 Wohlers Hall, Department of Finance

Page 4: Finance 221 - University Of Illinois · Finance 221 Course Syllabus ... Course Website: Fin 221 Illinois Compass BIF Emergency Procedures Because BIF is not a designated tornado shelter,

Course Overview and Objectives

Finance 221 provides an introduction to corporate financial management. Finance is centered on the idea of valuing things. What is the value of a bond, a stock, a firm, or even a college education? This course is meant to teach you how to compute value. Since this is an introductory course, we will focus on the basics of computing value without focusing too much on the enormous number of complicating factors that exist in the real world when we actually try to calculate value.

Course Objectives:

To make the study of corporate financial management an exciting and stimulating learning experience.

To understand the goal of the corporation. To understand and apply the time value of money in order to value

financial and real asset investments. To involve you in measuring and analyzing the financial performance

of a firm's management. To show you how measure cash flow for an individual asset and firm. To illustrate the scientific framework underlying financial decision

making and how it is coupled with sound judgment by management.

Course Prerequisites

This course presumes some background on your part in the areas of accounting, statistics, and knowledge of computer electronic spreadsheet software. The material in this section describes the knowledge and skill background you should have at the beginning of the course and the requirements that will need to be completed during the semester. It is assumed that all students taking this course will already have completed at least the following courses or their equivalents: 1. Accy 200 or concurrent enrollment in Accy 202 2. Economics 202 or equivalent basic stats course like STAT 100

3. Excel or other spreadsheet familiarity or competency. From your Accountancy class(es) you should be familiar with the structure of basic financial statements and the meaning of the items listed in these statements.

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From Statistics (Economics 202) you should be familiar with various measurements of distributions, such as the mean, variance, and standard deviation. In the Computer Science area you should be comfortable working on microcomputers and spreadsheet software like Excel or Lotus 1-2-3.

Course Textbook

Custom version of Brigham & Houston, Fundamentals of Financial

Management, 12th ed. Cengage/Southwest with Aplia. This is a shrink-wrapped, 3-hole punched, loose-leaf hard copy of the needed textbook materials that contains only the chapters that we will cover this semester and includes Aplia access (estimated cost: $100-$105). As an option, students can purchase Aplia access alone for the above title (Fundamentals of Financial Management, 12th ed. By Brigham & Houston). The Aplia access gives you an online electronic version of the entire textbook (estimated cost: $80). See Aplia Homework & Access section of this syllabus for details. ALL STUDENTS MUST PURCHASE ONE OF THESE TEXTBOOK OPTIONS, PURCHASING A USED TEXTBOOK WON’T GIVE YOU ACCESS TO THE REQUIRED ONLINE APLIA HOMEWORK ASSIGNMENTS.

A financial calculator: Texas Instruments BAII Plus (student edition). This calculator will do everything necessary for this course or any other finance course you may take (about $30).

(Optional) I-clicker. Only if you need an I-clicker in another course, please bring it when you attend Town Meetings. I will ask some I-clicker questions in the Town Meetings to help facilitate some of our discussions. I-CLICKERS AREN’T MANDATORY THIS SEMESTER AND WON’T BE A DETERMINANT OF YOUR GRADE.

(Optional) Finance 221 Course Syllabus Book. This booklet is a hardcopy of the syllabus material that you can also find on Compass which also includes old exams, and solutions to all relevant textbook problems. The old exams and textbook problem solutions will also be available on Compass.

Course Structure & Procedures

Overview The structure of this class makes your individual study and preparation outside class extremely important. We will try to help you as much as possible, but ultimately you will be responsible for your learning in the class. Think of the weekly set of video clips as the normal lecture class time. The individual video clips vary in length with some being as short as 3 to 5 minutes and some over 20 minutes long, but most of the video clips are 10 to 15 minutes. All videos have a

