FIN 3403 Financial Management Instructor Robin Wilber, Ph.D. Title Office Phone Office Fax Phone Office Address Phone Hours Office Hours E-mail Course Credits Notes Dr. (727) 341-3203 (727) 791-2441 EPI Center 2-416, 13805 58th St. N, Largo Tuesday 11AM - 6PM. Wedneday and Thursday 11AM-4PM Tuesday 11AM - 6PM. Wedneday and Thursday 11AM-4PM wilber.robin@spcollege.edu 3 Students are strongly encouraged to contact me via e-mail vs. using the telephone. You will find I am very prompt responding... and you should anticipate a response to ANGEL email well within 24 hours. If ANGEL is down or you are unable to upload your assignments, or if you have questions not related to this class, please send correspondence to main SPC email account above. Course grading is normally complete within 1 week from submission due date. Email availability 7 days/week. Required Text Principles of Managerial Finance, BRIEF 6th/E (Bundled with MyFinanceLab) Lawrence J. Gitman and Chad J. Zutter, Publisher: Prentice Hall; Copyright: 2012. ISBN-10: 0133024962 ISBN-13: 9780133024968 Course Description Value creation is one of the most prized management skills. This course is all about creating value; what it is, how it is measured, assessing the value contribution of decisions, and how managers actually select high-value projects. This is an introductory course that examines financial analysis and decision-making from a management perspective. Topics include: financial statement analysis, financial planning and forecasting, time value of money with analysis and computation tools, risk and rates of return, asset valuation, capital budgeting, and miscellaneous financial decision-making tools and methods. 47 contact hours. Course Objectives 1. The student will explain the ethical and financial responsibilities of industry, technology and business services managers. 2. The student will evaluate financial statements, financial planning and forecasting.
3. The student will explain the risk and rates of return. 4. The student will assess the time value of money. 5. The student will explain the cost of capital. 6. The student will measure capital budgeting. 7. The student will prepare cash flow estimation and risk analysis. Upon Completion students will be able to demonstrate the ability to: 1. Analyze the financial state and performance of a commercial company. 2. Determine the value of any series of cash flows. 3. Compute the value (price) and cost of common stock and bonds. 4. Compute a firm s cost of capital. 5. Make management decisions using capital budgeting disciplines. Tentative Schedule Week Class Date Class Topics Assignments Due Date 1 14-May Intro to the Course Readings Syllabus Text Ch. 1,2,3 14-May Course Intro Presentation Orientation & Review Basic Finance Principles and Accounting Review Financial Analyis Statement content Orientation 14-May Normalizing and ratios Review 14-May Time series Quiz Ch. 1 17-May Cross sectional analysis Quiz Ch. 2 17-May Managerial Interpretations Homework Ch. 1 19-May Homework Ch. 2 19-May Homework Ch. 3 (part 1) 19-May 2 21-May Financial Analysis (cont'd) Readings Business Analyses Text Ch. 3,5 21-May Performance Interpretation Calculate Present Value (PV) Valuation Time Value of Money (TVM) Quiz Ch. 3 24-May
3 28-May Discounting Cash Flows Calculate Present Value (PV) Homework Ch. 3 (part 2) 26-May of future lumps sums Homework Ch. 5 (part 1) 26-May of future annuities of uneven cash flows Valuation and Modern Portfolio Theory Readings Managing Risk Text Ch. 8 28-May Measures, diversification, beta Determining risk adjusted required returns (CAPM) Quiz Ch.5 31-May Quiz Ch. 8 31-May Homework Ch.5 (part 2) 2-Jun Homework Ch. 8 2-Jun 4 4-Jun Valuation - Interest and Bonds Readings Interest rate compostion Text Ch. 6 4-Jun Bond characterisitics, components 5 11-Jun 6 18-Jun and behaviour. Computing bond prices and YTM Quiz Ch. 6 7-Jun Test #1 Ch. 1,2,3,5,8 Test #1 9-Jun Valuation - Equity and Cost of Capital Readings Equity characteristics Text Ch. 7 11-Jun Market efficiency Pricing using zero growth and constant growth models Quiz Ch. 7 14-Jun Homework Ch. 6 16-Jun Homework Ch. 7 16-Jun Decision Making and Capital Budgeting Readings Assessing prospecitive projects Text Ch. 10, 11 18-Jun Using MACRS and IRS tax rules Computing initial investments
Computing incremental oper. cash flows Measuring contribution of any Quiz Ch. 10 21-Jun project to firm value Quiz Ch. 11 21-Jun Homework Ch.10 23-Jun Compute, measure, and Homework Ch. 11 23-Jun assess IRR, Payback, and NPV 7 25-Jun Cost of Capital Readings Role of Cost of Capital Text Ch. 9 25-Jun Computing Cost of Debt Computing Cost of Preferred Computing Cost of Equity Computing Capital Structure Quiz Ch. 9 28-Jun Computing Cost of Capital Homework Ch. 9 30-Jun Multi media Ch 9 and 11 30-Jun Test #2 Ch. 6,7,9,10,11 Test #2 2-Jul 8 2-Jul Cash and Financial Planning Readings The planning process, policies, Text Ch. 4 assumptions, pro-formas and iterations Developing and evaluating short- term income Test #2 Ch. 6,7,9,10,11 Test #2 2-Jul Quizzes are 10 questions. 30 minute time limit. Two attempts. Homework assignments are 3-7 problems. No time limit. Two attempts. Tests are 34 multiple choice and problems. 180 minutes (3 hours) time limit. One attempt. Participation is based on mastery in your study plan. Course Requirements Background Knowledge A working knowledge of College Algebra is absolutely required. In addition, a working knowledge of Statistics is strongly encouraged. Topics in this course will frequently incorporate concepts from Statistics. Students with a working knowledge of statistics concepts tend to have an easier time understanding these concepts. Computer Requirements Students should have regular access to a computer that is connected to the Internet. It is strongly recommended that students have a broadband (high-speed) internet connection such as DSL or a cable modem. When viewing on-line videos, students should have an internet
