Fall

2012

FIN
3403

Financial
Management

Instructor:

Online

Sections:
RVF/RVH

Class Numbers:
85241/85338

Joel R. Barber

Office:
Office Phone:
Office Fax:
E-mail:
Class Time:
Class Location:
Office Hours:

RB 206A, MM Campus
305-348-2027 or 305-348-2680
305-348-4245
barberj@fiu.edu
Fully Online
Fully Online
Monday 2:00 - 4:00 pm

Main Page URL:

http://www2.fiu.edu/~barberj

This is a fully-online section of FIN 3403.

All Exams are Online.

I will schedule an on-campus review sessions for interested students.

Success in this class requires strong self-discipline and time management skills. Carefully
read the syllabus as well as all communications from the instructor including email and
Discussion Board postings. Students are required to complete various assessments for each
chapter on their own time schedule during the week subject to the submission deadlines.
Personal issues or technology problems do not excuse you, so please plan accordingly.
Blackboard Learn 9 is the Course Management System:
Blackboard login instructions
Blackboard login
Technical requirements
We will be using MyFinanceLab, a fully integrated homework and tutorial system with the
following features:
Textbook problems online
Algorithmically generated values for more practice
Personalized study plans
Extra help for students
Online Gradebook

It is each student's responsibility to become familiar with both Blackboard and

MyFinanceLab

Required Materials
MyFinanceLab: You are required to purchase access to MyFinanceLab.
Textbook: Financial Management: Principles and Applications, 11/E, Sheridan Titman
Arthur J. Keown John D. Martin, Prentice Hall, 2011, Hardcover Text ISBN:
9780132340359
Three Options:

1
2
3

Purchase access and electronic version of textbook from MyFinanceLab.

Purchase textbook from bookstore that includes access code to MyFinanceLab (you do
not need to buy access code).
Purchase access to MyfinanceLab and purchase textbook from some other source.

Recommended Financial Calculator: I use and will work examples using TA BA Plus (or
TI BA Plus Professional).
Allowed Calculators: TI BA II Plus, TI BA II Plus Professional, TI-83 Plus / TI-84
Plus, HP 10bII, HP 12c, HP 17bII+
Bottom Line: You must purchase access to MyFinanceLab, own financial calculator
(consider TI BA II if you do not already own a financial calculator), and purchase either a
hard copy or electronic version of the textbook.
How to Access and Login to MyFinanceLab
1. Go to pearsonmylabandmastering.com.
2. Under Register, click Student.
3. Enter your instructors course ID: barber82395, and click Continue.
4. Sign in with an existing Pearson account or create an account:
If you have used a Pearson website (for example, MyITLab, Mastering,
MyMathLab, or MyPsychLab), enter your Pearson username and
password. Click Sign In.
If you do not have a Pearson account, click Create. Write down your new
Pearson username and password to help you remember
them.
5. Select an option to access your instructors online course:
Use the access code that came with your textbook or that you
purchased separately from the bookstore.
Buy access using a credit card or PayPal.
If available, get 17 days of temporary access. (Look for a link near the bottom
of the page.)

6. Click Go To Your Course on the Confirmation page. Under MyLab / Mastering

New Design on the left, click FIN 3403 - Financial Management - Fall 2012
- Dr. Barber to start your work.
To sign in later:
1. Go to pearsonmylabandmastering.com.
2. Click Sign In.
3. Enter your Pearson account username and password. Click Sign In.
4. Under MyLab / Mastering New Design on the left, click FIN 3403 Financial
Management - Fall 2012 - Dr. Barber to start your work.
Prerequisites
Prerequisites: College Algebra (MAC 1105) or Calculus for Business (MAC 2233), Statistics
for Business and Economics (STA 2023), Principles of Macroeconomics (ECO 2013),
Principles of Microeconomics (ECO 2023) and Accounting for Decisions (ACG 2021).
NOTE: Students will be dropped from business courses by the CBA Undergraduate Advising
Office if they do not meet the prerequisites. In addition, they will be notified via email of
the administrative drop. The email will be sent to the students FIU email account. All
students are required to activate and monitor their FIU email accounts. The CBA
Undergraduate Advising Office will continue checking enrollment throughout the first week
of class and will drop students accordingly.
Course Objectives & Course Competencies
FIN 3403 is the core finance course required of all business majors. The course integrates
practical and theoretical aspects of finance and includes concepts and techniques essential
for success in all business disciplines. Emphasis is placed upon the underlying principles and
practices and how they relate to the decision making process faced by a financial manager
charged with the objective of shareholder wealth maximization. Although this course
emphasizes corporate decision making, the skills obtained will also aid the student in
personal finance and small business decision making.
After completing this course, the student should be able to:
Explain and evaluate the concept of shareholder wealth maximization and how it
relates to other possible objectives of the firm's management as well as the nature of
the agency relationship inherent in the corporate structure.
Describe how interest rates are determined and the role played by financial markets
and institutions in the global financial system.
Explain the concepts of compounding and discounting and utilize these tools to
calculate the future value and present value of lump sums, annuities, and uneven
cash flow streams and in addition calculate the value of other variables such as the
interest rate, time period, and periodic payment.
Determine the expected rate of return and risk of an individual investment as well as
a portfolio of assets, including concepts such as standard deviation, correlation,
diversification, and the CAPM (Capital Asset Pricing Model).
Explain the determinants of intrinsic value and utilize these concepts to determine
the value and yields of bonds and preferred and common stocks.
Calculate various measures of project profitability using traditional capital budgeting
techniques including Payback Period, Net Present Value, Internal Rate of Return, and
Modified Internal Rate of Return.

