Everton University 1660 Chicago Avenue, N-1, Riverside, California 92507 Tel: 951.683.8300 Fax: 951.683.8301 COURSE DETAILS Course Course Description BUS512 - Financial Management (3 Units) This course introduces the theory and practice of business finance with emphasis on asset valuation, the relationship between risk and return, and capital budgeting. Course Objectives Upon completion of this course students will be able to: Consider alternative viewpoints regarding the primary goal of a corporation and understand the nature of agency problems in a corporation. Perform financial statements analysis. Understand the role of internal and external funding in financial growth of the firm, and compute the amount of external funds needed Understand the apply the concepts of time value of money and interest rate compounding. Perform bond and stock valuation Identify the components of the required rate of return and compute the cost of debt, the cost of equity, and the weighted average cost of capital. Perform capital budgeting analysis that includes estimating the project s cash flows and applying appropriate decision tools. Instructional Delivery On Line This course is web-based. Access to a computer and reliable Internet connection is essential. Students are expected to have an email account and check this account daily. Students are expected to access the course module, complete assigned lessons, and participate in class activities, such as; forums, chat, on-line discussions video conferencing, (once a week) and complete and submit any assignments using a computer on a [weekly] basis. Failure to do so will result in lower grades. Difficulty accessing course materials will not be an acceptable excuse for incomplete work. Personal accountability and self-discipline are expected in any online learning environment. Method of Instruction used to achieve student learning outcomes may include but not limited to: Page 1 of 7
1. Lecture 2. Reading 3. PowerPoint presentations 4. Special online guest lectures 5. Course exercises 6. Quizzes 7. Video conferencing 8. Forums 9. Chats Instructional Delivery On Campus Required Textbooks Instruction will consist of lectures, reading assignments, class discussions, and handouts. Classroom questions and discussions are strongly encouraged. Other instructional techniques may also be employed i.e. audio-visual presentations, speakers, critical thinking exercises and group activities. Each class will have a lecture on the assigned chapters. Students are expected to read the material prior to the class. The instructor will demonstrate problems and case studies in class. Students may work alone or in groups to do assigned problems in class. Authors: Stephen A. Ross, Randolph W. Westerfield, Jeffrey Jaffe Title: Corporate Finance Edition: 10 th ; Copyright: 2013 Publisher: McGraw-Hill Higher Education ISBN: 978-0-07-803477-0 *Note: Instructor needs to check to ensure course uses latest edition. Page 2 of 7
INSTRUCTOR CONTACT INFORMATION Instructor: Instructor Tel (310) 555-5555 Email: Class days Time Instructor Availability I am available 15 min before and after class and during breaks. It is possible to reach me by email at any time, as I regularly check my messages and your query will be responded ASAP. You may contact me at my local phone to schedule a meeting outside of office hours. Additional office hours will be announced. Page 3 of 7
COURSE POLICIES Subject to Change Attendance Policy Participation Policy Academic Integrity The instructor reserves the right to change or modify any or the entire syllabus and will notify students of any changes. Please make every attempt to be in class during all sessions. Regular and punctual attendance, as well as active student participation, is an important part of a student's education. Attendance is strictly monitored. All missed assignments and/or additional assignments must be completed according to professors' guidelines. Students may not miss more than 75% of class sessions. Three (3) consecutive absences require formal notice. Each student is expected to be an active participant in daily class discussions. Your class participation grade will reflect the quality and consistency of your contributions. Mere attendance does not represent participation; frequent absences will severely impact your participation grade. Each student must do his/her own work. Copying assignments will be considered cheating and all parties will be penalized. Please do not wait until the last minute to do your assignments. I encourage students to discuss their class work and assignments together. You learn a lot from your peers since you go through the same learning process. However, after the discussion, each of you should work on your own assignments independently from scratch. One learns by doing not by working together to print two copies, this is not learning. If any part of an assignment represents the words and ideas of others, you must cite those sources. Academic dishonesty includes, but is not limited to: Asking a tutor or friend to complete a portion of your assignments. Hiring a reviewer to make extensive revisions to your assignments. Submitting work originally submitted by another student as your own. Using information from online resources without properly citing your source. Copying any portion of a word or idea from any other source you do not cite. Projects/Assignments Assignments will be announced in class and are due at the beginning of class on the specified due date. No Late work will be accepted. All assignments must be printed. All work must be turned in on the due date, in class. Page 4 of 7
ACADEMIC STANDARDS Methods of Evaluation Homework, case studies Internet Exercises 20% 20% Quizzes 20% Exercises 40% Total 100% Grade System 90-100% 80-89% 70-79% 60-69% = A The student exceeded expectations; worked above what is required. = B The student met all expectations as specified for the class very well. = C The student met minimum class requirements satisfactorily. = D The student met minimum requirements poorly. < 60% = F The student failed to meet minimum requirements. Page 5 of 7
Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Week 9 Week 10 Week 11 Week 12 Week 13 Week 14 ACADEMIC SCHEDULE Part I: Overview 1. Introduction to Corporate Finance 2. Financial Statements and Cash Flow 3. Financial Statements Analysis and Financial Models PART II: Valuation and Capital Budgeting 4. Discounted Cash Flow Valuation 5. Net Present Value and Other Investment Rules 6. Making Capital Investment Decisions 7. Risk Analysis, Real Options, and Capital Budgeting 8. Interest Rates and Bond Valuation 9. Stock Valuation PART III: Risk 10. Risk and Return: Lessons from Market History 11. Return and Risk: The Capital Asset Pricing Model (CAPM) 12. An Alternative View of Risk and Return: The Arbitrage Pricing Theory 13. Risk, Cost of Capital, and Valuation PART IV: Capital Structure and Dividend Policy 14. Efficient Capital Markets and Behavioral Challenges 15. Long-Term Financing: An Introduction 16. Capital Structure: Basic Concepts 17. Capital Structure: Limits to the Use of Debt 18. Valuation and Capital Budgeting for the Levered Firm 19. Dividends and Other Payouts PART V: Long Term Financing 20. Raising Capital 21. Leasing PART VI: Options, Futures, and Corporate Finance 22. Options and Corporate Finance 23. Options and Corporate Finance: Extension and Applications 24. Warrants and Convertibles 25. Derivatives and Hedging Risk Week VII: Short-Term Finance 26. Short-Term Finance and Planning Page 6 of 7
Week 15 27. Cash Management 28. Credit and Inventory Management Week 16 PART VIII: Special Topics 29. Mergers, Acquisitions, and Divestitures 30. Financial Distress 31. International Corporate Finance Page 7 of 7