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X. COURSE SYLLABI
C. FINANCE
FINA 3311: Financial Management Principles
FINA 3312: Financial Institutions
FINA 3313: Money and Banking
FINA 3314: Financial Statements Analysis
FINA 4312: Advanced Financial Management
FINA 4313: Investments
FINA 4314: International Finance
FINA 4315: Security Analysis and Portfolio Management
FINA 4316: Capital Budgeting
FINA 4351: Special Topics in Finance
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Course Title: FINA 3311: Financial Management Principles
Semester Credit Hours: 3 (3, 0)
I. Course Overview
This course provides the fundamental concepts of finance. An introduction
of key aspects of finance including financial planning, objectives,
financial analysis, capital budgeting, capital structure, managing current
assets, and managing short-term and long-term financing are addressed
along with other key financial decisions such as capital structure and
dividend policy.
II. PMU Competencies and Learning Outcomes
Writing and oral communications skills are addressed through written
assignments, problem solving and case studies. Critical thinking and
problem solving skills are sharpened through assigned problems and cases.
Teamwork skills are enhanced through group work. Students enhance their
technology competencies through use of Microsoft Excel in solving
problems and doing calculations and through use of the Internet to look up
financial data on companies and to access finance databases.
III. Detailed Course Description
In addition to marketing and operations, finance is one of the key
functions of business. Money is the blood of any organization. This course
will deal with the fundamentals of financial management. It will
emphasize the role of finance in planning and decision making. Specific
topics to be covered include the environment of financial management,
wealth maximization, understanding financial statements, financial
analysis, evaluating a firm’s financial performance, risk-return
relationship, time value of money, discounted cash flow analysis, risk in
capital budgeting, stock and bond valuation, capital structure and cost of
capital, working capital management, and valuation of the firm.
IV. Requirements Fulfilled
This course is required for all students in the College of Business
Administration. It is taken in the first semester of the junior year.
V. Required Prerequisites
ACCT 2311: Fundamentals of Financial Accounting
ACCT 2321: Fundamentals of Managerial Accounting
ECON 1311: Introduction to Macroeconomics
ECON 1312: Introduction to Microeconomics
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VI. Learning Outcomes
To understand the role of finance in business decisions.
To understand the risk-return tradeoff.
To be able to analyze financial statements.
To apply capital budgeting techniques to long-term investment
decisions.
To understand basic finance terminology.
To interpret the results of using various financial tools.
To develop an understanding of the management of assets and
liabilities and their effect on capital structure.
VII. Assessment Strategy
Examinations (mid-term and final): 70% of final grade
Homework assignments: 20% of final grade
Class contributions / Case studies / Presentations: 10% of final grade
VIII. Course Format
Students are expected to read assignments in advance and be prepared to
discuss the topics in class. The instructor provides short lectures to address
questions raised by students. Students work individually and engage with
other students in group work. Problems and short cases are assigned to
allow students to learn the concepts and reinforce them. Students use the
Internet to access current information on listed companies. Written
assignments and cases are used to sharpen students’ written
communications skills. Students are expected to use Microsoft Excel in
financial analysis and calculations. Emphasis is placed on understanding
the concepts and being able to interpret the results.
Classroom Hours: (3 hours per week) Class: 3
Lab: 0
IX. Topics to Be Covered
A. Corporate finance-goals, objectives, and operations
B. Financial statements, taxes, and cash flow
C. Long-term financial planning and growth
D. The time value of money
E. Valuing stocks and bonds
F. Investment criteria
G. Project analysis and evaluation
H. Cost of capital
I. Financial leverage and capital structure policy
J. Dividend and dividend policy
K. Short-term finance and planning
L. Cash and liquidity management
M. Credit and inventory management
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N. Mergers and acquisitions
O. International corporate finance
P. Risk-management
Q. Options and corporate securities
R. Leasing
X. Laboratory Exercises
None.
XI. Technology Component
The Internet and financial databases are used in the course along with
Microsoft Excel and Microsoft Word. E-mail is used to communicate with
other students and the instructor.
XII. Special Projects / Activities
The instructor may require an analysis of a company as a written
assignment.
XIII. Textbooks and Teaching Aids
A. Required Textbook
Keown, Arthur J., Martin, John D., Petty, J. William, and Scott,, David
F., Jr. Financial Management: Principles and Applications, 10
th
Edition: Pearson Prentice Hall, 2005.
