SAN FRANCISCO STATE UNIVERSITY (SFSU)

FIN 350: BUSINESS FINANCE

SUMMER 2017

1 Contact Information
Instructor: Professor Yi Zhou
Instructor’s First Name: Yi (Pronounced as E)
Instructor’s Last Name: Zhou (Pronounced as Joe)
Phone: (415) 338-2661
FAX: (415) 338-0596
Email: yizhou88@sfsu.edu
Office: SCI 357
Office Hours: Mon. & Wed.: 12:00 PM–1:15 PM & 5:15 PM–6:00 PM
Lecture Classroom: Section 06: BUS 210 (56)
Lecture Time: Section 06: Monday & Wednesday: 1:15 PM–5:15 PM
Final Exam Time: Wednesday, July 5, 1:15 PM–5:15 PM
Class Number: Section 06: 1255
Units: 3 units

2 Course Objectives
This course provides an introduction to the fundamental principles of finan-
cial management and their application to financial decision making. The
course addresses the topics of financial statement analysis, time value of
money, bond and stock valuation, capital budgeting, risk and return, as well
as major aspects of long term financing. The objective of the course is to
familiarize students with the basic finance concepts and tools, and enable
them to pursue further course work in finance.

3 Prerequisites
Enrollment Requirement: Completion of ACCT 101, ECON 101, ECON
102, and (DS 110 or MATH 110), DS 212, and ISYS 263, each with a grade
of C− or better, upper division standing, and Business major or minor.

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4 Course Materials
4.1 Text Required
Ross, Westerfield and Jordan, Essentials of Corporate Finance, McGraw-Hill
Companies, Edition: 9th, Year Published: 2016, Price: 263.75 USD (Hard-
Copy ISBN 9781259277214). 176.00 USD (Ebook ISBN 9781259353079)

4.2 Calculator Required

A calculator is required. It is important that you bring your calculator
to every class.

4.3 Course Materials Provided on iLearn

Lecture notes and the relevant course materials will be provided on iLearn
ahead of each class. Practice problems, solutions, quiz answer keys, sample
exam questions and the other relevant materials will also be posted online.
Please check iLearn periodically for updates. Please print all materials by
yourself.

4.4 Other Materials Recommended

The Wall Street Journal, Financial Times, Bloomberg Businessweek, and
The Economist.

5 Teaching Style
Teaching methods incorporate lecture, class discussion, in-class problem
solving, regular quizzes, midterms and the final exam. Students are strongly
encouraged to contribute to classroom discussion.

6 Course Expectations
You need to be prepared that this course will be very demanding in terms of
work load. Your individual study and preparation outside of the classroom
is extremely important for your success in this class.

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 You must keep up with the lecture. Much of the material builds on itself,
which would make it difficult for you to catch up if you fall behind. You are
expected to print out or download the lecture notes before each session. This
will greatly enhance your learning and your ability to take effective notes
during class. Class attendance is very important for your learning. You are
expected to attend every class on time and stay the entire session. If you
have to miss a class, make sure to borrow class notes from your classmates.
At each class, you are required to complete a quiz which covers the lecture
material of the previous class.

7 Grading Policy
1. Your course total score is based on the following weights:
20% Quizzes
20% Midterm 1
20% Midterm 2
10% Project
30% Final Exam

2. Grading Scale:

• 93.0–100.0 = A
• 90.0–92.9 = A−
• 85.0–89.9 = B+
• 80.0–84.9 = B
• 75.0–79.9 = B−
• 70.0–74.9 = C+
• 65.0–69.9 = C
• 60.0–64.9 = C−
• 55.0–59.9 = D+
• 50.0–54.9 = D
• 45.0–49.9 = D−
• <45.0 = F

No curve shall apply.

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 3. In terms of the difficulty level, quizzes and midterms are of the inter-
mediate levels and the final exam is of intermediate and moderately
difficult level.

4. Plus and minus Letter Grades and the CR/NC grading option will be
employed. No incomplete grades will be given. Course grades are final
and non-negotiable. No extra credit work will be given to improve
your grade.

5. Regrading: You must submit all regrade requests to me within one

week of the return of the exam. Provide me with your entire exam
and a short written explanation of the possible error. Regrades may
result in either a higher or lower final grade.