Page 6: Finance 221 - University Of Illinois · Finance 221 Course Syllabus ... Course Website: Fin 221 Illinois Compass BIF Emergency Procedures Because BIF is not a designated tornado shelter,

description which should allow you to tie them to individual sections of the textbook and the PowerPoint notes used in the videos for the week or chapter are provided under Chapter Video Notes in that week’s learning module. The class meetings will focus the most common questions that students have as a group and individual topics that tend to give the class some difficulty from the pre-flight assignments or the previous week’s Aplia assignment(s). In the optional town meetings, I will use Iclicker questions and other examples to try to help you understand troublesome concepts and problem types. Also, feel free to post topics or a problem type that you would like me to address in the Town Meetings In each week’s chapter module, you will find a link to the Town Meeting Requests forum. Post to this forum what topic (or topics) or problem type(s) give you the most difficulty from the current material. Think of this as a muddiest point post if you will. I will view these posts and will try to address them in that week’s (if I see it before hand) or next week’s Town Meeting. The point is that the Town Meetings will not be another lecture that simply re-gurgitates the video material. You are expected to view the video material and study the Powerpoint Chapter Video Notes that accompany the videos. The Town Meetings and Discussions are intended to be student-centered meetings that try to help you understand things that might not be completely clear to you. In addition, questions are welcome during the Town Meetings. Also, please feel free to come to my office hours for assistance as well. In your discussion section, you will have a chance to ask individual questions. Discussion section attendance is strongly encouraged and your attendance and participation in discussion section will be rewarded. In discussion section, you will work will other class members on problems and can ask questions of your TA and will receive coaching from your TA. Course Materials On the Home Page of the Fin 221 Compass website, you will find a folder of Weekly Modules. Click on the folder and then click on the Learning Module for that particular week. In each week’s module, you will find the following materials.

1. A link to the week’s pre-flight videos and assignment. The assignment will consist of conceptual multiple-choice questions. These questions will be related to the pre-flight video material.

2. Video class clips for the week. These clips are arranged in the order that I normally cover the material for the chapter. Each clip is titled, has a brief description and a list of keywords for that video. Each video also opens open a Compass discussion board for that video. If you have a question about that particular video clip, just post your question in that video discussion board and I will try to answer your question there. You can also see other student questions and my responses that relate to that particular video in the discussion board.

3. Chapter Video Notes. This is the PowerPoint presentation file used during the recording that week’s videos. Most of these files also contain my in class scribbling that you see in the videos.

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4. Class Slides. Any PowerPoints that I use in the Wednesday Town Meetings that week will be posted here after class. Often, I will also post pre- Town Meeting notes without Iclicker questions and example solutions on Monday before class.

5. Questions for Professor Dyer. This is a general discussion board for that week’s material.

6. A list of suggested problems for the week, which can also be found in the Course Schedule in this syllabus.

7. Questions for your TA for that week. A discussion board for your TA related to that week’s material.

8. A link to the course Aplia website to access the chapter assignment(s) which is(are) due by midnight most Friday nights at the end of that week’s material.

Suggested Course of Study and the FIN 221 Week at a Glance Although the modular format of the textbook and the course videos allow for several different approaches of study, here is my recommended course of study.

1. View the pre-flight videos for that week and complete the pre-flight assignment by 11:30 PM Monday most weeks. The videos contained in the 6 pre-flight questions total 40 to 60 minutes if watched in their entirety.

2. Read the textbook chapter and view the “must see” (*) videos. IMPORTANT: unless otherwise announced, you are responsible for all the material presented in the videos and textbook. Don’t limit your video viewing to just the * must see videos. The conceptual portion of this * videos are generally used in the pre-flight assignments. Most of these * videos also covers an example or two that illustrate the concepts in the first portion of the video.

3. Work the practice (non-graded) Aplia assignments for that week’s chapters.

4. Work the suggested textbook problems without looking at the solutions. Go to the videos and the textbook for help if you need it.

5. Complete the Aplia chapter assignment(s). Due by 11:30 PM Friday most weeks. Again, go to the videos and the book for help.

6. When reviewing for exams (or during each week if you wish), you work through practice quizzes for each chapter. This practice quizzes chooses 10 multiple-choice exam type questions at random from that chapter. You can work as many of these practice quizzes as you wish. These practice quiz questions come from a test bank for an older edition of the textbook.

7. Chronology of a Week – Recommended Path

Day Action

Saturday/Sunday/Monday

Watch lecture videos and read chapter(s).

Complete Pre-Flight Assignment by midnight Monday.

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Post Town Meeting “want to see” request

If done with videos and readings, start

working suggested end of chapter problems

Tuesday/Wednesday

Continue watching videos and

start/continue working suggested end of chapter problems.

Attend Town Meeting for help.

Work Aplia practice assignments.

Thursday/Friday

Continue working end of chapter problems.

Attend discussion section.

