MGT 181: Enterprise Finance

Undergraduate Course, Winter 2014

PROFESSOR: L. JEA !U, JR.
E"A#L: $%dunn&roadrunner.'o(
P)OE: *+,0- +0./210.
OFF#CE LOCA1#O: #n '$assroo( Rad2 We$$s Fargo )a$$ Roo( 1103
OFF#CE )OURS: Wednesda2, +:40 P" to 4:00 P" A5ter '$ass
1A: Ju$ia Leung Ed6ard 7oun
E"A#L: 8$eung&u'sd.edu e2oun&u'sd.edu
Note: This syllabus may be updated and revised at a later date. Please check TED for latest version.
COURSE 1#"ES A! LOCA1#O
19e '$ass ti(e is Wednesda2 a5ternoons 5ro( 0:00 P" to +:40 P" at We$$s Fargo )a$$ Roo( 1103
COURSE !ESCR#P1#O
#t is 'riti'a$ t9at :usiness (anagers and ot9er organi;ationa$ $eaders understand t9e 5inan'ia$ issues
'o((on to a :road range o5 organi;ations. 19is 'ourse re<ie6s :ot9 s9ort and $ong ter( 5inan'ia$
=$anning, t9e trade o55 :et6een de:t and e>uit2 5inan'ing and t9e =ro'ess o5 raising 'a=ita$ 5ro( se<era$
=ers=e'ti<es. 1o=i's in'$ude assessing and res=onding to t9e (indset o5 <arious ?inds o5 in<estors,
identi52ing 6a2s to stru'ture 5inan'ing 5or gro6ing 5ir(s, and dea$ stru'tures 5or <enture 'a=ita$ 5inan'ing.
Uti$i;ing $e'tures, readings, guest s=ea?ers and '$ass dis'ussions and assign(ents, students 6i$$ $earn
9o6 to 'onstru't 5inan'ia$ state(ents and =er5or( 5inan'ia$ state(ent ana$2sis, re'ogni;e t9e i(=ortan'e
o5 'as9 5$o6 (anage(ent, 'a$'u$ate return on in<est(ents, and understand 'o(=an2 <a$uation. 19e2 6i$$
a$so ta'?$e 'redit, in<entor2, e8'9ange/rate and ris? (anage(ent.
COURSE O@JEC1#AES
19e (ain goa$ o5 t9e 'ourse is to =ro<ide students 6it9 :ot9 t9e >uantitati<e too$s as 6e$$ as t9e
$eaders9i= insig9ts needed to su''ess5u$$2 'ontri:ute to t9e 5inan'ia$ su''ess o5 t9e enter=rise. Students
6i$$ $earn a:out t9e :road range o5 tas?s o5 t9e 5inan'ia$ (anager. W9i$e t9is is an introdu'tor2 'ourse in
5inan'e, it 6i$$ 'o<er a$$ t9e (ain to=i's at an a==ro=riate de=t9 to su55i'ient$2 =re=are t9e students to
e55e'ti<e$2 (anage t9e 5inan'ia$ 'on'erns o5 t9e s(a$$ to (ediu( si;ed enter=rise or to (a?e i(=ortant
'ontri:utions to $arger and (ore 'o(=$e8 organi;ations.
19e 'ourse 6i$$ uti$i;e $e'tures, 'ase studies, and guest s=ea?ers 5ro( industr2. 19is >uarter/$engt9
'ourse is designed 5or u==er di<ision undergraduate students.
COURSE "A1ER#ALS
19e te8t :oo? 5or t9is 'ourse is:
Fundamantals of Corporate Finance. 1
th
Edition !1 *FCF-
Ste=e9n A. Ross, P9.!.B Rando$5 W. Wester5ire$d, P9.!.B @rad5ord !. Jordan, P9.!.
"'Cra6/)i$$D#r6in. e6 7or?, e6 7or?
7ou s9ou$d a$so 9a<e use o5 a E5inan'ia$F 'a$'u$ator to :etter =re=are 'ase studies and test >uestions.
19e assigned readings, 'ases and '$ass s'9edu$e are gi<en in t9e atta'9ed 'ourse out$ine. Each student
is e"pected to have completed the readin# for each class before the class starts. Case studies 6i$$ :e
due as assigned in t9e s'9edu$e and 6i$$ :e turned in :e5ore '$ass on t9e da2 due. Ea'9 student is
e8=e'ted to :e =re=ared to 'ontri:ute to t9e '$assroo( dis'ussion. *See :e$o6.-
A11E!ACE
7ou are e8=e'ted to attend e<er2 '$assB 2ou are res=onsi:$e 5or t9e (ateria$ 'o<ered in '$ass 69et9er or
not 2ou attend. # rea$i;e t9at des=ite 2our :est e55orts 2ou (ig9t :e 5or'ed to (iss a '$ass due to
un5oreseen e(ergen'ies and # 6ou$d $i?e 2ou to in5or( (e i5 2ou 9a<e (issed *or 6i$$ (iss- a '$ass.
