Baruch College XXXXXXXXXXSection: NFA The City University of New York XXXXXXXXXXPrinciples of Finance FIN 3000 Principles of Finance Course Description This course provides students with a rigorous...

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Baruch College XXXXXXXXXXSection: NFA
The City University of New York XXXXXXXXXXPrinciples of Finance
FIN 3000
Principles of Finance
Course Description
This course provides students with a rigorous introduction to the fundamental principles of finance. The primary concepts covered include the time value of money, principles of valuation and risk, and the nature and characteristics of domestic and international financial securities and markets. Specific applications include the valuation of debt and equity securities and capital budgeting analysis.
Prerequisite: ECO 1001, ECO 1002, STA 2000, and ACC 2101
Credits: 3
Instructor:
Shajan Ninan
Email:
XXXXXXXXXX
XXXXXXXXXX
Classroom:
Zoom
Office:
Zoom
Term
Spring 2021
Phone:
XXXXXXXXXX
Class Time
2:30 pm – 5:25pm
Class Days
Fridays
Notice
This course syllabus is subject to change.
Course Learning Goals
Time Value of Money
Students will understand how compounding and discounting concepts are utilized when calculating the value of money. Students then will be able to estimate the prices of bonds and stocks.
Risk and Return
Students will understand the concept and measurement of risk. Students will study the relationship between risk and return of assets.
Characteristics of Domestic and International Financial Securities and Markets
Students will understand the key characteristics of different financial securities and markets, across different countries. Students will be able to identify security types based on the characteristics given.
Assurance of Learning
Analytical Skills
Students will possess the analytical and critical thinking skills to evaluate issues faced in business and professional careers.
Technological Skills
Students will possess the necessary technological skills to analyze problems, develop solutions and convey information.
Communication Skills: Oral
Students will have the necessary oral communication skills to convey ideas and information effectively and persuasively.
Communication Skills: Written
Students will have the necessary written communication skills to convey ideas and information effectively and persuasively.
Civic Awareness and Ethical Decision-making
Students will have the knowledge base and analytical skill to guide them when faced with ethical dilemmas in business. Students will have an awareness of political, civic and public policy issues affecting business.
Global Awareness
Students will know how differences in perspectives and cultures affect business practices around the world.
Proficiency in a Single Discipline
Students will possess a deep understanding of and intellectual competence in at least one business discipline.
BBA Majors: Finance
Corporate Finance
Students will develop an understanding of the key concepts of time value of money, corporate finance models for project valuation, and basic capital structure and dividend theory.
Investments
Students will be able to define and calculate standard risk and return measures, value simple equity and bonds securities, and explain the modern portfolio theory and the capital asset pricing model.
Derivatives
Students will understand the basic applications of derivatives in investments and corporate finance and will be able to discuss the characteristics of derivative products.
Data Analysis
Students will be able to analyze data and estimate models for project valuation to support business decisions
Required Materials
Text Book
(Baruch College) Principles Finance FIN 3000 Selected Chapters Connect 10th edition.
The bookstore also carries the custom edition. This edition is around $65 after tax. You do not need the “fancy” complete version the cost of which ranges from $130 to $200 depending on the choice of either print book or e-book.
The book contains an activation code to Connect, the online tool that we will be using throughout the semester. The register link for this class is:
https://connect.mheducation.com/class/s-ninan-spring-2021-1
