Introduction to Finance
Fall 2021 Course Outline
Finance and Business Economics Area
金融网课代上 Topics include: the time value of money, capital budgeting, the trade-off between risk and return and valuing securities like stocks and bonds.
This is the first course in finance. The objective of this course is to introduce you to the basic concepts of the subject. Topics include: the time value of money, capital budgeting, the trade-off between risk and return and valuing securities like stocks and bonds. Future finance courses will build on the basic conceptual framework mastered here, with the goal to make you a prudent financial decision-maker.
INSTRUCTOR AND CONTACT INFORMATION 金融网课代上
Office hour: Thursday 9:30 – 10:30 and by appointment made through email
[email protected] Office: Virtual (on zoom) Office Hours: TBA
|Credit Value:||3||Leadership:||Yes||IT skills:||Yes||Global view:||Yes|
|Participation:||No||Innovation:||No||Group work:||No||Oral skills:||Yes|
|Evidence-based:||Yes||Experiential:||No||Final Exam:||Yes||Guest speaker(s):||No|
This course introduces students to the world of corporate finance, i.e., a financial manager’s domain in a corporate form of business. In the first part of the course students will learn to determine the value of a dollar across timeline. Then students will embark on a journey to apply the principle of time value of money to appraise and choose projects to undertake, define investments based on risk-return criterion and price basic financial instruments like stocks and bonds.
Upon successful completion of this course, students will be able to complete the following key tasks:
- Recognize the different functions of a financialmanager
- Evaluate cash flow(s) at different times using the concepts of the time value ofmoney
- Analyze a set of investment opportunities using capital budgeting tools and making investment decisions in uncertainsituations
- Understand the concepts of risk and required return and evaluate investment opportunities based onboth criteria
- Price equities (common stocks and preferred stocks) and fixed income securities(bonds)
COURSE MATERIALS AND READINGS 金融网课代上
Required textbook: Fundamentals of Corporate Finance with access to Connect*, Tenth (10th) Canadian Edition; McGraw-Hill Ryerson, 2019; Included in Inclusive Access with the bookstore
Option 1: custom digital – (2-year access; for both 2FA3 and 2FB3/3FA3) – $80;
Option 2: print textbook + Connect 2-year custom access – $139.99.
Exclusively available at the campus bookstore.
*You will need access to Connect which will be used for graded weekly required reading, and homework assignments
COURSE OVERVIEW AND ASSESSMENT
This course will be delivered in a virtual classroom environment. The core content will be delivered using pre-recorded lectures while there will be one weekly session of live lectures. Please see the spreadsheet in the “Introduction” folder on Avenue to see the synchronous lectures for your section during the semester. The zoom link for the synchronous lectures will be posted on Avenue in a timely fashion. The course will feature virtual office hours, virtual tutorial sessions, online assessments including weekly required readings followed by questions, weekly assignments, two midterm tests and a final exam.
|Lecture core content||asynchronous||Weekly 2-4 recorded lecture videos (each 20-35
minutes long) *
posted on Avenue
|Live lecture||synchronous||Weekly 50-minute live session; elaborate on
content, answer student queries
|Tutorial||synchronous||Weekly 50-minute live session with TA; discuss
weekly materials covered and problem solving
|Problem Solving||synchronous||Weekly 50-minute live session with TA going over
the weekly assignment questions
|Readings||asynchronous||Weekly required textbook chapter sections;
materials posted on Avenue
*A list of week-by-week topics covered in asynchronous lectures is posted later in the outline.
Course assessment: There are four different types of assessments for this course. The final student grade will be calculated as follows based on these:
|Weekly reading (x10)||10%||Answer questions from required readings||Each Monday 11:59 pm (Starting 13th September)||Connect|
|Weekly homework (x10)||10%||Ten Multiple choice questions every week||Each Tuesday 11:59 pm (Starting 14th September)||Connect|
25%*2 = 50%
Multiple choice questions
|Mid 1: Week starting October 4th
Mid 2: Week starting November 15th
Multiple choice questions
|Exam week (Cumulative) 150 minutes||
COURSE DELIVERABLES 金融网课代上
Weekly Readings – Connect (10)
Every week a set of questions will be assigned from the required reading on Connect. Students will complete required readings from the textbook and answer related questions. This is expected to take between 45 to 90 minutes every week and will enhance student understanding of the material covered for the week. Students should try to complete these readings before weekly synchronous sessions with the instructor. This is designed to enhance class participation, lively and useful Q&A sessions and strengthen student understanding. Each weekly reading question answers is due to be completed by Monday 11:59 pm (Hamilton, ON time).
Time extensions are not granted for the weekly readings under any circumstances. Missed weekly readings will receive a grade of zero.
Weekly Homework – Connect (10)
Every week a set of ten questions will be assigned on Connect. Students will complete these individually. These assignments will have strict deadlines. Each weekly homework is due to be completed by Tuesday 11:59 pm (Hamilton, ON time).
