INSTRUCTOR: Richard D. Marcus, Ph.D.is an Associate Professor of Business and the Chair of the LSB Executive Committee

OFFICE: S430F in Lubar Hall. My mailbox is also on the fourth floor of Lubar Hall

OFFICE HOURS: Tuesdays and Thursdays from 11:00AM - noon in Lubar Hall S430F and by appointment.

TELEPHONE: 414-229-4103 (office) or 414-228-7731 (home)

E-mail: *marcus@uwm.edu*

HOMEPAGE: *https://pantherfile.uwm.edu/marcus/www/*

PRINCIPLES OF FINANCE 350: Examines the fundamentals of financial management, asset/liability valuations, risk and return, investment analysis, sources and uses of funds, cost of capital, and cash management. Prerequisites are soph st; Econ 103(P) & 104(P); Bus Adm 201(P) or 207(P); Bus Adm 210(P) or 211(P).

TEXTBOOK and CONNECT FINANCE: An electronic textbook and electronic homework assignment is available on directly from McGraw-Hill together, called __Connect-Plus__ for $89. You can purchase __Connect__ without the electronic textbook for $49.99 also from McGraw-Hill. The textbook is: Ross, Westerfield, and Jordan: __Essentials of Corporate Finance__ 7th © 2011 McGraw-Hill. You will need Connect for your homework assignments. As outlined in this syllabus, assignments will make up a significant portion of your overall course grade. Both Connect and Connect-Plus can be accessed by clicking the Connect Registration link below. Purchase of materials through the UWM bookstore is more expensive, as they have a loose-leaf book with Connect for $148.

REGISTRATION FOR CONNECT: To register for Connect, please register at the web link for our class is given below. Click the blue *Buy Connect* to register for CONNECT-only or click the blue *Buy Connect Plus* to purchase an electronic version of the textbook. The web link is:
*http://connect.mcgraw-hill.com/class/r_marcus_350_fall2012*. When registering online, you will have the option of purchasing Connect or Connect Plus; should you require it, you may register and access Connect or Connect Plus for 3 weeks before paying for it. Connect Plus gives you access to the full textbook, which is both searchable and printable.

SUPPORT AND TIPS FOR CONNECT: If you have any issues while registering or using Connect, please contact the Care Team for McGraw-Hill through *http://www.mhhe.com/support* . Our course examines Chapters 1-15. To avoid problems related to unexpected technical issues, you are advised not to wait until the last moment to complete assignments.

TEACHING ASSISTANT, EMAIL, DISCUSSION SECTIONS: We an outstanding Teaching Assistant, Dave Mateljan (E-mail: *mateljan@uwm.edu*). Dave Mateljan is TA for Discussions 606 through 610.

TA OFFICE, PHONE NUMBER, and OFFICE HOURS: Dave Mateljan's office is S325 in Lubar Hall. His office phone number is 414-229-2547. Dave Mateljan's office hours each week are on Tuesdays from 1-3 PM.

CLASSROOM POLICIES: UWM has long-standing policies on academic misconduct, sexual harassment, discrimination, adding, dropping, withdrawal, repeating classes, and changes of grade. These policies are available at: https://pantherfile.uwm.edu/marcus/www/policies.html.

**Labor Day is Monday, September 3:** The university is closed.

__WEEK 1__: **Lecture #1 on Tuesday, September 4:** Chapter 1- Introduction to Financial Management

Discussion 1: Wednesday, September 5: Demo and Intro to Connect Finance, D2L links to Facebook and Twitter for UWMFinance350.

**Lecture #2 is on Thursday, September 6:** Chapter 2 - Financial Statements, Taxes, and Cash Flows.

Monday, September 10: Due date for the first Finance Connect assignment. This assignment is __ungraded__ from Chapter 1 .

__WEEK 2__: **Lecture #3 on Tuesday, September 11:** Chapter 2 (continued) - CFFA or Cash Flow From Assets

Discussion 2: Wednesday, September 12: OCF and CFFA problems (problems 19-21, pages 46-47).

**Lecture #4 on Thursday, September 13** Chapter 3 - Working with Financial Statements (emphasis on ratio analysis).

Monday, September 17: Due date for the second assignment Finance Connect assignment from Chapters 2 & part of chapter 3. This assignment is __graded__, but you have multiple times to take it before the deadline.

__WEEK 3__: **Lecture #5 on Tuesday, September 18:** Chapter 3 (continued) - The Du Pont Identity

Discussion 3: Wednesday, September 19: TAT (Total Asset Turnover from pages 59-60 and problem 22 on page 87) and Du Pont Identity questions.

**Lecture #6 on Thursday, September 20:** Chapter 4 Introduction to Valuation (BYC = Bring Your Calculator!)

Monday, September 24: Due date for the third Finance Connect assignment from Chapter 3 and Chapter 4. This assignment is __graded__.

__WEEK 4__: **Lecture #7 on Tuesday September 25:** Chapter 5 - Discounted Cash Flow Valuation (BYC)

Discussion 4: Wednesday, September 26: TVM (Time Value of Money) from end of Chapter 4 and some from Chapter 5 on uneven Cash Flows using your financial calculator: selected Questions and Problem from page 153-157 - **BYC** (bring your calculator!) HINT: Do all the worked problems on page 604-606 (textbook Appendix D) for TI BA II Calculators and HP-10B Calculators.

**Lecture #8 on Thursday, September 27:** Chapter 5 (continued) - Effective Annual Rates (EARs), Perpetuities, Midterm 1 Overview.

Monday, October 1 is also the due date for the fourth Finance Connect __ungraded__ assignment based on Chapter 5 as a great review also for Midterm 1.

