1

FIN 300 MANAGERIAL FINANCE I

FALL 2013 COURSE OUTLINE

Prerequisite ampor Exclusions ACC 100

COURSE REPEATS

Academic Council GPA policy prevents students from taking a course more than three times

(ie registered initially repeated once repeated twice = 3 registrations) If you fail a

required course for the third time you will be assigned an academic standing of Withdrawn

and will be ineligible to continue in your program For complete GPA policy see Policy 46

at httpwwwryersoncaacadcouncilpolicieshtml

INSTRUCTOR INFORMATION

Instructor Eric Terry

Class Monday 300 pm to 600 pm Section 6 TRS2-166

Office TRS 1-091

Office Hours Mondays 200 pm to 300 pm or by appointment

E-mail eterryryersonca

METHOD OF POSTING GRADES

Midterm and final exam grades will be posted on Blackboard Students who wish not to

have their course grades posted must inform the instructor in writing before October 1st

2013 Final grades will be made available on RAMSS by the university registrar at the end

of the term

E-MAIL USAGE amp LIMITS

I will only open e-mails that come from a Ryerson Account Your e-mail must include in the

subject line of your e-mail message the following Finance 300 FALL 2013 [subject]

I will try to respond to studentrsquos e-mails within two business days

CALENDAR COURSE DESCRIPTION

Students are introduced to the major concepts in finance and investments which are the

time value of money discounted cash flows and risk and return Students are given a

thorough introduction to the mathematics of asset valuation In addition students learn

how individual investors assess and reduce the risk associated with their investment

decisions The course examines how firms make investment decisions The investment

decision allocates scarce resources to projects in the firm and involves financial forecasting

asset valuation capital budgeting risk management working capital management and

performance assessment

COURSE OBJECTIVES

The objective of this course is to introduce students to the subject of finance in general and

corporate finance in particular We will explore the role of the financial manager in the firm

focusing on both the tools needed for the job and the decision-making activities inherent in

the role

A major focus of the course will be the time value of money Time value of money is one of

the most important concepts in finance and a thorough understanding is essential if you are

to master more advanced finance concepts including valuing bonds and stocks and capital

budgeting

The FIN300 and FIN401 courses are designed to provide a general understanding of

corporate financial management to the student who does not intend to continue study in

finance These courses are also intended to provide the necessary concepts and tools for

those students who do intend to continue study in finance

2

TEXTS amp READING LISTS

Required Text Fundamentals of Corporate Finance Eighth Canadian Edition Ross

Westerfield Jordan and Roberts McGraw-Hill Ryerson Limited 2013

Required Lyryx Access Code A package including the text and Lyryx Access Code card is

available at the Bookstore If you purchase a used text a stand-alone access card is also

available at the Bookstore If you would like to purchase the stand-alone card please ask at

the checkout for a Lyryx for Corporate Finance card You may also purchase access to Lyryx

online at wwwlyryxcom

Required A financial calculator You likely can use the same calculator that you

purchased for your statistics course It is your responsibility to figure out how your

calculator works

Other materials will be handed out in class or placed on Blackboard

EVALUATION

Lyryx Labs or Alternative 20

Midterm Test 30

Final Exam 50

Lyryx Labs (20) There are a total of 11 Lyryx Labs that must be completed by each

student The students must do these labs individually One or two labs will be due for each

Sunday of the semester The exact due dates will be posted at Lyryx website Each of the

labs covers material that the students will be covering in class homework and tutorials It

will give you the opportunity to measure your progress in understanding the material The

studentrsquos highest score for any lab will be the one recorded for grading purposes Students

may make a maximum of 2 graded attempts at any lab question Each lab contains a

number of questions However after the due date has passed students will not be able to

make any additional attempts at the labs for marks Information regarding logging into

the Lyryx system will be available on Blackboard

Alternative to Lyryx Labs (20) You are not required to complete the Lyryx Labs As an

alternative you can choose to write three quizzes spaced throughout the semester Each

quiz will be worth 666 of your final grade Each quiz will be 30 minutes in length and will

be scheduled at 600pm on Friday night on the 4th 8th and 12th week of classes (including