Registration will be open on January 29, 2021. Copy and paste this address to your web browser. You should see a large “Welcome” sign on the left. On the right, there should be (from top to bottom) book name, instructor (make sure it is me, Xiaoyu Zhu), book image and information (remember this book looks a little different than the one you will purchase). Then you should see “Enter your email to join this class:”. Simply input your email address (Baruch email accounts are preferred) and hit “BEGIN” to proceed to the create account step. Please create the account based on your true information (I need this information to upload your grade on Blackboard). Without the activation code, you can use this website for a short period of time. After you have received the text book, you can input the activation code and you will have access to this course for the whole semester.
Calculator
A financial calculator is necessary for this class. We will have quantitative financial questions that require the use of a financial calculator. Texas Instruments BA II Plus is the best choice (You do not need to buy the professional version). I will show you how to use this calculator in class. You MUST bring your own financial calculator to exams. If you are not willing to purchase a financial calculator or you forget it on an exam day, remember that the calculators are available to borrow from the library. I will not lend you a calculator on an exam day.
Course Structure and Policies
Class Sessions
Class sessions combine
· Topic lectures
· Problem solving
Homework
Homework will be assigned on Connect. Each homework is offered with two trials. You can work either individually or with your classmates. Remember you must submit your answers to receive the credit. Late homework will not be accepted. No extensions will be given.
Excel Project
See Appendix A for details.
Exam Policies
1. Midterms will be given in-class online. There will be two midterms. Midterms will not be cumulative and will be related to recent studies. Each midterm accounts for 25% of your grade. Each midterm is 1 hour and 15 minutes.
2. Final exam will be cumulative. It will account for 30% of your grade. Final will be departmental. See Appendix B for specific topics.
3. Exams will be given in different versions.
4. Exams will be in closed-book fashion. A formula sheet will be provided by the instructor, along with scratch papers. You only need to bring pencils, erasers, a financial calculator, and your Baruch student ID. Please be sure that all phones are powered off and put away. Restroom breaks are allowed, but your cellphone(s) must be left behind with the instructor during the restroom break.
5. If you miss an exam, you can only take the make-up exam if you provide a ‘valid document proof’. The make-up exam will generally be harder than the one you miss.
Attendance
(online quiz)
Attendance will account for 5% of your grade. I will administer online blackboard quiz during the class time as a way to check attendance. I will allow for two absences. Any pre-approved absence will not be included in these two times. You need to email me before class to get approved. Each additional absence will lower your grade by 1% until you lose all 5% of your attendance grade. Late absence excuses will not be accepted. If you miss a considerable amount of the classes, I will treat it as a factor of your grade
Other Polices
1. Blackboard and email will be used primarily for announcements. Please check your email and Blackboard frequently to keep in pace with the class.
2. Class documents will be available on Blackboard or Connect.
3. Electronic devices are allowed in class but must be muted.
4. Food and drinks are allowed in class but must be consumed subtly.
5. There will be a short break each class, around 10 – 15 minutes.
Final Exam (30%): Sunday, May 23th 8:00 am – 10:00 am
Online Proctoring System: By the time of this class’s midterm or final exams, CUNY faculty might be given access to an online proctoring system. If we are, we plan to make use of the system for our final (and/or midterm) examination. All members of the class will be asked to turn on their web cameras in order to take the exam(s). 
Make-up policy for the final exam. Please note that the date and time for the final exam cannot be changed as this is a departmental level standardized exam for all sections of FIN XXXXXXXXXXIf you miss the final exam, you will receive a zero for this exam, and your final grade for the course will include this. If you will miss the final exam, you should send me an e-mail before the final exam with a valid reason (determined by the instructor) with supporting documentation. If it is determined by the instructor to be a valid reason, you may attend a makeup exam scheduled by your instructor with a different set of questions, or may receive an incomplete for the course. This incomplete comes with the understanding that your only opportunity to take the final exam (and receive a grade for this course) will be at the end of the Spring 2021 semester (May XXXXXXXXXXPlease keep this in mind as you make plans for this course.
