Webster The School of Business&Technology Department of Business UNIVERSIT Course Syllabus Course FINC 5000 Finance Instructor Name: Lorraine gilbertson Email: gilbert@ webster. edu ocation Chengdu china Course Description The student examines the general nature of financial management, the American financial system, taxes, and the major financial decisions of corporations. Specific attention is given to present value and capital budgeting: risk and asset pricing; financial analysis and forecasting; financial decisions and market efficiency; and capital structure. Problem-solving methodology is used to illustrate the theories and tools in financial decision-ma king Course Objectives Finance ties the theoretical foundations of economics with the accounting field and language to develop a managerial outlook on corporate financial management. Understanding the financial makeup of a firm and managements goal of increasing shareholder wealth through decisions on the capital structure to the firms investments is the goalof the course. Students start with the basic goals of finance and the relationship to accounting and accounting statements and the information contained therein. Time value of Money is emphasized and utilized throughout the course. Using Time Value of Money (TVM)concepts, together with risk and return, students learn to evaluate capital structure and basic weighted average cost of capital. These concepts are developed to provide understanding of the importance of good financial management. Capital Budgeting techniques are developed in a decision-making model. The intent of the course is to take the student through the basics in order to understand the"big picture"of what financial management is, what it means, and how it is used. For students that do not take any more finance courses they should have a basic knowledge of the field of finance and the importance in their careers, businesses, and personal lives. For students that go on to take more finance, they should have a solid foundation from which the other courses can start building. In either case, this knowledge will help the student gain the decision-making and problem-solving skills so crucial in today's business environment. Learning Outcomes. Perform financial analysis and make decisions based on the analysis Apply time value of money concepts to business decisions Evaluate risk and consider in business decisions Value securities and corporations Apply basic capital budgeting concepts Determine capital structure and cost of capital Text Brigham and Ehrhardt, Financial Management, Theory and Practice, 10th edition FINC 5000 Page 1 of 3 Fall 2005
FINC 5000 Page 1 of 3 Fall 2005 Course FINC 5000 Finance Instructor Name: Lorraine Gilbertson Email: gilbertl@webster.edu Location Chengdu, China Course Description The student examines the general nature of financial management, the American financial system, taxes, and the major financial decisions of corporations. Specific attention is given to present value and capital budgeting; risk and asset pricing; financial analysis and forecasting; financial decisions and market efficiency; and capital structure. Problem-solving methodology is used to illustrate the theories and tools in financial decision-making. Course Objectives Finance ties the theoretical foundations of economics with the accounting field and language to develop a managerial outlook on corporate financial management. Understanding the financial makeup of a firm and managements' goal of increasing shareholder wealth through decisions on the capital structure to the firm's investments is the goal of the course. Students start with the basic goals of finance and the relationship to accounting and accounting statements and the information contained therein. Time Value of Money is emphasized and utilized throughout the course. Using Time Value of Money (TVM) concepts, together with risk and return, students learn to evaluate capital structure and basic weighted average cost of capital. These concepts are developed to provide understanding of the importance of good financial management. Capital Budgeting techniques are developed in a decision-making model. The intent of the course is to take the student through the basics in order to understand the "big picture" of what financial management is, what it means, and how it is used. For students that do not take any more finance courses they should have a basic knowledge of the field of finance and the importance in their careers, businesses, and personal lives. For students that go on to take more finance, they should have a solid foundation from which the other courses can start building. In either case, this knowledge will help the student gain the decision-making and problem-solving skills so crucial in today's business environment. Learning Outcomes • Perform financial analysis and make decisions based on the analysis • Apply time value of money concepts to business decisions • Evaluate risk and consider in business decisions • Value securities and corporations • Apply basic capital budgeting concepts • Determine capital structure and cost of capital Text Brigham and Ehrhardt, Financial Management, Theory and Practice, 10th edition