Reading week the 4th 9th and 13th weeks of the semester) The format can be any

combination of multiple choice short answer essay or case format The room number will

be supplied to you at least four days in advance of writing Please note that the room

number will probably not be the room in which you take your class The material covered in

each quiz can include any of the material covered up to that point in the course

If a student misses the first andor second quiz for a valid reason the weight of the

missed quizquizzes will be transferred to the next quiz In the event that a student misses

the third quiz for a valid reason the weight of the missed quiz or quizzes will be transferred

to the Final exam Otherwise a grade of 0 will be assigned for missed quizzes

If you wish to choose this alternative to Lyryx you must inform your instructor via e-

mail no later than the third Friday of the semester If you have not done so by that time

you will have forgone your opportunity to choose this alternative

Midterm Test (30) The midterm test will be 100 multiple choice questions and will

cover material from classes 1 through 5 (ie the material up to and including Discounted

Cash Flow Valuation) The midterm test will be held from 630pm to 830pm on

Friday October 25 2013 If you provide a valid reason for missing the mid-term a

3

makeup test will be given from 630pm to 830pm on Friday November 1 2013 If

you cannot attend the makeup test for a valid reason your final exam mark will be counted

as 80 of your total grade otherwise you will receive a grade of zero on the midterm test

The room number for the midterm test and for the makeup will be announced at least four

days in advance of writing We will make every attempt to post midterm test results on

Blackboard before the start of the 9th class

Final Exam (50) ndash The final exam will be 100 multiple choice and will cover material

from the entire course

The term test and the exam are closed book You will be able to use one 85 by 11 inch

note sheet for both the Mid-term and the Final exam You may use the back and the

front of this sheet You will not be supplied with this sheet you must prepare this

yourself Students are allowed to have whatever they want on their note sheet The note

sheet does NOT have to be handwritten Regulations concerning conduct during tests and

exams are contained in the Code of Student Conduct and the Ryerson Calendar

If a student is going to miss a quiz the midterm test or the final exam due to illness or

some other valid reason heshe must follow the procedures outlined in the section

ACADEMIC CONSIDERATION of this syllabus to receive any academic consideration

TOPICS ndash TENTATIVE SEQUENCE amp SCHEDULE

Class Date Chapter Topic to Covered

1 Sept 9 Chapter 1 Introduction Agency Costs Maximization of Firm Value

Chapter 2 Financial Statements and Cash Flow From Assets

2 Sept 16 Chapter 3 Sources and Uses of Cash Cash Flow Statement

common-size statements ratios du-pont identity

3 Sept 23 Chapter 4 Long-term Financial Planning and Corporate Growth

4 Sept 30 Chapter 5

Chapter 6

Introduction to Time Value of Money Present Value of a

Single Sum Future Value of a Single Sum

Regular Annuities Annuities Due Perpetuities

5 Oct 7 Chapter 6

(cont)

Varying Compound Periods including Continuous

Compounding Loans EAR Growing Perpetuities

Mortgages

Oct 14 Study Week No Class

6 Oct 21 Review Class

Oct 25 Midterm Test (covers classes 1 to 5)

7 Oct 28 Chapter 7 Interest Rates and Bond Valuation

Omit Appendix 7A

8 Nov 4 Chapter 8 Stock Valuation

Omit Appendix 8A

9 Nov 11 Chapter 9 Net Present Value and Other Investment Criteria

10 Nov 18 Chapter 10 Making Capital Investment Decisions

11 Nov 25 Chapter 12

Chapter 13

Some Lessons from Capital Market History

Return Risk and the Security Market Line

Including Appendix 13A

12 Dec 2 Chapter 13

(cont)

Return Risk and the Security Market Line (cont)

Review

Including Appendix 13A

FINAL EXAM

4

TEACHING METHODS

This course is taught using a combination of lectures and problem solving The goal is to

encourage you to think analyse evaluate and problem-solve not memorize Answers to

assigned questions (other than those used for problem sets and labs) will be posted on