ISBN: 0-13-145065-4
B. Alternative Textbooks
Gitman, Lawrence J., and Madura, Jeff, Introduction to Finance:
Addison Wesley Longman, Inc., 2001 (or later edition).
ISBN: 0-201-63537-2
C. Supplemental Print Materials
None.
D. Supplemental Online Materials
The text has a companion web site at www.prenhall.com/keown.
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Course Title: FINA 3312: Financial Institutions
Semester Credit Hours: 3 (3, 0)
I. Course Overview
This course deals with practices and instruments of financial institutions.
It covers different types of risk such as interest rate risk, credit risk, and
liquidity risk. Modern instruments are studied to provide an understanding
of how they work and the implications of their use on different institutions
and individuals. Financial market terms are defined.
II. PMU Competencies and Learning Outcomes
Written communications skills are used in preparing assignments and
exams. Students enhance their technology competencies through use of
computer applications and the Internet to collect data and do the necessary
research to relate the information studied to the real world.
III. Detailed Course Description
This course is a study of major financial institutions and the markets in
which they operate, with emphasis on financial decision making and risk
management. Topics include financial intermediation theory;
measurement and management of interest rate risk, credit risk, off-
balance-sheet risk, foreign exchange risk, country risk, and liquidity risk;
capital adequacy; deposit insurance, securitization, and product/market
diversification. The use of derivatives and futures to manage risk and
financial analysis of depository institutions are covered.
IV. Requirements Fulfilled
This is a required course for all finance majors. It may be taken as an
elective by other business majors.
V. Required Prerequisites
ACCT 2311: Fundamentals of Financial Accounting
ACCT 2321: Fundamentals of Managerial Accounting
ECON 1311: Introduction to Macroeconomics
ECON 1312: Introduction to Microeconomics
FINA 3311: Financial Management Principles
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VI. Learning Outcomes
To understand the role of financial intermediaries in the economy.
To learn key aspects of return and risk in managing financial
institutions.
To appreciate the increasing effect of global markets on financial
institutions.
To explain terms and concepts used in financial markets.
To recognize and differentiate among different type risks inherent in
financial markets and institutions.
To interpret the results of different analysis techniques used in
evaluating financial institutions.
VII. Assessment Strategy
Examinations: 60% of final grade
Homework assignments: 10% of final grade
Case/term paper preparation: 30% of final grade
VIII. Course Format
This course uses lectures, questions, and problems to learn the materials.
Three or four guest speakers from financial institutions or regulators are
invited to supplement class materials. Students are required to solve
problems and use the Internet to get additional relevant data.
Classroom Hours: (3 hours per week) Class: 3
Lab: 0
IX. Topics to Be Covered
A. Overview of financial institutions
B. Financial inter-mediations
C. Interest rate risk
D. Credit risk
E. Off-balance sheet risk
F. Operating risk
G. Foreign exchange risk
H. Sovereign risk
I. Liquidity risk
J. Capital adequacy
K. Deposit insurance
L. Product and geographic diversification
M. Swaps and securitization
X. Laboratory Exercises
None.
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XI. Technology Component
Use of the Internet to access financial information. Students use their
personal laptop computers in preparing assignments and presentations.
XII. Special Projects / Activities
None.
XIII. Textbooks and Teaching Aids
A. Required Textbook
Madura, Jeff. Financial Markets and Institutions, 6th Edition, South-
Western Publishing Company, 2003.
ISBN: 0-324-16261-8
B. Alternative Textbooks
None.
C. Supplemental Print Materials
The Wall Street Journal or a comparable local business paper.
D. Supplemental Online Materials
Students are encouraged to access financial data such as Value Line
using the Internet.
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Course Title: FINA 3313: Money and Banking
Semester Credit Hours: 3 (3, 0)
I. Course Overview
This course provides the student with an understanding of the essential
aspects of money, monetary theory, banking and finance, and financial
institutions. Local and global financial markets and institutions are
addressed.
II. PMU Competencies and Learning Outcomes
Students practice their communications skills though written assignments
and examinations. Students build technology competencies through use of
the Internet and the computer in preparing reports and doing the research
necessary for class assignments and the term paper. Discussions of the
ethical dimension of business decisions build professional competencies.