6. Two Strikes: Any student who is unable to pass any College of Busi-
ness course during the first two attempts, will be required to take the
class on subsequent attempts through College of Extended Learning
in Summer or Winter Session only, if it is offered, at the higher CEL
tuition.

7. The first midterm is TBA. The second midterm is TBA.

8. Quizzes (in class) are given each class when there is no midterm or
final. The content of the quizzes will not be disclosed in advance
under any circumstances.

9. Quizzes: If you are absent FOR ANY REASON, your quiz score is
zero. The lowest TWO quiz scores will be dropped.

10. Midterms: If a student is unable to take a midterm at the scheduled

time, then he/she should contact me prior to the start of the midterm
and specify the reason for the absence. Failure to notify me in advance
may result in an exam score of zero. If a midterm is missed due to an
excused absence (defined above by the University Attendance Policy)
and proper documentation is provided, then the student may take a
make-up exam at a mutually agreed-upon time within one week of the
originally scheduled exam date. Failure to make up the exam within
the allotted time will result in an exam score of zero.

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11. Final: The final exam will contain 30 multiple choices. The final exam
will be cumulative from Chapter 1 to Chapter 18. To prepare for
the final exam, every slide of the lecture notes is important.
Please do not skip any slide.

12. Final: Every one must take the final exam at the scheduled final exam
time. Failure to take the final exam will result in a total cumulative
score of zero for the course. All of your other scores, for example,
quizzes, midterms, and presentation, are automatically zero, too.

13. Final: You can bring a letter-size (8.5 by 11.0 inches (215.9 by 279.4
mm)) piece of paper. You can write anything related to the final on
both sides of the paper. You do NOT need to turn in the paper to me
after the final.

14. Final: YOU MUST TURN IN ALL PAGES OF THE FI-

NAL EXAM BEFORE YOU LEAVE THE CLASSROOM.
IF YOU TAKE THE EXAMS OUT OF THE CLASSROOM
FOR ANY REASON, YOU WILL BE GRADED ZERO AU-
TOMATICALLY FOR THE FINAL EXAM.

15. Please ask me questions which are only related to my class. Please do
not ask me to solve the problems assigned in other classes or ask me to
help you prepare the presentation or do the project for other classes.

8 Test Taking Policy

• Plagiarism in any form on the quizzes, midterms and final will not be
tolerated. If verified, any form of plagiarism will result in a grade “F”.

• Please keep Both arms on the desks at ALL times. Failure to do this
may result in a lower grade.

• Please turn off all cell phones or Blackberries or iPhones before the
tests. Failure to do this may result in a lower grade.

• Reports on plagiarism are highly encouraged. The whistle-blowers

will receive extra points in the total grades and their identities will be
protected by all means.

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9 Tutoring Resources
• Appointments: Appointments can be made through Campus Aca-
demic Resource Program (CARP)’s Tutorial Lab by calling (415) 405-
0971 or by coming to HSS 344 during tutoring hours. Students can
make appointments 24 hours to one week in advance and can schedule
two appointments per unit per week.

• Drop-in tutoring: Students can drop in for tutorial sessions by com-

ing to the Tutorial Lab in HSS 344 during tutoring hours. Drop-in
sessions are assigned on a first-come, first-served basis and are based
on tutor availability. We highly encourage students to make appoint-
ments ahead of time to ensure that a tutor can see them.

10 Name Writing
For all correspondence (final, midterms, and quizzes) in this class, please
write:
LAST NAME, FIRST NAME
EXACTLY as in the roster. Failure to do this may result in mis-recording
of your grades.
Please also mark your student number and the section number into the
two blocks in all the quizzes, midterms and the final.

