FIN 330: Principles of Finance

At the end of the syllabus you will find:

.    Module Written Assignment Details

.    Course Agenda

Course Description

Principles of finance involved in problems confronting business organizations.

Corequisite: None

Prerequisites

Prerequisite: ACCT 201; ECON 201 and ECON 202; BSAD 265 or MATH 156.

Credit Hours and Expected Student Effort

The course minimum is 2,250 minutes per credit hour.

As an Independent Study correspondence course, the class is largely independent, and you are asked to take responsibility for your own learning. Your instructor is available for assistance, clarification, and feedback on material as needed, but the course is designed for you to independently read any

required textbook and materials and progress through the course at a pace that is convenient and efficient for your schedule.

Important Dates

Students may drop courses before 15% of the course duration has passed from your registration date, without a record of the dropped course appearing on the student’s permanent record.

When a student withdraws from a course before 60% of the course duration has passed, a grade of “W” (withdrawal) will be recorded on the academic record. After 60% of the course duration has   passed, a student may not withdraw. Tuition and fees will not be adjusted for course withdrawals   during this withdrawal period.

Note: Drop/withdrawal dates for each course may vary. Please reach out to Independent Study

Program staff for your specific dates. Those dates can also be found in your registration confirmation.

Class Schedule

Correspondence courses require self-motivation. We recommend that you create a schedule for yourself to keep up with the work to ensure your successful completion of the course.

Hasan School of Business Program Student Learning Outcomes (SLOs)

Goal 1. Communication

Objective:

1.1. Prepare a written document and/or oral presentation that are focused, well-organized, as well as mechanically and professionally sound.

Goal 2. Problem Solving

Objective:

2.1. Identify problem(s) in unstructured settings and apply appropriate quantitative techniques to solve the problem(s).

2.2. Identify problem(s) in unstructured settings and analyze appropriate information to develop viable recommendations.

Goal 3. Global Awareness

Objective:

3.1. Demonstrate understanding of global issues and perspectives that may impact business solutions.

Goal 4. Ethical Awareness

Objective:

4.1. Demonstrate awareness of ethical issues and possible impacts on business decision making.

Course Objectives or Student Learning Outcomes/Instructional Methods

Students will:

1.   Discover the basics of finance.

2.   Explore the financial markets and types of financial institutions.

3.   Analyze financial statements and cash flows of firms.

4.   Provide evaluation to debt and equity within an organization.

5.   Identify and review cost of capital and risk for applicable situations.

Required Textbook and Other Materials

Title: Fundamentals of Financial Management – Concise Edition

Author: Brigham & Houston

Publisher: Cengage

Edition: 10 E

Year: 2020

ISBN of print book: 9781337902571

ISBN of eBook: 9780357687864

Other course materials will be provided.

Course Requirements

This section provides an overview of the course requirements. A more detailed breakdown of the    Course Agenda is at the end of the syllabus. It includes topics and expected student efforts, as well as the grading structure of the assignments.

Please reach out to Independent Study Program staff for your specific dates and course completion deadline.

FIN 330 requires active participation and an open mindset to be able to achieve learning objectives throughout each module of the course. For each module, completion of textbook readings and supportive PowerPoint slides will help to provide successful learning outcomes for the course. (The PowerPoint slides will be available in a printed form for print-based students.)

Assignments

The 8 Written Assignments, worth 100 points each, encompass 80% of the overall course   grade. Each written assignment is designated as part of a module and is focused at meeting specific learning objectives.

Each assignment will be graded on these components:

.    Content

.    Critical Thinking

.    Grammar/Spelling

Exams, Quizzes, and Projects

FIN 330 does not require proctored exams/quizzes, but there is a Portfolio Project due at the end of Module 8 that is worth 200 points.

Use of Technology

(This section does not apply to print-based students.)

Any course materials you need (beyond textbook) are provided in Blackboard.

Information for Print-Based Students

All the materials you need will be provided.

Your handwritten submissions need to be legible.

Attendance/Participation

Due to the nature of correspondence courses, attendance is not required. Participation will be gauged based on investment and effort exhibited in course requirements.

Grading

Grading Scale for FIN 330

Course Grading Breakdown

Academic dishonesty is a behavioral issue as well as an issue of academic performance. As such, it is considered an act of misconduct and is also subject to the University conduct process as defined  in the CSU Pueblo Student Code of Conduct. Whether or not disciplinary action has been implemented by the faculty, a report of the infraction should be submitted to the Office of Student  Conduct & Community Standards who may initiate additional disciplinary action. The decision by the Office of Student Conduct & Community Standards maybe appealed through the process outlined in the Student Code of Conduct.

Early Performance Survey

Effective Spring 2022, Independent Study Learn by Term correspondence courses will participate in the digital student success program (known as Starfish). Students who are not progressing in their course(s) at 4, 8 and 12 weeks will be flagged for follow-up from their Academic Success Coach to encourage course completion. Students enrolled in the Extended Learning sections who are curious about their performance in their classes will be communicated with throughout the course in the

form of feedback upon request or as further direction is warranted. Attention to suggested actions to improve academic performance is encouraged. This information is also available to individuals listed on the Consent for Release of Student Information who are involved in supporting their student’s success.

