BAD 350 – Managerial Finance
Spring 2007
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Instructor |
Greg Calloway |
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work e-mail (emergency) |
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Work Phone |
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Office Hours |
By appointment |
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Prerequisites |
ACCT 101 required; BAD 260 is recommended |
1. Brigham & Houston, Fundamentals of Financial Management, 11th edition by Southwestern Publishers, 2007. It must have CD-rom software. Wall Street Journal will be required reading for the course.
2. HP 10BII or HP 12C Financial Calculator is required.
3. During the first week of class, please purchase a disk that you can dedicate to this course. Save all versions of your papers and Excel worksheets.
This course provides an overview of the basic concepts and principles of financial management. Topics include financial statement analysis, financial ratios, time value of money, risk/reward analysis including market measures of risk and return, capital budgeting (when to build), and mergers & acquisitions (when to buy). Together the class and instructor will attempt to integrate finance theory and mathematics with the "real world" by discussion of examples drawn from current business news and case studies. Supplementary articles will be introduced periodically (Wall Street Journal, Financial Times, and http://www.investopedia.com/) to acquaint students with the opinions of professional financial managers as well as academics on the use of different techniques used to analyze investments. Student groups will choose a company to analyze for the semester and will make presentations to the class for discussion. By the end of the semester, successful students should have gained a basic understanding of financial principles and tools that they can apply to their professional careers and personal investment decisions.
The business curriculum provides the opportunity for students to learn the tools and methods of managing companies and organizations and to apply them in an ethically responsible manner for the benefit of all stakeholders. In accordance with this mission, a successful student in BAD 350 will be able to:
1. Appreciate the ethical foundation of effective long-run business decisions and promote social responsibility and ethical leadership in managerial decision-making.
2. Communicate effectively. This course focuses on not only the derivation of the numbers but also an understanding and communicating of what the numbers mean. Each student will from with a group of 4 to 5 students and select a publicly listed firm to follow throughout the semester, applying the tools developed in this course to understanding the company's performance and outlook. Students will present their findings to the class and will be expected to explain and defend their analyses. Written assignments will be graded on presentation as well as content.
3. Utilize technology and electronic learning to address business applications. Each chapter requires the use of Excel and financial calculators to solve empirical problems. Spreadsheet exercises and mini-cases are presented at the companion website. In addition, students will be asked to utilize various Internet sites to find financial information, company filings, credit opinions and analyst recommendations. Students will register for the class on Blackboard and ThomsonNow
4. Utilize quantitative analytical methods in making business decisions. For example, students will learn to use Net Present Value (NPV) profiles to assess how expected interest rates will drive the decision to accept or reject a proposed investment in real or financial assets.
-Overview of corporate structure/objectives of management
-Role of finance within the corporation
-evaluate the role and limitations of accounting statements
-understanding financial statement analysis
-understand time value of money
-risk and return concepts
-bond and stock valuation models
-cost of capital/capital structure
Please refer to http://brigham.swlearning.com/ for downloads and current events associated with each chapter! Please refer to http://blackboard.dom.edu/ to download course material.
Policies regarding exams, homework assignments, and attendance
Assignment |
Points |
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Spreadsheet Model #1 |
5 |
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Spreadsheet Model #2 |
5 |
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Case Studies (select 2 to hand in) |
20 |
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Subtotal |
30 |
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HW Problems (as assigned) |
15 |
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Test I |
10 |
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Test II |
10 |
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Test III |
10 |
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Final |
10 |
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85 |
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Group Project: Public Company Analysis Project |
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15 |
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Total |
100 |
· None of the tests will be deliberately comprehensive although concepts developed in earlier chapters will necessarily be employed in later chapters. No make-up tests will be given without prior notification and official documentation for absences.
· All tests will be based on a combination of class
notes and the required text. If you should miss a lecture, contact me as soon
as possible since additional information and examples may be given in class
that are not found in your textbook.