Grading Policies
Homework
10%
Excel Project
5%
Attendance
5%
Midterm 1
25%
Midterm 2
25%
Final Exam
30%
Total
100%
Grading Criteria
Grades
Grades Percentage
GPA
A
93% – 100%
4.00
A-
90% – 92.9%
3.67
B+
87.1% – 89.9%
3.33
B
83% – 87%
3.00
B-
80% – 82.9%
2.67
C+
77.1% – 79.9%
2.33
C
73% – 77%
2.00
C-
70% – 72.9%
1.67
D+
67.1% – 69.9%
1.33
D
60% – 67%
1.00
F
59.9% and below
0.00
Chapters Covered
Chapter 1
Goals and Governance of the Corporation
Chapter 2
Financial Markets and Institutions
Chapter 3
Accounting and Finance
Chapter 4
Measuring Corporate Performance
Chapter 5
The Time Value of Money
Chapter 6
Valuing Bonds
Chapter 7
Valuing Stocks
Chapter 11
Introduction to Risk, Return, and the Opportunity Cost of Capital
Chapter 12
Risk, Return and Capital Budgeting
Class Schedule (Preliminary)
Class 1
January 29
Course Organization and Chapter 1
Class 2
February 5
Chapter 2 and Chapter 3
Class 3
February 12
Chapter 3 and Chapter 4
Class 4
February 19
Chapter 4 and Chapter 5
Class 5
February 26
Midterm 1 and Chapter 5
Class 6
March 5
Chapter 5
Class 7
March 12
Chapter 6
Class 8
March 19
Chapter 6 and Chapter 7
Class 9
March 26
Chapter 7
Class 10
April 9
Midterm 2 and Chapter 11
Class 11
April 16
Chapter 11 and Chapter 12
Class 12
April 23
Chapter 12 and Review
Class 13
April 30
Review
Final (Departmental, online, Sunday, May 23rd )
Academic Integrity
The Department of Economics and Finance fully supports Baruch College's policy on Academic Honesty, which states, in part:
Academic dishonesty is unacceptable and will not be tolerated. Cheating, forgery, plagiarism and collusion in dishonest acts undermine the college's educational mission and the students' personal and intellectual growth. Baruch students are expected to bear individual responsibility for their work and to uphold the ideal of academic integrity. Any student who attempts to compromise or devalue the academic process will be sanctioned.
Additional information can be found here.
Any infringement of this rule will be treated as a serious violation of Academic Integrity. Any suspected academic dishonesty in this regard will result in a grade of F on the exams and most likely an F in the course as well. Students should also understand that a report of suspected academic dishonesty will be sent to the Dean of Students’ office and becomes a permanent part of the student’s file.
Students with Disabilities and Other Special Needs
Students with disabilities are supported in their academic studies by Baruch College’s Office of Services for Students with Disabilities according to their Mission Statement:
The Office of Services for Students with Disabilities exists to provide reasonable accommodations to students with disabilities to ensure they have equal access to the college’s programs and services. Through student intake, faculty consultation, and outreach to the community, students can develop interpersonal, social, vocational and emotional growth.
Students who feel that they may need a reasonable accommodation based on a disability should contact the staff at the Office of Services for Students with Disabilities, Newman Vertical Campus, Room 2-271, or by phone at XXXXXXXXXXMore information is available on their website here.
Consent to Recording
Students who participate in this class with their camera on or use a profile image are agreeing to have their video or image recorded solely for the purpose of creating a record for students enrolled in the class to refer to, including those enrolled students who are unable to attend live.  If you are unwilling to consent to have your profile or video image recorded, be sure to keep your camera off and do not use a profile image. Likewise, students who un-mute during class and participate orally are agreeing to have their voices recorded.  If you are not willing to consent to have your voice recorded during class, you will need to keep your mute button activated and communicate exclusively using the "chat" feature, which allows students to type questions and comments live.
Assurance of Learning Chart
BBA Learning Goals
Significant Part of Course
Moderate Part of Course
Minimal Part of Course
Not Part of Course
