PENN STATE ALTOONA Spring 2012 FINANCE 301: Corporate Finance – SECT. 003 I. Instructor: Name:

Mr. Robert E. Belsterling, MBA, CFE

e-mail:

[email protected] (PREFERRED METHOD OF CONTACT – Use regular e-mail, not ANGEL)

Phone:

814-949-5611

Instructor Bio:

Mr. Belsterling is a Certified Fraud Examiner and has 25 years of experience in Accounting, Management and Consulting. He was employed by an international firm, a regional CPA firm, and worked in the Automobile Industry as a Controller for 17 years, most recently with one of the 100 largest auto groups in the United States. While Mr. Belsterling was a Controller, he also served as the Systems Administrator for all of his company’s Management Information Systems for 14 years. Mr. Belsterling also has experience in Human Resources Management, Marketing, Inventory Management, and Customer Relationship Management. As a sole proprietor, he has provided consulting services and representation for clients in connection with business acquisitions, as well as sales, and he has prepared corporate tax returns, financial statements and business valuations for clients in Real Estate, Engineering, the Transportation Industry and the Automobile Industry. Mr. Belsterling has also served as President and Chairman of the Board for a Non-Profit organization. He received his B.S. in Accounting and his Master of Business Administration degree from Waynesburg University.

Office Hours:

202A Sheetz Center For Entrepreneurial Excellence (Downtown) - Tuesday, 4:00 - 5:00 PM. 103A Sheetz Building (on campus) - Thursday, 8:15 - 9:15 AM. Note: It is best to make an appointment for all office visits. Other times, by appointment.

II. Course Time & Place: Tues./Thurs., 2:40 – 3:55 PM, in 102 Downtown SCFEE. Cancellations will be posted on the PSU Altoona Website. III. Textbook & Other Course Requirements: Brealey, Myers, Marcus, Fundamentals of Corporate Finance, 7th edition, McGraw-Hill/Irwin, 2012. Also required is a capable financial calculator. The Texas Instruments - BA II Plus Business Calculator is recommended and will be supported in class. The instructor cannot learn the intricacies of every calculator on the market. Therefore, if you choose to use a calculator other than the TI-BA II Plus, it will be your sole responsibility to acquire a working knowledge of how to properly utilize its functions and operations. Prerequisite courses include: ENGL 015 or ENGL 030; ACCTG 211; ECON 102 or ECON 104; SCM 200 or STAT 200. IV. Course Description: Finance 301, Corporation Finance, is a 3 credit course which provides a basic understanding and framework of how firms acquire, allocate, and control their financial resources. It covers the acquisition and management of corporate capital, analysis of operations, forecasting capital requirements, raising capital, and planning profits. This is an introductory finance course focusing on basic financial principles and practices essential to managing a business. This course also covers financial markets, institutions, organizational forms and investments. Finance 301 relies heavily on accounting and economic principles with a strong emphasis on problem solving and decision making. The course should help students to develop objective reasoning skills and will seek to promote a lasting interest in finance, from both a professional and personal perspective.