EAALUA1#O A! CRA!#C
Students 6i$$ :e e<a$uated :ased on =er5or(an'e in t9eir areas o5 e55ort:
i. )o(e6or? *20G- / 19ere 6i$$ :e a 'ase stud2 assign(ent a 6ee? to :e 9anded in :e5ore '$ass
starts on t9e da2s s=e'i5ied on t9e atta'9ed 'ourse s'9edu$e.
ii. "idter( *.0G- / 19ere 6i$$ :e a (id/ter( e8a(ination on Fe:ruar2 0, 2014. #t 'an 'o<er a$$ te8t
readings, 'ases, 9o(e6or? and '$ass dis'ussions u= to t9at ti(e.
iii. F#AL EHA" *00G- / 19ere 6i$$ :e a . 9our 5ina$ e8a(. #t 6i$$ 'o<er a$$ te8t readings, 'ases, and
'$ass dis'ussions during t9e >uarter. 19e Fina$ E8a( 6i$$ :e gi<en on "onda2, "ar'9 1+, 2014
5ro( +:00 P" to 10:00 P"
P$ease note: A$$ e8a(s are to :e 'o(=$eted indi<idua$$2 so 'o$$a:oration a(ong students is not a$$o6ed.
GRADING of HOMEWORK: )o(e6or? is graded as 5o$$o6s: a- #5 t9e student (a?es a good e55ort
and gets (ost o5 t9e ans6ers 'orre't t9en t9e2 6i$$ re'ei<e 40 out o5 a 100. P$ease note t9at t9is is
t9e (a8i(u( grade. :- #5 t9e student turns in t9e 9o(e6or? and does not (a?e a good e55ort or
gets (ost o5 t9e ans6ers 6rong t9en t9e2 6i$$ re'ei<e 30 out o5 100. '- #5 t9e student does not turn
in t9e 9o(e6or? t9en t9e2 6i$$ re'ei<e 0 out o5 100. At t9e end o5 t9e >uarter t9e 9o(e6or? grades
6i$$ :e a<eraged. 19is i(=$ies t9at i5 a student turns in a$$ o5 t9eir 9o(e6or? and does 6e$$ on t9e(
t9eir (a8i(u( grade 5or t9e >uarter on 9o(e6or? 6i$$ :e 40.
COURSE OU1L#E
Wednesda2, Januar2 3, 2014 #ntro to Finan'e C9a=ter 1
Finan'ia$ State(ents C9a=ters 2, . I 4
Cas9 F$o6 Pro%e'tions
Ratio Ana$2sis
Case St!" #1 !e $anar" 1%& '(1) *efore c+ass
Wednesda2, Januar2 10, 2014 1i(e Aa$ue o5 "one2 C9a=ter 0
!is'ounted Cas9 F$o6 C9a=ter ,
Case St!" #' !e $anar" ',& '(1) *efore c+ass
Wednesda2, Januar2 22, 2014 PA, #RR, Pa2:a'? C9a=ters 4, 10, 11
Pro%e'tions
@rea?e<en
#nterest Rates C9a=ter +
@onds
Case St!" #, !e $anar" '-& '(1) *efore c+ass
Wednesda2, Januar2 24, 2014 Sto'? Aa$uation C9a=ter 3
Ca=ita$ "ar?ets )istor2 C9a=ter 12
We!nes!a"& Fe*rar" %& '(1) Mi!ter. E/a.
Case St!" #) !e Fe*rar" 1'& '(1) *efore c+ass
Wednesda2, Fe:ruar2 12, 2014 Ris?, Return, Se'urit2 C9a=ter 1.