Module Written Assignment Details

Module 1 Assignment (100 Points)

Identify 3 Companies and Organizations that fall into separate types of Business

Organizations (Sole Proprietorship, Limited Liability Company, Corporation, Non-Profit, etc.). First, describe why corporate finance is important for each of the organizations, and second, describe the similarities or contrast of what each business model emphasizes in creating value. Support your content with references/citations.

Module 2 Assignment (100 Points)

Utilizing the financial statement information for McDonald’s Corporation, complete the

Performance Ratios listed for the following categories: Performance, Profitability, Resource Management, Liquidity, Leverage. Show your work for each ratio and provide a summary with description as to the overall performance of the company based on your analysis and calculations.

Module 3 Assignment (100 Points)

For this assignment, you will be stepping into the shoes of an investment advisor that is weighing the options of a potential investment that will be yielding either 5%, 10%, or 20% per year. Consider the following alternatives:

.    Investment Option A: $100 Received in 1 Year

.    Investment Option B: $200 Received in 5 Years

.    Investment Option C: $300 Received in 10 Years

Identify and rank the alternatives from most valuable to least valuable based on the 3 potential yields per year (5%, 10%, or 20%). After determining the potential investment returns for each option, what would you recommend for your potential investor?

Module 4 Assignment (100 Points)

Identify a potential new vehicle that you are interested in. Utilizing the estimated purchase price and the estimated Annual Percentage Rate (APR) that would be paid on a loan for the vehicle, provide what your monthly payment would be for an amortized loan over a 5-year period. Identify at least 3 factors that would take into account that would cause a variation in this payment amount. Additionally, identify how you could compute the outstanding balance on the loan 2 years into the payment history.

Module 5 Assignment (100 Points)

Colorado Inc. is a privately held developer of advanced security systems based in Denver, CO. As part of your business development strategy, in late 2020, you initiated discussions with Colorado Inc’s founder about the possibility of acquiring the business.

Estimate the value of Colorado Inc per share using a discounted FCF approach and the following data:

.    Debt: $30 Million

.    Excess Cash: $110 Million

.    Shares Outstanding: 50 Million

.    Expected FCF in 2021: $45 Million

.    Expected FCF in 2022: $50 Million

.    Future FCF growth rate beyond 2021: 5%

.    Weighted-average cost of capital: 9.4%

After identifying the value of Colorado Inc per share, explain at least 3 additional factors you would look to consider in the possibility of acquiring the business and why.

Module 6 Assignment (100 Points)

Imagine that you were given $10,000 today that could be invested/distributed in any manner that you choose to maximize return and value. Provide at least 3 stocks, investment options,  or alternative financing decisions that you would select for the utilization of the funds.

Indicate how much of the $10,000 you would designate for each alternative. Support your  decisions as to why each alternative was selected, and further, identify what potential yield you could end with at the end of the 10 years if past performance of the options identified   were an indication of future performance.

Module 7 Assignment (100 Points)

Step into the shoes of a CEO of a rapidly-growing technology firm based in Southern

Colorado. You are planning on raising $180 Million to fund the expansion of the company

and are deciding between issuing new shares or new debt. You are expecting that earnings in the coming year will be $24 Million. Additionally, your company currently has 10 million

shares outstanding and is at a solid price of $90 per share. Assuming you are in a perfect capital market, identify the following:

1.   If you raise the $180 million for expansion by way of selling new shares, what will the forecast for next year’s earnings per share be?

2.   If you were to raise the expansion funds by issuing new debt with an estimated  interest rate of 5%, what will the forecast for next year’s earnings per share be?

3.   What is your company’s forward P/E ratio if it issues equity? What is the forward P/E ratio if it issued debt?

4.   Identify which option you would recommend and why.

Module 8 Assignment (100 Points)

Identify a local organization that works in seasonality, such as a building material

organization or a department store. Describe the nature of the business and identify why it is important for the organization to understand the range of seasonality it is a part of. Taking

into account the degree of seasonality, identify and support at least 3 financing options or    tactics that the organization should focus on to help minimize the impact of the seasonality  for the organization. Further, identify the difference between the organization’s permanent  working capital and temporary working capital and how these play a factor in the financing options identified.

Course Portfolio Project (200 Points)

Part 1:

Prepare a personal balance sheet and personal income statement for your current situation, or a hypothetical 1-month scenario. Calculate, and present, at least 2 financial ratios from the

statements created, and provide a summary as to what the ratios are reflecting. After building both, provide a written summary that identifies strengths and opportunities in relation to the   assets and liabilities documented. Identify what factors would strengthen the bottom line.

Part 2:

Develop a summary of personal financial goals, including at least one in each of the

following terms: Short Term (within 2 Years) ; Intermediate-term (Within 5 Years) ; Long- term (Beyond 10 years)

Identify at least 2 actions that would support the attainment of each goal, and identify at least 2 threats that would hinder the accomplishment of each goal.

Lastly, develop an action plan that would assist in reaching each of the goals identified.