Blackboard

OTHER COURSE ISSUES

I make extensive use of slides Please download these from the blackboard site before

class I also make extensive notes on the slides If you miss a class it will be necessary to

get notes from a classmate

Every effort will be made to manage the course as stated However adjustments may be

necessary during the term at the discretion of the instructor If so students will be advised

and alterations will be discussed prior to implementation Students will be informed of

any alterations by email andor announcements on blackboard

Class Preparation

It is assumed that you will prepare by reading the assigned chapters before you come to

class Students are responsible for all of the problems at the end of the chapters You are

advised to attend class and to ask questions since the concepts discussed in the reading

material will be developed in class Also material covered in class may not be otherwise

covered in the reading materials

ACADEMIC INTEGRITY

Students are required to adhere to all relevant University policies such as the

Student Code of Academic Conduct University regulations concerning unacceptable

academic conduct (cheating plagiarism impersonation etc) will be followed See

The G Raymond Chang School of Continuing Education calendar or online versions

below

o Student Code of Academic Conduct

httpwwwryersoncaacadcouncilcurrentpol60pdf

o Student Code of Non-Academic Conduct

httpwwwryersoncaacadcouncilcurrentpol61pdf

o Statement of Student Rights and Responsibilities

httpwwwryersoncaacadcouncilstudentrightspdf for more

explanation

Plagiarism is a serious academic offence and penalties range from zero in an

assignment all the way to expulsion from the university Students should review the

guidelines regarding academic misconduct - visit the Academic Integrity website

for more information at httpwwwryersoncaacademicintegrity They should

ensure that they understand the conventions for referencing sources in footnotes

and bibliographies In addition to citing quotations from all sources whether from

written materials interviews or electronic networks students must credit with

footnotes or in-text references all facts and ideas that are not their own EVEN IF

THEY ARE IN YOUR OWN WORDS If you do not it is considered plagiarism In any

academic exercise plagiarism occurs when one offers as onersquos own work the words

data ideas arguments calculations designs or productions of another without

appropriate attribution or when one allows onersquos work to be copied (See the

Ryerson Library for APA style guide references

httpwwwryersoncalibraryrefstylehtml)

It is assumed that all examinations and work submitted for evaluation and course

credit will be the product of individual effort except in the case of team projects

3

makeup test will be given from 630pm to 830pm on Friday November 1 2013 If

you cannot attend the makeup test for a valid reason your final exam mark will be counted

as 80 of your total grade otherwise you will receive a grade of zero on the midterm test

The room number for the midterm test and for the makeup will be announced at least four

days in advance of writing We will make every attempt to post midterm test results on

Blackboard before the start of the 9th class

Final Exam (50) ndash The final exam will be 100 multiple choice and will cover material

from the entire course

The term test and the exam are closed book You will be able to use one 85 by 11 inch

note sheet for both the Mid-term and the Final exam You may use the back and the

front of this sheet You will not be supplied with this sheet you must prepare this

yourself Students are allowed to have whatever they want on their note sheet The note

sheet does NOT have to be handwritten Regulations concerning conduct during tests and

exams are contained in the Code of Student Conduct and the Ryerson Calendar

If a student is going to miss a quiz the midterm test or the final exam due to illness or

some other valid reason heshe must follow the procedures outlined in the section

ACADEMIC CONSIDERATION of this syllabus to receive any academic consideration

TOPICS ndash TENTATIVE SEQUENCE amp SCHEDULE

Class Date Chapter Topic to Covered

1 Sept 9 Chapter 1 Introduction Agency Costs Maximization of Firm Value

Chapter 2 Financial Statements and Cash Flow From Assets

2 Sept 16 Chapter 3 Sources and Uses of Cash Cash Flow Statement

common-size statements ratios du-pont identity

3 Sept 23 Chapter 4 Long-term Financial Planning and Corporate Growth

4 Sept 30 Chapter 5

Chapter 6

Introduction to Time Value of Money Present Value of a

Single Sum Future Value of a Single Sum

Regular Annuities Annuities Due Perpetuities

5 Oct 7 Chapter 6

(cont)

Varying Compound Periods including Continuous

Compounding Loans EAR Growing Perpetuities

Mortgages

Oct 14 Study Week No Class

6 Oct 21 Review Class

Oct 25 Midterm Test (covers classes 1 to 5)