Analytical skills and problem solving skills are addressed through
assigned problems and homework assignments. Teamwork is sharpened in
group work activities.
III. Detailed Course Description
The course addresses the financial industry with special emphasis on
money and the banking industry. The financial system and how it is
related to the aggregate economy is studied. Monetary policy tools are
discussed along with governmental regulations and ways of dealing with
local and global issues affecting the money market environment. The
course addresses new technology advances and their effects on banking,
money and monetary policy. Interest rate targeting and economic activity
are studied along with managing risk in a global environment.
IV. Requirements Fulfilled
This is a required course for all finance majors. It may be taken as an
elective in other business majors.
V. Required Prerequisites
ECON 1311: Introduction to Macroeconomics
ECON 1312: Introduction to Microeconomics
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VI. Learning Outcomes
Understand the meaning of money and the financial environment
locally and globally.
Explain monetary policy tools.
Recognize the role of banking and finance in the economy.
Differentiate between different financial institutions with regard to risk
and return levels.
Use the Internet to access financial information about banking and
finance.
Explain the key considerations of monetary policy globally.
VII. Assessment Strategy
Examinations: 60% of final grade
Homework assignments: 10% of final grade
Project/Term Paper: 30% of final grade
VIII. Course Format
The class uses a variety of learning methodologies such as class
participation, team activities, class presentations, three to five guest
speakers from government and industry, and brief lectures. Students are
expected to read the assignments in advance and be ready to discuss the
issues raised and ask questions to clarify concepts.
Classroom Hours (3 hours per week) Class: 3
Lab: 0
IX. Topics to Be Covered
A. Overview of the financial system
B. What is money?
C. Understanding and behavior of interest rates
D. Risk and term structure of interest rates
E. Financial structure
F. Banking and management of financial institutions
G. The banking industry
H. Banking regulations
I. Non-bank financial institutions
J. Structure of U.S. Federal Reserve System and central banks
K. Money supply process
L. Determinants of the money supply
M. Tools of monetary policy and central banks
N. Conduct of monetary policy
O. International finance and monetary policy
P. Monetary theory
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X. Laboratory Exercises
None.
XI. Technology Component
Use of the Internet in assignments and PowerPoint in presentations.
Students use their personal laptop computers.
XII. Special Projects / Activities
None.
XIII. Textbooks and Teaching Aids
A. Required Textbook
Mishkin, Frederic S. The Economics of Money, Banking, and
Financial Markets. Boston, MA: Pearson Addison Wesley, 2004.
ISBN: 0-321-12235-6
B. Alternative Textbooks
Miller, Roger LeRoy, and VanHoose, David D., Money, Banking, and
Financial Markets: Thomas South-Western, 2004.
ISBN: 0-324-15993-5
C. Supplemental Print Materials
None.
D. Supplemental Online Materials
None.
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Course Title: FINA 3314: Financial Statements Analysis
Semester Credit Hours: 3 (3, 0)
I. Course Overview
This course addresses the key components of different financial statements
and demonstrates how to analyze these statements. Different tools of
analysis such as ratios, common size statements, trend analysis over time,
and industry comparisons are studied. Interpretation of the results is
highlighted.
II. PMU Competencies and Learning Outcomes
This course develops the student’s analytical skills through the use of
different techniques. It develops problem solving and critical thinking
through the use of problems and cases. Written and oral communications
skills are developed through problem solving homework assignments and
class participation. Some assignments are completed in group settings to
develop teamwork skills. Microsoft Excel is used in calculations to lessen
the time to be used on calculations and devote more time to interpreting
the results. Exams and assignments emphasize essays, problem solving,
and computations to strengthen communications and analytical skills.
III. Detailed Course Description
Financial information is reported in financial statements, which provide a
wealth of information if analyzed properly. The course provides a detailed
study of financial statements with emphasis upon practical interpretations.
Attention is given to financial statement analysis using financial
accounting information and its finance implications. Balance sheets,
income statements, statements of retained earnings, and cash flow
statements are studied and examined as sources of information and the
basis of the analyses. Students learn to assess the quality of information,
assumptions used in preparing the statements, and cash flow calculations,
Financial accounting standards are considered to help understand how the
reporting requirements impact the numbers.
