University of La Verne

College of Business & Public Management

Spring Term, 2!"
#nstructor$ %ary &' Sc(ant) Course$ BUS 500D
Campus *ffice$ Lan+is, ,oom 2!! Course Title$ Business Finance
*ffice -ours$ Tues+ay, !$am.!2$pm, by appointment Class Time$ Tuesday, 12:354:30pm
Campus P(one /+irect line0$ 11.""2."3!4 Classroom$ Landis 225
Sc(ool 5a6$ 11.712.23" -ome P(one$ 3!".412.84"
9.mail$ gschantz@laverne.edu
P,9,9:U#S#T9$ Un+ergra+uate +egree
C*U,S9 *B&9CT#V9$ T(e ob;ective of t(is course is to familiari)e stu+ents <it( t(e tec(ni=ues use+ in
assessing an+ buil+ing company value' T(e course integrates real <orl+ consi+erations <it( aca+emic
principles, inclu+ing a ma;or emp(asis on un+erstan+ing t(e steps involve+ in ma>ing investment an+
financing +ecisions t(at lea+ to ma6imi)ing t(e value of s(are(ol+er <ealt('
By t(e en+ of t(e course, successful stu+ents <ill be able to$
!' ?istinguis( bet<een t(e +ifferent forms of business structure in t(e U'S', an+ >no< t(e a+vantages an+
+isa+vantages of eac('
2' Be conversant <it(, an+ un+erstan+ (o< to use, analytical tec(ni=ues involving t(e time value of
money'
7' Calculate an e6pecte+ return, base+ on a financial security@s ris>'
"' Calculate t(e price an+ return for bot( stoc>s an+ bon+s'
8' #+entify <ort(y capital investment pro;ects, an+ ran> t(em base+ on a variety of =uantitative tec(ni=ues'
,9:U#,9? MAT9,#ALS$
!' Te6tboo>$ Brig(am, 9' an+ 9(r(ar+t, M', Financial Managemen: T!e"#y and $#acice, !"
t(
9+ition,
T(omson.Sout(<estern, 2!7
2' 5inancial Calculator$ ,ecommen+e+ T# BA## Plus /ULV boo>store0, or -P.!2C /use+ by
instructor0'
Stu+ents are responsible for learning outsi+e of class (o< to use t(e calculator functions re=uire+ for
t(e course, alt(oug( t(e instructor may occasionally offer some relevant a+vice'
*PT#*BAL ,9A?#B%S$
!' T(e Call Street &ournal' A<areness of financial innovations an+ ever.c(anging financial systems is an
integral part of t(e course' Articles from t(e CS& <ill be incorporate+ into t(e lectures as appropriate,
as
<ell as +iscusse+ separately' T(e CS& is available in t(e Cilson Library /on.line an+ (ar+ copy0, an+ in
almost all community libraries'
2' *ccasionally t(ere may be an article of substantial impact t(at <ill be +istribute+ in class or ot(er<ise
circulate+'
MAT9,#AL C*V9,A%9 AB? T9BTAT#V9 SC-9?UL9$ T(e coverage of material in t(is class
parallels t(e ma;or functions of a financial manager, <(ic( are$
. 5inancing
. #nvesting
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. Planning & Control
. Cor>ing Capital Management
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Specific topics to be covere+ are$
. ,oleD*b;ectives of 5inancial Management' . Stoc> 9valuation an+ Mar>et 9=uilibrium
. 5inancial Statements . Cost of Capital
. Time Value of Money . Capital Bu+geting an+ Cas( 5lo< 9valuation
. Bon+ 9valuation an+ #nterest ,ates . Capital Structure
. ,is>, ,eturn, an+ Stoc> Pricing . Cor>ing Capital Management
F"# c!ape# %y c!ape# c"&e#age, see '(!i%i ), *!ic! is aac!ed+
C*U,S9 ASS#%BM9BTS
Tests$ T(ere <ill be <ee>ly in.class tests, base+ primarily on t(e material covere+ in class an+ on t(e
assigne+ (ome<or> problems' T(ey may inclu+e s(ort essay =uestions t(at emp(asi)e t(e
un+erstan+ing /not memori)ation0 of financial t(eory an+ practice, in a++ition to problems base+ on
in.class e6amples an+ assigne+ (ome<or>'
A financial calculator <ill be nee+e+ for most tests /see ,9:U#,9? MAT9,#ALS on page !0' -o<ever,
t(e use of Esmart p(onesF as calculators <ill not be allo<e+ for tests, nor <ill t(e use of iPa+s or similar
+evices'
T(e first test is sc(e+ule+ for Tues+ay, April !
