Online Course Syllabus FIN440 Financial Analysis, Forecasting and Planning Important Notes: This document provides an overview of expectations for this online course and is subject to change prior to the term start. Changes may also occur during the term due to faculty or SPS Distance Learning course updates. Some links may only be active once the term starts. For this course you must check the Regis Bookstore: http://www.efollett.com for the most current online course material information. Course Description Prerequisites Course Outcomes Course Materials Grading Criteria Assignments Course Description Examines the financial decision-making process with an emphasis on analysis, forecasting and budgeting techniques for both short-term and long-term resources. Prerequisites FIN 420 Advanced Corporate Finance Course Objectives Top of page Top of page Upon successful conclusion of this course you will have an increased knowledge of financial analysis including:
Short and long term budgeting Forecasting Financial Analysis Top of page Required Course Materials Brigham, Eugene F., Daves, Phillip. Intermediate Financial Management with student resource CD ROM, 9th edition. Thomson Learning/South-Western; ISBN: 032431986X. This book is also used in FIN 420. Demello, Jim, Cases in Finance. McGraw Hill; 2nd edition; ISBN: 0-07-298322-1. This book will also be used in FIN 420 and FIN 450. Financial function calculator (such as Hewlett Packard model 10B2) and spreadsheet software (such as Microsoft Excel) Optional Course Material Brigham, Eugene F., Brigham's Technology Supplement. Thomson Learning/South- Western, 1st edition; ISBN: 0-03-023372-0. Library Access to Regis University Library Online at http://www.regis.edu/regis.asp? sctn=lib Learning Topics Learning Topic #1: What You Need to Know to Start the Course Learning Topic #2: Financial Management: A Balancing Act Learning Topic #3: Managing Short Term Resources Learning Topic #4: Costs for Decision Making Learning Topic #5: Capital Budgeting, Part 1 Learning Topic #6: Capital Budgeting, Part 2 Learning Topic #7: Capital Structures Learning Topic #8: Lease and Hybrid Financing Top of page
Top of page Grading Criteria Homework problems and case studies (75%) Forum Participation (25%) Please note: Your facilitator may re-weight the grading for portions of the course. Suggested Grading Criteria Top of page Outstanding Work A = 93-100% A- = 90-92 Superior Work B+ = 87-89 B = 83-86 B- = 80-82 Satisfactory Work C+ = 75-79 C = 70-74 Work of lowest passing Grade D = 60-69 Failure F Below 60 The above percentages are approximations, and so will vary depending on the cases, questions, exercises, exams, presentations, and class participation. Top of page
Online Course Assignments FIN440 Summary of Course Activities by Week View Week: 1 2 3 4 5 6 7 8 Course Dynamics This course is organized around an eight-week program. Weekly outcomes, assignments, and critical information are organized week-by-week. Typically, each week includes a reading assignment, forum submittal, and e-mail assignment. Online weeks correlate to a 7-day workweek. Each week's work begins on a Sunday. Week One begins on the first day of the Term, which is always a Sunday. The course ends on Saturday of the eighth week. Weekly Responsibilities Sun Mon Tues Wed Thurs Fri Sat Read week by week and textbook. Read week by week and textbook. Read week by week and textbook. Post response in forum. Post case or specific assignment. Written assignment due to facilitator. (See Course Assignments below for details on each week.) Sunday
Review Facilitator Notes for the upcoming week to be sure you understand the week s assignments. Ask for clarification early in the week to avoid delays and possible lost points! Read your weekly critical information found in the Week-by-Week section. (Note: Your timely understanding of critical information content may be required to complete your weekly assignment or final project.) Start the weekly reading assignments if you have not already done so. Review Forum summary postings, if available, to capture the essential points of the previous week s discussions. Wednesday Participate in the Forum discussions, read other student postings, and reply, when appropriate, to their postings. Send the mid-week homework assignment (if any) via course-mail or as instructed by your Facilitator. Friday Participate in the Forum discussions, read other student postings, and reply, when appropriate, to their postings. Note that Forum points accumulate from both the quantity and quality of your posted participation. Continue work on your Forecasting Project, as defined for the week. Post a brief description of your work, as requested by your facilitator. Saturday Send the assignment via course-mail or as instructed by your Facilitator (be sure to keep a copy for yourself). Post a short note outlining the topics you understand the best, as well as questions about any concepts that are giving you trouble. Please note: Certain assignments may be due on other days. Please check the assignments below for specifics. Also, note that not all chapters in your book are