Course grading Your final grade will be based on chapter mini-cases, company analysis, and final examination, weighted as follows: Company Analysis and Presentation25% Chapter Mini-cases (3) 35% Final examination 40% The follow table shows the grade associated with each of the different ranges of total 94-100% 9093% B+8789% 8486% 70-79% 69% or less Course Activities This course requires problem solving, analysis, and class discussion on finance topics. The field of finance requires students have both the practical'how-to numerical analysis and a solid theoretical foundation. Also, students should develop an awareness and appreciation for current issues and the financial news. Knowledge of how financial data is reported should be integrated. Each week throughout the course the following types of assignment activities may be required. Chapter Problems-each chapter has a variety of problems that reinforce some dimension of the material from that chapter. Students should attempt a problem set and be able to discuss their solution and approach with the nstructor and class Lecture and discussion-a majority of the class may revolve around presentation of theoretical issues and problem solving. Students are expected to participate in applying theoretical ideas to numerical problems. Completion of mini-cases and a company analysis will be required. They are to be completed in typewritten format and turned in by the due date Full participation in this course is expected. Please advise the instructor ahead of time if you experience difficulties in keeping up with the course assignments and other activities. Policy statements Academic Dishonesty: Webster University strives to be a center of academic excellence. As part ofour Statement of Ethics, the University strives to preserve academic honor and integrity by repudiating all forms of academic and intellectual dishonesty, including cheating, plagiarism and all other forms of academic dishonesty. Academic Dishonesty is unaccepta ble and is subject to a disciplinary response. This syllabus may be revised at the discretion of the instructor without the prior notification or consent of the student. Attendance is re quired. If you m ust miss a class, get advance approval from the instructor whenever possible. You will be required to complete and submit all assigned work for the week in writing a penalty will be applied to any late assignment or exam unless approved by the instructor in advance The class will meet with the instructor 7 times instead of 8 times. this will not change the chapters that are covered in the course. Some class sessions may need to be extended somewhat to cover all relevant material. FINC 5000 Page 2 of 3 Fall 2005
FINC 5000 Page 2 of 3 Fall 2005 Course Grading Your final grade will be based on chapter mini-cases, company analysis, and final examination, weighted as follows: Company Analysis and Presentation 25% Chapter Mini-cases (3) 35% Final Examination 40% The follow table shows the grade associated with each of the different ranges of total possible weighted points. A 94-100% A- 90-93% B+ 87-89% B 84-86% B- 80-83% C 70-79% F 69% or less Course Activities This course requires problem solving, analysis, and class discussion on finance topics. The field of finance requires students have both the practical 'how-to' numerical analysis and a solid theoretical foundation. Also, students should develop an awareness and appreciation for current issues and the financial news. Knowledge of how financial data is reported should be integrated. Each week throughout the course the following types of assignment activities may be required. • Chapter Problems - each chapter has a variety of problems that reinforce some dimension of the material from that chapter. Students should attempt a problem set and be able to discuss their solution and approach with the instructor and class. • Lecture and discussion--a majority of the class may revolve around presentation of theoretical issues and problem solving. Students are expected to participate in applying theoretical ideas to numerical problems. • Completion of mini-cases and a company analysis will be required. They are to be completed in typewritten format and turned in by the due date. • Full participation in this course is expected. Please advise the instructor ahead of time if you experience difficulties in keeping up with the course assignments and other activities. Policy Statements Academic Dishonesty: Webster University strives to be a center of academic excellence. As part of our Statement of Ethics, the University strives to preserve academic honor and integrity by repudiating all forms of academic and intellectual dishonesty, including cheating, plagiarism and all other forms of academic dishonesty. Academic Dishonesty is unacceptable and is subject to a disciplinary response. Notes • This syllabus may be revised at the discretion of the instructor without the prior notification or consent of the student. • Attendance is required. If you must miss a class, get advance approval from the instructor whenever possible. You will be required to complete and submit all assigned work for the week in writing. • A penalty will be applied to any late assignment or exam unless approved by the instructor in advance. • The class will meet with the instructor 7 times instead of 8 times. This will not change the chapters that are covered in the course. Some class sessions may need to be extended somewhat to cover all relevant material