Work on Aplia assignment(s) and

complete them by 11:30 PM Friday.

Suggested Textbook Problems and Their Answers End of chapter textbook questions and problems are suggested in the Class Schedule along with the reading assignments. To get the most out of the class you should read the assignments and try to do the problems each week while we are covering that material. Suggested problems will not be collected and graded, unless your Teaching Assistant announces a different policy. At times the solution to one or more of the problems will be covered in town meeting or discussion section. Having already worked the problem will enhance your learning in the class. Also, since the exams will heavily stress problem solving, it will be extremely important that you keep up to speed on the assigned problems. In addition to the assigned problems you should try to answer the self-test problems at the end of each chapter. Failure to keep up with homework will show up on your performance on the exams. I STRONGLY RECOMMEND COMPLETING ALL SUGGESTED END OF CHAPTER PROBLEMS BY THE TIME OF THE DISCUSSION MEETING COVERING THAT CHAPTER. The author’ solutions to suggested problems and all other relevant textbook problems & questions are included at the end of the syllabus booklet.

Other Hints:

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Assignments. Most of the exam problems are similar to the problems and questions assigned at the end of each chapter and on the graded class assignments. Therefore, it is important for you to become familiar with these questions and problems and to be able to solve them by yourself. For the end of the chapter problems and questions, do not just look at the solutions provided and convince yourself that you understand how they are solved from looking at the solution. Could you learn to play golf just by observing others playing golf? No! We all learn by doing! You should never encounter on an exam a problem that is of a type that you have never solved before. During the exam is not the proper time to be trying to learn how to solve a particular type of problem for the first time. Also, as you work through a problem, ask yourself the following questions: what concepts does this problem illustrate?, what does my answer mean?, what are the inputs in words to the problem?, why do I need these inputs to solve the problem?, and what would be the effect of changing the inputs on the answer? Answering these questions will not only help you with the problems, but will also help you prepare for conceptual exam questions. Ask questions when you are not certain about something. Although it may be difficult to ask questions during lecture, you may do so or ask me right after lecture. Accumulate your questions and ask them during your discussion section meetings. Please feel free to come see me during my office hours (or make an appointment with me if my office hours are inconvenient) to ask questions about things you do not understand or just to chat. Also, feel free to e-mail me with any questions you may have. I will try to reply within two business days of your message submission. Also, use your teaching assistant’s office hours to do the same. At times, students say they do not know what to ask. Usually, this results from too little effort to understand the material or little or no effort to solve a problem. If you have studied the material and tried to work the problems, and have not been successful, then you will have specific questions to ask. Start early. It will take some time to do the assignments and the end of chapter problems. Recognize this and get started well before the due dates. The last minute crush often leads to the kind of shortcuts that may keep you from understanding the material.

Grade Determination

Your course grade will be determined by your performance in the following areas according to the following weighting

3 Exams, 160 pts each 480 pts

Page 10: Finance 221 - University Of Illinois · Finance 221 Course Syllabus ... Course Website: Fin 221 Illinois Compass BIF Emergency Procedures Because BIF is not a designated tornado shelter,

Weekly Pre-Flight Assignments (best 9 of 11)

54 pts

Aplia Assignments (Average of your best 10 percentage assignments)

80 pts

Group Excel Projects 75 pts

Discussion section participation 11 pts

Total 700 pts

Grading Scale A+ 690-700 A 625-689 A- 615-624 B+ 605-614 B 555-604 B- 545-554 C+ 535-544 C 485-534 C- 475-484 D+ 465-474 D 405-464* *No D- grades will be given. Exams

Finance 221 will have three exams given from 6:30- 8:30 PM on the dates indicated in the “Course Schedule” and below. A conflict exam will be available to those who have arranged in advance with their Teaching Assistant to take it. The conflict exams for the time will be from 3:30 to 5:30 (or 3:00 to 5:00) PM on the same day as the exam. The dates are given below and in the Course Schedule of the syllabus. Any changes will be announced in lecture and will be posted on the Announcements, Exam and Course Schedule Pages in the Course Information folder in Compass.

The locations of these exams will be announced on Compass. No make-up exams will be given. If you miss an exam, it can only be made up by taking the optional final exam (see below). If you know that you will be unable to take an exam at the times or dates given below, see/contact me at least a week in advance of the exam and we can make arrangements for you to take the exam ahead of the regularly scheduled time.