covered in this course and the sequence of chapters is not what you might expect. Pay close attention to the Assignments page to insure you are doing the correct work. Submitting Assignments to Your Facilitator 1. Use the assignments drop-box to submit homework or follow alternative directions provided by your facilitator. Every assignment should include BOTH the necessary calculations (show your work) and a brief written discussion of the problem. In some cases the problem poses questions for discussion; in others, you may explain your process or suggest additional information that might affect your recommendations. 2. Each student is expected to participate in the Forum weekly and on a timely basis to support the discussion. To earn maximum points for Forum discussions, you should post a response to each question and reply to at least three classmates posts each week. 3. There will also be weekly discussions on the Forum about your Forecasting Project. The project builds in weekly steps. You will share tips and progress reports for feedback from your classmates, and of course you will hear about the other projects as they develop. The Following Forum Standards Apply: 1. Post one original message in response to each of the Forum question(s) listed for the week. 2. Post at least three replies to someone else s Forum message. A me too response does not count! Differences of opinion are encouraged (and probable, considering the nature of the course) - with courteous and wellconsidered support. 3. Your class facilitator may define a cutoff date for Forum topic discussions. 4. Post Forum Activities to the Forum page on or before the day indicated. 5. Send Written Assignments to your facilitator on or before the day indicated. Course Assignments - Before Week 1 A review of accounting statements and ratio analysis may be found in the Reading and Resources sections of this course (before Week 1 in the Week-by-Week).
Additionally, an EXCEL Primer is located there. Take a few moments to review both sections prior to starting this class. You may also want to review Chapters 1-5 in your Brigham-Daves text as background for our starting point in Chapter 7. WEEK 1 Textbook: Chapters 7 & 8 BY WEDNESDAY Post a short introduction of yourself and share your experience with finance as it relates to this class. DeMello Case 3, Question 3, asks for a DuPont analysis and an explanation of this tool. Question 5 from Chapter 8 asks,you to consider how seasonal factors and differing growth rates might distort comparative ratios. Find some examples of this and suggest ways to alleviate the problems. Forecasting Project: Identify the company you plan to use and tell why you re interested in the business. What do you expect to find in your analysis? Select this link for the Project Outline document. Chapter 7, Problems 8, page 244 Chapter 8, Problems 8-4, 8-9 (d), pages 276 DeMello Case 3 Part 1 and 2 Suggestion: Create a spreadsheet for this analysis that you can re-use for your Forecasting project. Build your spreadsheet using formulas that reference a master document where you can load income statement and balance sheet data for any company.
Return to Top WEEK 2 Textbook: Chapter 9 BY WEDNESDAY Reference question 3 in Chapter 9 (page 310): When does the AFN formula work well and when might it give a faulty forecast? Read DeMello Case 4 and respond to Question 1: How should they proceed with developing a financial forecast? Chapter 9 opens with a discussion of Strategic Plans. What distinguishes a strategic plan from a tactical plan? How can a firm determine strategic goals? Forecasting Project: Begin collecting data for your chosen company. Post a description of your best source and how you searched for the data. What are your initial impressions? Chapter 9, Problems 5, page 311. Write a brief explanation of the relationship between your AFN calculation and the proforma in this case. DeMello Case 4, #2-7 WEEK 3 Return to Top
Textbook: Chapter 21 BY WEDNESDAY Question 4 from, Chapter 21 (page 753) asks about the elements of credit policy and how much control a firm can exert in the face of competition. Share examples to illustrate your answers. DeMello Case 27 describes a seasonal business and their production (inventory) strategy. Using Questions 1, 2 & 4 comment on the strengths and weaknesses of their practices. Forecasting Project: Post a brief SWOT analysis of your company, based on the data you ve collected to-date and industry comparisons. What strategy(ies) will you pursue in your forecast? Chapter 21, Problems 6, 12, 14, pages 754-5. Remember to include a brief discussion of each problem. DeMello Case 27, Questions 3 & 6. What changes (if any) would you recommend, and explain why. Use your calculations and the Forum discussion to support your points. Return to Top WEEK 4 Textbook: Chapters 22 & 23