Session Topic(read chapters prior to each session) Assigned problems and cases(cases to be completed in writing) Chapter 1: An overview of Financial Management Chapter 2: Financial Statements, Cash Flow, and 2-1,2-2,23,2-11,2-12,2-15 Chapter 3: Analysis of Financial Statements 3-2 through3-5,3-13,3-14 **Chapter 3 Minicase, parts b, c, d, e, f, and writing, give to instructor at the beginning of session 2 Student presentations of Chapter 3 Mini-case 41,45 Chapter 4: Financial Planning and Forecasting Financial statements 5-12,5-13 Chapter 5: The Financial Environment: Markets, Institutions and Interest Rates Chapter 6: Risk and Return: The basics 6-10.6-14 Chapter 7: Risk and Return: Portfolio Theory and Asset Pricing Models hapter 8: Time Value of money 8-1,8-2,8-4,8-5,8-6,8-7,8-15,8-18,8-23,and 8-26 *Chapter 8 Minicase, parts b, c, d, e, f,g, and k; complete in writing, give to instructor at the Student presentations of Chapter 8 Mini-case 9-1,9-2,9-4,913 Chapter 9: Bonds and Their valuation 10-1,10-2,103,10-4,10-5,10-6,10-9,10-13 Chapter 10: Stocks and Their Valuatio Chapter 11: The Cost of Capital 1-1,11-2,11-3,11-4,11-11,Il-12 Chapter 12: Putting the Pieces Together: Corporate 12-1, 12-2, 12-4, 12-5 Valuation and value-Based Management **Chapter 12 Minicase, all parts; complete in writing, give to instructor at the beginning of Student presentations of Chapter 12 Mini-case Chapter 13: The Basics of Capital Budgeting 13-1,13-2,133,13-5,13-6,13-8,13-10,13-13 16-1,16-6 Chapter 16: Capital Structure Decisions: The basics Final e *Company Analysis Select a company of your choice. Research the company, using at least 3 sources with recent information. The Internet is the best source for a public company. Prepare a typewritten paper no longer than 3 pages, double spaced. The paper should include a brief background of the company, e. g, where it is located, when it was established, the name of the CeO, and what the company does. A ratio analysis of strengths and weaknesses. Other factors affecting the company, including competitive factors, macro-economic factors, new products, ete. Your assessment of the future of the company Whether you would recommend purchasing stock in the company (if a public company ). a bibliography. The bibliography is a separate page, not included in the 3-page limit. You may attach as many exhibits as you wish to support your paper eg, financial statements and other information you obtain from the Internet or elsewhere. However you are not required to attach exhibits--the choice is yours. Students will present their analysis during a class session. The presentation should be between 10-15 minutes in length. All members of a group should participate in the presentation *Mini-cases-for each assigned case, prepare a typewritten paper, double spaced nswer assigned parts of the mini-case in the paper. Students will present each case during a class session. All members of a group should participate in the presentation. FINC 5000 Page 3 of 3 Fall 2005
FINC 5000 Page 3 of 3 Fall 2005 Session Topic (read chapters prior to each session) Assigned problems and cases (cases to be completed in writing) 1 • Syllabus • Chapter 1: An overview of Financial Management • Chapter 2: Financial Statements, Cash Flow, and Taxes • Chapter 3: Analysis of Financial Statements 2-1, 2-2, 2-3, 2-11, 2-12, 2-15 3-2 through 3-5, 3-13, 3-14 **Chapter 3 Minicase, parts b, c, d, e, f, and h; complete in writing, give to instructor at the beginning of Session 2 • Student presentations of Chapter 3 Mini-case • Chapter 4: Financial Planning and Forecasting Financial Statements • Chapter 5: The Financial Environment: Markets, Institutions, and Interest Rates 4-1, 4-5 5-12, 5-13 3 • Chapter 6: Risk and Return: The Basics • Chapter 7: Risk and Return: Portfolio Theory and Asset Pricing Models 6-10, 6-14 4 • Chapter 8: Time Value of Money 8-1, 8-2, 8-4, 8-5, 8-6, 8-7, 8-15, 8-18, 8-23, and 8-26 **Chapter 8 Minicase, parts b,c,d,e,f,g, and k; complete in writing, give to instructor at the beginning of Session 5 5 • Student presentations of Chapter 8 Mini-case • Chapter 9: Bonds and Their Valuation • Chapter 10: Stocks and Their Valuation 9-1, 9-2, 9-4, 9-13. 10-1, 10-2, 10-3, 10-4, 10-5, 10-6, 10-9, 10-13 6 • Chapter 11: The Cost of Capital • Chapter 12: Putting the Pieces Together: Corporate Valuation and Value-Based Management 11-1, 11-2, 11-3, 11-4, 11-11, 11-12 12-1, 12-2, 12-4, 12-5 **Chapter 12 Minicase, all parts; complete in writing, give to instructor at the beginning of Session 7 7 • Student presentations of Chapter 12 Mini-case • Chapter 13: The Basics of Capital Budgeting • Chapter 16: Capital Structure Decisions: The Basics 13-1, 13-2, 13-3, 13-5, 13-6, 13-8, 13-10, 13-13 16-1, 16-6 8 • Final Examination *Company Analysis Select a company of your choice. Research the company, using at least 3 sources with recent information. The Internet is the best source for a public company. Prepare a typewritten paper no longer than 3 pages, double spaced. The paper should include: • A brief background of the company, e.g., where it is located, when it was established, the name of the CEO, and what the company does. • A ratio analysis of strengths and weaknesses. • Other factors affecting the company, including competitive factors, macro-economic factors, new products, etc. • Your assessment of the future of the company. • Whether you would recommend purchasing stock in the company (if a public company). • A bibliography. The bibliography is a separate page, not included in the 3-page limit. • You may attach as many exhibits as you wish to support your paper, e.g., financial statements and other information you obtain from the Internet or elsewhere. However, you are not required to attach exhibits—the choice is yours. Students will present their analysis during a class session. The presentation should be between 10-15 minutes in length. All members of a group should participate in the presentation. **Mini-cases—for each assigned case, • prepare a typewritten paper, double spaced • Answer assigned parts of the mini-case in the paper. • Students will present each case during a class session. • All members of a group should participate in the presentation