IAF330 - Finance

Outline info
Semester
School
Last revision date 2017-11-20 15:23:55.439
Last review date 2017-11-20 15:23:57.257


Subject Title
Finance

Subject Description
In this course students learn the basic finance concepts, tools and theories required by a financial specialist, working in a Canadian organization and a global economy. This subject is designed to give the students a broad understanding of the use of mathematical techniques as an aid to managerial decision-making. This course prepares students to understand the language and description of Canadian financial markets and the implications of these markets to financial managers. The content includes analysis of the current financial environment and its components, security valuation, the capital budgeting process, the component costs of capital, introduction to risk, and financial planning.
Pre-requisites: BAB140, and BAB210

Credit Status
One credit towards the  Honours Bachelor of Commerce -  International Accounting and Finance degree program.

Learning Outcomes
Upon successful completion of this subject the student will be able to:

1. Describe and classify the goals and functions of financial management.

2. Identify and analyze the relationship between the balance sheet, income statement and statement of changes in financial position from the perspective of a financial manager.

3. Evaluate the financial performance of a firm using ratio analysis.

4. Explain the concept of the "time value of money" and calculate financial results using present value techniques.

5. Calculate the value of financial assets such as bonds, preferred stock, and common shares using present value techniques.

6. Compare and contrast the net present value technique with other capital budgeting techniques.

7. Assess the relationship between current asset management and short-term financing and the impact of risk on these decisions.

8. Identify the sources of short-term financing and determine the use of such to make effective financing decisions.

9. Describe and analyze a security's risk and return using the capital asset pricing model.

10. Apply the measurement of risk to capital budgeting decisions.

11. Identify and explain the common statistical measures of dispersion used in finance to measure risk. (i.e. variance, standard deviation, and beta)

12. Apply three standard approached to valuation under leverage and quantify the effect of leverage on the financial results of a firm.

Cheating and Plagiarism
Each student should be aware of the College's policy regarding Cheating and Plagiarism. Seneca's Academic Policy will be strictly enforced.

To support academic honesty at Seneca College, all work submitted by students may be reviewed for authenticity and originality, utilizing software tools and third party services. Please visit the Academic Honesty site on http://library.senecacollege.ca for further information regarding cheating and plagiarism policies and procedures.

Discrimination/Harassment
All students and employees have the right to study and work in an environment that is free from discrimination and/or harassment. Language or activities that defeat this objective violate the College Policy on Discrimination/Harassment and shall not be tolerated. Information and assistance are available from the Student Conduct Office at student.conduct@senecacollege.ca.

Accommodation for Students with Disabilities
The College will provide reasonable accommodation to students with disabilities in order to promote academic success. If you require accommodation, contact the Counselling and Disabilities Services Office at ext. 22900 to initiate the process for documenting, assessing and implementing your individual accommodation needs.

Prerequisite(s)
BAB 140 and BAB 210

Topic Outline

TOPICS
Goals & Functions of Financial Management
Time Value of Money
Value of Financial Assets (Bonds, Preferred stock & Common Stock)
The Balance Sheet, Income Statement and Statement of Changes in Financial Position
Ratio Analysis
Current Asset Management
Sources of Short-term Financing
Net Present Value and Other Capital Budgeting Techniques
Apply the Measurement of Risk to Capital Budgeting
Common Statistical Measures of Dispersion
Capital Asset Pricing Model
Standard Approaches to Valuation Under Leverage
Standard Approaches to Valuation Under Leverage

Mode of Instruction
In-Class

A combination of teaching methods will be utilized which may include lectures, case studies, discussions, group and individual work.

Prescribed Texts
TEXT: Financial Management: Theory and Practice
EDITION: 3RD
AUTHOR:Brigham/ Ehrhardt/ Gessaroli/ Nason
PUBLISHER: Nelson Education Limited (use NELCA)

ISBN-10: 017658305X
ISBN-13: 9780176583057

Reference Material
Seneca Libraries. Guide to Research and Citation: MLA Style. latest Edition,. Toronto: Seneca College,

Required Supplies
Texas Instrument BAII Plus calculator.

