Finance MBA P504 Updated (12/01/07)

Transcription

1 Degree program, MBA,MSA Finance MBA P504 Updated (12/01/07) P504 Version 1 (December 1, 2007) page 1 of 14

2 MBA P504 Finance Course Description: Introduction to the fundamentals, tools and techniques used by financial managers to anticipate financing needs, obtain capital and effectively manage a firm s financial resource. Course Outcomes: 1. Understand the basic terms of finance. 2. Understand the mechanics of the basic financial tools for both short-term and long-term decisions. Required Materials: Gitman, L.J.(2005). Principles of Managerial Finance (11 th Ed.) Boston, MA: Addison- Wesley(Pearson). ISBN: hard Materials passed out by the instructor focusing on financing tools. NOTES REGARDING ASSIGNMENTS AND WORKLOAD The class will meet for a total of eight weeks. The highly accelerated pace requires learners to take a great deal of responsibility for their own learning outcomes. Learners are expected to actively participate in class discussions and dedicate a minimum of 15 hours per week outside of class, to study, homework assignments, and/or group projects. WRITTEN ASSIGNMENTS An important component of this course is the completion of written assignments. All written work is expected to meet graduate standards. Assignments will be graded for content and for writing skills. The Publication Manual of the American Psychological Association (APA) is to be used for written work in the School of Management. Longer research papers required in this P504 Version 1 (December 1, 2007) page 2 of 14

3 and other School of Management courses are expected to follow APA guidelines. The facilitator will provide format, submission, and guidelines for the assignments. ATTENDANCE Students are expected to attend all classes, participate in all activities, and submit assignments on time. The facilitator establishes the guidelines for absences. P504 Version 1 (December 1, 2007) page 3 of 14

4 GRADING CRITERIA Your understanding of course content will be evaluated based on completion of the following assessments: Assignment % of grade Correlate to Course Outcome # s % Total 100% Your final grade will be based on the percentage points you accumulate during the course. A letter grade will be assigned according to the following criteria. Letter grade QualityPoints Percentage Description A = 4.00 = Outstanding scholarship A- = 3.67 = B+ = 3.33 = B = 3.00 = Superior work B- = 2.67 = C+ = 2.33 = C = 2.00 = Satisfactory C- = 1.67 = D+ = 1.33 = D = 1.00 = Unsatisfactory D- = 0.67 = F = 0.00 = below 60 Failing work School of Management students must maintain a cumulative grade point average of or better in courses required for the degree. In addition, a student who receives a grade of C or less in two courses will be subject to academic review and may be suspended form the program. No more that two (2) C grades will be counted toward graduation requirements. NO course in which the student earned less that a grade of C (d.g., C- ) is acceptable credit for fulfillment of master s degree requirements. Incomplete ( I/F ) Grades: Only in extreme emergencies will a student be given an incomplete grade. An incomplete grade results when a student is unable to complete the required work for the course due to extenuating circumstances. The student must submit a written explanation P504 Version 1 (December 1, 2007) page 4 of 14

5 of reason(s) for the request to the facilitator. GRANTING A GRADE OF INCOMPLETE IS AT THE DISCRETION OF THE FACILITATOR. P504 Version 1 (December 1, 2007) page 5 of 14

6 ASSIGNMENTS: Week 1 The environment of business. What is Finance? How is it different from Accounting? Introductions of instructor and students. Course expectations and course project. Library tutorial. Pick groups for end of semester project. Read Chapter 1,2,3& 4 for week 2. Outcomes 1 Week 2 The rudiments of finance the Balance Sheet and Income Statement. Cash Flow and Ratio Analysis. Cash Flow Statement. Video using finance for sustainability. Group work. Read Chapters 14 & 15 for week 3. Week 3 - Financial Planning, working capital and short-term financing. Review of a Financial Statement. Video, How finance can be used in affecting the sustainability of a community. Group work. Read Chapters 16 & 17 for week 4. Week 4 Short-Term financial decision. The current assets: cash, marketable securities, accounts receivable and inventory. How to read their effect on the balance sheet. What ratios are applied to analyze the companies trends. Group work, Read Chapter 8,, 11 & 12 for week 5. Week 5 Long-Term financial decisions. The definition of debt and the different vehicles of debt. Capital Budgeting. Group Work. Read Chapter 5, 6 & 7 for week 6. Week 6 Important financial concepts and long-term investment decisions. How to calculate the time value of money and how to use it effectively. Risk and Return and Bond and Stock valuation. Group work. Read Chapter 10, 19 & 20 for week 7. Week 7 Special Topics in managerial finance. Mergers, LBO s, Divestitures, business failures, international managerial finance. Ethics in finance, video, Enron the smartest guys in the room. Week 8 Group Presentations. Outcomes P504 Version 1 (December 1, 2007) page 6 of 14