IV. Requirements Fulfilled
This is a required course for all finance majors. It may be taken as an
elective in other business majors.
V. Required Prerequisites
ACCT 2311: Fundamentals of Financial Accounting
ACCT 2321: Fundamentals of Managerial Accounting
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VI. Learning Outcomes
To understand the assumptions used in preparing financial statements.
To understand how to apply different analysis tools to financial
statements.
To interpret the results of the analysis and use them to reach
conclusions about the company under review.
To understand how statements can be prepared differently based on
perspective such as financial accounting, tax accounting or managerial
accounting.
To assess the quality of data.
To understand how different financial items relate to each other.
VII. Assessment Strategy
Examinations: 65% of final grade
Team case studies : 15% of final grade
Homework: 20% of final grade
VIII. Course Format
The course uses lectures, class discussion, required homework
assignments and team case studies.
Classroom Hours (3 hours per week) Class: 3
Lab: 0
IX. Topics to Be Covered
A. Financial statements: map or maze
B. Quality of financial reporting
C. Balance sheet-financial condition
D. Income statement
E. Statement of retained earnings and stockholders’ equity
F. Statement of cash flow
G. Calculating cash flow from operations
H. Sources of information
I. Tools and techniques of analysis
J. Ratio analysis
K. Common size analysis and industry averages
L. Analyzing the data
M. Segment reporting
N. Understanding bank financial statements
O. Earning quality, inflation, and cash flow
P. Auditor report
Q. Accounting policies, estimates-choices and changes
X. Laboratory Exercises
None.
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XI. Technology Component
Students are expected to use Microsoft Excel and financial calculators to
conduct their analyses. Microsoft Word is used to prepare reports.
Microsoft PowerPoint is used to present the results of assigned work.
XII. Special Projects / Activities
None.
XIII. Textbooks and Teaching Aids
A. Required Textbook
Fraser, Lyn M., and Ormiston, Aileen, Understanding Financial
Statements, 7th Edition: Pearson Education, Inc , 2004.
ISBN: 0130458058
B. Alternative Textbooks
None.
C. Supplemental Print Materials
None.
D. Supplemental Online Materials
The Internet is used to access additional information about companies
to be studied.
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Course Title: FINA 4312: Advanced Financial Management
Semester Credit Hours: 3 (3, 0)
I. Course Overview
Building on the financial management concepts taught in the introductory
course, this course applies the concepts to different business situations,
develops a more in depth understanding of the financial management tools
and interprets the results. Finance policy and its interrelationship to the
organization’s goals are addressed.
II. PMU Competencies and Learning Outcomes
The course highlights analytical skills. Written and oral communications
skills are stressed in homework assignments, term paper, and tests.
Teamwork skills are used in group assignments. Technological skills are
enhanced through use of the Internet and computer usage in preparing
written assignments and in the use of Microsoft Excel in financial
calculations.
III. Detailed Course Description
The course provides applications of financial management tools,
examination and interpretation of financial statements, and integration of
financial policy and structure on overall management of the enterprise.
More in-depth coverage of special topics such as financial planning,
budgeting, long-term investment decisions, working capital management,
cost of capital, valuation, rates of return, and choosing among alternative
sources of funds.
IV. Requirements Fulfilled
The course is an elective for finance majors.
V. Required Prerequisites
FINA 3311: Financial Management Principles
VI. Learning Outcomes
Apply financial management tools to business problems.
Assess risk and return aspects of various decisions.
Analyze financial statements and interpret the results.
Understand and apply capital budgeting techniques in problems and
short cases.
Identify the key elements in capital structure decisions.
Use working capital management techniques to offer solutions to
hypothetical cases or to participating local companies.
Develop a more in-depth understanding of finance theory.
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VII. Assessment Strategy
Examinations: 60% of final grade
Homework assignments: 10% of final grade
Case Preparation: 30% of final grade
VIII. Course Format
Mini-lectures are used and supplemented by class discussion. Students are
assigned a project/paper to enhance their learning of the concepts.
