The Financial Management course at NIU’s executive MBA program which is coded FINA 505 and titled ‘Fundamentals of Financial Management’ is the introductory finance class for MBA students. Prior background in finance is not required. The focus of this course is to teach basic financial principles, building upon the previous financial accounting course.
The SPRING 2011 SYLLABUS is highlighted below.
PROFESSOR: Gerry Jensen PHONE: 815-753-6399
OFFICE: Barsema 236-O FAX: 815-753-0504
OFFICE HOURS: M,W 11:00–11:45; 2:30-3:30 E-MAIL: gjensen@niu.edu
REQUIRED MATERIALS
1) Financial Management: Theory and Practice, 13th edition, Brigham and Ehrhardt
2) Financial Calculator (TI BAII Plus recommended)
COURSE GRADE DETERMINATION
Grades will be determined by a student’s scores on the quiz, exam, and take-home quizzes, which will be given throughout the term. If you must miss an assignment, you should let me know prior to the due date. The points from the missed assignment will be added to the comprehensive final exam. The point distribution is provided below:
| Graded Assignment | Point Value |
| In-Class Quiz | 25 |
| Take-Home Quizzes | 75 |
| Final Exam | 100 |
| Total Points | 200 |
The grading scale is: 90-100% => A; 80-89% => B; 70-79% => C; 60-69% => D;
COURSE CONTENT
The purpose of the course is to develop knowledge of the fundamentals of finance. The concepts and techniques discussed in this course will be applied to more comprehensive business problems in Dr. Johnson’s Financial Analysis course.
Approximate Course Schedule and Outline
| Week | Chapter | Questions | Problems |
| 1 | 4 | 4, 5 | 1-5, 7-31 |
| 2 | 12 | 1, 2, 4-81-8 | None1-4, 6, 9, 12 |
| 3 | 312 | 2, 4, 62, 3, 6 | 1-3, 5-131-3, 5-7 |
| 4 | 5 | 1-5 | 5-8, 12, 21 |
| 5 | 624 | 3-62 | 1-3, 6-96, 8 |
| 6 | 719 | 1-31, 2 | 1-6, 8-13, 15, 16, 181 |
| 7 | 823 | 1-31-5 | 1-3None |
| 8 | ExtrasFinal Exam | None | None |
* Quiz: A 25-point in-class quiz will be given in week 4.
* Take-Home Quizzes: The questions and problems identified in the text will not be collected. Solutions to the questions and problems from the text are available on Blackboard. The take-home quizzes will be handed out in class and collected the following week. There will be a total of 75 points of take-home quizzes. The first take-home quiz will be assigned in week 1.
* Final Exam: The final exam is worth 100 points and is comprehensive. Copies of a previous year’s exams are posted. The final exam will be given during the first half of class on the eighth week. The second half of class on the final week will be devoted to reviewing an investment evaluation of several firms.
* Finally, the above outline should be viewed as a rough guide. I plan to follow the schedule; however, I will not rush through material just to meet the outline.
Take-Home Quiz (Homework) Requirements
1. Homework is due at the beginning of class on the specified due date.
2. Students must turn-in a clean photocopy of their original prepared homework. Do not write on the photocopy.
3. Students are expected to have basic knowledge of spreadsheet software. Homework may require preparation and analysis using spreadsheets. Each individual will be required to prepare a unique spreadsheet.
4. Homework will be graded on appearance, clarity, completeness, and accuracy of the work.
5. Homework must be prepared on one side of an 8 1/2” by 11″ page -no torn/ripped sheets. More than one page will be required for most homework.
6. Students must show the derivation/calculation of any number not given in the problem. Show the formula used with the appropriate numbers in the formula. (See example below.) Cell references should not be reported in the descriptions of your work.
7. The final answer, and all calculations used in obtaining the final answer, should be clearly labeled.
8. Students are responsible for obtaining homework assignments and turning in completed homework.
9. Tables of solutions and answers to questions should not be split across pages. The solutions must be reported in a font/handwriting that is easily deciphered.
WORK EXAMPLE:
Correct Approach:
ri = rf + bi x (rm – rf)
ri = 0.0485 + 0.90 x (0.106 – 0.0485) = 0.100250 or 10.025%
Incorrect Approaches:
1. ri = 10.025% (used the CAPM)
2. ri = rf + bi x (rm – rf) = 10.025%