__WEEK 5__: **Tuesday, October 2:** is our ** MIDTERM #1** in classroom N140 noon to 1PM and BYC! Midterm 1 covers Chapters 1-5.

Discussion 5: Wednesday, October 3: Return of Midterm #1, Answers to Midterm #1, and "The five keys to bond valuation"

**Lecture #9 on Thursday, October 4:** Chapter 6 - Interest Rates and Bond Valuation

Sunday, October 8: Due date for fifth Finance Connect assignment from Chapter 6. This assignment is __graded__.

__WEEK 6__: **Lecture #10 on Tuesday, October 9:** Chapter 6 (continued) - Bond Features, Bond Types, and Yield Curves

Discussion 6: Wednesday, October 10: Selected problems from Chapter 6.

**Lecture #11 on Thursday, October 11:** Chapter 7 - Equity Markets and Stock Valuation

Monday, October 15: Due date for sixth Finance Connect assignment from Chapter 7. This assignment is __graded__.

__WEEK 7__: **Lecture #12 on Tuesday, October 16:** Chapter 7 (continued) - Preferred Stocks, Primary Markets, and Secondary Markets for Equities

Discussion 7: Wednesday, October 17: DGM - The Dividend Growth Model and selected problems from Questions and Problems pages 225-227.

**Lecture #13 on Tuesday, October 18:** Chapter 8 - NPV is Net Present Value and IRR is Internal Rate of Return

Monday, October 22: Due date for seventh assignment from Finance Connect from Chapter 8. This assignment is __graded__.

__WEEK 8__: **Lecture #14 on Tuesday, October 23** Chapter 8 (continued) - Capital Budgeting and Capital Rationing

Discussion 8: Wednesday, October 24: NVP and IRR using Excel and on calculators, and selected problems form page 259

**Lecture #15 on Thursday, October 25** Chapter 9 - Making Investment Decisions

Monday, October 29: Due date for eighth Finance Connect assignment based on Chapter 9. This assignment is __graded__.

__WEEK 9__: **Lecture #16 on Tuesday, October 30** Chapter 9 (continued) - Sensitivity Analysis of Capital Projects and Managerial Options

Discussion 9: Wednesday, October 31: Calculating project Operating Cash Flows (OCF) examples from Page 296.

**Lecture #17 on Thursday, November 1** Chapter 10 - Lessons from Capital Market History

Monday, November 5: Due date for ninth Finance Connect assignment based on Chapter 10. This assignment is __ungraded__.

__WEEK 10__: **Lecture #18 on Tuesday, November 6:** Chapter 10 (continued) Capital Market Efficiency and review for Midterm #2

Discussion 10: Wednesday, November 7: Arithmetic *versus* Geometric Returns and selected problems from pages 334-335

**Thursday, November 8:** is our ** MIDTERM #2** in classroom N140 noon to 1PM and BYC! Midterm 2 covers Chapters 6-10.

Sunday, November 12, no Connect Assignment due.

__WEEK 11__: **Lecture #19 on Tuesday, November 13:** Chapter 11 - Risk and Return

Discussion 11: Wednesday, November 14: Return of Midterm 2 and How a beta is estimated, and selected problems from pages 371-373.

**Lecture #20 on Thursday, November 15:** Chapter 11 (continued) - The Security Market Line and CAPM (The Capital Asset Pricing Model)

Monday, November 19: Due date for the tenth Finance Connect assignment from Chapter 11. This assignment is __graded__.

__WEEK 12__: **Lecture #21 on Tuesday, November 20:** Chapter 12 - The Cost of Capital

Discussion 12: Wednesday, November 21: Review of the WACC (Table 12.1 on page 389) and selected problems

**Lecture #22 on Thursday, November 22:** Chapter 12 (continued) - Some methods for finding the cost of capital for projects not similar to the whole firm

Monday, November 26: Due date for the eleventh Finance Connect assignment from Chapter 12. This assignment is __graded__.

__WEEK 13__: **Lecture #23 on Tuesday, November 27:** Chapter 13 - Leverage and Capital Structure

Discussion 13: Wednesday, November 28: *Workout versus a Bankruptcy* and selected problems from page 433-435.

**Lecture #24 on Tuesday, November 29:** Chapter 13 (continued) - An Optimal Capital Structure?

Sunday, December 3: Due date for the twelfth Finance Connect assignment from Chapter 13. This assignment is __ungraded__.

__WEEK 14__: **Lecture #25 on Tuesday, December 4:** Chapter 14 - Dividends and Dividend Policy

Discussion 14: Wednesday, December 5: Stock Splits and Reverse Stock Splits and a few questions from pages 463-465

**Lecture #26 on Thursday, December 6:** Chapter 14 (continued) - Stock Dividends and Stock Repurchases

Monday, December 10: Due date for Thirteenth Finance Connect assignment from Chapter 14. This assignment is __graded__.

__WEEK 15__: **Lecture #27 on Tuesday, December 11:** Chapter 15 - Raising Capital and Issuing Securities

Discussion 14: Wednesday, December 12: Dutch auction underwriting of an IPO and review questions for the final

Thursday, December 13: This is the University Study Day. No classes.

Friday, December 13: Due date for our fourteenth Finance Connect assignment from Chapter 15. This assignment is __ungraded__.

**Also Friday, December 14:** is our ** FINAL** in classroom N140 from 12:30 to 2:30 PM. Remember to BYC! The Final covers Chapters 11-15.

Scores and grades will be posted on D2L at *http://d2l.uwm.edu/* and an email notice will be sent when grades have been reported on PAWS.