Syllabus for Financial Management: FINA 3309
Instructor: Contact information to be announced in class.
Office hours: Before class, after class, and by appointment. Any supplemental office hours will be announced in class. Remedial instruction, post-exam analysis, and supplemental instruction are available before & after class, but it is the student's responsibility to initiate contact with the instructor for this help. Students also may contact the instructor by phone and email.
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; financial statements; working capital and money markets and
their regulators; monetary policy and its relation to the firm, and financial
Catalogue Prerequisite: ACCT 2305,
or ACCT 3307, or concurrent enrollment, or consent of instructor.
Background Preparation: Basic accounting
knowledge and skills plus fundamental math and algebra skills will be required
in this course. A sufficient accounting background is presumed from the
beginning of this course. (Concurrent accounting prerequisite enrollment
may not be satisfactory for some students.) Some students may find that
this course requires a substantial amount of study and preparation. Preview
the course materials to determine if you are prepared for this course and
whether you will have the necessary study time. Consult your academic advisor
if you have any questions about prerequisites or background preparation.
Required Resource Materials: Block, Stanley B & Geoffrey A. Hirt, Foundations
of Financial Management, 10th ed., New York, N.Y., McGraw-Hill/Irwin, 2002.
Attendance Requirements: Any student who misses 25 percent or more of the regularly scheduled class meetings will receive a grade of F in the course. This policy does not allow for exceptions. The reason for the absence is irrelevant. Attendance on exam dates is expected.
Attendance may be taken one or more times during each class. Seating charts, roll sheets, and/or name cards may be used. If the student is not present at the time attendance is tallied, the student may be counted as absent. Note that the designated class hours accommodate break time, but do not accommodate break time plus early departure.
Attendance and course requirements are separate issues. The student is responsible for all material, assignments, tests, reviews, etc., regardless of absence, tardy arrival, or premature
Course Requirements: Each student must: 1) master the text material, 2) participate in class and master all classwork, 3) master the assigned textbook problems and supplemental problems, and 4) complete and submit the exams during the time allotted.
Method of Instruction: The class will meet during the scheduled time(s) during the term. Classroom activities may include lecture, discussion, and problems. Students should bring to each class the text; a calculator (which at a minimum can add, subtract, multiply, divide, square, take square roots, and is one with which you are familiar with its use); writing materials; all handouts and pertinent cumulative work.
This course is cumulative and comprehensive
in nature. This means that material covered in the second lecture, for
example, may be essential for understanding and applying material from
the tenth lecture. Instead of a traditional course outline which segments
or compartmentalizes, therefore, this course will be developmental and
I. Introduction and Review of Accounting
A. Introduction to the Course and Course Material
B. Review of Accounting & Use of Accounting for Financial Analysis
II. Basic Tools and Concepts in Financial Analysis and Planning
A. Financial Ratio Analysis
B. Financial Forecasting and Pro Formas
III. Short-Term Uses and Sources of Financing
A. Working Capital Considerations
B. Financing Sources--internal and external
IV. Long-Term Projects--Valuation Techniques and Evaluation Procedures
A. Time Value of Money and Related Valuation Methods
B. Entity-specific Evaluation Methods
V. Long-Term Sources of Financing
A. Organized Capital Markets and Their Operation
B. Entity-specific Considerations and
Course Outcome Competencies: At the end of this course, the student will have demonstrated, at a minimum 60% proficiency level, skills and knowledge in:
1 The use of financial ratios to evaluate the success of a firm.
2 How distortions of accounting information impact on business operations.
3 How to construct and use various pro forma financial statements for financial forecasting.
4 The possible effects of a firm employing fixed cost factors for operating purposes or financing purposes.
5 The factors that the financial manager must consider in determining the mix between temporary and permanent current assets and the nature of the financing arrangement.
6 The characteristics of cash, marketable securities, accounts receivable, and inventory and the processes used in determining the appropriate level of cash.
7 The cost and availability of various sources of short-term funds.
8 The mathematical tools of the time value of money concept and their relationship to capital allocation decisions.
9 How financial assets are valued & how investors establish the rate of return they demand.
10 The processes for determining the appropriate discount rate that a firm should apply in evaluating investment opportunities.
11 Techniques employed to evaluate the acceptability of capital projects.
12 The definitions of risk, its measurement and incorporation into the capital budgeting process, and the basic tenets of portfolio theory.
