201408 80504 FINK 500 115 Foundations of Finance Dyer

7/23/2019 201408 80504 FINK 500 115 Foundations of Finance Dyer

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FOUNDATIONS OF FINANCIAL SYSTEMS

FINK 500.115 CRN 80504

FALL 2014 8 - WEEKS ONLINE COURSE

Instr!t"r# Dr. Douglas Dyer; Accounting, Finance and Economics

O$$%! Founders Hall, 323 D

'("n 254.51).542) CO*A FA+ N,&r# 254.501.5825

Office Hours: TT!: "#:"$%"":3# "2:&$ ' 2:## or (y a))ointment

A,%n Asst# Ms. /&nn%$&r '&r&-R%&r 254.51).543 FA+# 254.501-5825

CO*A D&t. E,%6# !"%n$"7t,!t.& N"t t(%s %s &n&r6 %n$"r,t%"n r&ss

E,%6# For general )ur)oses )lease use my general uni*ersity email address +it!yourcourse

name num(er and section:T"# ddyertamuct.edu-u(ect: FIN 500

/f you !a*e a course content related 0uestion, )lease )ost it to t!e

1A- 4OF D5E46 discussion (oard.

/t is far easier to c!ec7 my regular email, so you mig!t +ant to send a !eads%u) message t!ere,

as7ing t!at / (e sure and c!ec7 t!e A- 4OF D5E4 discussion (oard.

4es)onse +ill usually (e +it!in 2& !ours. I$ 9" (& n"t ( r&69 :%t(%n t(t t%,& 6&s&

r&s&n 9"r ,&ss&. / !a*e recei*ed emails "& mont!s after t!ey +ere sent8 Dont get angry;

)lease ust )ing me again. / really enoy +or7ing +it! students and am not intentionally

ignoring your message8 A- 4OF D5E4 0uestions mig!t ta7e a (it longer.

C"rs& O&r%&: n D&s!r%t%"n:

". To )re)are 9A students for success in F/ $#%+ee7, online course, and " credit !our to re)licate a true =? introductory financial

management course. -o +e focus on a(out 3 maor to)ics: t!e (asic c!aracteristics of t!e t+o

most familiar financial assets @stoc7s and (onds; B!a)ter 2: understanding and inter)reting t!e(asic financial statements @(alance s!eet, income statement, statement of cas! flo+s financial

statement analysis @a7a financial ratio analysis; and B!a)ter &: TC9 @t!e time *alue of money.

2. /ntroduce all students recei*ing an n!&degree from a BOA to some (asics of

finance. E*en if you are an H4 student )lanning on +or7ing for a not%for%)rofit organiation, it

still matters +!et!er or not you can afford to turn on t!e lig!ts +!en you go to +or7 in t!e
mailto:[email protected]:[email protected]:[email protected]:[email protected]


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morning. -o (eing a(le to read an income statement is im)ortant.

/ )ro*ide you +it! a OT of su))lementary material. esides t!e tet(oo7 t!ere is a)lia @a

really fantastic online learning tool from t!e )u(lis!er @Bengage, etra%credit 0uies, *ideos

lectures, Dyer Handouts and numerous urls t!at +ill ta7e you to ecellent learningG)ractice

resources. ut if you dont use t!em, and start immediately, t!en you are li7ely to struggle in

t!is course. @-ee D5E4 HADO=T- for 1Online Finance 4esources. Or t!e ?ETT/?

-TA4TED content area. @ote: someone, +it!out my 7no+ledge, rearranged my lac7(oard

9enu. /ll get it straig!tened out, (ut clic7 around and OO, get a feel for +!at is t!ere. /ts!ould not (e a maor !ards!i).

C"rs& 'r&r&;%s%t&s: 5ou s!ould !a*e (een ad*ised and admitted into t!is course (ased )recisely on t!e

academic and (usiness (ac7ground you (ring +it! you.