Exam 1: Monday, Sept. 19

Exam 2: Monday, Oct. 24

Exam 3: Monday, Dec. 5 The exams will be a multiple-choice format consisting of conceptual questions and problems. Each exam will be worth 160 points with 40 questions worth 4 points each. The exams will be roughly half conceptual questions and half

Page 11: Finance 221 - University Of Illinois · Finance 221 Course Syllabus ... Course Website: Fin 221 Illinois Compass BIF Emergency Procedures Because BIF is not a designated tornado shelter,

problems. Exam questions are drawn from the textbook and online video material which means you are responsible for all assigned textbook material and any additional material covered in online video material that is not in the textbook. The questions on the exams will parallel the questions and problems that are assigned with each class and those on the post- class quizzes. Equations found in Appendix C (the Selected Equations Appendix) of your textbook will be given for the chapters covered by each exam as a formula sheet.

Also, last semester’s exams are included in the syllabus book and on Compass for more practice and a feel for how the exams are structured.

An optional final exam will be given on Dec. 12 and Dec. 14 both from 9 to 11 am. If you decide to take the final, you will be asked to sign up for one of the above dates via an email or Compass signup system that we will set up. The final exam will be cumulative and the same format as the other 3 exams: 40 multiple choice questions and 120 minutes to take the exam. The optional final exam is designed to serve one of two purposes:

1. To make up for an exam you missed during the semester; or 2. To replace a grade that is unsatisfactory (to you) on an exam. If

the optional final exam is taken for this purpose, your three highest exam grades among the 3 semester exams and the final exam will be used in determining your final grade.

Quizzes, Class Participation & Projects

Class Assignments and Projects:

220 points for the semester will come from online Compass pre-flight assignments, Compass chapter post-quizzes, lecture I-clicker participation & discussion section participation, and three Excel group projects to be submitted to your TA for grading,

Links to all pre-flight assignments and the Aplia homework site are found in that week’s learning module on the class Compass website. All quiz questions come from the publisher’s test bank for

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our book and make for excellent practice for our exams. In fact, you may see some of the same questions on our exams this semester.

Pre-Flight Assignments (54 points):

You are required to complete the Compass Pre-Flight Assignments by midnight on the date that you will find on the schedule at the end of the Post-Quizzes section of the syllabus. Each assignment has 6 questions worth 1 point each and can be taken twice. Your best 9 out of 11 assignment scores will be used as your final pre-flight total at the end of the semester.

Aplia Assignments & Access (80 points):

At the end of almost every week, you are required to complete the Graded Aplia assignment(s) for that week’s chapter(s) plus a supplemental topic based Aplia assignment some week (these include an Introduction to Using Aplia Assignments and pre-requisite topics such as Math, Accounting, & Statistics as well as how to uses your financial calculator). 18 total Aplia assignments are assigned for the semester and only the Graded assignments listed each week on the Fin 221 Aplia website are required. Each week’s assignment(s) is(are) due by 11:30 PM Friday. Your average score of any multiple attempts (maximum 3 attempts) at any “Grade It Now” questions on the Aplia chapter assignments will count in that assignment’s grade. So, please give each attempt your best effort! The topic based Aplia assignments don’t have the “The Grade it Now” feature and your last submitted response to each question part will be graded at the deadline for the assignment. At the end of the semester, we will calculate the average of your best 13 (out of 18) percentage score assignments and then multiply this average percentage score times 80 points to get your Aplia assignment point total. We will only put this final Aplia point total in the Compass Grade Book. However, you can see your scores on your Aplia course site. Here are the instructions for setting up your Aplia account.

How to access your Aplia course

Finance 221, Corporate Finance, Fall 2011

Instructor: Michael Dyer Start Date: 08/22/2011

Course Key: TG7N-9B4Z-2CJH

Registration

Aplia is part of CengageBrain, which allows you to sign in to a single site to access

your Cengage materials and courses.

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1. Connect to http://login.cengagebrain.com/

2. If you already have an account, sign in. From your Dashboard, enter your

course key (TG7N-9B4Z-2CJH) in the box provided, and click the Register

button.

If you don't have an account, click the Create a New Account button, and

enter your course key when prompted: TG7N-9B4Z-2CJH. Continue to

follow the on-screen instructions.

Payment

Online: Purchase access to your course (including the digital textbook) from the

CengageBrain website.