7 Term Project: A case study is to be prepared using a publicly traded company. You will be required to discuss your chosen company with the instructor before being allowed to start analysis. Subject companies must be submitted by week 2. The project will cover the following information: a. Complete description of the subject company and the primary market/industry of the company. b. Ratio analysis of company s financial statement. The instructor will define which ratios to use for your analysis. c. A horizontal and vertical analysis on common sized statements. d. Comparison of industry specific ratios and statistics from resource databases such as RMA, Dunn& Bradstreet, Moody s and Mergent. e. Identification of important trends focusing on the most recent year. f. Estimated leverage factors, both financial and operating. g. Summation on your conclusions towards the company. This project will be due week 8 and your team or designated member of your team will be expected to present your project. A written report of your analysis will also be expected to be turned in at the time of presentation. Further direction on format of the project will be given in class. WEEK ONE: Topic Week 1 The environment of business. What is Finance? How is it different from Accounting? Introductions of instructor and students. Course expectations and course project. Library tutorial. Pick groups for end of semester project. Read Chapter 1,2,3& 4 for week 2. Outcomes 1 OUTCOMES To understand the economic and financial environment of business Be able to describe the differences between finance and accounting Be able to define cash flow as used in finance and calculate an approximation using financial information P504 Version 1 (December 1, 2007) page 7 of 14

8 ACTIVITIES Discuss current financial and economic conditions Discuss accounting and the required financial statements Discuss and demonstrate the calculations and definition of cash flow WEEK TWO Week 2 The rudiments of finance the Balance Sheet and Income Statement. Cash Flow and Ratio Analysis. Cash Flow Statement. Video using finance for sustainability. Group work. Read Chapters 14 & 15 for week 3. OUTCOMES Be able to prepare a comprehensive ratio analysis of a company Be able to interpret the ratios calculated above ACTIVITIES Discuss and model calculation of ratios, horizontal, and vertical analysis Using an example, explore the meaning of various analysis techniques Discuss Cash flow calculations WEEK THREE Week 3 - Financial Planning, working capital and short-term financing. Review of a Financial Statement. Video, How finance can be used in affecting the sustainability of a community. Group work. Read Chapters 16 & 17 for week 4. P504 Version 1 (December 1, 2007) page 8 of 14

9 OUTCOMES Be able to use the standard forecasting techniques such as % of sales and pro forma Be able to calculate working capital needs Be able to identify both asset and liability issues of working capital Understand the attributes of each asset and liability that normally make up working capital Understand the financial tools to evaluate the sustainability of an enterprise ACTIVITIES Discuss and calculate both % of sales and pro forma forecasts and the required funds needed Discuss the assets and liabilities that make up working capital Review film on sustainability WEEK FOUR Week 4 Short-Term financial decision. The current assets: cash, marketable securities, accounts receivable and inventory. How to read their effect on the balance sheet. What ratios are applied to analyze the companies trends. Group work, Read Chapter 8,, 11 & 12 for week 5. OUTCOMES Understand the tools and techniques that can be used to evaluate short term financial decisions ACTIVITIES Discuss tools to use to forecast cash needs Using examples, calculate the trade off between short term investments and cash balances P504 Version 1 (December 1, 2007) page 9 of 14

10 Discuss tools related to Accounts Receivable analysis Discuss Inventory tools such as EOQ and other analysis techniques WEEK FIVE Week 5 Long-Term financial decisions. The definition of debt and the different vehicles of debt. Capital Budgeting. Group Work. Read Chapter 5, 6 & 7 for week 6. OUTCOMES Understand the calculation of Present and Future value using compound interest Understand the calculation of cash flow to be used in long term decision making Be able to identify the 5 basic capital budgeting evaluation tools Be able to calculate the 5 basic capital budgeting evaluation tools Be able to identify the major sources of long term finanicing ACTIVITIES Review the use of tables, financial calculators and Excel to calculate present and future values Using examples, calculate the differential cash flows for long term projects Using the cash flows calculated above, use each of the common capital budgeting processes to reach a conclusion about the viability of the project P504 Version 1 (December 1, 2007) page 10 of 14

11 WEEK SIX Week 6 Important financial concepts and long-term investment decisions. How to calculate the time value of money and how to use it effectively. Risk and Return and Bond and Stock valuation. Group work. Read Chapter 10, 19 & 20 for week 7. OUTCOMES Review the calculation of present and future value Using compound interest tools, be able to calculate the value of common securities including bonds, preferred stock and common stock Using the formulas above, be able to calculate the weighted average cost of capital of a firm ACTIVITIES Using Excel, review the calculation of present and future value Using examples and Excel, review the calculation of the value of Bonds, Preferred Stock, and Common Stock Using modification of the process to calculate the value of securities, demonstrate the calculation of the cost to the compay of each security Using examples from above, calculate the company s weighted average cost of capital WEEK SEVEN Week 7 Special Topics in managerial finance. Mergers, LBO s, Divestitures, business failures, international managerial finance. Ethics in finance, video, Enron the smartest guys in the room. OUTCOMES To be able to describe the financial considerations involved in mergers and divestitures P504 Version 1 (December 1, 2007) page 11 of 14