Classroom Hours (3 hours per week) Class: 3
Lab: 0
IX. Topics to Be Covered
A. Scope of managerial finance
B. Operating environment
C. Long-term funding
D. Time value of money
E. Valuation and cost of capital
F. Risk and return and cost of capital
G. Leverage and capital structure
H. Capital budgeting
I. Dividend policy
J. Analysis of financial statements
K. Financial planning
L. Net working capital
M. Mergers, LBOs, divestitures
N. International finance
O. Ethics
X. Laboratory Exercises
None.
XI. Technology Component
The Internet is used to acquire additional financial information. Students
use their personal laptop computers in preparing class assignments, for
presentations and in doing calculations using Microsoft Excel.
XII. Special Projects / Activities
None.
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XIII. Textbooks and Teaching Aids
A. Required Textbook
Brigham, Eugene F., and Ehrhardt, Michael C., Financial
Management: Theory and Practice, 10th Edition, 2002.
ISBN: 0-03-032992-2
B. Alternative Textbooks
Brigham, Eugene F., and Daves, Phillip R. Intermediate Financial
Management, 8th Edition, Thomson South-Western, 2004.
ISBN: 0-324-25891-7
C. Supplemental Print Materials
None.
D. Supplemental Online Materials
None.
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Course Title: FINA 4313: Investments
Semester Credit Hours: 3 (3, 0)
I. Course Overview
This course introduces modern investment concepts and techniques
including portfolio management. It highlights the importance of risk and
return tradeoff. Other concepts include financial markets, capital markets,
valuation of the firm, security analysis, investment equity versus debt,
efficiency of market evaluation, diversification efforts, investment goals,
and portfolio selection.
II. PMU Competencies and Learning Outcomes
Analytical skills are developed in this course along with the use of
communications skills through written reports and class presentations. Use
of the Internet and Microsoft Excel software assist students in building
technology skills so that they can concentrate on the concepts,
understanding. and interpretation of results without spending unnecessary
time on tedious computations. Teamwork skills are enhanced in group
work. Critical thinking skills are developed in interpreting results and
discussing their implications.
III. Detailed Course Description
An understanding of investment concepts, tools and techniques is essential
to successful investing. The investing decision is one of the key
applications of the concept of risk-return tradeoff. Monitoring the portfolio
and continuing to manage effectively is both an art and science. This
course provides an introduction to investment management issues. Key
financial and technical aspects of stocks, bonds, options and future
markets are included. The course also coves buying and selling securities,
understanding of securities markets, inflation effect, portfolio analysis and
evaluation.
IV. Requirements Fulfilled
This is a required course for all finance majors.
V. Required Prerequisites
ACCT 2311: Fundamentals of Financial Accounting
ACCT 2321: Fundamentals of Managerial Accounting
FINA 3311: Financial Management Principles
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VI. Learning Outcomes
Understand the key characteristics of different type of securities.
Recognize different capital markets and different exchanges used in
trading stock and financial instruments.
Explain the efficient market hypothesis and how it relates to
investment decisions.
Describe and explain key investment analysis tools.
Describe portfolio theory and capital asset pricing model.
VII. Assessment Strategy
Examinations: 70% of final grade
Homework assignments: 10% of final grade
Group Project: 15% of final grade
VIII. Course Format
Students are expected to read assignments in advance and be ready to
participate in class discussion. Lectures are used to address concepts
students identify as not clearly understood by them. Students read the
business sections of local news papers and international publications such
as Wall Street Journal to keep track of various global issues in investment.
In addition three or four invited guest speakers during the semester
provide a real-world flavor which is augmented with a group project. The
group project is selected from one of the topics covered in the text with the
students doing the research necessary to apply the concepts to real
companies.
Classroom Hours (3 hours per week) Class: 3
Lab: 0
IX. Topics to Be Covered
A. The investment setting
B. Security markets (domestic)
C. Participating in the market
D. International securities market
E. Mutual funds
F. A basic view of technical analysis and market efficiency
G. Portfolio management and capital market theory
H. Fixed income fundamentals
I. Valuation
J. Introduction to economy, industry and company analysis
K. Introduction to investments in real assets and options
X. Laboratory Exercises
None.
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XI. Technology Component
Students use the Internet to access information about securities, industry
data, and do financial research. They make uses of their personal laptop
computers in completing assignments.
XII. Special Projects / Activities
None.
XIII. Textbooks and Teaching Aids
A. Required Textbook
Bodie, Zvi, Alex Kane, Marcus, Alan J., Essentials of Investments, 5th
Edition: Irwin, 2004.
