FINANCE 301: CORPORATION FINANCE: SPRING 2017

ISENBERG SCHOOL OF MANAGEMENT

UNIVERSITY OF MASSACHUSETTS

Instructor: Jim Campasano, Monday and Wednesday 4:00 PM Mahar Auditorium

Email: vcampasa@som.umass.edu
Office Hours: Monday, Wednesday 2:30 3:30 in Mahar
See Blackboard tab OFFICE HOURS For Complete Listing Under TA Office Hours
Friday Optional Review Sessions: 9:05 9:55
Course Prerequisites

Finance 301 is the introductory finance class at the Isenberg School of Management. Most
students in this section are Isenberg juniors who have completed college level courses in
mathematics, economics, and statistics. The formal course prerequisite is Accounting 221
(Introduction to Accounting). Given the quantitative nature of the course, it is just as important
that students have a working knowledge of algebra.

Course Materials and Resources (Required and Optional)

BLACKBOARD(Required)
TEXTBOOK (Required) Modern Corporate Finance: Theory and Practice, by Chambers and
Lacey, 7th Edition. There are a few reserve copies at the main library.

COURSE NOTES (Required): Download available gratis through blackboard. Bound copies can
be purchased from Campus Copy and Design, a not-for-profit UMass student-run business,
located at 403 Student Union Building.

CALCULATOR (Required): Must have a multiple power key and a natural log key. I recommend
the TI 84 Plus (the calculator Ill use in class for illustration), but any calculator, financial or non-
financial, can be used.

OWL (Required). The Online Web based Learning tool will be used for homework assignments
and quizzes. OWL can be accessed at any time from any location.

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AUDIENCE RESPONSE SYSTEM (ARS) (Optional): ARS will be used to generate student responses
to class questions, and valid responses to ARS questions will qualify for extra credit points. We
will be using the iClicker Model 2 with display (note: the software through phone technology is not
supported by the campus.

Class Attendance

Attendance is required on exam and quiz days only. Students are however responsible for all
material covered in class including any announcements pertaining to changes in assignments
and exams. Students who miss an exam for University accepted reasons will be able to sit for
the make-up exam as described below. Lectures will be captured and posted on blackboard.
Course Letter Grades (see the link: Course Letter Grades on the course website)

Grades will be determined solely by the number of points accumulated out of a possible 400
points. There are two extra-credit categories that add bonus points in order to boost grades.
More information can be found in Course Letter Grades on the course website.

Exams (250 points)

The course will feature two examinations: (1) midterm on March 8, 2017 in Mahar 4:00 PM to
5:15 PM, (2) final exam scheduled by the Registrar during the final period.

Examination #1: Wednesday March 8, 2017, 4:00 PM to 5:15 PM 100 points

Examination #2: Scheduled by the Registrarduring finals period 150 points

Make-up exams are by appointment only and must be scheduled at least one-week prior to the
exam date.

Quizzes (100 points)

The course will feature two quizzes, both on scheduled class periods and both delivered on the
OWL platform. There will be no meeting in Mahar Auditorium on quiz days - the quiz can be
taken anywhere with a reliable and fast web connection.

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Quiz #1: Wednesday February 15, 2017, 4:00 PM to 5:15 PM, OWL Platform
Quiz #2: Monday April 10, 2017, 4:00 PM to 5:15 PM, OWL Platform
Make-Up Quiz Day: Monday, May 1, 2017, 4:00 PM to 5:15 PM, OWL Platform

On make-up quiz day, students will be able to take either Quiz #1 or Quiz #2. The score on this
quiz can be used to replace the score on either quiz but not both.

Topic Reviews (50 points)

Topic reviews are assignments using the OWL platform and can be earned only by submitting
correct responses during the open window. Assignment due dates are firm and no points will
be awarded beyond the deadline. More information on topic reviews can be found on the table
below.

Extra Credit Grade Booster

Audience Response System (ARS) with iClicker. (Maximum of 20 points)

Students can earn extra-credit points by submitting valid responses through an i>Clicker. ARS
units are awarded only to students who (1) are present during the class period, (2) have a
working ARS clicker in their hand, and (3) submit a valid ARS response during the open time
window. No units will be awarded to any student for any reason once the window closes. ARS
extra-credit will be awarded according to the following table:

5 points for accumulating between >10% and 25% of the total possible ARS units
10 points for accumulating between >25% and 50% of the total possible ARS units
15 points for accumulating between >50% and 75% of the total possible ARS units
20 points for accumulating between >75% and 100% of the total possible ARS units

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Other Course Information

1. Class Meetings: Class meetings follow the University calendar, and, with respect to weather,
this simple rule: class meets if the University is open, and is cancelled if the University is
closed. Note that exam and quiz schedulesare fixed and will not change due to weather
related closings.