7 Oct 28 Chapter 7 Interest Rates and Bond Valuation

Omit Appendix 7A

8 Nov 4 Chapter 8 Stock Valuation

Omit Appendix 8A

9 Nov 11 Chapter 9 Net Present Value and Other Investment Criteria

10 Nov 18 Chapter 10 Making Capital Investment Decisions

11 Nov 25 Chapter 12

Chapter 13

Some Lessons from Capital Market History

Return Risk and the Security Market Line

Including Appendix 13A

12 Dec 2 Chapter 13

(cont)

Return Risk and the Security Market Line (cont)

Review

Including Appendix 13A

FINAL EXAM

4

TEACHING METHODS

This course is taught using a combination of lectures and problem solving The goal is to

encourage you to think analyse evaluate and problem-solve not memorize Answers to

assigned questions (other than those used for problem sets and labs) will be posted on

Blackboard

OTHER COURSE ISSUES

I make extensive use of slides Please download these from the blackboard site before

class I also make extensive notes on the slides If you miss a class it will be necessary to

get notes from a classmate

Every effort will be made to manage the course as stated However adjustments may be

necessary during the term at the discretion of the instructor If so students will be advised

and alterations will be discussed prior to implementation Students will be informed of

any alterations by email andor announcements on blackboard

Class Preparation

It is assumed that you will prepare by reading the assigned chapters before you come to

class Students are responsible for all of the problems at the end of the chapters You are

advised to attend class and to ask questions since the concepts discussed in the reading

material will be developed in class Also material covered in class may not be otherwise

covered in the reading materials

ACADEMIC INTEGRITY

Students are required to adhere to all relevant University policies such as the

Student Code of Academic Conduct University regulations concerning unacceptable

academic conduct (cheating plagiarism impersonation etc) will be followed See

The G Raymond Chang School of Continuing Education calendar or online versions

below

o Student Code of Academic Conduct

httpwwwryersoncaacadcouncilcurrentpol60pdf

o Student Code of Non-Academic Conduct

httpwwwryersoncaacadcouncilcurrentpol61pdf

o Statement of Student Rights and Responsibilities

httpwwwryersoncaacadcouncilstudentrightspdf for more

explanation

Plagiarism is a serious academic offence and penalties range from zero in an

assignment all the way to expulsion from the university Students should review the

guidelines regarding academic misconduct - visit the Academic Integrity website

for more information at httpwwwryersoncaacademicintegrity They should

ensure that they understand the conventions for referencing sources in footnotes

and bibliographies In addition to citing quotations from all sources whether from

written materials interviews or electronic networks students must credit with

footnotes or in-text references all facts and ideas that are not their own EVEN IF

THEY ARE IN YOUR OWN WORDS If you do not it is considered plagiarism In any

academic exercise plagiarism occurs when one offers as onersquos own work the words

data ideas arguments calculations designs or productions of another without

appropriate attribution or when one allows onersquos work to be copied (See the

Ryerson Library for APA style guide references

httpwwwryersoncalibraryrefstylehtml)

It is assumed that all examinations and work submitted for evaluation and course

credit will be the product of individual effort except in the case of team projects

4

TEACHING METHODS

This course is taught using a combination of lectures and problem solving The goal is to

encourage you to think analyse evaluate and problem-solve not memorize Answers to

assigned questions (other than those used for problem sets and labs) will be posted on

Blackboard

OTHER COURSE ISSUES

I make extensive use of slides Please download these from the blackboard site before

class I also make extensive notes on the slides If you miss a class it will be necessary to

get notes from a classmate

Every effort will be made to manage the course as stated However adjustments may be

necessary during the term at the discretion of the instructor If so students will be advised

and alterations will be discussed prior to implementation Students will be informed of

any alterations by email andor announcements on blackboard

Class Preparation

It is assumed that you will prepare by reading the assigned chapters before you come to

class Students are responsible for all of the problems at the end of the chapters You are

advised to attend class and to ask questions since the concepts discussed in the reading

material will be developed in class Also material covered in class may not be otherwise