Time extensions are not granted for the homework assignments under any circumstances. Missed weekly homework assignment will receive a grade of zero. 金融网课代上
Midterm tests (2):
There will be two midterm tests. Both will be open books and notes, held on Avenue and will run for two hours. Each test will have thirty (30) multiple choice questions (MCQs) of different level of difficulty carrying different weights. The tests will be open for 2 hours for any student during a 24-hour period. The first midterm test will be held during the week starting October 4th and will test you on materials covered in the first four weeks of class (chapters 1, 2, 5 and 6). The second midterm test will be held during the week starting November 15th and will test you on materials covered in weeks six through nine (chapters 9, 10, 12 and 13).
Missed tests/exams will receive a grade of zero unless the student has submitted and been approved for a Notification of Absence or MSAF.
At McMaster University, student learning in undergraduate courses should be assessed on more than one occasion. No single academic obligation (e.g., essay, test, examination, etc.) should have a value of more than 75% of the final grade without approval from the Department Chair or Associate Dean’s Office. The two midterm tests in this course are each worth 25% of total grade. To this end, a student can request relief for one of the tests only (as approved by the Student Experience Office for coursework worth more than 24%). If a student needs to submit a request for missed coursework for both tests during the semester, s/he will have to communicate with the instructor so that an alternate arrangement can be made. The final exam marks will be reweighted in case of approved missed tests.
This exam will be cumulative. The final exam will comprise of forty-five (45) multiple-choice questions.
The material tested on of final exam will include the material covered in class as well as the suggested end of chapter problems and weekly quizzes and assignments.
The exam will be scheduled by the registrar’s office and take place during the finals week. The exam will be held on Avenue. The duration of the final exam is 150 minutes (2 and a half hours). 金融网课代上
A student missing the final exam is subject to the policies and procedures outlined in the undergraduate Academic Calendar for missed final exams.
Missed assessments will not be eligible for ‘curve’ used for that assessment, if any.
NOTE: You can use any calculator (regular and financial) and MS Excel during all assessments in this course. All assessments are open books and notes. They are to be completed individually.
Tutorial and Problem-Solving Sessions
There will be one weekly tutorial session and one problem solving session conducted by the TA of the course. These sessions are optional for students to attend. In the tutorial session, the TA will answer your questions and go over two or three problems for the materials covered for the week. In the problem-solving session, the TA will go over the solutions for the immediate past weekly Connect assignment. The times and zoom links of these sessions can be found in the
“Introduction” folder on course Avenue page.
COMMUNICATION AND FEEDBACK
Students who wish to correspond with instructors or TAs directly via email must send messages that originate from their official McMaster University email account. Students should only send emails to the TA assigned for their section which can be found at the first page of the outline. This protects the confidentiality and sensitivity of information as well as confirms the identity of the student. Make sure to add ‘COM 2FA3’ in the subject line of email correspondence with the designated TAs. Emails regarding course issues should NOT be sent to the Area Administrative Assistants. Students will receive evaluation feedback for 35% of the final grade prior to Week #9 in the term.
I may solicit feedback via an informal course review with students on Week #4 to allow time for modifications in curriculum delivery. Collected student feedback will be kept confidential and used to improve student experience for the course.
REQUESTING RELIEF FOR MISSED ACADEMIC WORK 金融网课代上
In the event of an absence for medical or other reasons, students should review and follow the Academic Regulation in the Undergraduate Calendar “Requests for Relief for Missed Academic Term Work” and the link below;
You are expected to exhibit honesty and use ethical behaviour in all aspects of the learning process. Academic credentials you earn are rooted in principles of honesty and academic integrity. It is your responsibility to understand what constitutes academic dishonesty.
Academic dishonesty is to knowingly act or fail to act in a way that results or could result in unearned academic credit or advantage. This behaviour can result in serious consequences, e.g. the grade of zero on an assignment, loss of credit with a notation on the transcript (notation reads: “Grade of F assigned for academic dishonesty”), and/or suspension or expulsion from the university.
For information on the various types of academic dishonesty please refer to the Academic Integrity Policy, located at https://secretariat.mcmaster.ca/university-policies-procedures- guidelines/
The following illustrates only three forms of academic dishonesty:
- plagiarism,g. the submission of work that is not one’s own or for which other credit has been obtained. 金融网课代上
- improper collaboration in group work.
- copying or using unauthorized aids in tests and examinations.
All submitted work is subject to normal verification that standards of academic integrity have been upheld (e.g., on- line search, other software, etc.). For more details about McMaster’s use of Turnitin.com please go to www.mcmaster.ca/academicintegrity.
COURSES WITH AN ON-LINE ELEMENT
This course uses on-line elements (e.g. e-mail, Avenue to Learn (A2L), Connect, web pages, etc.). Students should be aware that, when they access the electronic components of a course using these elements, private information such as first and last names, user names for the McMaster e-mail accounts, and program affiliation may become apparent to all other students in the same course.
The available information is dependent on the technology used. Continuation in a course that uses on-line elements will be deemed consent to this disclosure. If you have any questions or concerns about such disclosure please discuss this with the course instructor.
