Rollins College Entrepreneurial and Corporate Finance BUS 320- H1X

Transcription

1 Professor Stephanie D. Murphy Time: H1X Tuesday and Thursdays 4-5:15pm Location: The Lodge Reeves Office Hours: Tuesdays and Thursday, or by to schedule Course Description This is an introductory course on business finance, which will introduce finance concepts in the context of both corporate and entrepreneurial decision making. While the suppliers and users of capital vary between mature corporations and entrepreneurial ventures, the very fundamental financial skill sets used in the decision- making process is the same. This course will provide a fundamental understanding of the principles and analytical tools needed to make investments and financial management decisions. We will examine the financial management dynamics from both the perspective of the entrepreneur or corporation as well as the potential investors to understand their motivations and considerations. Students are challenged to apply these skills and concepts to cases that may face an entrepreneur or corporate finance manager. We will use textbook readings, current events articles and problem sets. Class sessions will be a mix of interactive lectures, problem sets, and skill development activities. Homework and active class participation is required to ensure a productive learning environment for all. Course Objectives Understand basic economic concepts that relate to finance such as market value, opportunity costs, marginal costs, marginal benefits, taxes, interest rates, and inflation. Develop a financial toolbox including the concepts and applications of financial statement analysis, time value of money and capital budgeting, financial assets, and business/personal financial planning. Learn about the context within which financial decisions across a variety of sectors are made. Go beyond profit- centered methods of capital budgeting and discuss the social impacts of projects Develop basic Microsoft Office Excel skills and a foundation for further coursework in finance and investments Course Materials This course will use a mix of required textbook and other readings as provided. Required: Entrepreneurial Finance, 6 th Edition, by Philip J. Adelman and Alan M. Marks (Adelman hereafter). Readings from this textbook are mandatory and will be evaluated by random quizzes for bonus points. 1

2 Additional required reading materials (news articles, case studies, success stories, etc.) will be posted on Blackboard as necessary. These readings may also be evaluated by random quizzes for bonus points. Microsoft Office Excel (2010 or later). Excel is required for this course. You will need it for the homework and class activities. While no prior knowledge of Excel is required, some self- study will be required to familiarize you with basic functions. There are many sites that provide Excel tutorials. You may find some at this website Some basics will be covered in class but if you need special assistance with Excel at any point in the semester, please contact me directly. Optional: Fundamentals of Corporate Finance, 3 rd Edition, by Jonathan Berk, Peter DeMarzo and Jarrad Harford (Berk hereafter) Course Requirements & Evaluation Professionalism 15 points Homework 20 points Tests 45 points Final Project 20 points Pop Quizzes Bonus Points Professionalism (15 points) Good news. Everyone starts this class with a perfect score in this area. I will deduct points for lapses in professionalism (ill- preparedness, inappropriate technology use, unexcused absences, lateness and inappropriate behavior towards your peers or professor). You must prepare for class because you are expected to actively participate in the discussion with quality contributions. Please complete the assigned readings and consider the questions that we will be discussing in class. You may use laptops and tablets to participate in class activities or take notes. However, if you use these tools for any other purpose (e.g. social media, online shopping, chat, etc.) you will lose points and your ability to use these tools in future classes. Homework (20 points) There will be 4 homework assignments worth 5 points each. Students can form groups of no more than 4 to complete those homework assignments. While the tendency within group work is to have the Excel Jockey take the lead, students are advised to thoroughly understand the submitted homework, as individual understanding of the materials and methods will be tested in exams and quizzes. Homework will be assigned in the class prior to the class when it is due. Homework must be completed and uploaded to Blackboard by midnight before class. 2

3 Tests (45 points) There will be 3 tests worth 15 points each. We will review the materials in the class prior to the exam. There will be NO make- up exams. You will get a zero if you miss an exam, except for extreme cases that are properly documented (See attendance policy below). Final Project (20 points) Students MUST form groups of no more than 4 students. Students will work on elements of the project throughout the semester. Students will: 1. Select and describe a start- up business concept 2. Develop an income statement for the business 3. Develop 5 year projections for the business 4. Write a summary of the business assumptions used for the income statement and the projections Groups will present their projects in class. Additional specific guidelines for this project will be provided in class. Pop Quizzes (Bonus Points) The quizzes are opportunities for you to earn bonus points. They will be based on the assigned reading and content covered in class that day. The quizzes can take place at any point during class. Each quiz will have 5-7 multiple- choice answers and the bonus points will be awarded as follows: 1 bonus point if you have no incorrect answers ½ bonus point if you have 1-2 incorrect answers; 0 bonus points if you have 3 or more incorrect answers Bonus points will be added directly to your overall numerical grade for the course and can easily bump you up to a higher final letter grade for the class. Course and College Policies Attendance Policy You are expected to attend all classes unless you have an excused absence. Since this class only meets once a week and covers a broad range of materials, any absence can significantly impair your potential for success. Excused absences include absences due to illness with a doctor s note, or college- approved activities such as athletic travel. Even with a valid excused reason, you must let me know in advance that you will miss a class (unless it is a medical emergency) For excused athletic absences, a note from your coach is required in advance of the missed class. The note must specify the dates of absence and mention you by name. Even with a valid excused absence, you must make arrangements to turn in all your assignments by the due dates. Assignment deadlines are strict and there are no make- ups. 3