Analytical Skills
|X|
|_|
|_|
|_|
Technological Skills
|_|
|X|
|_|
|_|
Communication Skills: Oral
|_|
|X|
|_|
|_|
Communication Skills: Written
|_|
|X|
|_|
|_|
Civic Awareness and Ethical Decision-Making
|_|
|X|
|_|
|_|
Global Awareness
|_|
|X|
|_|
|_|
Proficiency in a single discipline: Finance
|X|
|_|
|_|
|_|
Assignment Mapping
Assignments
Course Learning Goals
BBA Learning Goals
Participation
Time Value of Money
Risk and Return
Markets and Securities Characteristics
Analytical skills
Proficiency in Finance
Communication Skills
Excel Project
Time Value of Money
Risk and return
Technological skills
Lectures
Time Value of Money
Risk and Return
Markets and Securities Characteristics
Financial reasoning skills
Global awareness
Ethical decision making
Exams
Time Value of Money
Risk and Return
Markets and Securities Characteristics
Proficiency in Finance
Analytical skills
Technological skills
Appendix A: Excel Project (SAM)
DO NOT CONTACT YOUR PROFESSOR OR RECITATION INSTRUCTOR FOR ASSISTANCE OF ANY KIND RELATED TO EXCEL PROJECTS – DIRECT YOUR QUESTIONS TO THE EXCEL HELPDESK (http://blogs.baruch.cuny.edu/excelhelp)
The Excel Project
The Excel Project consists of 4 projects to be completed via the SAM online platform. These projects are intended to improve your Excel skills and familiarize you with business spreadsheet applications.
The last submission date for ALL projects is May 4th, 2021. No extension will be given after May 4th, 2021.
Grading Rules. Successful completion of the 4 projects will constitute 5% of your final FIN 3000 grade. The projects are self-graded and you’ll have 3 trials to complete each one of them. Assignments submitted with scores of 80% and above will receive full credit for the assignment (i.e. 100/100 points).  On-time assignments that score less than 80% will receive the exact credit earned (i.e. a score of 75% on an assignment submitted on time will be recorded as 75/100 points). Late submissions are now allowed; students will lose 1 point per day that the assignment is late.  Also, late assignments will receive the exact credit earned if the adjusted total falls below 80% (e.g. a late assignment with a score of 84% and 5 days late will be recorded as [79=84-5]/100 points).
Please note: Windows Excel 2019 is the best version to work on all the SAM assignments as we are using SAM 2019, which was developed around Windows Excel 2019. You can choose to use Mac or other Windows Excel versions, but we will not be responsible for the possible grading errors that are caused by using versions other than Windows Excel 2019. You can find Windows Excel 2019 on all PCs in Baruch students labs, which you can access remotely at onlinelabs.baruch.cuny.edu
Due dates. Late Submissions are allowed, with points deducted accordingly as explained in Grading Rules. The last submission date for ALL projects is May 4th, 2021. No extension will be given after May 4th, 2021.
Assignment
Schedule date
Due date
Project 1: Pivot Tables and Charts
First day of classes
February 19th
Project 2: Revenue Analysis
First day of classes
March 12th
Project 3: Financial Projection
First day of classes
April 9th
Project 4: Data Analyses
First day of classes
April 23rd
Pricing. You need to purchase access to the SAM platform in order to complete the projects. The cost is $40. Once purchased, your SAM account will be active until you graduate and you’ll be able to access Excel projects in other classes in the future.  If you have a SAM account from a previous class, simply login to SAM (you do NOT need to purchase access again) and join your new class (see instructions below).
Obtaining access to SAM if you already have a SAM Login:
A PowerPoint file explaining the registration procedure is posted on the Blackboard course 2021 Spring Excel Module for FIN 3000 under Content.
1.   Go to sam.cengage.com.
2.   Enter your username and password, and then click “Log In”. (If you have forgotten your password, click “Forgot your password?” and enter your username. You will be asked to answer your secret security question and a reset password link will be sent to your email address).
Obtaining access to SAM if you are a NEW USER:
1.     Go to http://services.cengagebrain.com/course/site.html?id= XXXXXXXXXXto purchase your access code.
2.      Once you have obtained your access code, go to http://sam.cengage.com and click the New User button.
3.      Enter your Institution Key. The Institution Key for Baruch College is T2031850.