ISBN: 0-07-251077-3
B. Alternative Textbooks
None.
C. Supplemental Print Materials
Wall Street Journal or equivalent. Wall Street Journal may be
accessed at WSJ.com/students.
D. Supplemental Online Materials
Use of the Internet and access to financial data is expected.
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Course Title: FINA 4314: International Finance
Semester Credit Hours: 3 (3, 0)
I. Course Overview
This course covers financial management from an international
perspective. Students are exposed to influences of different currencies on
exchange rates, and how international transactions and the exchange rates
can affect firm’s performance. Global aspects are studied to demonstrate
how they affect the flow of funds, financial markets, exchange rate risk,
long-term asset management, and short-term asset management.
II. PMU Competencies and Learning Outcomes
The course sharpens the analytical skills of the students through the study
of different cultural settings. Problem solving and critical thinking skills
are used in problem assignments. Students use their communication skills
in writing and oral presentations. Technological skills are reinforced by
using the Internet and the computer in assignments and term project
preparation.
III. Detailed Course Description
This course is a study of the institutions and relationships of the
international financial system as they relate to balance of payments,
foreign exchange risk, arbitrage and the Eurocurrency market. The
emphasis is on methods of arbitrage, forecasting exchange rates, and
hedging against foreign exchange risk. Additionally, the course addresses
different financial management topics (such as capital structure and cost of
capital, short term and long-term financing) as they apply to the
international environment. It considers differences in accounting
procedures, governmental regulations, political risk, and exchange rates.
Ethics in international transactions are addressed.
IV. Requirements Fulfilled
This is a required course for all finance majors. It may be taken by other
business majors as an elective.
V. Required Prerequisites
ECON 1311: Introduction to Macroeconomics
ECON 1312: Introduction to Microeconomics
FINA 3311: Financial Management Principles
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VI. Learning Outcomes
To understand the international environment in which a firm operates.
To describe and recognize the major international finance markets.
To develop and understand the meaning of key terms used in
international finance.
To apply some of the commonly used tools to assess different types of
risk in international transactions.
To understand key features of exchange rate calculations, strategic
planning in international context, and international banking.
To understand how hedging and arbitrage work.
VII. Assessment Strategy
Examinations: 60% of final grade
Homework assignments: 10% of final grade
Case preparation: 30% of final grade
VIII. Course Format
The course uses mini-lectures, class discussion, problems, exercises and
short cases to present materials. Individual homework and group projects
are used to promote learning. Three or four guest speakers from local
firms engaged in international trade are invited to supplement class
activities.
Classroom Hours (3 hours per week) Class: 3
Lab: 0
IX. Topics to Be Covered
A. International flow of funds
B. International financial markets
C. Exchange rate determination
D. Foreign currency futures and options
E. Exchange rate parity and arbitrage
F. Measuring exchange rate risk
G. Managing exchange rate risk
H. Financing international trade
I. Direct foreign investment
J. Multinational capital budgeting
K. Multinational capital structure
L. Country risk analysis
M. Long-term financing
N. Short-term financing
O. Strategic planning
P. International banking
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X. Laboratory Exercises
None.
XI. Technology Component
This is a required course for all finance majors to access the Internet and
to prepare assignments using Microsoft Excel and Word.
XII. Special Projects / Activities
None.
XIII. Textbooks and Teaching Aids
A. Required Textbook
Madura, Jeff. International Financial Management, 7th Edition:
Thomson South-Western , 2003.
ISBN: 0-324-16551-X
B. Alternative Textbooks
None.
C. Supplemental Print Materials
None.
D. Supplemental Online Materials
The Internet is used by students along with the computer in preparing
class assignments and project paper.
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Course Title: FINA 4315: Security Analysis and Portfolio Management
Semester Credit Hours: 3 (3, 0)
I. Course Overview
This course builds on the concepts developed in other courses concerning
financial management, investments, and statistics. It is designed to teach
the individual how to manage his or her money to get the maximum return
for the acceptable risk level. It provides in-depth coverage of how to
analyze different securities, select a portfolio, and manage that portfolio.