st
' T(ere <ill be an in.class test eac( Tues+ay t(ereafter for
t(e remain+er of t(e course' T(ere also <ill be a test after t(e final classG time an+ location <ill be
+etermine+'
T(ere <ill be no supplementary /ma>eup0 e6aminations for any tests t(at are misse+, e6cept in t(e case of
officially sanctione+ university activities' #n t(ose cases, t(e instructor must receive an approve+ /signe+0
form from t(e appropriate university aut(ority re=uesting permission for t(e stu+ent to miss t(e test, an+
t(e stu+ent must ma>e arrangements to ta>e t(e test prior to t(e time it is being offere+ to t(e class'
-ome<or> Problems$ ,ecommen+e+ (ome<or> problems at t(e en+ of eac( c(apter <ill be assigne+ to
(elp ensure t(at stu+ents un+erstan+ t(e >ey concepts from t(e c(apter' T(ese problems <ill not be gra+e+G
(o<ever, problems similar to t(em <ill appear on tests, so it is strongly recommen+e+ t(at stu+ents
complete as many as possible' #n most cases /if not all0, t(e ans<ers to t(e assigne+ problems <ill be
provi+e+ in t(e bac> of t(e te6tboo>' T(e instructor may revie< some of t(e assigne+ problems in class,
especially if t(ere is stu+ent interest in +oing soG stu+ents may also be as>e+ to present problem solutions in
class' Suden c"lla%"#ai"n in s"l&ing !"me*"#, p#"%lems is s#"ngly enc"u#aged /see STU?H
%,*UPS, belo<0+
Participation$ Stu+ent participation ten+s not to play as large a role in t(is course as it +oes in ot(ers, but
sometimes stu+ents ma>e significant contributions to t(e class by as>ing incisive =uestions t(at spur a
valuable +iscussion about a topic of importance to t(e class' Suc( -uesi"ns a#e s#"ngly enc"u#aged
STU?H %,*UPS
Stu+ents in t(is class are s#"ngly enc"u#aged " ."#m and pa#icipae in sudy g#"ups' T(e groups
enable stu+ents to better revie< an+ un+erstan+ <(at (as been +iscusse+ in t(e classroom, as <ell as
e6c(ange i+eas on (o< to best analy)e an+ solve problems' C(ile some stu+ents may +o <ell on t(eir o<n,
t(e instructor@s e6perience (as been t(at stu+ents <(o participate in stu+y groups ten+ to absorb course
concepts better t(an t(ose <(o +o not' To facilitate t(e formation of stu+y groups, t(e instructor <ill
provi+e a list of ULV stu+ent email a++resses to all members of t(e class'
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PLA%#A,#SM
University policy specifically pro(ibits plagiarism' ?iscovery of plagiarism in a stu+ent@s assignment or
test <ill result in a gra+e of )ero for t(at assignment'
C*U,S9 %,A?9S
T(e letter gra+e in t(is course <ill be base+ on in.class test performance, an+ on t(e test at t(e en+ of t(e
term' T(ere <ill be no mi+.term an+ no final' #n +etermining t(e stu+ent@s final gra+e, t(e lo<est in.class
test score <ill be +roppe+'
Letter gra+es in t(is class <ill be set accor+ing to t(e university stan+ar+s as +escribe+ in t(e 2!7.2!"
ULV course catalog$
$e#cenage Sc"#e Lee# /#ade
17 to !I )
1.12'11I )0
23.21'11I B1
22.24'11I B
2.2!'11I B0
33.31'11I 21
37.33'11I 2
Belo< 37I F
3"e: Sudens a#e e(peced " !a&e #ead !e assigned e(%"", c!ape# p#i"# " eac! class meeing,
and s#"ngly enc"u#aged " s"l&e !e #ec"mmended !"me*"#, p#"%lems p#i"# " !e class meeing
c"&e#ing !e #ele&an c!ape#+
AB*UT T-9 #BST,UCT*,
%ary Sc(ant) (ol+s a Bac(elor of Science +egree in P(ysics from -arvey Mu++ College in Claremont, CA,
a Masters +egree in 9ngineering from t(e University of Sout(ern California, an+ a Masters +egree in
Mar>eting an+ 5inance from t(e -arvar+ Business Sc(ool' -is career e6perience (as range+ from systems
engineering for t(e Minuteman ### missile +evelopment program to e6ecutive responsibility for international
subsi+iaries of multinational corporations' #n a++ition to Business 5inance, (e (as taug(t Personal 5inance
/BUS 7"80, Principles of Mar>eting /BUS 740, #nternational Business /BUS 7"!0, an+ #nternational
Mar>eting /BUS "440 at t(e university'
ATTAC-M9BT$
'(!i%i )$ Listing of assignments by session for t(e course /sub;ect to c(ange as t(e course progresses0
%&S$ 7D2"D2!"
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