4.      Insert your SAM Access Code that you purchased in Step #1.
5.      Create your Profile. Please use your Baruch email address and official roster name when you create your profile! (Not using your Baruch email address may lead to issues when merging your SAM grade into your final grade.)  Enter a secret question and answer that will be used for security purposes should you forget your password. Confirm your profile information and accept the License Agreement.
6.      If the Username you enter exists in CengageBrain, a prompt displays so you can enter your CengageBrain password. If you cannot retrieve your password using the Forgot your password? link, you can create a new SAM account with a different Username.
Once you have access to SAM (for NEW or EXISTING USERS)
1. Join a Section. If not already enrolled in a section, click the “Sections” tab at the top of the screen. Click “Join a Section”, and locate your section (FIN 3000) and term (Fall 2020), then click the blue arrow icon in the “Join Section” column on the right. You MUST join the section to see your assignments.
2. Access your Assignments. Click on Activity List on the top navigation bar to retrieve the assignments (“Projects”) scheduled for your section. You can access the Excel Tutorials (“Training”) for help in completing the assignments. You also have access to 21 voluntary projects with no deadlines. (“Projects”).
3. You must have pop-up windows ENABLED for the SAM site in order to see your assignments.
Viewing the SAM tutorials before doing the projects increases your chances of a successful and quicker project completion. Completing the voluntary projects will significantly improve your Excel skills which are invaluable both in your future academic and professional career.
Academic Integrity. SAM detects files shared with other students and generates a report for the instructors with the names of plagiarizing students and all parties involved. Students caught cheating will be reported to the Office of the Dean of Students for disciplinary action.
Troubleshooting.  Several resources are available to you should you encounter any problems:
Blackboard. As a student enrolled in this class, you also have an access to the Excel Project’s dedicated Blackboard Spring 2021 Excel Module for FIN 3000 (Baruch). This website contains additional materials and links that will help you navigate the SAM website and complete your projects. We will also post the answers to students’ questions there and remind you about the assignment deadlines.
SAM Help Desk. Students with questions about SAM can access the help desk either of two ways: through Blackboard (content: "Excelhelp") or at http://blogs.baruch.cuny.edu/excelhelp.  The help desk is supported by PhD students familiar with SAM and the SAM projects.  Emails will be answered daily, Monday-Friday. If many inquiries arise about a common issue, then responses will be posted on Blackboard.
Technical Support. For any problems accessing or using SAM contact Technical Support at:
Phone: XXXXXXXXXXMon-Thurs, 8:30am to 9:00pm EST & Friday, 8:30am to 6:00pm EST) or Chat (24/7) or E-mail (24/7): http://www.cengage.com/support/
Excel tutors. Student Academic Consulting Center (SACC) will provide tutors who are trained in your assigned SAM projects and can help you learn how to use Excel. To schedule an appointment, visit https://www.baruch.cuny.edu/sacc. To sign up for a tutoring session, enter your SACC login information if you have already created an account otherwise follow the step to register with SACC. Select the SAM Software Projects Tutoring.
“Walk-in” workshops. The SACC tutoring center will offer remote workshops on using Excel with SAM the week BEFORE every project is due. We will send reminders as to the date, time and place of each workshop via Blackboard. To sign up for a workshop, go to https://www.baruch.cuny.edu/sacc. Enter your SACC login information if you have already created an account; otherwise follow the steps to register with SACC. Select the SAM Software Projects Workshop from the drop-down list and choose the session that you would like to sign up for from the calendar.
Internet browsers. It is recommended that you use Chrome, Safari or Firefox with SAM. Avoid Internet Explorer.
DO NOT CONTACT YOUR PROFESSOR OR RECITATION INSTRUCTOR FOR ASSISTANCE OF ANY KIND RELATED TO EXCEL PROJECTS – DIRECT YOUR QUESTIONS TO THE EXCEL HELPDESK (http://blogs.baruch.cuny.edu/excelhelp)
Appendix B: Selected Final Topics