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V. Attendance & Participation: Prompt and regular attendance, a good attitude, and a willingness to learn and participate are crucial to success in the business world. Since we are in the process of preparing you for a successful career, I will expect these things from you. Absences due to illness, family emergency, religious convictions, or university sanctioned athletic events or activities are excused absences, per PSU policy. Class participation grades will be reduced by five percent (5%) for each unexcused absence, in excess of four (4). Due dates for assignments will not be extended because of your absence, unless there are extenuating circumstances. Late arrivals for class, beyond two (2), will be counted as an absence. All work missed on the day of a legitimate, excused absence must be made up and turned in within one (1) calendar week in order to be eligible for credit. If you must be absent from class, it is your responsibility to follow-up with one of your peers so that you can complete your new assignments and come prepared for the next class. If you must be absent on the day of a review for an exam, it is your responsibility to follow-up with one of your peers to obtain the review notes. Review notes will not be available through e-mail or ANGEL. From time to time, there may be in-class activities for extra credit. It is therefore in your best interest to attend all classes. Please come to each class prepared, on time, and with whatever materials you will need. VI. Academic Integrity: The Division of Business and Engineering considers good business ethics and academic honesty to be an integral part of the business curriculum. Instances of academic dishonesty will be dealt with severely and could result in a “failing” final course grade of an “ XF ”. Academic Integrity Definition and Expectations: Academic integrity is the pursuit of scholarly activity in an open, honest and responsible manner. Academic integrity is a basic guiding principle for all academic activity at The Pennsylvania State University, and all members of the University community are expected to act in accordance with this principle. Consistent with this expectation, the University's Code of Conduct states that all students should act with personal integrity, respect other students' dignity, rights and property, and help create and maintain an environment in which all can succeed through the fruits of their efforts. Academic integrity includes a commitment not to engage in, or tolerate, acts of falsification, misrepresentation or deception. Such acts of dishonesty violate the fundamental ethical principles of the University community and may compromise the worth of work completed by others. (Policies and Rules for Students, Section 49-20.) Consequences of academic dishonesty: The instructor may assign an academic sanction ranging from a warning, to failure on an assignment or in the course, or to removal from the course. (Note that a failure in a course may affect a student’s status in a program and/or in the University.) The instructor reports each academic sanction to the Office of Judicial Affairs, which keeps a record. Students can appeal academic sanctions to the Committee on Academic Integrity through the Office of Academic Affairs. In more serious cases of academic dishonesty, the Office of Judicial Affairs may apply disciplinary sanctions in addition to the academic sanctions. These may range from a warning to probation, suspension or expulsion from the University. An "XF" grade is a formal University disciplinary sanction that indicates on the student's academic transcript that failure in a course was due to a serious act of academic dishonesty. (Policies and Rules for Students, Section 49-20, and Academic Integrity Procedure G-9.) Additional information concerning The Penn State Altoona Academic Integrity Policy that will apply to my class can be found at http://www.altoona.psu.edu/academic/integrity.htm NOTE: Signing in on the attendance sheet and leaving class early without permission, signing someone else in on the attendance sheet, and having someone sign you in on the attendance sheet are all considered to be direct violations of the academic integrity policy. The penalty for falsifying attendance records is a class participation grade of a 0% (F).

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VII. Classroom Procedures, Assignments & Exams: The course will be taught through lecture, videos, case studies and class discussion. Whenever possible, current events will be included. Individual preparation (reading the text, completing assignments, coming to class prepared, etc.) enhances the learning experience for all students involved and will be critical to your success. In order to succeed in this class, students are encouraged to work as many of the problems in the book as possible. On average, students should plan on a minimum of 6-9 hours of study, outside of class, per week. There will be three (3) exams of equal weight. Exams may consist of true-false, multiple choice, short answer, problems or essay questions. Students will be tested on textbook material, class lectures, class discussions and case studies. (i.e. anything in the textbook and anything we cover in class may appear on an exam). No cell phones, computers or programmable calculators will be permitted to be used during the exams. NOTE: If a cell phone is used in any way, shape, or form during an exam, it will result in an automatic “F” on the exam, and possibly for the course. If you have a legitimate reason for an excused absence on the day of an exam, it is your responsibility to contact the instructor, in advance. At the instructor’s discretion, make-up exams may consist entirely of essay questions. VIII. Grading Scale: 93 – 100 = 90 – 92 = 87 - 89 = 83 - 86 = 80 - 82 = 77 - 79 = 70 – 76 = 60 - 69 = 0 - 59 =

A AB+ B BC+ C D F

IX. Course Grades and Requirements: Participation in class – Students must complete their homework assignments and must have prompt and regular attendance, a good attitude, and a willingness to learn and participate in order to earn a good class participation grade. Class participation grades will include peer evaluations of investment committee input by each participant in the Investment Project groups.