'LEASE# START NOW< =" t" DYER >ANDOUTS n r& t(& ?S",& F%nn!& *s%!s@In&st,&nt

M&n (n"t. O&n t(& On6%n& F%nn!& R&s"r!&s (n"t n !6%!B "n t(& 6%nBs n r&%&: $%nn!%6

stt&,&nts n $%nn!%6 ss&ts. T(& *r!( C"66&& =%& t" F%nn!%6 Stt&,&nts %s r&669 r&t 6!&

t" strt. >&r& %s t(& 6%nB#

!tt):GG+++.(aruc!.cuny.eduGtutorialsGstatementsG

A6%: eac! c!a)ter is di*ided into t+o )arts. T!e first )art is called R&%nand is ust t!at c!a)ter in t!e

e(oo7. T!e second )art is called 'r"6&, S&t. All ro(lem -ets !a*e (een set to ractice so you can ta7e t!emas often as you li7e. 5ou may get messages t!at somet!ing is late, (ut if it is ractice t!en it BAOT (e late8

T!e (asics of ta7ing t!e ro(lem -ets are co*ered in t!e /ntroduction to =sing A)lia Assignments )ro(lem set

referenced a(o*e. All a)lia ro(lem -ets are a*aila(le. And of course you can go )ast c!a)ter & ' t!ose of you

going on to F/ $#< +ill co*er most e*eryt!ing in our course.

C"rs& O&!t%&s#

-tudents +!o successfully com)lete t!is course s!ould (e a(le to: e)lain t!e fundamental ty)es of financialassets including t!eir (asic c!aracteristics, *aluation, and t!eir )rosGcons as sources of financing @ca)ital;

e*aluate a firms financial )erformance using its financial statements; e*aluate financial alternati*es from a time

*alue of money )ers)ecti*e; e*aluate t!e ris7Greturn c!aracteristics of different financial decisions; conduct a

t!oroug! firm%le*el financial analysis; demonstrate a t!oroug! financial literacy; demonstrate )roficiency using

a financial calculator.

2.1 St&nt L&rn%n Ot!",&s 9 !(t&r.

". A OCE4C/E OF 9AA?E4/A F/ABE

Discuss t!e (asic ty)es of financial management decisions and t!e role of t!e financial manager./dentify t!e goal of financial management.

Bom)are t!e financial im)lications of t!e different forms of (usiness organiations.Descri(e t!e conflicts of interest t!at can arise (et+een managers and o+ners.

Discuss t!e role of et!ics and cor)orate go*ernance in a +ell%functioning economic system.

2. AA5-/- OF F/AB/A -TATE9ET-

/nter)ret t!e information )ro*ided in a firms (asic financial statements.

-tandardie financial statements for com)arison )urc!ases.
http://www.baruch.cuny.edu/tutorials/statements/http://www.baruch.cuny.edu/tutorials/statements/


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Bom)ute and inter)ret common financial ratios.

Assess t!e determinants of a firms financial )erformance./dentify and e)lain some of t!e )ro(lems and )itfalls in financial statement analysis.

3. THE F/AB/A EC/4O9ETDescri(e t!e role t!e financial mar7ets )lay in determining li*ing standards and economic gro+t!.

Distinguis! (et+een t!e *arious ty)es of financial mar7ets.

Descri(e t!e *arious ty)es of financial intermediaries and t!eir functions.

&. THE T/9E CA=E OF 9OE5 @TC9

Determine t!e future *alue of an in*estment made today.

Determine t!e )resent *alue of cas! to (e recei*ed in t!e future.Balculate t!e rate of return on an in*estment.

?i*en any & of t!e TC9 *aria(les @n, 7, )*, )mt, f* (e a(le to calculate t!e un7no+n *aria(le

Determine t!e future and )resent *alue of in*estments +it! multi)le cas! flo+s.Descri(e t!e loan amortiation )rocess and create a loan amortiation ta(le.

E)lain !o+ interest rates are 0uoted.

I. OD- @DET % 0ualitati*e c!aracteristics only

/dentify im)ortant (ond features and ty)es of (onds.Discuss (ond ratings and +!at t!ey mean.

E*aluate t!e im)act of inflation on interest rates and (ond *alues.