2. How to Do Well in FINANCE 301: Students often ask advice on how to complete this
course successfully. My best answer is to follow these seven steps:

1. Read all assigned chapters prior to class

2. Attend every class with curiosity and an open mind
3. Read each chapter a few more times after the material is presented in class
4. Follow the demonstration problems behind each chapter
5. Solve or try to solve each of the end-of-chapter problems
6. Leave yourself plenty of time to submit answers to every OWL assignment
7. Bring your calculator to every class and to every exam

3. Academic Honesty: All students are expected to follow the regulations established in
Undergraduate Rights and Responsibilities, and penalties will be imposed to those having
found to violate those rules. This especially includes on-line quizzes, where students are not
to discuss any aspect of any quiz question during quiz time, and must do their own work.
Academic honesty will be handled through the procedures outlined in the Code of Student
Conduct (Trustee Doc. #T-95-095A) and the University policy on Academic Honesty:
www.umass.edu/dean_students/codeofconduct/acadhonesty

Entering iClicker responses on your behalf by another student, as well as entering a

response for another student in the class,will be considered Academic Dishonesty.

4. Disability Services: The University of Massachusetts Amherst is committed to providing an

equal educational opportunity for all students. If you have a documented physical,
psychological, or learning disability on file with Disability Services (DS) or Psychological
Disabilities Services (PDS), you may be eligible for reasonable academic accommodations to
help you succeed in this course.

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 FINANCE 301 AT A GLANCE

TOPIC TEXT COURSE NOTES SESSION DATES *TOPIC REVIEWS (TR)

CHAPTER ALWAYS DUE 11:59 PM

Course Introduction Syllabus 1/23

Time Value of Money 4 Pages 1-21 1/25, 1/30, 2/1 TR1 2/3 Fri

Foundations of Finance 1 Pages 2228 2/6 TR2 2/10 Fri

Markets and Contracts 2 Pages 29-32 2/8 TR3 2/10 Fri

Valuation 5 Pages 33-43 2/13, 2/22 TR4 2/17 Fri

Options 6 Pages 45-56 2/27, 3/1, 3/6 TR5 2/24 Fri

Capital Budgeting 7, 8, 9 Pages 5874 3/20,3/27, 3/29 TR6 3/24 Fri

Introduction to Risk 11 Pages 75-90 4/3, 4/5 TR7 3/31 Fri

Financial Leverage 13 Pages 92-97 4/12 TR8 4/7 Fri

Dividends 15 Pages 98-103 4/18 TR9 4/14 Fri

Working Capital Mgmt 17 Pages 104-109, 4/19 TR10 4/21 Fri

111-117
International Finance 19 4/24 TR11 4/28 Fri

ASSIGNMENT

QUIZ 1 Feb 15 4 See Page 44 2/15

QUIZ 2 Apr 10 7,8,9 See Page 91 4/10

MakeUp QUIZ May 1 4 or 7,8,9 See Page 104 5/1

EXAM 1 Mar 8 1,2,4,5,6 See Page 57 3/8, 4:00 Mahar

EXAM 2 TBD 7,8,9, 11 See Page 118 TBD

13,15,17,19

Wednesday February 15 is a quiz session on OWL between 4 and 5:15 (we will not meet in Mahar)

Monday April 10 is a quiz session on OWL between 4 and 5:15 PM (we will not meet in Mahar)

Monday May 1 is a make-up quiz session on OWL between 4 and 5:15 PM (we will not meet in Mahar)

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*Notes on Topic Reviews

In most cases topic reviews (TRs) are due on the first day that the topic is covered in class. This is by design.
Topic reviews are best viewed as ready for class exercises that should best be completed prior to our class
discussion. Topic reviews are about concepts (not calculations) covered in each chapter.

Topic reviews can be found on OWL. You can begin working on them at least 7 days prior to their due date.
There are no extensions on the due date for any reason. Each student is given a 5-point cushion such that
there are 11 assignments worth 5-points each, but the amount of total points that can be earned is capped at
50. You have three chances to submit answers to each question, but to earn points you must submit answers
prior to the announced due day and due time (all at 11:59 PM on the due day). The longer you wait to submit
responses, the greater the chances that youll be shut out, even for legitimate reasons. After the third chance,
or after the due date, you can continue to submit answers for practice, but you can no longer earn points.