ONLINE PROCTORING 金融网课代上
The online exams and tests for this course is NOT proctored online. Instead the instructor chooses to employ the ‘honour code’ whereby all students are expected to observe high levels of integrity and submit work for grades based on independent efforts.
As a McMaster student, you have the right to experience, and the responsibility to demonstrate, respectful and dignified interactions within all of our living, learning and working communities. These expectations are described in the Code of Student Rights & Responsibilities (the “Code”). All students share the responsibility of maintaining a positive environment for the academic and personal growth of all McMaster community members, whether in person or online.
It is essential that students be mindful of their interactions online, as the Code remains in effect in virtual learning environments. The Code applies to any interactions that adversely affect, disrupt, or interfere with reasonable participation in University activities. Student disruptions or behaviours that interfere with university functions on online platforms (e.g. use of Avenue 2 Learn, WebEx or Zoom for delivery), will be taken very seriously and will be investigated. Outcomes may include restriction or removal of the involved students’ access to these platforms.
ACADEMIC ACCOMMODATION OF STUDENTS WITH DISABILITIES 金融网课代上
Students with disabilities who require academic accommodation must contact Student Accessibility Services (SAS) at 905-525-9140 ext. 28652 or [email protected] to make arrangements with a Program Coordinator. For further information, consult McMaster University’s Academic Accommodation of Students with Disabilities policy.
ACADEMIC ACCOMMODATION FOR RELIGIOUS, INDIGENOUS OR SPIRITUAL OBSERVANCES (RISO)
Students requiring academic accommodation based on religious, indigenous or spiritual observances should follow the procedures set out in the RISO policy. Students should submit their request to their Faculty Office normally within 10 working days of the beginning of term in which they anticipate a need for accommodation or to the Registrar’s Office prior to their examinations. Students should also contact their instructors as soon as possible to make alternative arrangements for classes, assignments, and tests.
COPYRIGHT AND RECORDING
Students are advised that lectures, demonstrations, performances, and any other course material provided by an instructor include copyright protected works. The Copyright Act and copyright law protect every original literary, dramatic, musical and artistic work, including lectures by University instructors.
The recording of lectures, tutorials, or other methods of instruction may occur during a course. Recording may be done by either the instructor for the purpose of authorized distribution, or by a student for the purpose of personal study. 金融网课代上
Students should be aware that their voice and/or image may be recorded by others during the class. Please speak with the instructor if this is a concern for you.
The University reserves the right to change the dates and deadlines for any or all courses in extreme circumstances (e.g., severe weather, labour disruptions, etc.). Changes will be communicated through regular McMaster communication channels, such as McMaster Daily News, A2L and/or McMaster email.
ACKNOWLEDGEMENT OF COURSE POLICIES
Your enrolment in Commerce 2FA3 will be considered to be an implicit acknowledgement of the course policies outlined above, or of any other that may be announced during lecture and/or on A2L. It is your responsibility to read this course outline, to familiarize yourself with the course policies and to act accordingly.
Lack of awareness of the course policies cannot be invoked at any point during this course for failure to meet them. It is your responsibility to ask for clarification on any policies that you do not understand.
Introduction to Finance
Fall 2021 Course Schedule
|Textbook chapter title||Specific topics to be covered||Covered in lecture and to be tested||Read on your own|
|Week 1||Chapter 1||Intro to Corporate Finance||1.1, 1.2, 1.3, 1.4, 1.5||1.6, 1.7|
|Week 2||Chapter 2||Financial statements, Cash flow, and Taxes||Capital Cost Allocation||2.5||2.1, 2.2, 2.3,
|Week 3||Chapter 5||Introduction to Valuation: The Time Value of Money||5.1, 5.2, 5.3|
|Week 4||Chapter 6||Discounted Cash flow Valuation||金融网课代上||6.1, 6.2, 6.3, 6.4|
|NO WEEKLY CLASSES|
|MIDTERM 1||Weeks 1 – 4||Ch 1, 2, 5, 6|
|Week 6||MIDTERM RECESS WEEK|
|Week 7||Chapter 9||Net Present Value and other investment criteria||9.1, 9.2, 9.4, 9.5, 9.6,
|Week 8||Chapter 10||Making Capital Investment Decisions||10.1, 10.2, 10.3, 10.4,
|Week 9||Chapter 12||Lessons from Capital market history||12.1, 12.3, 12.4, 12.5,
|Week 10||Chapter 13||Return, Risk, and the Security Market Line||13.1, 13.2, 13.3, 13.4,
13.5, 13.6, 13.7
|NO WEEKLY CLASSES|
|MIDTERM 2||Weeks 7 – 10||Ch 9, 10, 12, 13|
|Week 12||Chapter 7||Interest Rates and Bond Valuation||7.1, 7.2, 7.3, 7.6, 7.7||7.4, 7.5|
|Week 13||Chapter 8||Stock Valuation||8.1, 8.2, 8.3, 8.4|
|Week 14||Recap||All chapters||Week 1 – 12|
|FINAL EXAM||All Chapters|
* This is a tentative schedule. The schedule may be adjusted (as any unforeseen situation evolves) to the discretion of the instructor.