compute
topic
comment
1
PV
single payment

2
FV
single payment

3
I
single payment

4
N
single payment

5
PV at time 0
perpetuity

6
R
perpetuity

7
Payment
perpetuity

8
PV at time t
perpetuity

9
PV
ordinary annuity

10
FV
ordinary annuity

11
N
ordinary annuity

12
I
ordinary annuity

13
Pmt
ordinary annuity

14
PV
annuity due

15
FV
annuity due

16
N
annuity due

17
I
annuity due

18
Pmt
annuity due

19
PV
infrequent annuity (e.g., 1 payment every 2 years)

20
FV
infrequent annuity (e.g., 1 payment every 2 years)

21
N
infrequent annuity (e.g., 1 payment every 2 years)

22
I
infrequent annuity (e.g., 1 payment every 2 years)

23
Pmt
infrequent annuity (e.g., 1 payment every 2 years)

24
EAR from APR
with different finite compounding frequencies

25
EAR from APR
continuous compounding

26
EAR from rate per period
with different finite compounding frequencies

27
EAR from rate per period
continuous compounding

28
APR from EAR
with different finite compounding periods

29
APR from rate per period
with different finite compounding periods

30
APR from EAR
continuous compounding

31
APR from rate per period
continuous compounding

32
Pmt (1st annuity)
saving for retirement problem w/ 2 annuities
may be broken into separate MC questions
33
Pmt (2nd annuity)
saving for retirement problem w/ 2 annuities
may be broken into separate MC questions
34
N (1st annuity)
saving for retirement problem w/ 2 annuities
may be broken into separate MC questions
35
N (2nd annuity)
saving for retirement problem w/ 2 annuities
may be broken into separate MC questions
36
PV (1st annuity)
saving for retirement problem w/ 2 annuities
may be broken into separate MC questions
37
PV (2nd annuity)
saving for retirement problem w/ 2 annuities
may be broken into separate MC questions
38
FV (1st annuity)
saving for retirement problem w/ 2 annuities
may be broken into separate MC questions
39
capital gain yield
stocks - any

40
holding period return
stocks - any

41
dividend yield
stocks - any

42
P(0)
stocks - constant growth

43
R
stocks - constant growth

44
Div(1)
stocks - constant growth

45
P(t)
stocks - constant growth

46
Div(t)
stocks - constant growth

47
capital gain yield
stocks - constant growth

48
holding period return
stocks - constant growth

49
dividend yield
stocks - constant growth

50
P(0)
stocks - constant growth, dividend starts in future

51
P(0)
stocks - 2 stage growth

52
P
bonds - semiannual coupons

53
N
bonds - semiannual coupons

54
YTM
bonds - semiannual coupons

55
Pmt
bonds - semiannual coupons

56
Current yield
bonds - semiannual coupons

57
Coupon rate
bonds - semiannual coupons

58
P
zero coupon bond

59
N
zero coupon bond

60
YTM
zero coupon bond

61
Exp. R
based on scenarios and probabilities

62
Ave R
based on history of N observations

63
s
based on history of N observations

64
portfolio R
N stocks

65
portfolio 
N stocks

66
risk premium
given R and Rf

67
market risk premium
given Rm and Rf

68
R
capm

69
risk premium
capm - given , Rm, Rf

70

capm - given R, Rm, Rf

71
Rm
capm - given R, , Rf

72
Rf
capm - given R, , Rm

73
conceptual questions
TVM

74
conceptual questions
stocks

75
conceptual questions
bonds

76
conceptual questions
risk and return, including but not limited to: expected return, required return, types of risk, diversification, portfolio risk and return, etc.
Answered 6 days AfterMay 16, 2021

Solution

Munmun Kothari answered on May 23 2021
24 Votes

I HAVE...

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