covered in the reading materials

ACADEMIC INTEGRITY

Students are required to adhere to all relevant University policies such as the

Student Code of Academic Conduct University regulations concerning unacceptable

academic conduct (cheating plagiarism impersonation etc) will be followed See

The G Raymond Chang School of Continuing Education calendar or online versions

below

o Student Code of Academic Conduct

httpwwwryersoncaacadcouncilcurrentpol60pdf

o Student Code of Non-Academic Conduct

httpwwwryersoncaacadcouncilcurrentpol61pdf

o Statement of Student Rights and Responsibilities

httpwwwryersoncaacadcouncilstudentrightspdf for more

explanation

Plagiarism is a serious academic offence and penalties range from zero in an

assignment all the way to expulsion from the university Students should review the

guidelines regarding academic misconduct - visit the Academic Integrity website

for more information at httpwwwryersoncaacademicintegrity They should

ensure that they understand the conventions for referencing sources in footnotes

and bibliographies In addition to citing quotations from all sources whether from

written materials interviews or electronic networks students must credit with

footnotes or in-text references all facts and ideas that are not their own EVEN IF

THEY ARE IN YOUR OWN WORDS If you do not it is considered plagiarism In any

academic exercise plagiarism occurs when one offers as onersquos own work the words

data ideas arguments calculations designs or productions of another without

appropriate attribution or when one allows onersquos work to be copied (See the

Ryerson Library for APA style guide references

httpwwwryersoncalibraryrefstylehtml)

It is assumed that all examinations and work submitted for evaluation and course

credit will be the product of individual effort except in the case of team projects

5

arranged for and approved by the course instructor Submitting the same work to

more than one course without instructorsrsquo approval is also considered plagiarism

Students who have committed academic misconduct will at a minimum receive a

ldquo0rdquo on the work and an instructor may assign an ldquoFrdquo in the course The Academic

Integrity Seminar may also be assigned Students will have the notation

Disciplinary Notice (DN) placed on their academic record and official transcript

The notation shall remain until the students graduate or for eight (8) years

whichever comes first If you receive this in the first half of your program you may

undergo a petition process to have it removed in your last year

Students who commit academic misconduct a second time shall be placed on

Disciplinary Suspension (DS) for up to two years at which time they may apply

for reinstatement to a program The designation DS shall be placed on their

permanent academic record and official transcript The notation shall remain until

students graduate or for eight (8) years whichever comes first

Disciplinary Withdrawn standing (DW) shall be permanently noted on studentsrsquo

academic records and official transcripts

Expulsions shall be permanently noted on studentsrsquo academic records and official

transcripts

o NOTE Students may not drop a course when they have been notified of the

suspicion of academic misconduct If a student attempts to drop the course

the Registrarrsquos office will re-register the student in that course until a decision

is reached

When an instructor has reason to suspect that an individual piece of work has been

plagiarized the instructor shall be permitted to submit that work to any plagiarism

detection service

CHEATING ON AN EXAM OR TEST Ryersonrsquos Examination Policy requires that all

students have a valid student identification card or other photo identification

on their desk at all times when taking an examination If it is suspected that

someone is impersonating a student the photo identification of that person will be

checked and the person will be asked to sign the exam paper for further verification

If it is suspected that the identification is not valid students may be asked to provide

alternate photo identification Security may be called if circumstances warrant

E-MAIL ACCOUNTS

Students are required to activate and maintain a Ryerson Matrix e-mail account This shall

be the official means by which you will receive university communications

See wwwryersoncaacadcouncilcurrentpol157pdf

ACCOMODATION OF STUDENTS WITH DISABILITIES

In order to facilitate the academic success and access of students with disabilities these

students should register with the Access Centre

httpwwwryersoncaaccesscentreindexhtml

Before the first graded work is due students should also inform their instructor through an

ldquoAccommodation Form for Professorsrdquo that they are registered with the Access Centre and

what accommodations are required

STUDENT RESPONSIBILITIES IN ACADEMIC APPEALS

Students should read the Undergraduate Academic Consideration and Appeals policy

at wwwryersoncaacadcouncilcurrentpol134pdf

It is the studentrsquos responsibility to notify and consult with either the instructor or the