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ACA/AE FO4 5O= TO TAE. THE5 A9O-T AA5- /B=DE A EEED AD AT EA-T "

F= EE DA5. THE /DO- O49A5 BO-E AT "".$K9 O THE A-T DA5.

From t!e =ni*ersity 4ules, rocedures and olicies: Technology issues are not an excuse for

missing a course requirement make sure your computer is configured correctly and address

issues well in advance of deadlines/

>ERE IS W>AT YOU NEED TO READ UNDERSTAND AND *ELIEGE: lac7(oard resets +ill only (e

made in t!e e*ent of a )rolonged anner outage, *erified (y /T. /f you !a*e internet )ro(lems and are forced to

miss an eam t!en t!e )oints +ill sim)ly (e added to t!e cumulati*e final eam @since t!e material is co*ered

t!ere as +ell. -o (e sure and run a ro+ser B!ec7 (efore (eginning t!e eam. Only ta7e t!e

eam on tried, tested, e0ui)ment and at a relia(le location. -a*e eac! ans+er indi*idually. T!at

+ay if you com)lete a su(stantial )ortion of t!e eam +e can (ase your grade on t!e )art you

did finis!.

+C UIES: T!ere +ill (e a num(er of etra%credit, o)en%(oo7, o)en%note lac7(oard 0uies gi*en

o*er t!e semester, mostly EA45 in t!e semester, (ecause it is -O critical t!at you learn t!e argon of stoc7s,(onds and financial statements @+!ic! tec!nically you s!ould remem(er from your lo+er%le*el rinci)les of

Financial Accounting. T!ey are located in Bontent Area LB Juies. Eac! lac7(oard Jui may (e

ta7en t+ice and only t!e (est score +ill (e used. oints earned +ill (e added as etra credit to your final )oint

total.. T(& %&s r& r%,r%69 %nt&n& t" %& 9" n ""rtn%t9 t" r!t%!& t(& t9&s "$ ;&st%"ns

n r"6&,s 9" :%66 s&& "n 9"r &H,s. T!e LB is secondary. @/n fancy lingo, t!ey are more of a teac!ing

de*ice t!an an assessing de*ice. D" n"t $"r&t t(& S,6& EH, %n D9&r >n"tsJ $"r &H, r&rt%"n

s :&66.

RE=ULAR E+AMS: T!ere +ill (e 2 online 4egular Eams all +ort! u) to a maimum of "## )oints eac!

@alt!oug! t!ere +ill (e more t!an "## )oints a*aila(le; for eam)le, / mig!t )ut 2> 0uestions & )oints eac!.T!at totals ""2 )ossi(le )oints. ut e*en if you get t!em all correct, your score on t!e eam +ill (e "##. T!is is

t!e +ay / c!oose to cur*e grades. y gi*ing students more o))ortunity to EA4 )oints, rat!er t!an ust saying,

1o7, e*ery(ody add "2 )oints to your score6. Eams must (e ta7en during t!e sc!eduled eam +indo+. -ee

t!e sc!edule for eact dates. T!e online eams are o)en%(oo7, o)en note. T!e em)!asis of t!e eams is ona))lying t!e tec!ni0ues and conce)ts not on memoriation8 And t!ere +ill (e etra%credit 0uies. -ee

Bontent Area EH, S!(&6&for Eam +indo+s @a*aila(ility dates. riefly:

E+AM I# )1)-)2 EH, II# )2-1003 F%n6 EH,# 1010-101

FINAL E+AM: T!ere +ill (e a cumulati*e Final Eam @all eams are cumulati*e, +ort! u) to 2##

)oints, t!at +ill em)!asie material co*ered in t!e course

*** REMEMBER: EXAMS AND QUIZZES ARE INDIVIDUAL ASSIGNMENTS!

Juies and eams +ill co*er t!e s7ills and 7no+ledge co*ered in BF/&, a)lia for BF/&, lac7(oard

0uies, Dyer Handouts and all materials assigned.


