Bang College of Business (BCB) MBA Program Summer I Semester 2013 Course Syllabus for: FN Selected Topics in Finance (Contemporary Issues)

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1 Bang College of Business (BCB) MBA Program Summer I Semester 2013 Course Syllabus for: FN Selected Topics in Finance (Contemporary Issues) 1. Basic Information Course Code and Title: FN Selected Topics in Finance Course Meeting Time and Place: 18:30 20:15 (Monday, Wednesday & Friday) in Hall #114 / New Academic Building Course Credit: Three (3) credits Instructor Information: Instructor: M Mujibul Haque, Ph.D. Office: Room # Dostyk (Administrative) Building Phone: Ext mmhaque@kimep.kz / onmmh@yahoo.com 2. Instructor Availability: Office Hours: 17:00 18:15 (Monday, Wednesday & Friday) Additional hours are available by appointments 3. Course Description/Overview The course has two major components: 1. Through case studies, the course emphasizes on the practical application of concepts and theories learned in basic finance courses. Topics include financial analysis and forecasting, capital budgeting, corporate financing, working capital management, risk management, valuation and investment management. 2. Through lectures, discussions and writing of research paper, various contemporary local and international financial topics, particularly recent financial crises, are explored in order to advance theoretical and practical knowledge of contemporary issues. 4. Learning objectives: Knowledge: Understanding of major topics including financial analysis and planning, capital budgeting, cost of capital and capital structure, valuation, working capital management, risk management and financial crisis. Skills: Analytical and computational skills necessary to face the challenges in the world of finance using mathematical and statistical formulas, financial calculator, Excel and other software packages. Application abilities: (i) Practical application of concepts and theories and decision-making on various issues of finance; (ii) Identification of causes and consequences of the recent financial crisis in Kazakhstan and evaluation of remedial measures; and (iii) Investigation of impacts, through analysis of pre- and post-crisis performance, of the recent financial crisis on financial institutions of Kazakhstan.

2 5. Relationship of Course and Program: Prerequisite: FN5201 Managerial Finance This is an advanced course, primarily for students majoring in Finance. It builds on the basic knowledge and skills developed in the prerequisite course, with the objective of helping students to solve real-world problems and gain practical knowledge of the world of Finance. 6. Teaching Methodology: Basic concepts and theories will be delivered in lecture format, but emphasis will be placed on the application of theory to real business decisions through solving and discussing cases, undertaking research projects, and analyzing current practices and events in area of Finance. 7. Assessment Scheme: A student s performance will be evaluated based upon the following criterion: a. Case Preparation, Presentation and Discussions (10.00%): These are intended to improve your problem-solving abilities and knowledge of Finance. Case(s) will be assigned to groups, each of two members. You will surely observe the benefit of working on the case while taking a quiz or an exam. No late case work will be accepted, except for conflicts with official university business or extreme emergencies. b. Quizzes (10.00%): The quizzes are intended to keep you up-to-date with the materials already covered in the class. There will be three to four unannounced and announced quizzes. You will be allowed to drop the lowest quiz grade. Quizzes will be administered anytime during the regular class time: at the beginning, in the middle, or at the end. No make-up quiz will be administered except for conflicts with official university business or extreme emergencies. c. Mid-Term Exam (30.00%): These exams are designed to test your knowledge and understanding of the issues, related to the cases, discussed in the classroom. The exam will comprise some combination of essay/short answers, problems, and multiple-choice questions. No make-up exam will be administered except for conflicts with official university business or extreme emergencies. In case of the former, please notify me (at least) one week in advance of the exam. Under both situations, you are expected to provide appropriate written documentation. You will be notified of the exact date of each exam at least one week in advance. d. Assignment and Final Project (10.00% and 15.00%): Assignment and Final Project will deal with issues from the real world of Finance, in the local (Kazakhstani) context. The assignments and the project will be assigned on a group (two members) basis. Also, you will be responsible for presentation of your final project in the class. Details of group assignments and projects will be provided in due course of time. e. Final Exam (25.00%): The final exam is designed to test your comprehensive knowledge and understanding of the issues discussed in the classroom. It will comprise of some combination of essay/short answers, problems, and multiple-choice questions. No make-up exam will be administered except for conflicts with official university business or extreme emergencies. In case of the former, please notify me (at least) one week in advance of the exam. Under both situations, you are expected to provide appropriate written documentation. You will be notified of the exact date of each exam at least one week in advance.