II. PMU Competencies and Learning Outcomes
The course builds skills of analysis, interpretation, and critical thinking in
a quantitative context. Teamwork skills are developed through group
securities analysis assignments. Written and oral presentation skills are
used in preparing assignments and through tests and class presentations.
Students build their technology competencies through se of Microsoft
Excel and the computer.
III. Detailed Course Description
The course addresses evaluation of investment securities of both private
and public institutions through external analysis of financial statements
and economic conditions. Portfolio selection, expected return and risk
selection, and conditions of market efficiency.
IV. Requirements Fulfilled
This is a required course for all finance majors. It may be taken by other
business majors who have acquired the necessary prerequisites.
V. Required Prerequisites
FINA 3311: Financial Management Principles
FINA 4313: Investments
MATH 1313: Statistical Methods
VI. Learning Outcomes
To understand the asset allocation decision.
To learn the key developments in investment theory.
To analyze individual securities.
To understand and use the asset pricing model.
To describe and explain derivative securities.
To evaluate portfolio performance.
To understand and use company and industry analysis.
To describe and explain the efficient market hypothesis.
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VII. Assessment Strategy
Examinations: 60% of final grade
Homework assignments: 10% of final grade
Case Preparation: 30% of final grade
VIII. Course Format
The course uses mini-lectures supplemented by class assignments
individual discussions and group work to let the students learn the
concepts and be able to perform the analysis and interpret the results.
Classroom Hours (3 hours per week) Class: 3
Lab: 0
IX. Topics to Be Covered
A. Asset allocation
B. Risk and return
C. Portfolio management process
D. Securities markets
E. Modern portfolio theory
F. Fixed income investments
G. Financial statement analysis
H. Fundamental equity analysis
I. Technical equity analysis
X. Laboratory Exercises
None.
XI. Technology Component
The Internet is used to gather company and industry data for the analysis.
Students use their personal laptop computers in financial calculations and
in written assignments.
XII. Special Projects / Activities
None.
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XIII. Textbooks and Teaching Aids
A. Required Textbook
Reilly, Frank K., and Brown, Keith C., Investment Analysis and
Portfolio Management, Thomson South-Western, 7th Edition, 2003.
ISBN: 0-324-17173-0
B. Alternative Textbooks
None.
C. Supplemental Print Materials
None.
D. Supplemental Online Materials
Value Line or other financial databases are used to collect information
and readings from the Wall Street Journal or local financial
publications are assigned by the instructor.
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Course Title: FINA 4316: Capital Budgeting
Semester Credit Hours: 3 (3, 0)
I. Course Overview
This course addresses the key components of evaluating capital projects
including cash flow estimation, methods and evaluations techniques,
project and portfolio risk. Related topics such as modified rate of return,
net present value, profitability index, payback, disposal decisions, and
reinvestment assumption also are included.
II. PMU Competencies and Learning Outcomes
The course sharpens students’ analytical skills. Problem solving and use of
computers to aid in calculations help apply reasoning and critical thinking
skills. Teamwork skills are developed through group discussions to
interpret the results of different capital budgeting techniques and to help
students appreciate the complexity involved in complex investment
decisions.
III. Detailed Course Description
The course addresses methods for evaluating long term investments that
involve large sum of money with longer life than regular expenditures.
Students study how to estimate relevant cash flows, pros and cons of
different methods of evaluation, and how to interpret the results. The
course examines risk in investment decisions and how to measure them,
risk of a project, and risk in a portfolio. It includes modified rate of return,
net present value, profitability index, payback, disposal decisions,
reinvestment assumption, and dealing with capital rationing. Once
calculations are made, interpretation of the results is highlighted along
with the need for post-audits.
IV. Requirements Fulfilled
This course is an elective for finance majors and other business students.
V. Required Prerequisites
ACCT 2311: Fundamentals of Financial Accounting
ACCT 2321: Fundamentals of Managerial Accounting
ECON 1311: Introduction to Macroeconomics
ECON 1312: Introduction to Microeconomics
FINA 3311: Financial Management Principles
MATH 1313: Statistical Methods
Undergraduate Business Programs Page 118
VI. Learning Outcomes
To understand the importance of capital budgeting decisions.
To understand the meaning of different terms used in capital
budgeting.
To recognize and calculate relevant cash flows.
To learn how to use different methods and capital budgeting
techniques.