Promotion Policy

Grading Policy
A+ 90%  to  100%
A 80%  to  89%
B+ 75%  to  79%
B 70%  to  74%
C+ 65%  to  69%
C 60%  to  64%
D+ 55%  to  59%
D 50%  to  54%
F 0%    to  49% (Not a Pass)
OR
EXC Excellent
SAT Satisfactory
UNSAT Unsatisfactory

For further information, see a copy of the Academic Policy, available online (http://www.senecacollege.ca/academic-policy) or at Seneca's Registrar's Offices.


Modes of Evaluation

Mid Term Test 30%
Assignments, Quizzes (2) and Cases 30%
Final Examination 40%






Missed Tests/Presentations:

Students who miss scheduled tests or presentations will receive a grade of zero.  If there are valid reasons for missing the test or presentation, the student MUST:
a)  contact the professor or student advisor prior to the start time of the test, and
b)  Dates for tests, quizzes, exams, presentations etc. have been pre-arranged and are non-negotiable. Unless a valid medical note or authenticated letter attesting to a valid reason for an absence is provided, a grade of zero will be assigned on any missed evaluation.


Late Assignments:

Late assignments will result in a penalty of 10% per day.  Assignments will not be accepted after 3 consecutive days.  If there are valid reasons for the late assignment, the students MUST:
a)  contact the professor no later than the date the assignment is due to indicate assignment will be late, late assignments will not be accepted, under any circumstance, once the graded assignments have been returned to the class. It is the responsibility of the student to ensure that a copy of all assignments is kept.
b)  present the professor with a signed, word-processed memo indicating why the assignment was late.  If the reasons are deemed to be valid, there will be no penalty.

In the case of acceptable extenuating circumstance, your professor may grant an extension to a due date but such extension requests must be discussed prior to the assignment due date.



English Competency

All written work must display the following characteristics of clarity and conciseness. 
  • be technically correct, i.e. correct grammar, spelling and punctuation 
  • use appropriate vocabulary 
  • display no sentence errors, i.e. fragments and run-ons 
  •  make a clear main point 
  •  support the main point with specific, relevant examples and reasons. 
  • organize the work in a clear fashion (e.g. headings, paragraphs, enumerations) 
  • organize the work in the correct format (e.g. reports, essays) 
  • Presentation/layout is professional.
For financial assignments, note that in addition to the above requirements, schedules and financial  statements must be presented in good accounting form.   Marks will be deducted for poor presentation.

Language Across the Curriculum Rubric
 
Clear   Confusing  
Good Detail   Lacks Detail  
Easy to Follow   Difficult to Follow  
Answers Question   Evades Question  


Seneca College Library Resources

Be sure to begin all your research, assignment support and career preparation at the Seneca College libraries website http://library.senecacollege.ca where you will find information about our services and collections including, print and e-books, databases that will lead you to thousands of articles in magazines, newspapers, journals, encyclopedias, carefully selected websites, how-to tutorials, streamed videos and much more.

Accounting & Financial Services Subject Guide
 
Go to http://seneca.libguides.com/content.php?pid=51134&hs=a for an online customized guide for accounting and financial services students that meets specific program needs – you will find library resources, websites, industry associations and organizations, a business glossary, career sites for accounting and financial services students and more.

Citation
 
For rules on citing your sources, consult Seneca Libraries' online MLA Citation Guide at http://seneca.libguides.com/mla, or purchase a print copy of the Guide to Research & Citation: MLA Style in the Seneca Bookstore.
 
Ensure that you do not commit plagiarism. Information on academic honesty, including the Academic Honesty and Plagiarism tutorial is available through the library at: http://seneca.libguides.com/academichonesty.



Please retain this course outline document for future educational and/or employment use.

Program Coordinator
Cynthia Duncan

Approved by: Academic Program Manager - Business Studies Danielle Mercier