11 Course Coverage
Chapter 1 Introduction to Financial Management
Chapter 2 Financial Statements, Taxes, and Cash Flow
Chapter 3 Working with Financial Statement
Chapter 4 Introduction to Valuation: The Time Value of Money
Chapter 5 Discounted Cash Flow Valuation
Chapter 6 Interest Rates and Bond Valuation
Chapter 7 Equity Markets and Stock Valuation
Chapter 8 Net Present Value and Other Investment Criteria
Chapter 9 Making Capital Investment Decisions
Chapter 10 Some Lessons from Capital Market History

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Chapter 11 Risk and Return
Chapter 12 Cost of Capital
Chapter 13 Leverage and Capital Structure
Chapter 14 Dividends and Dividend Policy
Chapter 15 Raising Capital
Chapter 16 Short-Term Financial Planning
Chapter 17 Working Capital Management
Chapter 18 International Aspects of Financial Management

12 Other Issues
12.1 Food and Drink in Classrooms
No food or drink is permitted in classrooms.

12.2 Cell Phones

If you bring cell phones into class, please set them to silent or vibrate.

12.3 Programmable Calculators

No programmable calculators for exams.

12.4 Electronic Files

To prevent the spread of virus, please do not send me anything with attach-
ment by email except PDF files.

13 Syllabus Change Policy

Except for changes that substantially affect implementation of the evaluation
(grading) statement, this syllabus is a guide for the course and is subject to
change with advance notice.

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14 Course Policy
14.1 University Attendance Policy
http://www.sfsu.edu/ bulletin/previous bulletins/1213/genpol.htm
Students are expected to attend classes regularly because classroom work
is one of the necessary and important means of learning and of attaining the
educational objectives of the institution.
Students should not miss classes except for valid reasons, such as illness,
accidents, or participation in officially approved university activities. When
a student is absent from classes, it is his/her responsibility to inform his/her
instructors of the reason for the absence and to arrange to make up missed
assignments and class work insofar as this is possible.
Instructors make reasonable accommodation for students to observe re-
ligious holidays when such observances require students to be absent from
class activities. The policy is available at www.sfsu.edu/ senate/documents
/policies/F00-212.html. It is the responsibility of the student to inform the
instructor, in writing, about such holidays during the first two weeks of the
class each semester. If such holidays occur during the first two weeks of the
semester, the student must notify the instructor, in writing, at least three
days before the date that he/she will be absent.
The instructor may consider regular attendance when assigning grades.
In that case, the requirement for regular attendance must be stated in writ-
ing as part of the course requirements and distributed to students at the
beginning of the semester. Attendance of the lectures will be checked
and recorded randomly.

14.2 Religious Holiday

The faculty of San Francisco State University shall accommodate students
wishing to observe religious holidays when such observances require students
to be absent from class activities. It is the responsibility of the student to
inform the instructor, in writing, about such holidays during the first two
weeks of the class each semester/summer session. If such holidays occur
during the first two weeks of the semester/summer, the student must notify
the instructor, in writing, at least three days before the date that he/she
will be absent.

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14.3 Disability Access
Students with disabilities who need reasonable accommodations are en-
couraged to contact the instructor. The [Disability Programs and Re-
source Center (DPRC)] is available to facilitate the reasonable accommo-
dations process. The [DPRC] is located in the [Student Service Building
and can be reached by telephone (voice/TTY 415-338-2472) or by email
(dprc@sfsu.edu).” (http://www.sfsu.edu/ dprc)]

14.4 Student Disclosures of Sexual Violence

SF State fosters a campus free of sexual violence including sexual harass-
ment, domestic violence, dating violence, stalking, and/or any form of sex or
gender discrimination. If you disclose a personal experience as an SF State
student, the course instructor is required to notify the [Dean of Students].
To disclose any such violence confidentially, contact:
The SAFE Place - (415) 338-2208; http://www.sfsu.edu/ safe plc/
Counseling and Psychological Services Center - (415) 338-2208;
http://psyservs.sfsu.edu/

14.5 TITLE IX NOTICE OF NON-DISCRIMINATION

San Francisco State University does not discriminate on the basis of gender,
which includes sex and gender identity or expression, or sexual orientation in
its education programs or activities. Title IX of the Education Amendments
of 1972, and certain other federal and state laws, prohibit discrimination on
the basis of gender or sexual orientation in employment, as well as in all
education programs and activities operated by the University (both on and
off campus). The protection against discrimination on the basis of gender
or sexual orientation includes sexual harassment, sexual misconduct, and
gender based dating and domestic violence and stalking.