3 The sum of the above assessment is equal to 100% and a student s total percentiles will determine his/her final class grade, see the following table: Activities Percent to the Total Assessment Student Hours Required to Complete the Tasks Continuous Assessment (60.00%) Case Preparation, Presentation & Discussion 10.00% 15 hours In-class Quizzes 10.00% 10 hours Mid-term Exam 30.00% 15 hours Assignment 10.00% 10 hours Final Assessment (40.00%) Term Project 15.00% 20 hours Final Exam 25.00% 20 hours Total % 90 hours 8. Grading Scale: Letter grades for the course will follow the same standards as specified in the Catalog. See the following table for grading scale: Grade quality Numerical scale or percentile A A A B B B C C C D D D F Below 50

4 9. Course Policies and Instructor s Expectations of Students: a. Students are expected to strive for excellence in acquiring knowledge. b. Students are expected to assist in maintaining a classroom environment conducive to learning. c. All students (groups) are expected to complete all assignments individually. You may not share, lend or borrow another student s (group s) work in any manner; either on paper, by computer disk or by word of mouth. Cheating, Plagiarism, or any other form of scholastic dishonesty or misconduct will result in the strictest disciplinary action, according to the KIMEP regulations (please refer to your catalog for details). Also, please read materials in the folder plagiarism in L Drive. d. Any student in this course who has a disability that prevents the fullest statement of his/her abilities should contact me personally. We will make our best effort to devise the appropriate accommodation in order to facilitate your successful completion of this course. e. Any student who discontinues attending class, and who does not officially drop the course, or withdraw from the University, will receive a grade of F. Please refer to your catalog or visit the registrar office for details. f. A grade of incomplete will not be granted except for the most extreme circumstances and only after stringent verification and approval by the department. A grade of incomplete will be granted only as a result of circumstances beyond a student s control. A grade of I is not given in lieu of an F. g. Important dates: May 20 (M) First day of class. May 22 (Tu) Last day to add, select pass/fail/audit option and withdraw 100% refund. Jun 28 (F) last day to withdraw with W and without any refund. Jul 10 (W) last day of class. Jul _ (TBA) Final Exam.

5 10. Period-by-Period Schedule/Weekly Activity Schedule *, ** : Session # Date Topic/Class Activities Chapters & Assignments Estimated Student Time 1 May 20 (M) Introductions -- 3 hrs Financial Crisis: Inside Job (Documentary) 2 May 22 (W) Why Do Financial Institutions Exist? and Conflicts of Interest in the Financial Industry ME Ch 7 3 May 24 (F) Why Do Financial Crisis Occur and Why Are They so Damaging to the Economy? ME Ch 8 4 May 27 (M) Cont. Securitization and Asset-Backed Securities (ABS) Handout 5 May 29 (W) Cash Flow Estimation, Capital Budgeting and Risk Analysis Handout Case #1 on Corporate Finance (Assigned) 6 May 31 (F) Credit Default Swaps (CDSs) and other Credit Derivatives Handout 7 Jun 03 (M) Case #1 on Corporate Finance (Discussion) Jun 05 (W) 9 Jun 07 (F) Valuation Case #2 on Investment Management (Assigned) Case #2 on Investment Management (Discussion) 10 Jun 10 (M) 11 Jun 12 (W) Articles: Roles of ABS and CDS in the Recent Financial Crisis 12 Jun 14 (F) Review for Mid-Term Exam 13 Jun 17 (M) MID-TERM EXAM I 14 Jun 19 (W) Income and Risk Management Case #3 on Financial Institution Management (Assigned) 15 Jun 21 (F) Causes & Consequences of Financial Crises: International Experience 16 Jun 24 (M) Case #3 on Financial Institution Management (Discussion) Cont. discussion on Causes & Consequences of Financial Crises: International Experience 17 Jun 26 (W) Assignment Due Foreign Exchange Exposure and Hedging Case #4 on International Financial Management (Assigned) 18 Jun 28 (F) Responses to Financial Crises: International Experience 19 Jul 01 (M) Case #4 on International Financial Management (Discussion) Cont. discussion on Responses to Financial Crises: International Experience 20 Jul 03 (W) Causes & Consequences of Financial Crises: Local Experience Responses to Financial Crises: Local Experience 21 Jul 05 (F) Term Paper Presentations 22 Jul 10 (W) Term Paper Presentations Review for Final Exam 23 TBA FINAL EXAM Total Time Required by Students 45 hours 90 hours * The schedule is only temporary and subject to change. ** In order to get some practical perspectives on issues related to Investments in Kazakhstan, we hope to schedule guest speaker(s) for lecture(s). The details will be provided in due course.