ChairDirector of the teaching departmentschool depending on the situation as

6

soon as circumstances arise that are likely to affect academic performance It is also

the studentrsquos responsibility to attempt to resolve all course related issues with the

instructor and then if necessary with the ChairDirector of the teaching

departmentschool as soon as they arise An appeal may be filed only if the issue

cannot be resolved appropriately Failure to deal with a situation as soon as it arises

will jeopardize any appeal

Students who believe that an assignment test or exam has not been appropriately

graded must review their concerns with their instructor within 10 working days of the

date when the graded work is returned to the class

STANDARD FOR WRITTEN WORK

Students are expected to use an acceptable standard of business communication for

all assignments You are encouraged to obtain assistance from the Writing Centre

(httpwwwryersoncawriting-centre) for help with your written communications as

needed See the Ryerson Library for APA style guide references online at

httpwwwryersoncalibraryrefstylehtml

LATE ASSIGNMENTS

Students must submit assignments on time Failure to do so will result in a penalty of a

grade of zero All assignments submitted for grading will be handed back within two weeks

except for the final exam

ACADEMIC CONSIDERATION

Except in cases of accommodations for disabilities where documentation is handled

directly by the Access Centre students must fill out an Academic Consideration

form and submit it to their own program office (eg TRSBM students please submit

to TRS 1-004)

httpwwwryersoncacontentdamsenateformsacademic_consideration_documen

t_submissionpdf

In addition the following procedures must be followed

o Medical certificates ndash If a student is going to miss a deadline for an

assignment test or exam because of illness heshe must submit a medical

certificate (see wwwryersoncasenateformsmedicalpdf for the certificate)

to their program office within 3 working days of the missed assignment

deadline test or exam The program office will notify the instructor that the

documents have been received It is the studentrsquos responsibility to make

arrangements with the instructor for a make-up test or exam

o Religious observance ndash While it is strongly encouraged that students make

requests within the first two weeks of class requests for accommodation

of specific religious or spiritual observance must be presented to their

program office no later than two weeks prior to the conflict in question (in

the case of final exams within two weeks of the release of the exam

schedule) The student must submit a Request for Accommodation form

(httpwwwryersoncasenateformsrelobservforminstrpdf) to their

program office The office will notify the instructor when they have received

the request form

o Other requests for Academic Consideration not related to medical or religious

observation must be submitted in writing together with the Academic

Consideration form to the studentrsquos program office The letter must clearly

state the reasons for the request and describe the events or circumstances

that seriously impair the studentrsquos ability to meet their academic obligations

and that are beyond the studentrsquos control When possible supporting

documentation must be attached to the letter The office will notify the

instructor once they have received the request

Submission of the Academic Consideration form and all supporting documentation to

your program office does not relieve you of the responsibility to NOTIFY YOUR

7

INSTRUCTOR of the problem as soon as it arises and to contact the instructor again

after the documents have been submitted in order to make the appropriate

arrangements

If you do not have a justifiable reason for missed work andor have not followed the

procedure described above you will not be given any credit for it

For more detailed information on these issues please refer to Senate Policy 134 at

(Undergraduate Academic Consideration and Appeals) and Senate Policy 150

(Accommodation of Student Religious Observance Obligations) Both can be found at

wwwryersoncasenatepolicies

MAINTAINING A PROFESSIONAL LEARNING ENVIRONMENT

You may use laptop computers to take class notes If you are found to do anything

other than that or your use of laptop computers disturbs other students you will not

be allowed to use laptops in class anymore

Cell phones MP3 and other electronic devices should not be used in the classroom

as they are distracting to other students speakers and your instructor Otherwise

the student will be asked to leave the class

ACADEMIC GRADING POLICY

Evaluation of student performance will follow established academic grading policy outlined in

the Ryerson GPA Policy at httpwwwryersoncaacadcouncilcurrentpol46pdf The

grading system is summarized below

Definition Letter Grade Grade Point Conversion Range

Excellent

A+ 433 90-100

A 400 85-89

A- 367 80-84

Good

B+ 333 77-79

B 300 73-76

B- 267 70-72

Satisfactory

C+ 233 67-69

C 200 63-66

C- 167 60-62

Marginal

D+ 133 57-59

D 100 53-56

D- 067 50-52

Unsatisfactory F 000 0-49