4 Disability Statement: Rollins College is committed to equal access and does not discriminate unlawfully against persons with disabilities in its policies, procedures, programs or employment processes. The College recognizes its obligations under the Rehabilitation Act of 1973 and the Americans with Disabilities Act of 1990 to provide an environment that does not discriminate against persons with disabilities. If you are a person with a disability on this campus and anticipate needing any type of academic accommodations in order to participate in your classes, please make timely arrangements by disclosing this disability in writing to the Disability Services Office at (box 2764) 1000 Holt Ave., Winter Park, FL, or or call the Director of Disability Services, Grace Moskola at , gmoskola@rollins.edu. Academic Honor Code: Membership in the student body of Rollins College carries with it an obligation, and requires a commitment, to act with honor in all things. Because academic integrity is fundamental to the pursuit of knowledge and truth and is the heart of the academic life of Rollins College, it is the responsibility of all members of the College community to practice it and to report apparent violations. The following pledge is a binding commitment by the students of Rollins College: The development of the virtues of Honor and Integrity are integral to a Rollins College education and to membership in the Rollins College community. Therefore, I, a student of Rollins College, pledge to show my commitment to these virtues by abstaining from any lying, cheating, or plagiarism in my academic endeavors and by behaving responsibly, respectfully and honorably in my social life and in my relationships with others. This pledge is reinforced every time a student submits work for academic credit as his/her own. Students shall add to all papers, quizzes, tests, lab reports, etc., the following handwritten abbreviated pledge followed by their signature: On my honor, I have not given, nor received, nor witnessed any unauthorized assistance on this work. Material submitted electronically should contain the pledge; submission implies signing the pledge. Credit Hour Statement: Credit Hour Statement for Rollins Courses Meeting 150 Minutes Weekly for Four Credit Hours during 15- Week Semesters This course is a four- credit- hour course that meets three hours per week. The value of four credit hours results from work expected of enrolled students both inside and outside the classroom. Rollins faculty require that students average at least three hours of outside work for every hour of scheduled class time. In this course, the additional outside- of- class expectations are [please fill in what this course requires, e.g., fieldwork, research, experiential education, small- group projects, etc.]: Course And Instructor Evaluation: At the end of each semester, students are asked to evaluate the course and instructor. These evaluations are extremely valuable in the teaching and learning process on our campus. Student evaluations help assess student perceptions of classroom learning and often lead to improved teaching. Your feedback is important and Rollins students are encouraged to be honest, fair, and reflective in the evaluation process. 4

5 The online evaluative survey is anonymous. Students are never identified as the respondent. Instead, each student s comments are assigned a random number. You will be asked to rate your course and instructor on a numerical scale and through narrative comments. The online Course and Instructor Evaluation (CIE) process opens at 8:00 a.m. on the first scheduled date. It remains open for a period of 14 days (2 weeks) until 12:00 a.m. (midnight) on the final scheduled date. The evaluation period ends prior to the start of final examinations and faculty cannot access completed evaluations until 10 days after the end of final exams. Students will receive one at the start of the CIE period, one after the 15th day, and a final reminder the day before the CIE period ends. Students who complete evaluations for all classes will be able to view grades ten- days before students who do not complete an evaluation form. 5

6 Course Outline SUBJECT TO CHANGE Current Course Outline will be posted on Blackboard Date Topic Assignment Due Content Jan 12 Introduction to Course and Syllabus Finance Overview Ch 1 Economic Concepts of Finance Jan 14 Finance Overview Ch 1 Economic Concepts of Finance Jan 19 Financial Statements FP1. Establish Groups and develop your start- up idea Ch 2 Financial Management & Planning Jan 21 Financial Statements HW1: Financial Statements Ch 3 Financial Statements Jan 26 - Guest Speaker - Crowd Funding Jan 28 Financial Statements FP2. Develop your Income Statement Ch 4 Analysis of Financial Statements Feb 2 Profit, Profitability, and Break Even Analysis Forecasting and Pro Forma Analysis HW2: Forecasting & Pro Forma Analysis Ch 5 Profit, Profitability and Break- even Analysis Ch 6 Forecasting and Pro Forma Financial Statements Feb 4 Review for Test Chapters 1-6 Feb 9 TEST 1: Chapters 1-6 TEST 1: Chapters 1-6 Feb 11 Group Work Work in groups on developing your draft Income Statement Feb 16 Time Value of Money FP3. Develop 5- year projections Ch 8 Time Value of Money Feb 18 Annuities, perpetuities, and growing cash flows HW3. TVM Ch 9 TVM: Annuities Feb 23 Annuities, perpetuities, and growing cash flows Ch 9 TVM: Annuities Feb 25 - Guest Speaker - Venture Funding Mar 1 & 3 SPRING BREAK Mar 8 Capital Budgeting (NPV, IRR, etc.) Ch 10 Capital Budgeting 6

7 Mar 10 Capital Budgeting (NPV, IRR, etc.) Ch 10 Capital Budgeting Mar 15 Group Work Work in groups on developing your 5- year projections and business assumptions Mar 17 Review for Test Chapters 8-10 FP4. Write summary of business assumptions Mar 22 TEST 2: Chapters 8-10 Mar 24 - Guest Speaker - Institutional Financing Mar 29 Financial Assets Ch 11 Financial Assets Mar 31 Financial Assets Ch 11 Personal Finance Apr 5 Personal Financial Planning HW4. Personal Finance Ch 11 Personal Finance Apr 7 Apr 12 Apr 14 Personal Financial Planning Review for Cumulative Exam Review for Cumulative Exam Apr 19 Present Final Group Projects Final Project Presentations Apr 21 Present Final Group Projects Final Project Presentations Apr 26 Present Final Group Projects Final Project Presentations May 3 11am 1pm TEST 3: Cumulative 7