BY WEDNESDAY Question 3, Chapter 22 (page 790) poses DSO vs. ageing as credit management alternatives. What are the strengths and weaknesses of each tool? Question 4 in Chapter 23 (page 826) identifies several factors that will affect a firm s target cash balance. Select one and post your explanation, using examples to illustrate. Forecasting Project: Post a brief statement of the quantitative and qualitative objectives that will frame your forecast. (You will evaluate the success of your plan against these objectives in week 8.) Chapter 22, Problem 1 or 2, and 6, pages 791-2. Chapter 23, Problem 1 or 2, page 826 WEEK 5 Textbook: Read Chapter 10; scan Chapter 11 BY WEDNESDAY Post your response to DeMello Case 19, questions 1 & 3 Question 4 in chapter 10 (page 347) identifies 3 types of risk. Choose one and
post an explanation of its calculation and uses for financial analysis. DeMello uses the term hurdle rate, B&D explains ways to compute WACC. Are these different? Forecasting Project: Prepare your Sales Forecast. Post a description of your process, any problems you encountered and how you resolved them. What assumptions did you make? Chapter 10, Problems 11 and 12, page 349. Note that Problem 12 presents the book value; You must convert the components into current market value in order to compute the capital structure. Explain why this adjustment is needed. DeMello Case 19, Using questions 2-8 and the Forum discussion, compute Oceanic s hurdle rate and comment on how it can be used. Return to Top WEEK 6 Textbook: Chapters 12& 13 BY WEDNESDAY Problem 7 in Chapter 12 (page 427) describes a mining project with significant potential for environmental damage. Compute the NPV and IRR from the data given, then respond to questions b & c on the Forum. Question 4 in Chapter 13 (page 472) asks you to distinguish sunk costs,
opportunity costs, and externalities and explain their use (or not) in capital budgeting analysis. Choose one and post your response, citing examples to support your explanation. Post your answer to the following question: If you were completing a capital budgeting analysis for the firm you work for today, which single financial analysis technique would you use to determine if you should spend $50,000 on a new computer server and why? Forecasting Project: Determine AFN and prepare a proforma Balance Sheet. Post a brief description of your process, any problems you encountered and how you resolved them. What assumptions did you make? Note: Document your assumptions in your worksheet and explain them in your final presentation. Chapter 13, Problem 4 or 5, page 472-3. Remember to include a brief explanation of your recommendation Return to Top WEEK 7 Textbook: Chapters 15, & 16 BY WEDNESDAY Question 7 in Chapter 15 (page 542) asks about a relationship between EBIT and financial leverage at high debt levels.. Post and explain your response.
Post your answer to the following question: Do you believe that the M & M proposal 2 still is applicable in financial markets today? Why or why not? Forecasting Project: Post your (draft) executive summary and list two questions on which you would like to get feedback from the class. Chapter 15, Problem 3, page 542-3. Comment on the assumptions in this problem and how a change in the assumptions might change your recommendation. Chapter 16, Problem 1, page 577. Which capital structure would you recommend (part c)? Does the tax change in part d alter your recommendation? Why? Return to Top WEEK 8 Textbook: Chapters 11& 17 BY WEDNESDAY Respond to the questions posed by at least two classmates executive summaries on last week s Forecasting Project thread. (Additional substantive feedback may be used at your facilitator s discretion to make up missed forum points.) Turn in any uncompleted or re-do assignments, as directed by your facilitator.
Post reflections on the course to the Forum. Turn in your final Forecasting Project Submit completed course evaluation (below) Evaluating the Course Please help us to improve online distance learning by completing the online course evaluation form once you've finished the course. The online course evaluation form is located at the bottom of the content in the Week by Week. Thank you! Return to Top 2003 Regis University. All Rights Reserved. Please contact techsupport@regis.edu with questions or to report problems with this Web site.