5/8

5.0 =r& C6!6t%"ns# T"t6 '"%nts &rn& %s 66 t(t ,tt&rs. N"t &r!&nt&s# B

2


6/8

COURSE AND UNIGERSITY 'ROCEDURES AND 'OLICIES

Dr" '"6%!9. /f you disco*er t!at you need to dro) t!is class, you must go to t!e 4ecords Office and as7 for t!e

necessary )a)er+or7. rofessors !nn"tdro) students; t!is is al+ays t!e res)onsi(ility of t!e student. T!e

records office +ill )ro*ide a deadline for +!ic! t!e form must (e returned, com)leted and signed. Once youreturn t!e signed form to t!e records office and +ait 2& !ours, you must go into arrior e( and confirm t!at

you are no longer enrolled. -!ould you still (e enrolled, FOO%= +it! t!e records office immediatelyN

5ou are to attend class until t!e )rocedure is com)lete to a*oid )enalty for a(sence. -!ould you miss t!e

deadline or fail to follo+ t!e )rocedure, you +ill recei*e an F in t!e course.

A!&,%! Int&r%t9. Teas A9 =ni*ersity %Bentral Teas *alues t!e integrity of t!e academic enter)rise and

stri*es for t!e !ig!est standards of academic conduct. A9%Bentral Teas e)ects its students, faculty, and staffto su))ort t!e ad!erence to !ig! standards of )ersonal and sc!olarly conduct to )reser*e t!e !onor and integrity

of t!e creati*e community. Academic integrity is defined as a commitment to !onesty, trust, fairness, res)ect,

and res)onsi(ility. Any de*iation (y students from t!is e)ectation may result in a failing grade for t!eassignment and )otentially a failing grade for t!e course. Academic misconduct is any act t!at im)ro)erly

affects a true and !onest e*aluation of a students academic )erformance and includes, (ut is not limited to,

c!eating on an eamination or ot!er academic +or7, )lagiarism and im)ro)er citation of sources, using anot!erstudents +or7, collusion, and t!e a(use of resource materials. All academic misconduct concerns +ill (e

re)orted to t!e uni*ersitys Office of -tudent Bonduct. /gnorance of t!e uni*ersitys standards and e)ectationsis ne*er an ecuse to act +it! a lac7 of integrity. !en in dou(t on colla(oration, citation, or any issue, )lease

contact your instructor (efore ta7ing a course of action.

D%s%6%t9 S"rt n A!!&ss S&r%!&s. At Teas A9 =ni*ersity ' Bentral Teas, +e *alue an inclusi*e

learning en*ironment +!ere e*ery student !as an e0ual c!ance to succeed and !as t!e rig!t to an education t!atis (arrier%free. T!e Office of Disa(ility -u))ort and Access is res)onsi(le for ensuring t!at students +it! a

disa(ility enoy e0ual access to t!e =ni*ersitys )rograms, ser*ices and acti*ities. -ome as)ects of t!is course or

t!e +ay t!e course is taug!t may )resent (arriers to learning due to a disa(ility. /f you feel t!is is t!e case,)lease contact Disa(ility -u))ort and Access at @2$& $#"%$>3" in arrior Hall, -te. 2"2. For more information

)lease *isit t!eir +e(site at +++.tamuctGdisa(ilitysu))ort. Any information you )ro*ide is )ri*ate and

confidential and +ill (e treated as suc!.

Tt"r%n. Tutoring is a*aila(le to all TA9=BT students, (ot! on%cam)us and online. -u(ects tutored include

Accounting, Finance, -tatistics, 9at!ematics, and riting, and AA formatting. Tutors are a*aila(le at t!e

Tutoring Benter in arrior Hall, 4oom """. Cisit +++.ct.tamus.eduGAcademic-u))ort and clic7 PTutoring-u))ortP for tutor sc!edules and contact information. /f you !a*e 0uestions, need to sc!edule a tutoring session,

or if you are interested in (ecoming a tutor, contact Academic -u))ort rograms at 2$&%$#"%$>3#G$>3I or (y

emailing Becilia.moralesct.tamus.edu

B!at li*e +it! a tutor 2&G< for almost any su(ect on your com)uter8 Tutor.com is an online tutoring )latform

t!at ena(les TA9=BT students to log%in and recei*e F4EE online tutoring and +riting su))ort. T!is tool