13 The fundamental structure and operation of capital markets.
14 The role of investment bankers and the marketing of corporate securities to the public.
15 The characteristics of common & preferred stock and the ownership rights of each stock.
16 Major factors which influence the dividend policy decision.
17 The nature and operation of convertibles and warrants.
18 Current topics in business, ethics,
Text Problems: This list may be modified. Any changes will be announced
in class. Supplemental problems may be assigned in class. Completion of
assigned problems constitutes 10% of the course grade.
|3||24, 27||9||19, 31, 34||13||13, 15|
|4||4, 20, 21||10||1, 17, 23||15||1, 10|
|5||2, 7||11||1, 13, 15,||5 (supplemental)||18|
|6||1, 2, 14||12||3, 8, 11, 17||17||1, 3|
|7||1, 11, 14||18||TBA|
|8||1, 3, 12||19||1|
Class Participation: Students are expected to contribute to the class in a positive fashion. Class participation constitutes 10% of the course grade. Credit for class participation requires being prepared for class, joining in class discussion, meeting all standards of academic honesty, and learning how to access web-site information (see the Information Technology section).
Academic Honesty: University students are expected to conduct themselves according to the highest standards of academic honesty. Misconduct for which a student is subject to penalty includes all forms of cheating, including copying during exams, allowing another student to copy during exams, possession of resource materials during exams, communicating with others during exams without the explicit permission of the exam proctor, any other form, whether active or passive, of giving or receiving aid during an exam without the explicit permission of the exam proctor, or the willful failure to report incidents of academic dishonesty by other students.
Penalties that may be applied to cases
of academic dishonesty include a grade of F for the exam in question, a
grade of F for the course, and recommendation for more severe punishment.
Exams: Exams are closed book and closed notes. The only reference sources allowed to be used on exams are the four financial tables. Attempted or actual use of any other resource constitutes a breach of academic honesty provisions of the WBU catalogue. Aiding and/or abetting another student, either actively or passively, constitutes a breach. Abetting includes observing or possessing information about a breach of academic honesty and willfully failing to report the incident.
Assigned seating and other test security measures may be implemented. The exam proctor may halt a student's exam at any time and retrieve the exam and all materials. A student's refusal to cooperate with these procedures may be deemed an admission of academic dishonesty. Administrative procedures regarding terminated exams and academic honesty issues may be deferred until a later date.
Exam grades usually will be available
at the next class session. A zero grade will be recorded for any missed
exam (but see below).
Make-up Exams: Students who are
absent for exams one and/or two may take a make-up exam as noted in the
class schedule. No other exam make-ups are available. Attendance on the
last class date for the final exam is expected. Make-up exams may be of
different formats and composition than the regular exam, but they will
cover the same material.
Means for Assessing Student Achievement of the Outcome Competencies
|Assessment Components||Weight||Conversion to Letter Grade|
|FIRST EXAM||20 points||A||90-100 %|
|SECOND EXAM||30 points||B||80-89%|
|FINAL EXAM||30 points||C||70-79%|
|Assigned problems||10 points||D||60-69%|
|Participation||10 points||F||below 60%|
grades: The WBU catalogue specifies the requirements for a grade of
form signed by the instructor and the student must be submitted along with
any "Incomplete" grade. If a student misses the final exam without
completing the form and giving it to the instructor, a zero for the final
exam will be used to compute and record the course grade.
|Class #||Class Topic|
|#1||Introduction to the course;
Ch. 3-Financial Analysis;
Ch. 4-Financial Forecasting;
Review of accounting and math
|#2||Ch. 5-Operating and Financial Leverage;
Ch. 6-Working Capital and the Financing Decision;
Ch. 7-Current Asset Management;
|#3||Ch. 8-Sources of Short-Term Financing & review|
|#4||FIRST EXAM over Chs. 3-8|
|#5||Ch. 9-The Time Value of Money
Ch. 10-Valuation and Rates of Return;
Ch. 11-Cost of Capital;
|#6||Ch. 12-The Capital Budgeting Decision & review|
|#7||SECOND EXAM over Chs. 9-12|
|#8||Ch. 13-Risk and Capital Budgeting;
Ch. 14-Capital Markets*
|#9||Ch. 15-Investment Banking: Public
and Private Placement*;
Ch. 17-Common and Preferred Stock Financing*;
Ch. 18-Dividend Policy and Retained Earnings*
Exam 1 and 2 make-up at 2:00 pm.
|#10||Ch. 19-Convertibles & Warrants,* ethics, analysis, & review|
|#11||FINAL EXAM (comprehensive)|
*selected parts of text material
Pedagogy: Several previous students have said that this course is the most challenging college course they encountered. Some additional comments may help you understand the planning of this course, how the course may add to your overall educational scheme, and tips on success in this course.
1. The basic parameters used for planning this course are the catalogue description, the textbook, and course syllabi from different WBU instructors/campuses.
