Delaware State University College of Business Department of Accounting, Economics and Finance Spring 2011 Course Outline I. Course Course Number: 43-300-01 CRN: 18754 Course Title: Managerial Finance Class Time: TR 1:30 to 2:45 pm Class Venue: BOA Room 105 II. Instructor: Dr. Nandita Das ndas@desu.edu Office: 212B, Bank of America Building Phone: 302-857-6940 III. Office Hours: Day Monday Tuesday Wednesday Thursday Time 3:00 PM to 4:00 PM 12 noon to 1:30 PM 2:45 PM to 4:45 PM 12 noon to 1:30 PM Or By Appointment IV. Required Materials: Principles of Managerial Finance, Brief 5 th ed., by Lawrence J. Gitman, Pearson/Prentice Hall, 2009 with MyFinanceLab. Other reading materials (articles, newspaper reports, and the like) will be distributed when appropriate. Students are also encouraged to read business newspapers, such as The Wall Street Journal, magazines, and online materials. Financial Calculator: Students MUST have a financial calculator. The most commonly used one is Texas Instruments TI BAII PLUS. The calculator must be able to do the following calculations PV (present value), FV (future value), NPV (net present value), and IRR (internal rate of return). The primary goal of using the calculator is to familiarize students with the various functions. Calculators are permitted during exams. Computer Skills: Students MUST be proficient in using basic word processing and spreadsheet software. Some assignments require the use of Microsoft EXCEL.
V. Prerequisites VI. VII. The following courses must have been completed previously with a grade of C or better. 40-201, 40-202, and 42-202 (or 42-203). Students who have not met these prerequisites must drop this course. Course Description The role of financial management in profit and not-for-profit business enterprises includes financial analysis, planning needs for short-term and long-term funds, capital budgeting, and raising funds to finance growth of business enterprises. Course Objectives. Specific objectives are given at the beginning of each chapter in the textbook and will be reviewed before quizzes and exams. 1. To provide students with an understanding of the field of finance and the role of the financial manager. 2. To provide students an understanding of financial analysis and financial forecasting for a firm. 3. To introduce students to basic financial concepts including time value of money, stock and bond valuation, risk and return, the global financial environment, and ethics in finance. 4. To provide students with an understanding of the capital budgeting process. VII. Core Competencies 1. Written and Oral Communications students will analyze and evaluate mini cases and present problems and proposed solutions in class. 2. Legal, Political and Ethical Awareness students will evaluate the impact of business and government decision-making on factors such as taxes, interest rates, financial industry regulations and performance, and shareholder information. 3. Critical Thinking and Problem Solving students will analyze and evaluate a multitude of financial concepts and theories (see course schedule below), generally presented in problem format, to evaluate appropriate pricing and earnings, taxes, and the like. Critical skills are covered through written tests and interactive learning experiences. 4. Data Gathering and Interpretation Students are assigned problems and are required to apply appropriate formulae and arrive at appropriate responses. 5. Global, Cultural and Diversity Understanding students will discuss exchange rates, international interest rates, and cultural differences in conducting business, global financial markets to better understand domestic financial markets and global culture and diversity. 6. Information Literacy and Technology Students will complete homework assignments and tests online using MyFinanceLab and will use Blackboard for course materials and information. They will use business function calculators for financial calculations. VIII. Method of Instruction The method of instruction involves the use of web technology, lectures, class discussions, and experiential exercises. Students are expected to read materials prior to their introduction in class.
IX. Classroom Décor No cell phones are allowed in the class. No chewing gum in the class. Please arrive on time for all classes to avoid distraction to other students. Please be seated for the entire duration of the class unless there is an emergency. X. Attendance, Attitude, and Participation (AAP) Policy Class attendance is mandatory. Missing more than three classes will adversely affect your grade for the course; you will lose 10 points. Attitude refers to maintaining the classroom décor and completing the assigned work for the course. Students will be asked simple questions related to the material that has been/is being covered in the class. You are expected to participate in the class. XI. Method of Evaluation Grades will be based on points earned in the following categories: Item Percentage AAP Policy 10% Group Presentation 10% Homework 20% Test (I and II) 30% Final Examination 30% Grades will be assigned according to the following scale: 90 100% A 60 69% D 80 89% B Below 60% F 70 79% C You may NOT turn in homework assignments late and there will be NO make-up tests with the below exception. If there are any scheduled exam dates that conflict with the observance of your religious holidays, please let me know within the first week of class. Makeup exams for such holidays will only be permitted if you have proper, written documentation. XII. Students with Special Needs If you are a student that needs special accommodations to facilitate learning, please inform me of this promptly so that we can work together from the beginning of the semester.
