• Principles of Finance

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    Welcome to the online version of BA 372! This document addresses questions you may have about this online course. I have attempted to clearly lay out how the course will proceed, what I expect from you, what you can expect from me, and the ground rules for successful completion of this course.

    Instructor Information

    Instructor:              Dr. Sara Robicheaux

    Office Location:      Harbert 203-D

    Phone:                    205-249-7500 (cell – do not call after 6pm)

    Email:                      srobiche@bsc.edu (Preferred form of Communication)

    Welcome!  I am excited to get to know each of you.  I am Dr. Sara Robicheaux and I have been teaching finance for over 20 years.  This is my twentieth year at BSC.  I am a graduate of BSC with a major in math and minor in economics.  I have a masters in economics and a Ph.D. in finance. In addition to teaching at BSC, I first taught at the University of North Carolina.  I serve in the role of Dean of the Business Program and Director of the Stump program at BSC. 

     

    Course Information
    This course examines the theory and practice of corporate finance.  An introductory course in the principles of financial analysis directed at developing the tools necessary for sound financial decision-making.  Major topics include an overview of the financial environment, valuation, financial forecasting, and capital budgeting. 
     
    Course Expectations: 
    Students are expected to read and comprehend the assigned chapter; be able to answer questions that appear in the chapter; and, work the assigned problems for each chapter.  It is expected that students will have read the chapter before the attempting the assigned problems.  Students who are not prepared to present assigned problems or cases for each chapter or cannot answer questions in class regarding the assigned chapter will have their grade penalized accordingly.
     
    Course Objectives: 
    Finance is the cornerstone of the enterprise system.  General financial management is vitally important to the economic health of business firms and, hence, to the nation and world.  Because of its importance, finance should be thoroughly understood.  The course objective is to obtain a better understanding of general financial theory and financial management.
     
    Prerequisites:
    AC 221, EC 202, and MA 207. It is important that you have a basic knowledge of financial statements and accounting issues before beginning this course.


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  • Part 1: Intro to Financial Management

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    Part 1: Intro to Financial Management

    Assignments

     

    Chapter 1

    An Overview of Financial Management

     


    Video with Quiz

    Shareholders and Stakeholders, Intrinsic Value v Market Price

    Quizzes

    Quiz 1-1, Quiz 1-2, Quiz 1-3, Quiz 1-4, Quiz 1-5, Quiz 1-6, Quiz 1-7, Quiz 1-8

    Practice

    Chapter 01 Blueprint Problems

    Assignment 01: An Overview of Financial Management

     

     

    Chapter 2

    Financial Markets and Institutions

     


     

    Video with Quiz

    Efficient Markets, Hedge Funds, Money Market Mutual Fund, Securitization, Private Equity

    Quizzes

    Quiz 2-1, Quiz 2-2, Quiz 2-3, Quiz 2-4, Quiz 2-5, Quiz 2-6, Quiz 2-7

    Practice

    Chapter 02 Blueprint Problems

    Assignment 02: Financial Markets and Institutions


    • Part 2: Fundamental Concepts in Financial Management

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      Part 2: Fundamental Concepts in Financial Management

      Assignments

       

       

      Chapter 3

      Financial Statements, Cash Flow, and Taxes

       


      Video with Quiz

      Net Working Capital vs. Net Operating Working Capital, Retained Earnings, Concept Clip- Free Cash Flow, Concept Clip- Capital Gains & Losses

      Quizzes

      Quiz 3-1, Quiz 3-2, Quiz 3-3, Quiz 3-4, Quiz 3-5, Quiz 3-6, Quiz 3-7, Quiz 3-8, Quiz 3-9

      Practice

      Chapter 03 Practice Problems

      Assignment 03: Financial Statements, Cash Flow, and Taxes

       

       

      Chapter 4

      Analysis of Financial Statements

       


      Video with Quiz

      Liquid Asset, DuPont Equation

      Quizzes

      Quiz 4-1, Quiz 4-2, Quiz 4-3, Quiz 4-4, Quiz 4-5, Quiz 4-6, Quiz 4-7, Quiz 4-8, Quiz 4-9, Quiz 4-10, Quiz 4-11

      Practice

      Chapter 04 Practice Problems

      Assignment 04: Analysis of Financial Statements

       

       

      Chapter 5

      The Time Value of Money

       


      Video with Quiz

      Opportunity Cost, Discounting, Ordinary Annuity vs. Annuity, Amortization

      Quizzes

      Quiz 5-1, Quiz 5-2, Quiz 5-3, Quiz 5-4, Quiz 5-5, Quiz 5-6, Quiz 5-7, Quiz 5-8, Quiz 5-9, Quiz 5-10, Quiz 5-11, Quiz 5-12, Quiz 5-13, Quiz 5-14, Quiz 5-15, Quiz 5-16, Quiz 5-17, Quiz 5-18

