BADM 605  Dr. Stephen J. Silver    Spring, 2008

Office: Bond Hall 358  Phone: 953-5163 (O), 766-9943 (H)

Hours: Mon. & Tues. 5:00 – 5:45 and by Appointment

 

Objectives: 

This course is intended as a “toolbox” type of course to prepare the student for the follow-on course, Financial Management – BADM 614.  It is strongly advised that the student take that course as soon as possible after BADM 605 in order to take full advantage of the knowledge gained in BADM 605.

 

Students will learn about the institutions of financial markets and about the various financial instruments and how these instruments are valued by the market.

 

Required Course Materials:

Text: There is no official text for the course; however the notes at my website www.citadel.edu/faculty/silver are more than adequate for this course. 

 

Calculator: Some sort of financial calculator is highly recommended; for example a TI BA or HP 12C.  [These will be required in the follow-up BADM 614 course]

 

All other materials needed will be presented in class and are available in the Lecture Outlines referred to for the week.

 

Grading:  The grading for the course will based on the following

                       

Activity

Percent of Grade

Portfolio

15

Test 1

40

Test 2

40

Attendance, Participation

5

 

 


 

Schedule of Classes and Assignments:

 

Date

Topics

Lecture notes

Assignment

Jan 8

Function of Financial Markets; Review of Financial Statements

Lecture Outline for Week 1

Hyperion Case

Stock Market Exercise

 15

Financial Ratios;

Financial Forecasting

 Lecture Outline for Week 2, Fin. Forecast Prob. 1

Financial Forecast

Problems Answers

22

Risk and Return; Determination of Interest Rates

Lecture Outline for Week 3

Problems

Practice Test 1

29

Test 1

 

Feb. 5

 

Time Value of Money; Application of TVM to Valuation of Assets

Lecture Outline for Week 4, Financial Tables

TVM Problems

TVM Solutions

12

Capital Budgeting Methods; The Cost of Capital

Lecture Outline for Week 5; Lecture Outline for Week 6, Answers to Practice Test II

Capital Asset Valuation Problems; Cost of capital  Problems

Practice Test 2

19

Test 2