Instructor:  Kay L. McLennan, Ph.D., Professor of Practice, Business Studies
e-Mail & Voice Mail:  kmclenna@tulane.edu & 504.862.8000 x1360
Office Hours:  Wednesdays, 9:00 a.m.-3:00 p.m. (by appointment at the SCS Elmwood Campus)
Course:   The online version of the Introduction to Finance course is a highly participative asynchronous Internet-based course.  The course site – with all of the course materials and discussion forums -- is accessed by logging into the myTulane Blackboard platform (at http://mytulane.blackboard.com)

The required textbook and other course materials include:

• Besley, Scott and Brigham, Eugene F. (2011).  CFIN, 2nd Edition.  Mason, Ohio:  South-Western.  ISBN:  978-1-111-53373-1.   Note:  The CFIN web site (with various study resources) is at:  http://coursemate.cengage.com/CPReader/View/9780840067456/default.aspx?anon=True#home.

Note:  You can order an [immediate] e-book copy (or a paperback copy) of the required course textbook at:  http://www.cengagebrain.com/shop/ISBN/9780538748001?cid=APL1.

• Course site lectures, cases, and articles (see “e-Lectures & Assignments” icon for reading       assignments  ).

Module One:  Essential Concepts in Managerial Finance

• An Overview of managerial Finance
• Analysis of Financial Statements
• The Financial Environment:  Markets, Institutions, and Investment Banking
• Time Value of Money

Textbook Reading Assignment:

Besley and Brigham – Chapters 1, 2, 3, and 4

Ethical Dilemma Application Cases:

• "Who Has the Money -- The Democrat or The Republican?"
• "Should Maria Take a SINful Cruise?"
• "Too High Tech ('Smoke and Mirrors' or Real Sales)?"
• "Anything for (a) BUC?"

Module Two:  Valuation of Financial Assets

• The Cost of Money (Interest Rates)
• Bonds (Debt) -- Characteristics and Valuation
• Stocks (Equity) -- Characteristics and Valuation
• Risk and Rates of Return

Textbook Reading Assignment:

Besley and Brigham – Chapters 5, 6, 7, and 8

Ethical Dilemma Application Cases:

• "Unadvertised Special: Is It a 'Shark'?"
• "Chances Are, What They Don't Know Won't Hurt Them!"
• "Hocus-Pocus--Look, An Increase in Sales!"
• "Competition-Based Planning--Promotion or Payoff?"

  Module Three:  Capital Budgeting, Cost of Capital, and Capital Structure Concepts

• Capital Budgeting Techniques
• Project Cash Flows and Risk
• The Cost of Capital
• Capital Structure
• Distribution of Retained Earnings:  Dividends and Stock Repurchases

Textbook Reading Assignment:

Besley and Brigham – Chapters 9, 10, 11, 12, and 13

Ethical Dilemma Application Cases:

• "It's All Chinese to Me!"
• "Which ARM Should You Choose -- The Left or the Right?"
• "RIP -- Retire in Peace"
• "How Much Should You Pay to be 'Green'?"
• "This Is a Good Investment -- Be Sure the Numbers Show That It Is!"

Module Four:  Capital Management & Financial Strategic Planning

• Working Capital Policy
• Managing Short-Term Assets
• Managing Short-Term Liabilities
• Financial Planning and Control

Textbook Reading Assignment:

Besley and Brigham – Chapters 14, 15, 16, and 17

Ethical Dilemma Application Cases:

• "A Bond Is a Bond Is a Bond Is a Bond ... Is a Stock ... Is a Bondock?"
• "Money-Back Guarantee, No Questions Asked"
• "Drip, Drip, Drip, ... Should We Call a Plumber?"
• "Mary Mary Quite Contrary, What Makes Your Sales Forecasts Grow?"

After completing the requirements of this course, students should be able to:

• Explain what finance entails, including an understanding of the basic financial information produced by corporations;
• Describe the role of different financial entities in the financial markets;
• Identify various types of cash flow pattern as well as computer the present and future values of different cash flow streams;
• Describe the cost of money (interest rates) and the factors that affect the cost of money;
• Identify the basic characteristics of debt, including the characteristics of different types of debt;
• Explain what equity is and identify the features and characteristics of common and preferred stock;
• Compute the risk and return of an investment and explain how the risk and return of an investment are related;
• Describe the importance of capital budgeting decisions and the general process that is followed when making investment (capital budgeting) decisions;
• Discuss the characteristics of the various sources of short-term credit and compute the cost of short-term credit;
• Construct simple pro forma financial statements that can be used to forecast financial and investment needs; and
• Discuss how knowledge of leverage is used in the financial forecasting and control process and why financial planning in critical to firm survival.

Learning is best accomplished when students are provided with experiential opportunities.  Accordingly, class members are expected to log into the class site at least three times a week (please note that the Blackboard software keeps track of when you enter the class site) as well as post assigned essays, contribute substantive comments during the three module discussion periods, and take the final exam within the specified time frames.

The final grade in the course will be made up of grades on essay submissions, group discussions, and the final exam.  The calculation of your final grade has the following components:  essay submissions = 40 percent of the final grade; group discussion participation = 40 percent of the final grade; and the final exam = 20 percent of the final grade.

With a potential of earning a total of 1,000 points in the course, the following point ranges (and accompanying grades) will be used.

Given the asynchronous nature of this course, the expectation is that students will be able to meet all deadlines for completing reading assignments, posting essay submissions and discussing group members’ submissions.  Tardy postings will compromise the quality of group discussions and accordingly are unacceptable.  In turn, only extraordinary or emergency circumstances will merit consideration for a deadline extension and will have to be evaluated by the instructor on a case-by-case basis.  Also, please e-mail the instructor as soon as possible to explain any anticipated or missed deadlines.

All academic assignments in this course are conducted under the provisions of the Tulane University Honor Code.  In particular, while students will collaborate during group discussions of the material and their work, when it comes to assembling their initial essay responses and taking module exams, students are expected to work independently.  The complete Honor Code is available online at: http://college.tulane.edu/code.htm. Also, all Honor Code Board meetings will take place in New Orleans.  In turn, if a student wishes to appear before the Honor Board (to counter an allegation of a violation of the Honor Code), the student must keep in mind that they will need to do so in New Orleans.  Further, if a student waives the right to appear in person before the Honor Board (in New Orleans), written statements will be accepted.

Any student with a disability in need of course or examination accommodations should request accommodations through the University’s Office of Disability Services located in the Mechanical Engineering Building.  Please do this as soon as possible.  In turn, please let me know you are eligible for accommodation (through an e-mail correspondence) and provide a copy of your approved accommodation form from ODS to me (as well as to each professor in whose course you wish to receive accommodations).  I am committed to working with the Office of Disability Services to ensure that all approved accommodations are provided.  However, if you do not deliver the approved accommodation form, I will not know you have been approved to receive accommodations and will have no basis for providing those accommodations.