Bookstore: Purchase access to Aplia from your bookstore. Check with the bookstore

to find out what they offer for your course.

After paying, you will have the option to purchase a physical book at a discounted

price. If you choose to pay later, you can use Aplia without paying until 11:59 PM on

09/11/2011.

Pre-Flight Assignment & Aplia Homework Schedule Week Pre-Flight/Aplia

Chapter & other Aplia Assignments

Pre-Flight Due Date: Midnight

Aplia Assignment(s) Due Date: Midnight

1 1 Intro to Using Aplia Assignments

none Friday, Aug. 26

2 5 TI Financial Calculator II

Monday, Aug. 29 Friday, Sept. 2

3 3 Accounting II

Monday, Sept. 5 Friday, Sept. 9

4 4 Monday, Sept. 12 Friday, Sept. 16

5 Exam 1 week None None

6 2 & 6 Monday, Sept. 26 Friday, Sept. 30

7 7 Mathematics II

Monday, Oct. 3 Friday, Oct. 7

8 8 Statistics II

Monday, Oct. 10 Friday, Oct. 14

9 9 Monday, Oct. 17 Friday, Oct. 21

10 Exam 2 week None None

11 10 Monday, Oct. 31 Friday, Nov. 4

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12 11 Monday, Nov. 7 Friday, Nov. 11

13 12, App 12A Monday, Nov. 14 Friday, Nov. 18

14 18 Monday, Nov. 28 Friday, Dec. 2

Group Project Assignments (75 points):

The projects will be posted on the Compass course website. These projects must be typed and handed in to your TA to be graded. Groups will be formed in each discussion section early in the semester.

The projects are due on the dates indicated on the Course Schedule and below. These projects will require the use of Excel. Each assignment will be graded, and the grade will be a partial determinant of your course grade. Each project must be submitted to your TA on Compass by 11:30 PM on the due date

Project 1 Time Value of Money Project (25 pts) Sept. 11

Project 2: CAPM/Bond Project (25 pts) Oct. 16

Project 3: Capital Budgeting Project (25 pts) Nov. 20

Late projects received before the graded assignments are returned will lose 20% per day late. No assignment will be accepted after the graded assignments are returned. The graded assignments will be returned in the following week’s discussion section.

These projects will give you practice with the types of calculations and concepts that are important to a proper understanding of the material of the course. Also, these projects with using Excel to make financial calculations and to solve financial problems. These skills are highly valued in the business world.

Discussion Section Participation (11 points maximum)

In the discussion section, you will be given a chance to participate. In your discussion section, we will have you form a group of 4 to 6 students for the in class group exercise and for your Excel projects. You will receive 2 points for each weekly discussion exercise that you participate in up to a maximum of 11 points. These points can’t be made up and you cannot be excused from these points in advance. Think of your group as a mini learning community and maybe try to sit with your group if possible in the town meetings to discuss and answer the I-clicker questions.

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FINANCE 221 COURSE SCHEDULE

FALL 2011

Finance 221 Course Schedule The suggested problems (and questions) are at the end of each chapter of the textbook.

Week Of Topic and Reading Assignment

Class Meetings

Suggested Problems

Aug. 22 Course Introduction Chapter 1 – An Overview of Financial Management

Aug. 23 – TM Aug. 25/26 - DISC

No problems, but go thru the end of chapter questions.

Aug. 29 Chapter 5 – The Time Value of Money

Aug. 30 – TM Sept. 1/2 – DISC

5-2, 5-5, 5-7, 5-10, 5-12, 5-17, 5-30, 5-32, 5-39, 5-40, 5-8, 5-20, 5-22, 5-24, 5-25, 5-26, 5-35, 5-36, 5-37

Sept. 5 Chapter 3 – Financial Statements, Cash Flow and Taxes

Sept. 6 – TM Sept 8/9 - DISC

3-1 thru 3-10

Sept. 12 Chapter 4 – Analysis of Financial Statements

Sept. 13 – TM Sept. 15/16 – DISC

4-2, 4-3, 4-10, 4-13, 4-14, 4-15, 4-16, 4-17, 4-18, 4-20, 4-22

Sept. 19 Exam 1 covering Chapters 1-4

Sept. 19 Exam 6:30-8:30 PM

No TM or Disc

Sept. 26 Chapter 2 – Financial Markets and Institutions Chapter 6 – Interest Rates