)ro*ides tutoring in 9at!ematics, riting, Bareer riting, B!emistry, !ysics, iology, -)anis!, Balculus, and-tatistics. To access Tutor.com, log into your lac7(oard account and clic7 POnline Tutoring.P

Un%&rs%t9 L%rr9. T!e =ni*ersity i(rary )ro*ides many ser*ices in su))ort of researc! across cam)us andat a distance. e offer o*er 2## electronic data(ases containing a))roimately 2$#,### eoo7s and >2,###

ournals, in addition to t!e


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4esearc! assistance from a li(rarian is also a*aila(le t+enty%four !ours a day t!roug! our online c!at ser*ice,

and at t!e reference des7 +!en t!e li(rary is o)en. 4esearc! sessions can (e sc!eduled for more com)re!ensi*eassistance, and may ta7e )lace on -7y)e or in%)erson at t!e li(rary. Assistance may co*er many to)ics,

including !o+ to find articles in )eer%re*ie+ed ournals, !o+ to cite resources, and !o+ to )iece toget!er

researc! for +ritten assignments.

Our 2


8/8

W((* + M,-.A01 .AT( B!a)ters and 9aterial Bo*ered.

" >G2$

/ntroduction; -!ort Tour of lac7(oard; rief 4e*ie+ of

-toc7s and onds ' t!e *ery early )arts of c! I

B! 2: continued ' Financial -tatement Analysis ' t!ematerial in Dyer Handouts Q Deleon Bor)oration is a self%

contained guide to financial analysis. T!e ra+ material is in

t!e Ecel file and t!e analysis is in t!e DF files.

& KG"$

B!3: T!e Financial En*ironment: a loo7 at t!e e*er%c!anging

financial system. Almost anyt!ing +ritten is outdated (efore

it can (e )u(lis!ed.

ELA9 / ' T!e Eam +indo+ +ill o)en at $)m on Friday, KG"K and close at "".$K)m on Friday, KG2I. e sureand run a ro+ser c!ec7, sa*e eac! ans+er indi*idually, and ta7e t!e eam in a relia(le location +it! 7no+n

tec!nology. lac7(oard resets +ill (e done only in t!e e*ent of a )rolonged lac7(oard outage. T!e em)!asis

is on t!e *er(al (asics of stoc7s and (onds, and most es)ecially c!a)ter 2.

$ KG22

B!&: T!e time *alue of money. e +ill sol*e for any of $

)otential un7no+ns, n, 7, )*, )mt, f* for lum) sum andmulti%year cas! flo+s. 5ou +ill need a financial calculator.

T!e Teas /nstruments, T/ A // =- is t!e standard !ere

at TA9=BT. see sylla(us

ELA9 // ' T!e Eam +indo+ +ill o)en at $)m on Friday, KG2I and close at "".$K)m on Friday, "#G#3. e

sure and run a ro+ser c!ec7, sa*e eac! ans+er indi*idually, and ta7e t!e eam in a relia(le location +it!

7no+n tec!nology. lac7(oard resets +ill (e done only in t!e e*ent of a )rolonged lac7(oard outage.

I KG2K

B!& continued: including loan amortiation

< "#GI

-T=D5 4EC/E

T!e C",r&(&ns%&F%n6 EH,+ill o)en at $)m on Friday, "#G"# and +ill close on T>URSDAY 101./t +ill (e gi*en in 2 )arts. art " of 2 and art 2 of 2, so you can ta7e a (rea7 and refres! t!e mind a (it.

ro(a(ly a(out 2# 0uestions on eac! )art ' total. Any missed 4egular Eams +ill !a*e t!eir )oints s!ifted tot!e final. /n ot!er +ords, t!e final eam 0uestions +ill (e +ort! more )oints.

> "#G"3F/A ELA9 BOT/=EDD=E TH=4-DA5, "#G"I AT "".$K9

201408 80504 FINK 500 115 Foundations of Finance Dyer

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Transcript of 201408 80504 FINK 500 115 Foundations of Finance Dyer