      Practice

      Chapter 05 Practice Problems

      Assignment 05: Time Value of Money

       

      Test 1


       

       

      Part 1 & 2

      Chapters 1-5


      • Part 3: Financial Assets

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        Part 3: Financial Assets

        Assignments

         

         

         

        Chapter 6

        Interest Rates


         Video with Quiz

        Nominal Real Interest Rates, Default Risk Premium, Quantitative Easing, Term Structure of Interest Rates, Inverted Yield Curve, Pure Expectations Theory

        Quizzes

        Quiz 6-1, Quiz 6-2, Quiz 6-3, Quiz 6-4, Quiz 6-5, Quiz 6-6, Quiz 6-7, Quiz 6-8

         Practice: Chapter 06 Practice Problems

         Assignment 06: Interest Rates 

         

         

        Chapter 7

        Bonds and Their Valuation

         

         Video with Quiz

        Coupon Payment and Coupon Rate, Fixed vs. Floating Rate, Coupon Rate vs. Market Interest Rate, Bond Premium and Bond Discount, Yield to Maturity vs. Yield to Call,  Investment Grade v Junk

        Quizzes

        Quiz 7-1, Quiz 7-2, Quiz 7-3, Quiz 7-4, Quiz 7-5, Quiz 7-6, Quiz 7-7, Quiz 7-8, Quiz 7-9

         Practice: Chapter 07 Practice Problems

         Assignment 07: Bonds and Their Valuation

         

         

         

        Chapter 8

        Risk and Rates of Return


         Video with Quiz

        Diversification, Expected Rate of Return, Beta, Rates of Return

        Quizzes

        Quiz 8-1, Quiz 8-2, Quiz 8-3, Quiz 8-4, Quiz 8-5, Quiz 8-6

         Practice: Chapter 08 Practice Problems

         Assignment 08: Risk and Rates of Return

         

         

         

        Chapter 9

        Stocks and Their Valuation


         

         

         Video with Quiz

        Discounted Dividend Model, Dividend Yield vs. Capital Gains Yield vs. Total Return, Rate of Return

        Quizzes

        Quiz 9-1, Quiz 9-2, Quiz 9-3, Quiz 9-4, Quiz 9-5, Quiz 9-6, Quiz 9-7, Quiz 9-8

         Practice: Chapter 09 Practice Problems

         Assignment 09: Stocks and Their Valuation

         

        Test 2


         

        Part 3

        Chapters 6-9

         


        • Part 4: Investing in Long- Term Assets: Capital Budgeting

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          Part 4: Investing in Long- Term Assets: Capital Budgeting

          Assignments

                                                  

           

           

          Chapter 10

          The Cost of Capital

           

          Video with Quiz

          Components of Capital, Cost of Retained Earnings vs. New Common Stock

           Quizzes

          Quiz 10-1, Quiz 10-2, Quiz 10-3, Quiz 10-4, Quiz 10-5, Quiz 10-6, Quiz 10-7, Quiz 10-8, Quiz 10-9, Quiz 10-10

           Practice: Chapter 10 Practice Problems

           Assignment 10: The Cost of Capital

           

           

           

          Chapter 11

          The Basics of Capital Budgeting

           

          Video with Quiz

          Capital Budgeting, Mutually Exclusive v. Independent Projects, NPV vs. IRR,  Modified Internal Rate of Return, Crossover Rate

           Quizzes

          Quiz 11-1, Quiz 11-2, Quiz 11-3, Quiz 11-4, Quiz 11-5, Quiz 11-6, Quiz 11-7, Quiz 11-8, Quiz 11-9, Quiz 11-10

           Practice: Chapter 11 Practice Problems

           Assignment 11: The Basics of Capital Budgeting

           

           

           

          Chapter 12

          Cash Flow Estimation and Risk Analysis

           

          Video with Quiz

          Opportunity Costs and Sunk Costs, Externalities and Cannibalization, Corporate and Market Risk, Stand Alone Risk

           Quizzes

          Quiz 12-1, Quiz 12-2, Quiz 12-3, Quiz 12-4, Quiz 12-5, Quiz 12-6, Quiz 12-7

           Practice: Chapter 12 Practice Problems

           Assignment 12: Cash Flow Estimation and Risk Analysis

           

          Test 3

           

          Part 4

          Chapters 10-12

           


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                • Topic 10

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