Sept. 27 – TM Sept. 29/30 - DISC

No problems, go through end of chapter questions: 2-2, 2-4, 2-8 thru 2-11 are good ones. 6-1, 6-8, 6-10, 6-11, 6-12, 6-15, 6-17

Oct. 3 Chapter 7 – Bonds and Their Valuation

Oct. 4 – TM Oct. 6/7 – DISC

7-2, 7-3, 7-5, 7-7, 7-8, 7-9, 7-10, 7-12, 7-16, 7-18

Oct. 10 Chapter 8 – Risk and Rates of Return

Oct. 11 – TM Oct. 13/14 – DISC

8-5, 8-6, 8-10, 8-13, 8-14, 8-15, 8-17, 8-19, 8-21

Oct. 17 Chapter 9 – Stocks and Their Valuation and Appendix 9A

Oct. 18 – TM Oct. 19/20 – DISC

9-3, 9-5, 9-8, 9-12, 9-13, 9-14, 9-16, 9-17, 9-20, 9-21, 9-22, 9-23, 9A-2, 9A-3

Page 16: Finance 221 - University Of Illinois · Finance 221 Course Syllabus ... Course Website: Fin 221 Illinois Compass BIF Emergency Procedures Because BIF is not a designated tornado shelter,

Oct. 24 Exam 2 covering Chapters 5-9

Oct. 24 EXAM 6:30-8:30

No TM on Disc

Oct. 31 Chapter 10 – The Cost of Capital

Nov. 1 – TM Nov. 3/4 – DISC

10-3, 10-4, 10-10, 10-11, 10-12, 10-14, 10-18, 10-19

Nov. 7 Chapter 11 – The Basics of Capital Budgeting

Nov. 8 – TM Nov. 10/11 – DISC

11-4, 11-5, 11-7, 11-12, 11-13, 11-16 (also. Calculate the crossover rate), 11-17, 11-20, 11-21, 11-22

Nov. 14 Chapter 12 – Cash Flow Estimation (only sections 12-1, 12-2, 12-3,12-7 & Appendix 12A)

Nov. 15 – TM Nov. 17/18 – DISC

12-1 thru 12-6, 12-8 thru 12-11, 12-13 thru 12-17, 12-20, 12-21

Nov. 28 Chapter 18 (omit sections 18-4 & 18-5) – Derivatives and Risk Management

Oct. 29 – TM Dec. 1/2 – DISC

18-1, 18-2, 18-3, 18-5, 18-6

Dec. 5 Exam 3 covering Chapters 10-12/13, & 18

Dec. 5 – EXAM 6:30-8:30 PM Dec. 8 AM Exam 3 and Total Point results posted in Compass GradeBook

Dec. 9 through Dec. 16

Optional Final Exam covering Chapters 1-12, & 18

You can choose (#1) 9-11 am, Dec. 12 (corresponds with 10 am TM) or (#2) 9-11 am, Dec. 14 (corresponds with 9 am TM)

Page 17: Finance 221 - University Of Illinois · Finance 221 Course Syllabus ... Course Website: Fin 221 Illinois Compass BIF Emergency Procedures Because BIF is not a designated tornado shelter,

Pre-Flight Assignment & Aplia Homework Schedule Week Pre-Flight/Aplia

Chapter & other Aplia Assignments

Pre-Flight Due Date: Midnight

Aplia Assignment(s) Due Date: Midnight

1 1 Intro to Using Aplia Assignments

none Friday, Aug. 26

2 5 TI Financial Calculator II

Monday, Aug. 29 Friday, Sept. 2

3 3 Accounting II

Monday, Sept. 5 Friday, Sept. 9

4 4 Monday, Sept. 12 Friday, Sept. 16

5 Exam 1 week None None

6 2 & 6 Monday, Sept. 26 Friday, Sept. 30

7 7 Mathematics II

Monday, Oct. 3 Friday, Oct. 7

8 8 Statistics II

Monday, Oct. 10 Friday, Oct. 14

9 9 Monday, Oct. 17 Friday, Oct. 21

10 Exam 2 week None None

11 10 Monday, Oct. 31 Friday, Nov. 4

12 11 Monday, Nov. 7 Friday, Nov. 11

13 12, App 12A Monday, Nov. 14 Friday, Nov. 18

14 18 Monday, Nov. 28 Friday, Dec. 2