12 To be able to examine the conditions leading to business failure To be able to calculate and describe the major tools of international finance ACTIVITIES Review the evaluation techniques, both compound interest and EPS related tools that can be used to evaluate a merger or divestiture Review how to forecast a business failure using ratio and other techniques Describe the basic steps in bankruptcy Review the major hedging techniques and their advantages and disadvantages Use examples to convert from one currency to another WEEK EIGHT Week 8 Group Presentations. Outcomes OUTCOMES Develop presentation skills ACTIVITIES Presentations EQUAL ACCESS & DISABILITY SERVICES Regis University, in compliance with federal guidelines, is committed to equal educational opportunity by assuring otherwise qualified students with disabilities equal access to Regis University programs and activities that are provided to students without disabilities. An otherwise qualified person with a disability is a student who meets the academic and technical standards required for admission or participation in Regis University's educational programs and activities. Eligibility To ensure the provision of reasonable and appropriate services at Regis University, students with disabilities must identify themselves in a timely manner to the Office of Disability Services (ODS), Room 118B, Life Directions Center, , disability@regis.edu, in order to be eligible for the requested accommodation(s). P504 Version 1 (December 1, 2007) page 12 of 14

13 Current and comprehensive documentation must be on file with the ODS prior to approval of the accommodation. It is strongly encouraged that students self-disclose their disabilities at the beginning of their academic experience because accommodations are not retroactive. If you have questions or concerns please contact the ODS at or Joie Williams at JESUIT EDUCATION Mission: The Mission of Regis University is to develop men and women to be leaders in service of others. The foundation of a Jesuit Catholic university is in providing a valuesbased education with a focus on finding good in all things. Ethics & Values: To this end, we will encourage the discussion of different views and perspectives and their ethical implications for business projects being planned and carried out in today s global environment. The purpose of this discourse is to assist us as in seeking an answer to the question posed by Ignatius Loyola, founder of the Jesuits, of: How ought we to live? SOCIAL JUSTICE AND SERVICE LEARNING COMPONENTS Insofar as Jesuit education is both practical and value-oriented, educating men and women to be concerned with the common good and the promotion of justice, the mission of Regis University supports a concern for social justice and service learning. Social justice is integrated into the curriculum by addressing moral and ethical issues pertinent to the student s area of study. Service learning is integrated into the curriculum as a form of experiential education in which students engage in activities that address human and community needs together with structured opportunities intentionally designed to promote student learning and personal development. Service can take many forms including direct service, advocacy, raising consciousness, and community-based research. STUDENT CONDUCT approved by University legal counsel CPS students and faculty share responsibility for maintaining an appropriate learning environment. This includes using information technology responsibly in online and other courses. In order for faculty members to provide and students to receive effective instruction in classrooms, laboratories, online courses, and other learning areas, the College for Professional Studies expects students to conduct themselves in an orderly and cooperative manner and not engage in disruptive behavior, disorderly conduct or intentionally interfere in the freedom of expression of others. Disruptive Behavior or Disorderly Conduct as applied to the academic setting, means behavior that a reasonable faculty member or student would view as intentionally or recklessly interfering with normal academic functions, University events or University P504 Version 1 (December 1, 2007) page 13 of 14

14 sponsored activities. Examples include, but are not limited to: persistently speaking or commenting without being recognized or interrupting other speakers; behavior that distracts the class from the subject matter or discussion; or in extreme cases, physical threats, harassing behavior or personal insults; refusal to comply with faculty direction including refusal to work in a group, using a cell phone or pager during a classroom session; or behavior that has a negative impact in any learning environment. Disruptive behavior also includes any other behavior covered by the Regis University Student Code of Conduct. Students who fail to adhere to acceptable behavioral standards will be counseled by the classroom faculty. Should the issue not be resolved, they will then be referred to the Program Chair and then, should it be necessary, to the Dean and may be subject to discipline up to and including expulsion from the program. PLAGIARISM Plagiarism is defined as presenting as one s own, the ideas, words or product of another. When a student submits work for credit that includes the product, words, ideas, or data of others, the source must be acknowledged by the use of complete, accurate, and specific references, this includes copying and pasting from online media or from any web-site. By placing one s name on work submitted for credit, the student certifies the originality of all work not otherwise identified by appropriate acknowledgements. Sanctions for plagiarism include: a failing grade on the assignment, failure of the course, or, expulsion from the course or department (program). An facilitator may, at their discretion, utilize the services of Turnitin.com to evaluate the student work product for plagiarism. Alternatively, an facilitator may require students to submit the work product directly to Turnitin.com for evaluation prior to submission to the facilitator. For more information on Turnitin.com, please go to DIVERSITY Assoc. Provost At Regis University, diversity is at the core of our faith-inspired commitment to build an inclusive community that values the dignity and contributions of all of our members. Our differences thrive in a learning environment characterized by the Jesuit traditions of mutual respect and the pursuit of justice, an environment in which our human differences, whether physical or philosophical, are respected. P504 Version 1 (December 1, 2007) page 14 of 14