14.5.1 Safety of the SF State Community is Primary

SF States primary concern is the safety of its campus community mem-

bers. The use of alcohol or drugs never makes the victim at fault for sexual
discrimination, harassment or violence; therefore, victims should not be de-
terred from reporting incidents of sexual violence out of a concern that they

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might be disciplined for related violations of drug, alcohol or other SF State
policies. Except in extreme circumstances, victims of sexual violence shall
not be subject to discipline for related violations of the Student Conduct
Code.

14.5.2 Information Regarding SF State, Criminal and Civil Con-

sequences of Committing Acts of Sexual Violence

Individuals alleged to have committed sexual assault may face criminal pros-
ecution by law enforcement and may incur penalties as a result of civil
litigation. In addition, SF State employees and students may face disci-
pline/sanctions at campus. SF State employees may face sanctions up to
and including dismissal from employment, per established CSU policies and
provisions of applicable collective bargaining unit agreements.
SF State students charged with sexual discrimination, harassment or vi-
olence will be subject to discipline, pursuant to the CSU Student Conduct
Procedures (see Executive Order 1098) and will be subject to appropriate
sanctions. In addition, during any investigation, SF State may implement
interim measures in order to maintain a safe and non-discriminatory educa-
tional environment. Such measures may include immediate interim suspen-
sion from the university, required move from university-owned or affiliated
housing, adjustment to course schedule, or prohibition from contact with
parties involved in the alleged incident.

14.6 Academic Honor Policy

Undergraduate Academic Standards of San Francisco State University Col-
lege of Business:
http://cob6.sfsu.edu/sites/sites.sfsu.edu.cob/files/undergrad/documents
/undergraduateacademic-standards-april-8-2013.pdf
San Francisco State University College of Business (SF State CoB) re-
gards incidents of academic misconduct as serious matters. The following
explains what academic misconduct is and outlines the consequences of aca-
demic misconduct.

A. Academic Misconduct

Academic misconduct is defined as follows:

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 1. Cheating: Any unauthorized attempt to offer or obtain assistance in
a formal academic exercise (e.g., an examination or class exercise); assum-
ing another student’s identity with intent to provide an advantage for the
student; copying, in part or in whole, from another’s test or other evalua-
tion instrument; submitting work previously presented in another course, if
contrary to the rules of either course.
2. Plagiarism: The unauthorized use (i.e., representing as ones own
work) or reproduction or close imitation of original creations (ideas, words,
sentences, paragraphs, or parts thereof; or artistic/scholarly works such as
computer programs, photographs, or similar works) of another author (per-
son, group, organization, including anonymous authors) without due ac-
knowledgment (accepted standards of citation or reference of the original
source of the used or quoted content).
3. Fabrication: The distortion of data, information, or citations in any
formal academic exercise or altering grading or grading instructions.
4. Deception: Providing false information to an instructor concerning
a formal academic exercisee.g., giving a false excuse for missing a deadline,
falsely claiming to have submitted work, or submitting false information
regarding internships.

B. Disciplinary Sanctions

Two major types of sanctions may be imposed for any academic misconduct:
Academic and Administrative. Academic sanctions are actions concerned
with the coursework and grades which are the jurisdiction of the instructor.
Administrative sanctions are related to a student’s status on campus and
are governed by the Office of Student Conduct. The imposition of one form
of sanction will not rule out the imposition of the other.
1. Academic Sanctions: Upon verification of academic misconduct by
personal observation and/or documentation, an instructor reserves the right
to take one or more of the following academic actions:
i. Reprimand: A verbal or written notification of unacceptable behavior,
violating the student honor code. Reprimand may be considered for any
academic misconduct at the discretion of an instructor.
ii. Modification of Grade: A student may be failed in the evaluation
instrument (assignment or exam), may receive a reduced course grade, or
may fail the course.

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 2. Administrative Sanctions: As stipulated in Executive Order 1074,
the instructor shall prepare an email that identifies the student who was
found responsible, the general nature of the offense, the action taken, and
a recommendation as to whether or not disciplinary action should be con-
sidered. This email should be sent to the Director of Student Conduct
(conduct@sfsu.edu). As stipulated in the California Code of Regulations,
Section 41301, academic misconduct at a campus may warrant expulsion,
suspension, probation or a lesser sanction.

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