WAYLAND BAPTIST UNIVERSITY
COURSE TITLE: Financial Management Course No: FINA/HLAD 3309
Number of Credits: Three (3)
Academic Year: 1998 Semester: Winter1998
Instructor: Dr. Tim Parker
Catalog Description: The course addresses the role of the financial manager, the tax environment and its effects on business decisions, the time value of money, cash and capital budgeting, finical statements, working capital, money markets, and their regulators, monetary policy and its relation to the firm, and financial forecasting time value of money; cash and capital budgeting; financial statements; working capital and money markets and their regulators; monetary policy and its relation to the firm, and financial forecasting.
Course Goal: To provide students with an integrated introductory approach to learning the private corporation from the standpoint of the liquidity problem, short and long-term financing, cost of capital and reorganization among others.
Prerequisite: ACCT II or Concurrent enrollment
Academic Honesty: As stated in the University academic catalog.
Attendance Policy: The class attendance policy as stated in the Wayland Baptist University academic catalog holds for this course. Attendance at all classes is expected of all students, and all my courses are conducted with this understanding. Although an occasional absence may be unavoidable, it in no way excuses a student from meeting the requirements of this course. The student is responsible for the material covered and the assigninents/tests given on the day of his/her absence.
By the end of this course, and through written tests, text-based assignments aided by library research, required readings (including the Wall Street Journal), and oral presentation in class, the student will display knowledge of financial management by achieving an average minimum proficiency level of 70% over the following enabling objectives:
A. The student will explain the goals and function of financial management.
B. The student will be familiar with the three basic types of financial statements and
the inter-relationships among them with some emphasis on financial statements analysis.
C. The student will demonstrate knowledge of financial forecasting and leverage-both operating and financial.
D. The student will summarize the purpose of working capital management of
a firm and the techniques employed in the management of current assets.
E. The student will evaluate and apply to specific situations the various
sources of short-term financing in the context of the time value of money.
F. The student will demonstrate the knowledge of financial assets valuations and rates of return, methods for calculating the cost of capital, and capital budgeting process including risk associated with capital budgeting.
G. The student will demonstrate knowledge of money and capital markets; as well as the role, security pricing and changes in the investment banking industry.
H. The student will explain long-term debt and equity financing and their implications from the viewpoint of security issuer.
I. The student will explain factors influencing corporate dividend policy and
payment options in the context of financial management.
J. The student will describe the motives and characteristics of recent mergers
and acquisitions and their possible implications for the U.S. economy.
K. The student will explain factors that have contributed to the growth of multinational corporations, options in regard to financing international business operations, foreign exchange rates and factors affecting them, and the unsettled issues in international finance.
REQUIRED TEXT AND MATERIALS:
Block, Stanley B; Geoffrey A. Hirt, Foundations of Financial Management, 8th edition, Burr Ridge, Illinois: Irwin, 1997
The Wall Street Journal – All students will need at least weekly access to this newspaper. A sign up list for subscriptions (minimum 10 weeks ~$20) will be available in class.
All students will need a calculator. If you buy one the Texas Instruments BA 35 is very helpful with financial equations. A standard calculator is ok, it’ll just be more time consuming
IV. OFFICE HOURS: 1802 N.E. Loop 410 at Harry Wurzbach Second Floor-Room 206 Fridays: 9-5 Appointment recommended since I am scheduled for academic advising.
PHONE NUMBERS: 826-7595 ext. 221 (work); 408-0118 (home; not after 10 pm please)
STOCK TOPIC: You will need to select a company to follow throughout the term.
WSJ ARTICLES: Each week you will need to find an article or listing in the WSJ that pertains to the week’s lesson and be prepared to brief it in class. This article must be less than 8 days old.
Grading Points: Percent: Examinations 1, 2, & 3 60 60% Homework 20 20% Class participation 10 10% WSJ preparation 10 10% Total Points Available: 00 100%
The course is lecture/discussion/problem solving by design. The course will abide by the following schedule, but may change according to class progress.
Planned Topic of Coverage
Class Preparations & Homework, by week number. Homework will be turned in the week after chapter discussion. Late = ˝ credit regardless of reason. 1 Course Overview, Goals and Functions of Read Chapter I Financial Management Review of Accounting Read Chapter 2; Discussion Questions Holiday for 1 week 5-10; p 8, 11 2 Financial Analysis Read Chapter 3; DS 4-8; p. 10 3 Financial Forecasting & Operating and Financial Read Chapter 4; DS 1-5; p1,6,10 leverage Read Chapter 5; DS 4-9; p1
Test 1 Holiday for 2 weeks 5 Working Capital and the Read Chapter 6; DS 6-1 0 Financing Decision p. 2, 9 Current Asset Management Read Chapter 7; DS 9-14; p1 6 Sources of Short-term Financing Read Chapter 8; DS 7-12 Time Value of Money Read Chapter 9; DS 3-8 7 Valuation and Rates of Return Read Chapter 10; DS 1-7 Cost of Capital and the Capital Read Chapter I 1; DS 6-12 8 Test 2 and Budget Decisions Read Chapter 12; DS 2-6-1 P 1, CP 12-1 9 Risk and Capital Budgeting/ Read Chapter 13; DS 1-7 Capital Markets Read Chapter 14; DS 6-15 10 Investment Banking Read Chapter 15; DS 5-14 Common and Preferred Stock Financing Read Chapter 17; DS 4-7 11 FINAL EXAMINATION
VII. PROVISION FOR HANDICAPPED STUDENTS: Any student, who because of a disabling condition, may require some special arrangement in order to meet course requirements should contact the instructor on the first day of class.
VIII. INFORMATION TECHNOLOGY
Students are encouraged to use the Internet's search tools to improve information gathering and provide a broader array of up-to-date sources. The World Wide Web is a section of the Internet that offers easy access to text, graphics, and other multimedia resources. Some of the major search engines are:
1. Eiteman, David K., Arthur 1. Stonehill and Michael H. Moffett.
Multinational Business Finance, 6th edition. Reading, MASS: Addison-Wesley,
2. Gibson, Charles H. Understanding Financial Statement Analysis,
Cincinnati, Ohio: International Thomas Publishing (South-Western) 1995
3. Giddy, Ian. Global Financial Markets. Lexington, MASS: D.C. Heath and
4. Marsh, William H. Basic Financial Management. Cincinnati, Ohio:
International Thomas Publishing (South-Westem) 1995
5. Rao, Ramesh K. S. Financial Management. Cincinnati, Ohio: International
Thomas Publishing (South-Western) 1995