Course
FINC 5000 Finance
Instructor
Name: Lorraine Gilbertson
Email: gilbertl@webster.edu
Location
Chengdu, China
Course Description
The student examines the general nature of financial management, the American financial system, taxes, and the major financial decisions of corporations. Specific attention is given to present value and capital budgeting; risk and asset pricing; financial analysis and forecasting; financial decisions and market efficiency; and capital structure. Problem-solving methodology is used to illustrate the theories and tools in financial decision-making.
Course Objectives
Finance ties the theoretical foundations of economics with the accounting field and language to develop a managerial outlook on corporate financial management. Understanding the financial makeup of a firm and managements' goal of increasing shareholder wealth through decisions on the capital structure to the firm's investments is the goal of the course.??
Students start with the basic goals of finance and the relationship to accounting and accounting statements and the information contained therein.? Time Value of Money is emphasized and utilized throughout the course.? Using Time Value of Money (TVM) concepts, together with risk and return, students learn to evaluate capital structure and basic weighted average cost of capital.? These concepts are developed to provide understanding of the importance of good financial management.? Capital Budgeting techniques are developed in a decision-making model.??
The intent of the course is to take the student through the basics in order to understand the "big picture" of what financial management is, what it means, and how it is used.? For students that do not take any more finance courses?they should have a basic knowledge of the field of finance and the importance in their careers, businesses, and personal lives.? For students that go on to take more finance, they should have a solid foundation from which the other courses can start building.? In either case, this knowledge will help the student gain the decision-making and problem-solving skills so crucial in today's business environment.
Learning Outcomes
Perform financial analysis and make decisions based on the analysis
Apply time value of money concepts to business decisions
Evaluate risk and consider in business decisions
Value securities and corporations
Apply basic capital budgeting concepts
Determine capital structure and cost of capital
Text
Brigham and Ehrhardt, Financial Management, Theory and Practice, 10th edition
Course Grading
Your final grade will be based on chapter mini-cases, company analysis, and final examination, weighted as follows:
Company Analysis and Presentation
25%
Chapter Mini-cases (3)
35%
Final Examination
40%
The follow table shows the grade associated with each of the different ranges of total possible weighted points.??
A
94-100%
A-
90-93%
B+
87-89%
B
84-86%
B-
80-83%
C
70-79%
F
69% or less
Course Activities
This course requires problem solving, analysis, and class discussion on finance topics.? The field of finance requires students have both the practical 'how-to' numerical analysis and a solid theoretical foundation.? Also, students should develop an awareness and appreciation for current issues and the financial news.? Knowledge of how financial data is reported should be integrated.? Each week throughout the course the following types of assignment activities may be required.
Chapter Problems - each chapter has a variety of problems that reinforce some dimension of the material from that chapter.? Students should attempt a problem set and be able to discuss their solution and approach with the instructor and class.
Lecture and discussion--a majority of the class may revolve around presentation of theoretical issues and problem solving.? Students are expected to participate in applying theoretical ideas to numerical problems.
Completion of mini-cases and a company analysis will be required. They are to be completed in typewritten format and turned in by the due date.
Full participation in this course is expected. Please advise the instructor ahead of time if you experience difficulties in keeping up with the course assignments and other activities.
Policy Statements
Academic Dishonesty: Webster University strives to be a center of academic excellence. As part of our Statement of Ethics, the University strives to preserve academic honor and integrity by repudiating all forms of academic and intellectual dishonesty, including cheating, plagiarism and all other forms of academic dishonesty. Academic Dishonesty is unacceptable and is subject to a disciplinary response.
Notes
This syllabus may be revised at the discretion of the instructor without the prior notification or consent of the student.
Attendance is required. If you must miss a class, get advance approval from the instructor whenever possible. You will be required to complete and submit all assigned work for the week in writing.
A penalty will be applied to any late assignment or exam unless approved by the instructor in advance.
The class will meet with the instructor 7 times instead of 8 times. This will not change the chapters that are covered in the course. Some class sessions may need to be extended somewhat to cover all relevant material.
Session
Topic (read chapters prior to each session)
Assigned problems and cases (cases to be completed in writing)
1
Syllabus
Chapter 1: An overview of Financial Management
Chapter 2: Financial Statements, Cash Flow, and Taxes
Chapter 3: Analysis of Financial Statements
2-1, 2-2, 2-3, 2-11, 2-12, 2-15
3-2 through 3-5, 3-13, 3-14
**Chapter 3 Minicase, parts b, c, d, e, f, and h; complete in writing, give to instructor at the beginning of Session 2
Student presentations of Chapter 3 Mini-case
Chapter 4: Financial Planning and Forecasting Financial Statements
Chapter 5: The Financial Environment: Markets, Institutions, and Interest Rates
4-1, 4-5
5-12, 5-13
3
Chapter 6: Risk and Return: The Basics
Chapter 7: Risk and Return: Portfolio Theory and Asset Pricing Models
6-10, 6-14
4
Chapter 8: Time Value of Money
8-1, 8-2, 8-4, 8-5, 8-6, 8-7, 8-15, 8-18, 8-23, and 8-26
**Chapter 8 Minicase, parts b,c,d,e,f,g, and k; complete in writing, give to instructor at the beginning of Session 5
5
Student presentations of Chapter 8 Mini-case
Chapter 9: Bonds and Their Valuation
Chapter 10: Stocks and Their Valuation
9-1, 9-2, 9-4, 9-13.
10-1, 10-2, 10-3, 10-4, 10-5, 10-6, 10-9, 10-13
6
Chapter 11: The Cost of Capital
Chapter 12: Putting the Pieces Together: Corporate Valuation and Value-Based Management
11-1, 11-2, 11-3, 11-4, 11-11, 11-12
12-1, 12-2, 12-4, 12-5
**Chapter 12 Minicase, all parts; complete in writing, give to instructor at the beginning of Session 7
7
Student presentations of Chapter 12 Mini-case
Chapter 13: The Basics of Capital Budgeting
Chapter 16: Capital Structure Decisions: The Basics
13-1, 13-2, 13-3, 13-5, 13-6, 13-8, 13-10, 13-13
16-1, 16-6
8
Final Examination
*Company Analysis
Select a company of your choice. Research the company, using at least 3 sources with recent information. The Internet is the best source for a public company. Prepare a typewritten paper no longer than 3 pages, double spaced. The paper should include:
A brief background of the company, e.g., where it is located, when it was established, the name of the CEO, and what the company does.
A ratio analysis of strengths and weaknesses.
Other factors affecting the company, including competitive factors, macro-economic factors, new products, etc.
Your assessment of the future of the company.
Whether you would recommend purchasing stock in the company (if a public company).
A bibliography. The bibliography is a separate page, not included in the 3-page limit.
You may attach as many exhibits as you wish to support your paper, e.g., financial statements and other information you obtain from the Internet or elsewhere. However, you are not required to attach exhibits—the choice is yours.
Students will present their analysis during a class session. The presentation should be between 10-15 minutes in length. All members of a group should participate in the presentation.
**Mini-cases—for each assigned case,
prepare a typewritten paper, double spaced
Answer assigned parts of the mini-case in the paper.
Students will present each case during a class session.
All members of a group should participate in the presentation.