Explain the concept of the cost of capital and how it is affected by the firms capital
structure and the application of these concepts to capital budgeting decision making
and dividend policy.
Understand the significance of information included in the income statement and
balance sheet, discuss the importance of the cash flow statement and explain the
difference between accounting net income for the firm and cash flow; analyze a
firm's financial performance using financial ratio analysis.
Describe the risk-return tradeoff involved in working capital management and explain
how firms choose appropriate levels of working capital and sources of short term
financing.
Identify the goals of financial planning and the tools available to forecast the firm's
financing requirements.

Major & Curriculum Objectives Targeted

Apply critical thinking skills to complex business problems including:
Identifying and evaluating relevant issues and information;
Generating and evaluating possible solutions to problems.
Use quantitative analytical skills to:
Identify and analyze material factors that are involved in business problems;
Determine and apply appropriate problem solving techniques to business problems.
Use information technology as a tool to perform essential business tasks.
Teaching Methodology
The structure of this class makes your individual study and preparation extremely
important. You should read and be familiar with the material in the assigned chapter and
attempt to solve some problems during the assignment week. There are additional
resources available in MyFinanceLab that many students will find helpful.
Suggested study procedures:
Read the assigned chapter and answer all of the end-of-chapter Study
Questions.
Utilize the additional resources in MyFinanceLab and Blackboard (Study Plan,
PowerPoints) to deepen your understanding of the material.
Complete the Homework Assignment for each chapter in MyFinanceLab
prior to the deadline; extensions will not be granted. Homework
assignments submitted after the posted deadline will incur a 10% score
reduction. The Homework Assignments correspond to the end-of-chapter
Study Problems in the text.
Track your progress for the homework Assignments in the Results section of
MyFinanceLab.
Post your questions on the Discussion Forum in Blackboard and review the
Forum for previously answered questions.
Utilize the services of the Student Learning Center in CBC 106A. To learn
more, stop by the center and pick up a detailed schedule, call 305-348-1591.
Use Course Mail in Blackboard or visit during office hours to communicate
privately.
Please use Discussion Forum in Blackboard for questions concerning
course content.
Class and Undergraduate Policies and Procedures
Courses follow the University calendar for the term in which they are offered. You are
expected to begin your studies in the first week of class and work continually and regularly

throughout the term. Students must adhere to University policies and procedures relating to
adding, dropping, withdrawing, and canceling courses. Please refer to the Schedule for
deadlines.
Absolutely no incomplete grades or make-up examinations will be given. In cases
of medical or catastrophic emergencies, the student should contact the Registrar's
Office to apply for a Late Drop or Refund.
Undergraduate Policies & Procedures:
The Undergraduate Policies and Procedures Manual outlines and explains the policies and
procedures governing undergraduate study at FIU. The policies include those concerning:
the Undergraduate Program, University and Department Admission Criteria, College Level
Academic Skills (CLAST), Academic Advising, General Academic Policies, Award of Degrees
and Commencement Exercises, Educational Support Services and Undergraduate
Administration. A keyword index links the Undergraduate, Graduate and Academic Affairs
Policies and Procedures Manuals.
The Standards of Student Conduct summarizes the position of the University concerning
ethics and honesty.
Statement of Understanding between Professor and Student:
Student Code of Academic Integrity
Every student must respect the right of all to have an equitable opportunity to learn and
honestly demonstrate the quality of their learning. Therefore, all students must adhere to a
standard of academic conduct, demonstrating respect for themselves, their fellow students,
and the educational mission of the University. As a student in the College of Business taking
this class:
I will not represent someone else's work as my own.
I will not cheat, nor will I aid in another's cheating.
I will be honest in my academic endeavors.
I understand that if I am found responsible for academic misconduct, I
will be subject to the academic misconduct procedures and sanctions
as outlined in the Student Handbook.
Failure to adhere to the guidelines stated above may result in one of the following:
Expulsion: Permanent separation of the student from the University, preventing
readmission to the institution. This sanction shall be recorded on the student's transcript.
Suspension: Temporary separation of the student from the University for a specific period
of time.
By taking this course I promise to adhere to FIU's Student Code of Academic Integrity. For
details on the policy and procedure go to the Academic Misconduct section of the Policies
and Procedures manual.
Exams and MyFinanceLab Assignments - Instructions
How to Use MyFinanceLab
Take a Sample Test - Sample tests enable students to test their understanding and identify
the areas in which they need to do further work. Students can retake the sample tests until
they have mastered the material.
Review the Study Plan - Taking a practice test automatically generates a personalized study
plan showing which topics students have mastered and which they need to practice more.
Help Where They Need It - The exercises in the Study Plan offer students a variety of
learning aids to help them study concepts on their own, including interactive tutorials,
examples, and spreadsheets. Students receive tailored feedback and hyperlinks to the
eText.

