AGRICULTURAL AND APPLIED ECONOMICS 460
AGRICULTURAL FINANCE
Spring 2006
INSTRUCTOR: Ed Kaiser
252 Barre Hall
656-5779
ekaiser@clemson.edu
TIME AND ROOM: 11:00 a.m.- 12:15 p.m. Tu and Th; A144 P&AS Building
If an instructor is not in the classroom by 11:15 p.m., the students may leave.
OFFICE HOURS: 8:30 - 10:45 a.m. M, W, F
8:30 – 10:30 a.m. Tu and Th
TEXT: Barry, Peter J., Paul N. Ellinger, John A. Hopkin, and C.B. Baker, Financial Management in Agriculture, 6th edition, 2000. Prentice Hall..
COURSE OUTLINE:
I. Time Value of Money (chapter 9)
II. Cost of Financial Capital (chapter 14)
III. Investment Analysis (chapter 10)
IV. Financial Analysis, Planning and Control (chapters 3,4, and 5)
V. Capital Structure, Leverage, and Risk Management (chapters1,2,6, 7 and 8)
VI. Long-Term Decision Making (chapters 11, 12 and 13)
VII. The Agricultural Lending Industry (chapters 15, 16, 17 and 18)
PREREQUISITE: ACCT 201 and AP EC 202
GOALS:
1. To demonstrate the use of the various tools and techniques of financial analysis.
2. To identify and describe the role of credit in the farm business.
3. To use the techniques of financial analysis to analyze the usefulness of credit under
different conditions.
4. To evaluate business risk and financial risk in agricultural businesses and to describe
alternative methods of risk management.
CLASS ATTENDANCE:
College work proceeds at such a pace that regular attendance is necessary for each student to obtain maximum benefit from instruction. Regular and punctual attendance at all class sessions is a student obligation, and each student is responsible for all work, including test and written work, in all class sessions. No right or privilege exists that permits a student to be absent from any given number of class sessions. All absences are matters to be resolved between the instructor and the student. In the event that a student finds it necessary to be absent from class, it is the student's responsibility to make up resulting deficiencies.
CLEMSON UNIVERSITY’S STATEMENT ON ACADEMIC INTEGRITY:
“As members of the Clemson University community, we have inherited Thomas Green Clemson’s vision of this institution as a ‘high seminary of learning.’ Fundamental to this vision is a mutual commitment to truthfulness, honor, and responsibility, without which we cannot earn the trust and respect of others. Furthermore, we recognize that academic dishonesty detracts from the value of a Clemson degree. Therefore, we shall not tolerate lying, cheating, or stealing in a any form.” “When in the opinion of a faculty member, there is evidence that a student has committed an act of academic dishonesty, the faculty member shall make a formal written charge of academic dishonesty, including a description of the misconduct, to the Associate Dean of Undergraduate Services. At the same time, the faculty member may, but is not required to, inform each involved student privately of the nature of the alleged charge.”
GRADE: - APEC 460
The course grade will be based on five components: three exams during the semester, a cumulative Final Exam, and assignments.
METHOD I: Each of these components will count 20% of the course score.
METHOD II: The lowest score and the highest score from the five scores will be dropped.
The course score will be the average of the middle three scores.
The grading scale for course grades will be >90%: A, 80% to 90%: B, 70% to 80%: C, 60% to 70%: D, and <60%: F. This scale may be curved down at the end of the semester if needed.
GRADE: - APEC 660
80% from the APEC 460 score: This score will be based on five components: three exams during the semester, a cumulative Final Exam, and assignments.
METHOD I: Each of these components will count 20% of the course score.
METHOD II: The lowest score and the highest score from the five scores will be dropped. The course score will be the average of the middle three scores.
20% from a term paper or project designed with the instructor.
The grading scale for course grades will be >90%: A, 80% to 90%: B, 70% to 80%: C, 60% to 70%: D, and <60%: F. This scale may be curved down at the end of the semester if needed.
ASSIGNMENTS:
There will be several assignments to give you an opportunity to become familiar with the subject matter that will be presented in this course. Some assignments will be homework done outside of class and some assignments will be short in-class assignments. The types of questions and problems on the assignments will be the same types that you will be expected to answer on the exams.
Assignments will not be accepted after the due date.
TENTATIVE Lecture Schedule:
Date Topic
Th Jan 12 Discuss Course Syllabus, Class Roll
Tu 17 Time Value of Money
Th 19 Time Value of Money
Tu 24 Time Value of Money
Th 26 Time Value of Money
Tu 31 Costs of Financial Capital
Th Feb 2 Costs of Financial Capital
Tu 7 Costs of Financial Capital
Th 9 Exam #1
Tu 14 Investment Analysis
Th 16 Investment Analysis
Tu 21 Investment Analysis
Th 23 Investment Analysis
Tu 28 Financial Analysis, Planning and Control
Th Mar 2 Financial Analysis, Planning and Control
Tu 7 Financial Analysis, Planning and Control
Th 9 Exam # 2
Tu 14 Financial Analysis, Planning and Control
Th 16 Financial Analysis, Planning and Control
Tu 21 SPRING BREAK
Th 23 SPRING BREAK
Tu 28 Capital Structure, Leverage, and Risk Management
Th 30 Capital Structure, Leverage, and Risk Management
Tu Apr 4 Capital Structure, Leverage, and Risk Management
Th 6 Capital Structure, Leverage, and Risk Management
Tu 11 Exam #3
Th 13 Long Term Decision Making
Tu 18 Long Term Decision Making
Th 20 Long Term Decision Making
Tu 25 The Agricultural Lending Industry
Th 27 The Agricultural Lending Industry, Grade Before Final Exam
Tu May 2 FINAL EXAM, 8:00 – 11:00 a.m.
This is a preliminary version of the syllabus. The official one is the one distributed in class.
Spring 2006 Course List 
AE & S Home
2006 by Eddie H. Kaiser, Department of Applied Economics & Statistics, Clemson University, Clemson, SC 29634-0313