Dominican University

Brennan School of Business

BAD 350: Managerial Finance

Spring 2007

 

 

Instructor:         James Winikates

Phone:              708-524-6537

Fax:                  708-524-6939

E-mail:              jwinikat@dom.edu

Office:              Fine Arts 311

Office hours:     Tu/Thur 10:00 am – 11:00 am and by appointment

 

Required Text and Financial Calculator

 

Fundamentals of Financial Management, Brigham & Houston, Eleventh Edition, Thomson-Southwestern, 2007 (ISBN 0-324-319800)

 

Financial Calculator:  The HP 10BII is recommended.  Other financial calculators may be used, but it is each student’s responsibility to learn how to use his/her financial calculator. 

 

Course Description

 

BAD 350 is intended to provide students with an overview of the basic concepts and principles of financial management, with emphasis on ratio analysis, time value of money, risk/return analysis, and capital budgeting.  All organizations, for-profit and not-for-profit, must be able to effectively manage their financial resources to achieve their objectives.  Therefore, they must collect and interpret financial information to make appropriate strategic and operational decisions.  The fundamental concepts addressed in this course can be applied by students in their professional careers and personal investment decisions.  Prerequisite: Accounting 101; Recommended: Economics 260

 

Expected Learning Outcomes

 

Upon completion of this course, students will understand:

  1. The time value of money, and how to compute present and future values, annuities, and the value of uneven cash flows.
  2. The basic accounting financial statements and how to analyze them.
  3. Financial markets and institutions.
  4. How interest rates are determined.
  5. Valuation of stocks and bonds.
  6. The cost of capital.
  7. Basics of capital budgeting.
  8. Cash flow estimation and risk analysis.
  9. Capital structure and leverage.

 

Instructional Method

 

The course will utilize lectures, group discussion, and in-class problem solving.   Finance is about numbers, so the course is very quantitative.  Your success in the course requires careful attention to and use of the course calendar that accompanies this syllabus.  Systematic preparation for each class and satisfactory completion of homework assignments is absolutely necessary to understand the material and achieve success in the course.

 

As this is an introductory course, it will cover a lot of ground.  The structure of the course makes your individual study and preparation outside of class extremely important.  The material presented in class will focus on the major points introduced in the text.  Reading the assigned chapters and having some familiarity with them before class will greatly assist your understanding of the material presented in class.

 

Grading Policies

 

Final grades will be determined as follows:

 

Homework assignments (11 @ 30 points each)

330

Exams (3 @ 200 points each)

600

Participation

70

     Total

1000

 

The grading scale is:

 

Letter Grade Assigned

Cumulative Points

Associated Grade Percentage

A

920-1000

92-100%

A-

890-919

89-91.9%

B+

870-889

87-88.9%

B

830-869

83-86.9%

B-

800-829

80-82.9%

C+

780-799

78-79.9%

C

730-779

73-77.9%

C-

650-729

65-72.9%

F

649 & below

64.9% & below

 


 

Homework Assignments

 

All homework assignments are to be typed (single spaced).  Use of an Excel spreadsheet is acceptable.  .

 

Please note that a homework assignment turned in late will receive a reduced grade. 

 

Other Resources

 

You should register for the course at http://blackboard.dom.edu to enable you to access certain course information and to facilitate email communication between the instructor and students.  In particular, the Blackboard site contains PowerPoint presentations that will serve as a basis for class presentations. 

 

Examinations

 

There will be three examinations.  They will not be cumulative but will only cover material after the previous exam.  The exams will consist of multiple choice questions and short essay questions.

 


Course Calendar*

 

Date

Readings

Assignment Due

January 11

Chapter 1 – An Overview of Financial Management

 

January 16

Chapter 2 – Time Value of Money

 

January 18

Chapter 2, cont.

 

January 23

Chapter 2, cont.

 

January 25

Chapter 3 – Financial Statements, Cash Flow, and Taxes

HW # 1

January 30

Chapter 3, cont.

 

February 1

Chapter 4 – Analysis of Financial Statements

HW # 2

February 6

Chapter 4, cont.

 

February 8

Chapter 5 – Financial Markets and Institutions

HW # 3

February 13

No class

 

February 15

Exam – Chapter 1-5

 

February 20

Chapter 6 – Interest Rates

 

February 22

Chapter 7 – Bonds and Their Valuation

HW # 4

February 27

Chapter 7, cont.

 

March 1

Chapter 8 – Risk and Rates of Return

HW # 5

March 5-11

Spring break

 

March 13

Chapter 8, cont.

 

March 15

Chapter 9 – Stocks and Their Valuation

HW # 6

March 20

Chapter 9, cont.

 

March 22

Exam – Chapters 6-9

 

March 27

Chapter 10 – The Cost of Capital

HW # 7

March 29

Chapter 10, cont.

 

April 3

Chapter 11 – The Basics of Capital Budgeting

HW # 8

April 5-8

Easter vacation

 

April 10

Chapter 11, cont.

 

April 12

Chapter 12 – Cash Flow Estimation and Risk Analysis

HW # 9

April 17

Chapter 12, cont.

 

April 19

Chapter 14 – Capital Structure and Leverage

HW # 10

April 24

Chapter 14, cont.

 

April 26

Chapter 16 – Working Capital Management

HW # 11

April 30 – May 3

Exam – Chapters 10-16

 

 

* Subject to change.