"ar?et Line
#n<esting
Case St!" #% !e Fe*rar" 1-& '(1) *efore c+ass
Wednesda2, Fe:ruar2 14, 2014 Cost o5 Ca=ita$ C9a=ter 14
Raising Ca=ita$ C9a=ter 10
Case St!" #0 !e Fe*rar" '0& '(1)
Wednesda2, Fe:ruar2 2,, 2014 S9ort/ter( Finan'e C9a=ters 13, 14
@e9a<iora$ Finan'e
1o .st *e in c+ass on Marc2 0& '(1) in or!er to 3oin a 4rop for t2e Mer4ers an! Ac5isition
ne4otiation6 T2ose not in c+ass 7i++ not *e part of a 4rop for t2e ne4otiation an! 7i++ not recei8e
cre!it for Case #9
Wednesda2, "ar'9 0, 2014 "ergers I A'>uisitions C9a=ter 2,
Case St!" #9 !e Marc2 1'& '(1)
ote: Case J+ 6i$$ :e a =re=aration 5or a (erger and a'>uisitions negotiation. 19e '$ass 6i$$ :e di<ided
into tea(s 5or t9e negotiation
Wednesda2, "ar'9 12, 2014 "IA egotiation
Re<ie6
FINA: E;AM Mon!a"& Marc2 19& '(1) 9:(( <M to 1(:(( <M
ACADEMIC INTEGRIT1
#ntegrit2 o5 s'9o$ars9i= is essentia$ 5or an a'ade(i' 'o((unit2. As (e(:ers o5 t9e Rad2 S'9oo$, 6e =$edge
ourse$<es to u=9o$d t9e 9ig9est et9i'a$ standards. 19e Uni<ersit2 e8=e'ts t9at :ot9 5a'u$t2 and students 6i$$ 9onor
t9is =rin'i=$e and in so doing =rote't t9e <a$idit2 o5 Uni<ersit2 inte$$e'tua$ 6or?. For students, t9is (eans t9at a$$
a'ade(i' 6or? 6i$$ :e done :2 t9e indi<idua$ to 69o( it is assigned, 6it9out unaut9ori;ed aid o5 an2 ?ind.
19e 'o(=$ete UCS! Po$i'2 on #ntegrit2 o5 S'9o$ars9i= 'an :e <ie6ed at: 9tt=:DD666/
senate.u'sd.eduD(anua$Da==endi'esDa==2.9t(JAP14
Ho7 t2e Honor Co!e app+ies to t2is corse:
Students are e8=e'ted to 'o(=$ete t9e 'ourse in 'o(=$ian'e 6it9 t9e instru'torKs standards. o student s9a$$
engage in an2 a'ti<it2 t9at in<o$<es atte(=ting to re'ei<e a grade :2 (eans ot9er t9an 9onest e55ortB 5or e8a(=$e:
o student s9a$$ ?no6ing$2 =ro'ure, =ro<ide, or a''e=t an2 unaut9ori;ed (ateria$ t9at 'ontains >uestions or
ans6ers to an2 e8a(ination or assign(ent to :e gi<en at a su:se>uent ti(e.
o student s9a$$ 'o(=$ete, in =art or in tota$, an2 e8a(ination or assign(ent 5or anot9er =erson.
o student s9a$$ ?no6ing$2 a$$o6 an2 e8a(ination or assign(ent to :e 'o(=$eted, in =art or in tota$, 5or 9i(se$5 or
9erse$5 :2 anot9er =erson.
o student s9a$$ =$agiari;e or 'o=2 t9e 6or? o5 anot9er =erson and su:(it it as 9is or 9er o6n 6or?.
o student s9a$$ e(=$o2 aids e8'$uded :2 t9e instru'tor in underta?ing 'ourse 6or? or in 'o(=$eting an2 e8a( or
assign(ent.
o student s9a$$ a$ter graded '$ass assign(ents or e8a(inations and t9en resu:(it t9e( 5or re/grading.
ST=DENTS WITH DISA>I:ITIES
A student 69o 9as a disa:i$it2 or s=e'ia$ need and re>uires an a''o((odation in order to 9a<e e>ua$ a''ess to
t9e '$assroo( (ust register 6it9 t9e O55i'e 5or Students 6it9 !isa:i$ities *OS!-. 19e OS! 6i$$ deter(ine 69at
a''o((odations (a2 :e (ade and =ro<ide t9e ne'essar2 do'u(entation to =resent to t9e 5a'u$t2 (e(:er.
19e student (ust =resent t9e OS! $etter o5 'erti5i'ation and OS! a''o((odation re'o((endation to t9e
a==ro=riate 5a'u$t2 (e(:er in order to initiate t9e re>uest 5or a''o((odation in '$asses, e8a(inations, or ot9er
a'ade(i' =rogra( a'ti<ities. o a''o((odations 'an :e i(=$e(ented retroa'ti<e$2.
P$ease <isit t9e OS! 6e:site 5or 5urt9er in5or(ation or 'onta't t9e O55i'e 5or Students 6it9 !isa:i$ities at *303-
0.4/4.32 or osd&u'sd.edu.