Results Page - Students can click to review an assignment directly from the Results page to
see what questions they got right and where they made errors.
Reminders for Homework and Tests - Students can see instructor-created announcements
on the Course Home page, and the My Assignments dashboard shows what assignments are
due today and what assignments are coming up next.
Homework Assignment and Exams
Please read the Standards of Student Conduct and use it as your guide throughout the
course. I take each and every instance of academic misconduct very seriously and hope that
this is not an issue with any student who takes the course.
Exams: The Exams are multiple choice and are not comprehensive, although some material
will carry through. There will be three online exams given throughout the term. Further
instructions will be provided before each exam.
MyFinanceLab Homework Assignments: A portion of your grade will be based upon
homework assignments in MyFinanceLab. The assignments are drawn from the problems at
the end of each textbook chapter. You will be given unlimited attempts to correctly answer
each question prior to the posted due date. Homework problems that are attempted and
submitted beyond the due date will receive a 10% reduction in credit. The number one
reason students fail the course is poor performance on Homework Assignments. The
number two reason is below-average performance on both the Exams and Homework. Make
sure you perform well as possible on the Homework. Also, working the homework is the
best preparation for the exams.
Prior to attempting any graded assessment, you may wish to use the Study Plan and
Sample Tests in MyFinanceLab to receive a personalized study plan which will diagnose
areas you need to practice. If you are having trouble with a particular question, while you
are in the Assignment, you may want to click Help Me Solve This, View an Example, or
Textbook Pages. If you still need help, please post a question on the Discussion Forum for
the assigned Chapter.
Grade Access, Grade Determination, and Grading Scale
Course Grading: The final grade is based upon your performance on the Exams, and
Homework Assignments in MyFinanceLab.
Assessment
Exam #1 (online)
Exam #2 (online)
Exam #3 (online)
Homework Assignments
(MyFinanceLab)
Total

Weight
25%
25%
25%
25%
100%

Grading Scale: The letter grade for the course is based upon the scale below.
90 - 100 A
77 - 79 B00 - 54 F
87 - 89 A74 - 76 C+
84 - 86 B+
70 - 73 C
80 - 83 B
60 - 69 D
Scores: All scores will be accessible through Gradebook in MyFinanceLab.
Disability Resource Center
If a student has a disability and needs assistance, please notify the Instructor and/or
contact the Disability Resource Center to make arrangements for the appropriate
modification and/or assistance. Extended-time exams will be administered at the Disability

Resource Center.
Religious Holidays
Any student may request to be excused from a scheduled exam to observe a religious holy
day of their faith. The student must notify the Instructor and arrange to take the exam in
advance of the regularly scheduled exam date.
Class Schedule

LEGEND
Coverage Dates
Exam Dates
Other Important Dates

Date or
Chapter/Covera
(Week Of)
ge

Topic

Getting Started --Principles of Finance

August 20

1, 2
Firms and the
Financial Market

Due Dates
Corporat
for
Powerpoin
e
MyFinanceLa
t
Finance
b
Slides
Live
Homework
September Chapter 1
30
Chapter 2

August 27

Understanding
Financial
Statements, Taxes,
and Cash Flows

September
3

Financial Analysis
--- Sizing Up Firm
Performance

September
10

Time Value of Money September Chapter 5

--- The Basics
30

September
17 and 24

The Time Value of

September Chapter 6
Money --- Annuities
30
and Other Topics

1, 2, 3, 4, 5, 6

September
Chapter 3
30
Ratio
September
Chapter 4 Analysis
30
Time
Value
of Money

EXAM #1 Online Online - two

September
hours to complete
30
from 8:00 am to
11:55 pm

October 1

An Introduction to
Risk and Return --History of Financial
Market Returns

October 8

Risk and Return ---

October 28 Chapter 7
October 28 Chapter 8 Risk and

Capital Market
Theory

Return

October 15

Debt Valuation and

Interest Rates

October 28

October 22

10

Stock Valuation

October 28

7, 8, 9, 10

EXAM #2 - Online two hours to

complete
from 8:00
am to 11:55 pm

October 29

11

November
5

Chapter
Stock
10
Valuation

Chapter
11

October 29

12

Analyzing Project
Cash Flows

December 8

November
12

13

Risk Analysis and

Project Evaluation

December 8

November
19 and 26

14

The Cost of Capital

11, 12, 13, 14

Bond
Valuation

October 28

Investment Decision
December 8
Criteria

Drop Date

Chapter 9

December 8

EXAM #3 - Online two hours to

complete
December 8
from 8:00
am to 11:55 pm

Chapter
12
Chapter
13
Chapter
13

Capital
Budgetin
g