6 11. Instructional Resources: Lecture materials will be drawn from various text and reference books (please see a partial list below). All reading materials will be provided to you. Financial Markets and Institutions, Mishkin and Eakins, 7e, Pearson, (ME) Financial Management: Theory and Practice, Brigham and Ehrhardt, 13e, South-Western, (BE) Investment Valuation, Aswath Damodaran, 2e, John Wiley & Sons, (D1) Applied Corporate Finance, Aswath Damodaran, 2e, John Wiley & Sons, (D2) Takeovers, Restructuring, and Corporate Governance, 4e, Weston, Mitchell and Mulherin, Rearson, (WMM) Corporate Finance, Smart, Megginson and Gitman, 2e, Thomson/South-Western, (SMG) Investments, Bodie, Kane and Marcus, 6e, Mc-Graw Hill, (BKM) Investment, Alexander, Sharpe and Bailey, 6e, Prentice Hall, (ASB) Investment Analysis and Portfolio Management, Reilly and Brown, 7e, Thompson- Southwestern, (RB) Multinational Business Finance, Eiteman, Stonehill, and Moffett, 10e, Addison Wesley Longman, (ESM) International Financial Management, Eun and Resnick, 3e, Mc-Graw Hill, (ER) Multinational Financial Management, Alan C. Shapiro, 6e, John Wiley and Sons Inc., (S) Fundamentals of Futures and Options Markets, John C. Hull, 5e, Prentice Hall, (H) Futures, Options, & Swaps, Robert W. Kolb, 3e, Blackwell Publishers, (K) In addition to above the above-mentioned text and reference books, articles and other supplementary materials (SM) will be used. Details will be provided as the course progresses. News Resources: The world of investments is constantly changing. In order to keep current with the real world events in the world of investments, it is extremely useful to have regular access to local business publications, and the following foreign financial news sources: the Financial Express, Wall Street Journal, Barron s, Financial Times, Economist, Business Week, CNBC, CNNfn, BBC Business Report, and obviously all those creative and useful internet sites. You are highly encouraged to make a habit of following the world of finance on a regular basis through various local and foreign resources. From time to time, we will review the major current issues in the world of finance, and your active participation is expected. I will also provide addresses to web sites containing information related to this course that I think you might find useful at various times throughout the semester. Financial Calculator: In this course, you will often encounter problems that involve arithmetic and financial calculations. A financial calculator, though not absolutely necessary, is very useful in solving these problems with relative ease and efficiency. However, you also should try solving such problems using the conventional method to enhance your understanding of the underlying concepts. In choosing a calculator, you might consider a TI BA II Plus, a HP 10B, a Casio FC (100, 200, or 1000), or any other higher models. The manual that you get with the calculator is a very useful guide towards learning the use of the calculator. In addition, I will help you learn the use of the calculator.