2. Within these general parameters, there is limited flexibility as to the breadth and depth of the course material. Most of the students in these sections are not pure business majors. The needs of these students (beyond mastery of the fundamentals of the core curriculum) are to gain a general understanding of the overall field of corporate finance. Additionally, this broad understanding should: 1) help the non-finance major to assimilate and retain the fundamental concepts and techniques of the core curriculum, and 2) should result in a more positive classroom experience for most students.
3. Objectives for this broad understanding are appropriate. The supplementary objectives adopted for this class is to cover the material required for the student to be able to understand a business or finance news article in a general circulation publication. The business section of the local newspaper is one example. Business/finance articles in magazines such as Time, Newsweek, and USNews are other print-media examples. PBS's NBR and WSW, and CNBC are examples of relevant broadcast media.
4. Particular elements of mastery, in both the core curriculum and supplementary material, include terminology, concepts, analytical procedures, and computational skills. Each of these elements will be included in the tests. Examples of tests are available on the class website.
Part of the course grade is based on participation in class, doing the assigned problems, and mastering computer resource skills necessary for accessing standardized files.
5. Effective study habits for this type of course are crucial. Studying the night, day, or wee morning hours before an exam may be counter-productive! Coming to class prepared is the first step. Working the assigned problems immediately after the material is covered is the next one. Asking questions and seeking additional help from the instructor may be third, but it may be the most important step of all. In essence, studying (learning) the material as the course progresses is the only way to ensure that the student will be able to demonstrate mastery of the material on exams.
6. Individual aid from the instructor is important enough to merit emphasis. The instructor is available by email and by phone. The instructor is usually available after class for individual aid. It is the student's responsibility to seek this help. Additional aid is especially important for any student who might be weak in accounting, math, or algebra skills.
7. Use the class website wisely. Download the formula sheets to use as you begin working the problems. Use the old exams as "self-test" instruments, but do not rely on studying the posted exams instead of the course materials.
8. Finance is an important part of
education. On February 5, 2002, Fed Chairman Alan Greenspan testified
before Congress as to the importance of finance and related skills in schools.
The testimony was widely reported by the news media, with many others expressing
agreement (see reports of how the Texas Securities Commissioner made similar
comments the following day).
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
and sources are:
|Altavista (http://www.altavista.digital.com)||Lycos (http://www.lycos.com)|
|Argus (http://www.clearinghouse.net)||Magellan (http://www.mckinley.com)|
|DejaNews (http://www.dejanews.com)||MetaCrawler (http://www.metacrawler.com)|
|Excite (http://www.excite.com)||Switchboard (http://www.switchboard.com)|
|HotBot (http://www.hotbot.com)||Webcrawler (http://www.webcrawler.com)|
|Infoseek (http://www.infoseek.com)||Yahoo (http://www.yahoo.com)|
|Welcome to the White House (http://www.whitehouse.gov)|
|WWW Virtual Library (http://www.w3.org/hypertext/datasources/bysubject/overview.html)|
Particular websites relevant to this class include:
For general research on publicly-traded firms:
· Motley Fool (http://www.fool.com)
· Securities and Exchange Commission (http://www.sec.gov)
For class information/supplemental materials (any updates/changes will be announced in class):
· The textbook's website (refer to the textbook for the web address)
class's website: (http://fina3309.homestead.com/index.html) which includes
old exams, class handouts, and other information. The instructor will make
reasonable efforts to maintain a website throughout the term, but cannot
guarantee availability or access. Most supplemental materials on the website
are in Adobe Acrobat "pdf" file format (a widely used and standard format).
It is the student's responsibility to acquire the skills necessary to access
and use these files.
Conditions: Any student who, because of a disabling condition, may
require some special arrangement in order to meet course requirements,
and should contact the instructor on the first day of class to make the
NOTE: It is university policy that no
otherwise qualified disabled person be excluded from participation in,
be denied the benefits of, or be subject to discrimination under any educational
program or activity in the University.
OTHER POLICIES AND PROCEDURES ARE ADDRESSED
IN THE ACADEMIC CATALOGUE WHICH, ALONG WITH POLICIES AND PROCEDURES OF
THE SAN ANTONIO CENTER, ARE HEREBY INCORPORATED BY REFERENCE.
This syllabus is only a plan. The plan may be modified during the course and requirements of the course may be altered from those appearing in the syllabus. Further, the plan contains criteria by which the student's progress and performance in the course will be measured. These criteria may also be changed. Student dissatisfaction with his or her grade, however, DOES NOT constitute justification for changes in the plan or criteria.