To learn how to assess project risk.
To identify and assess portfolio risk.
To describe and interpret the results.
To develop an awareness of the problems associated with multiple
yields, the reinvestment assumption, and decisions under capital
rationing conditions.
VII. Assessment Strategy
Examinations: 60% of final grade
Homework assignments: 10% of final grade
Case or Term Project: 30% of final grade
VIII. Course Format
Learning occurs through readings and mini-lectures, three or four guest
speakers from local businesses, problem solving, short cases, and written
assignments. Students work as individuals and in groups.
Classroom Hours (3 hours per week) Class: 3
Lab: 0
IX. Topics to Be Covered
A. Capital budgeting versus budgeting for operations
B. Determining relevant cash flows
C. Time value of money
D. Methods of evaluation
1. Payback
2. NPV
3. PI
4. Internal rate of return
5. Modified internal rate of return
E. Risk in capital budgeting
F. Risk in a project sense
G. Risk in a portfolio sense
H. Lease versus borrow decisions
I. Post-audits of projects
J. Administrative aspects of capital budgeting
K. Quantitative versus qualitative information and interpretation of results
Undergraduate Business Programs Page 119
X. Laboratory Exercises
None.
XI. Technology Component
Students use Microsoft Excel on their personal laptop computers to
calculate project return and risk factors.
XII. Special Projects / Activities
None.
XIII. Textbooks and Teaching Aids
A. Required Textbook
Peterson, Pamela P., and Fabozzi, Frank J., Capital Budgeting: Theory
and Practice: J Wiley, 2002.
ISBN: 0-471-21833-2
B. Alternative Textbooks
Seitz, Neil, and Ellison, Mitch, Capital Budgeting and Long-term
Financing Decisions, 4
th
Edition: Thompson South-Western, 2005.
ISBN: 0-324-25808-9
C. Supplemental Print Materials
None.
D. Supplemental Online Materials
None.
Undergraduate Business Programs Page 120
Course Title: FINA 4351: Special Topics in Finance
Semester Credit Hours: 3 (3, 0)
I. Course Overview
This course introduces current finance topics that are not covered or not
covered in sufficient depth in other finance courses. Special topics to be
announced may include corporate finance, financial management,
investments, real estate, insurance, or financial institutions and markets.
II. PMU Competencies and Learning Outcomes
The extent to which the course covers different competencies varies
depending upon the specific topics offered. However, all finance courses
should address analytical and problem solving skills, use computers and
the Internet where applicable, and apply reasoning and critical thinking
skills. Teamwork skills are addressed through group work.
III. Detailed Course Description
This course covers a selected area in finance. It also provides a method for
testing new finance courses to find if they fill a gap in the offerings or
serve as a possible elective for finance or non-finance majors. Exact
coverage and course requirements are recommended by the faculty and
approved by the department and the College of Business through the
normal curriculum approval process.
IV. Requirements Fulfilled
This course is an elective for finance majors and other business students.
V. Required Prerequisites
Prerequisites vary depending upon the topic. Admission to the course also
may be granted by permission of the instructor.
VI. Learning Outcomes
To understand new concepts in a finance area.
To further develop the student’s analytical skills.
Other learning outcomes are determined by the proposed topic.
VII. Assessment Strategy
Assessment varies depending upon the topic covered. It generally follows
the norm in finance courses by requiring tests, homework, problem
solving, and written assignments to enforce learning outcomes.
Undergraduate Business Programs Page 121
VIII. Course Format
The learning occurs through readings, mini-lectures, three or four guest
speakers from local businesses, problem solving, short cases, and written
assignments depending upon the topic covered. Students work as
individuals and in groups.
Classroom Hours (3 hours per week) Class: 3
Lab: 0
IX. Topics to Be Covered
Details of topics vary depending upon the subject of the course.
X. Laboratory Exercises
None.
XI. Technology Component
Varies depending upon the topic covered.
XII. Special Projects / Activities
Varies depending upon the topic covered.
XIII. Textbooks and Teaching Aids
A. Required Textbook
Varies depending upon the topic covered.
B. Alternative Textbooks
Varies depending upon the topic covered.
C. Supplemental Print Materials
Varies depending upon the topic covered.
D. Supplemental Online Materials
Varies depending upon the topic covered.