10%

Exams 1,2, and 3 (each exam will constitute 25% of your grade)

75%

Investment Project – See separate handout for instructions (Also see ANGEL)

15% ------100%

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X. Instructor’s Comments & Goals: I want this class to be an excellent experience for every student and I welcome feedback if at any time that is not what you are experiencing. There will be times that I will push you to learn in ways that may be out of your comfort zone, because that is the only way I can help you to achieve your full potential. I will make the course requirements and my expectations as clear to you as possible. Please don’t be afraid to ask questions. In most cases, I will be able to answer your questions for you. I will do my best to find the answer to your questions for you, if I don’t have the answer readily available. If at any time you are struggling or do not understand a particular concept, please make arrangements to meet with me so that we can discuss and resolve your concerns. My personal goal is for this class to be a positive and worthwhile learning experience for each student, where they will acquire knowledge and learn skills that will be useful in their lives and in their careers. I see all of you as having the potential to be our nation’s future leaders and I want each and every one of you to succeed. I will do everything possible to help you achieve that success.

Note to Students with Disabilities: Penn State welcomes students with disabilities into its educational programs. If you have a disability-related need for modifications or reasonable accommodations in this course, please contact the Health & Wellness Center, Disability Services, located in the Sheetz Family Health Center. For more information, call (814) 949-5540 or visit the Disability Services web site at www.altoona.psu.edu/healthwellness. Your instructors should be notified as early in the semester as possible regarding the need for modifications or reasonable accommodations. XI. Classroom Etiquette: An attitude of respect should be demonstrated in the classroom at all times. Students should always be respectful of one another and should give the professor their undivided attention during class. Cell phones and other electronic devices are a significant distraction and should be turned off during class. Texting in class is prohibited. If a student chooses to use their lap-top computer during class, it must be used only for information relative to the class. E-mailing, text-messaging, surfing the Web and other forms of “personal” communication during class are unacceptable. Texting in class and other violations of this policy will be counted as an unexcused absence from class for that day.

XII. Homework: The homework assignment for each chapter will be posted on ANGEL, under the Homework lessons tab. The chapters should be read and the homework problems should be completed in advance of the material being covered in class.

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PENN STATE ALTOONA Spring 2012

FINANCE 301: Corporate Finance – SECT. 003 XIII. Tentative Semester Schedule:

Week

Dates

Text / Topics

1

1/10, 1/12

Review of Syllabus and Course Requirements Finance 301 Overview Ch. 1 – Goals and Governance of the Firm

2

1/17, 1/19

Ch. 2 - Financial Markets & Institutions

3

1/24, 1/26

Ch. 3 – Accounting and Finance

4

1/31, 2/2

Instructions & Registration for Inv. Challenge Investment committee meetings & trading

5

2/7, 2/9

Ch. 4 – Measuring Corporate Performance

6

2/14, 2/16

Review for Exam I Exam I

7

2/21, 2/23

Ch. 5 – The Time Value of Money

8

2/28, 3/1

Ch. 5 – The Time Value of Money Ch. 6 – Valuing Bonds

3/6, 3/8

SPRING BREAK – NO CLASSES

3/13, 3/15

Ch. 6 – Valuing Bonds Fundamentals of Stocks and Bonds Ethics Discussion & Video

10

3/20, 3/22

Ch. 7 – Valuing Stocks

11

3/27, 3/29

Ch. 8 – Net Present Value & Other Investment Criteria

12

4/3, 4/5

Review for Exam II Exam II

13

4/10, 4/12

Ch. 11 – Intro to Risk, Return & Opportunity Cost of Capital

14

4/17, 4/19

Ch. 12 – Risk, Return & Capital Budgeting

Thursday

4/24, 4/26

May 3, 2012

2/1 – Investment Challenge begins

2/14 – Review for Exam I 2/16 - EXAM I

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15

Notes

3/31 –Last day to trade in Investment Challenge 4/3 – Review for Exam II 4/5 – Exam II 4/10 – Investment Challenge Reports Due

Ch. 16 – Debt Policy Ch. 17 – Payout Policy Review for Final

4/24, 4/26 - Review

Final Exam from 10:10 AM – 12:00 Noon in 102 Downtown-SCFEE

Final - EXAM III

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