XIII. XIV. Academic Honesty Academic honesty is expected inside and outside of this class. Academic misconduct will not be tolerated. Please refer to the DSU student handbook for a detailed description of academic misconduct. Any misconduct may result in the maximum penalty set by Delaware State University. Schedule** Important Dates and Deadlines Group Presentation I (Ch 5) February 8 Test I (Ch 1, 4, and 5) February 15 Group Presentation II (Ch 6) March 1 Group Presentation III (Ch 7) March 15 Test II (Ch 6-7) March 22 Group Presentation IV (Ch 9-10) April 12 SCHEDULE OF LECTURES, TOPICS, HOMEWORK AND EXAMINATIONS** Topic Week 1 (1/11 and 1/13*) Course Outline Review of basic math and accounting concepts Week 2 (1/18 and 1/20) The Role and Environment of Managerial Finance Forms of Business Organization Primary Goal of the Firm Divergent Objectives and Agency Problems Financial Institutions and Markets Time Value of Money Part I Present Value and Future Value Concept Measures of Interest Rate Effect of Compounding Homework 1 DUE on 1/23 Week 3 (1/25 and 1/27) Time Value of Money (Contd) Effective Rate of Return Rule of 72 PV and FV of a Stream of Cash Flows: Uneven Stream and Annuities Perpetuity Amortization Schedule Homework 2 DUE on 1/30 Ref. to Text Ch 1 Ch 4 Ch 4
Week 4 (2/1 and 2/3) Risk and Return Fundamentals Risk Measures, Relationship Between Risk and Return Coefficient of Variation Ch 5 Risk of an Asset in a Portfolio Context Concept of Portfolio Diversification Systematic (Beta) and Unsystematic Risk Homework 3 DUE on 2/6 Week 5 (2/8 and 2/10) Group I Presentation Ch 5 Catch-up Time Week 6 (2/15 and 2/17) Test I Ch 1, 4, and 5 Interest Rate and Bond Valuation Interest Rate Fundamentals Ch 6 Bond Valuation Bond Yields Week 7 (2/22 and 2/24) Interest Rate and Bond Valuation (Contd) Types and Features of Long-term Bonds Ch 6 Bond Ratings and Indentures Bond Yields Homework 4 DUE on 2/27 Week 8 (3/1 and 3/3) Group II Presentation Ch 6 Valuing Stocks Stock Market Ch 7 Basic Stock Valuation Dividend Discount Models Spring Break (3/7 to 3/12) Homework 5 DUE on 3/13 Week 9 (3/15 and 3/17) Valuing Stocks (Contd) Preferred Stock Ch 7 Efficient Market Hypothesis Group III Presentation Ch 7
Week 10 (3/22 and 3/24) Test II Ch 6 and 7 Capital Budgeting Techniques Concepts Decision Models for Evaluating Capital Expenditures Net Present Value (NPV) Internal Rate of Return (IRR) Payback Period (PB) Week 11 ( 3/29 and 3/31) Capital Budgeting Techniques Concepts Decision Models for Evaluating Capital Expenditures Net Present Value (NPV) Internal Rate of Return (IRR) Payback Period (PB) Ch 9 Ch 9 Homework 6 DUE on 4/3 Week 12 ( 4/5 and 4/7) The Cost of Capital Concept Ch 10 Computing the Component Costs of Capital Computing the Weighted Average Cost of Capital Homework 7 DUE on 4/10 Week 13 ( 4/12 and 4/14) Group IV Presentation Ch 9 and 10 Catch-up Time Week 14 ( 4/19 and 4/21) Capital Budgeting Cash Flows Principles of Estimating Cash Flows Estimating Project Cash Flows Interest Charges and Net Cash Flows Problems in Cash Flow Estimation Homework 8 DUE on 4/20 Week 15 (4/26 and 4/28) Catch-up Time Final Exam Review Ch 8 ** Subject to change depending upon the needs and interests of students as identified by the instructor