· All papers should be typed (single-spaced (double-spaced between paragraphs), 12 pt Times Roman font, 1 inch margins)
· Homework assignments should be submitted electronically on Excel worksheets. Since homework will be discussed in class on the due date, no late homework will be accepted. All homework will be graded on a scale of “1” (grade F) to “5” (grade A).
· Lecture attendance is required and students are responsible for all assignments during their absences. Because the interaction between students is an important component of the learning process, the following guidelines are established:
o Absenteeism in excess of 2 sessions will result in a one-letter grade reduction in the final cumulative grade.
· The final cumulative grade will be calculated using the table below. The instructor reserves the right to make use of “+” and “-“ as deemed necessary by merit.
o A: 90% and up; B: 80% - 89%; C: 70% - 79%
o D: 60% - 69%; F: below 59%
· Incompletes will only be given if student presents clear justification/rationale/documentation as appropriate.
All students are required to complete two spreadsheet problems by the designated due dates. They are located in your textbook. The spreadsheet problems will require the use of Excel in order to derive answers and solve practitioner’s problems. It is assumed that students have a general working knowledge of Excel already. Students must submit a hard copy and a copy on disk or by e-mail. It is the student's responsibility to verify the instructor's receipt of the spreadsheet by e-mail.
The Case Studies selected for this course are a combination of one textbook case and one “cyberproblem” that require the use of spreadsheets and the Internet to understand the corporation. To complete the Cyberproblem, link to http://www.swlearning.com/finance/brigham/ffm10e/ffm10e.html and answer the questions as they appear. To complete the cases, link onto blackboard for specific questions.
For the Case only (non-Cyberproblem) each student is required to hand in a 2-4 page typed (12 point Roman font, 1-inch margins, single-spaced) reaction paper. The paper should include:
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(1) |
Summary of the main points of the case |
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(2) |
Answer the main questions of the case (as posted on blackboard) |
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(3) |
Discuss strengths/weaknesses/potential avenues for improvement or further discussion |
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(4) |
What have you learned about financial management? |
No late assignments will be accepted. All cases will be discussed on the designated due dates. Please see blackboard for specific questions for each case. On the day the case is due, it is expected that all students participate in discussion related to the case. Just a few tips:
· When writing your case, try to keep the analysis as professional as possible; this implies that you write in the third person; however, you must interject your opinions.
· The first paragraph of the memo should briefly summarize its content. Be concise and to the point. Limit the summary to a page at most.
· Make an appointment to see me for help! I will read all your drafts and provide you with input to help you earn a better grade! You may see me for help any time up to 3 days prior to the due date.
· Each paper will probably be at least 2-4 pages (single space, standard margins Attach all work (Excel spreadsheets) to the back and reference it within the paper itself.
Public Company Project
You are required to produce a group paper on a publicly listed company. A public company is one with debt or equity securities, which are "listed" (traded) on a public stock or bond exchange. Each team is required to create a portfolio, which is to be handed into the instructor before the presentation, including financial reports, news articles, Internet citations, pictures, brochures, etc. that reflect the firm and its changes over the past two years. The case will be minimum of 8 pages single spaced in 12 point Arial font. The details of the project will be presented in class.
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Jan 17 Chapter 2-3 assign case #1 – D’Leon Inc
Jan 24 Chapter 5 NO CLASS
Jan 31 Chapters 3-4 case #1 due, Assign Spreadsheet #1
Feb 7 Chapter 6 Test#1, Chapters 1 – 5
Feb 14 Chapter 7 Spreadsheet #1 due
Feb 21 Chapters
8-9 assign
case #2 Mutual of Chicago Insurance
Feb 28 Chapters 10 Test #2, Chapters 6 – 9
Mar 5 -11 Spring Break
Mar 14 Chapters 11 case #2 due
Mar 21 Chapter 12 Discuss
Group case and Assign Spreadsheet #2
Mar 28 Chapters 13
Apr 4 Chapter 14 Test #3, Chapters 10 - 13
Apr 11– Chapter 16 and Review Spreadsheet # 2 due
Apr 18 Chapter 17 and Review
Apr 25 Group cases due and Presentations
May 2 Final Test # 4 Chapters 14 - 17