connection that is stable and will not drop their connection. Students without a stable highspeed internet connection should consider making arrangements to view videos with alternative means (i.e.at one of the St. Petersburg College libraries or a similar facility) where a stable high-speed internet connection is available. Internet Explorer is the preferred browser to use to access course materials in ANGEL. A standard file format has been devised to apply to all classes in order to support file compatibility, sharing, and commenting needs. Students are required to submit all assignments in Microsoft Office formats (Word, Excel and other Microsoft formats). Other formats may have ANGEL compatibility issues or instructor feedback in comments may not be viewable by students. The College of Business provides full function student licenses of Microsoft software, other than the basic Office product. Visio would be beneficial to students in this course. Details regarding obtaining the software and licenses (free) are provided under the Student Resources folder in the College of Business Student Commons in ANGEL. Managerial Finance is a quant course, meaning it will involve a considerable amount of computation. Students will use two tools to reduce the burden of the computational workload. First, Microsoft Excel is required for this course. Because of its built-in pre-programming many of the more complex and time-consuming computations may be simplified. Excel is capable of all required calculations for this class. Second, students are required to use Excel and Word to do class exercises, homework assignments, case analyses, and Tests. Basic Excel competence is expected. In particular, students will find that the use Excel will expedite homework preparation. Time Commitment This is a 3-credit course conducted over 8 weeks. In order to meet accreditation standards, on average, students should expect to spend between 15 to 18 hours per week on course activities and assignments. Spending less time would be insufficient for success in this course. Course Prerequisites Prerequisite(s): ACG 2001 and ACG 2011 or ACG 2021, or permission of the instructor. Please note that without Financial Accounting (at a minimum) it is virtually impossible for a student to be successful in finance. Grading Policy 10 Chapter quizzes 15% 15 Chapter homework assignments 30% Participation 5% Test #1 25% Test #2 25% Total 100% Participation grade is based on MyFinanceLab Study Plan Mastery. A 90% or greater B 80% to 89% C 70% to 79% D 60% to 69%
F below 60% Attendance Policy Attendance Policy Participation in the course is essential in order to avoid being withdrawn for non-attendance. Participation is defined as reading and preparing for weekly lessons (especially prior blended class meetings). As well as completing and submitting ALL assignments on time, plus taking part in all other course communications in a timely manner. The Assignments and Due Dates spreadsheet above (see copy in the Course Materials folder to print) provides and overview of all assignments and due dates for this course which are required for active participation in this course. Students should review the college-wide attendance and financial aid policies included in the syllabus addendum linked below in the Miscellaneous area. Additionally students need to review the student expectations regarding silencing or turning off all electronic devices during blended class meetings. Online students will be held to the same practices of courtesy and respect as outlined further on the guidelines posted in the syllabus addendum. Excused absences, of course, will not count against you. However students must contact the professor to make appropriate arrangements, along with provide them with supporting documentation accordingly. Advance notice should be given to the instructor whenever possible to arrange for alternatives. Lack of attendance can result in students being administratively withdrawn. Students are given a W in a course if two issues occur in Week 1 or 2, or are given a WF if issues occur at the 60% point (see last date to withdraw in the academic calendar to avoid this issue as it can result in serious financial aid and GPA consequences). If you are in your third attempt at completing a course, you will be given a WF grade at any point in the term if you fail to meet attendance requirements. Please see the student handbook and SPC policies further if needed. Academic Integrity Academic honesty and plagiarism falls under the Academic Honesty Policy of the college. The College of Business has always had a 0 tolerance policy for academic dishonesty and if the student is in violation, an F in the course can be applied. **Understand that not properly giving credit to the sources used in your work, even when paraphrasing, is considered plagiarism and can result in not only a "0" for that assignment, but an "F" in the course**. In this course it is ok to get help or work with other students on your homework. In this course it is cheating to receive ANY help on any quizzes or tests. Quizzes and Tests are for students to demonstrate their learning. Any help on a quiz or test will be cause for an F in this course. Disability Policy If you wish to receive special accommodations as a student with a documented disability, please make an appointment with the Learning Specialist on the Clearwater, Tarpon Springs, or St. Petersburg sites. If you have a documented hearing loss, please contact the Program for the Deaf at 791-2628 (V/TDD). For more information, contact the SPC Office of Services for Students with Disabilities and review further information at: http://www.spjc.edu/central/ossd/index.htm.
Miscellaneous Please click here to access the most up-to-date SPC policies and syllabus addendum: http://www.spcollege.edu/central/asa/addendum.htm For Campus Security and Emergency Information, see http://www.spcollege.edu/central/campussecurity/. For an escort to your car or to report an issue on any campus, call 727-791-2560. Students may also want to review Career Development Services (online) at: http://www.spcollege.edu/central/career/ocds/index.shtm