MASTER SYLLABUS

FINC601: FINANCIAL MANAGEMENT

1. Course Details

Semester: Fall 2019

Course Code: FINC601-MO2
Course Name: Financial Management
Course Prerequisites: FINC501
Course Co-requisites: None
Credits Hours: Three credit hours
Class Meetings: W, 5:45-8:25PM
26W, 61 street, Room 207.

2. Instructor Details

Professor: N. Weiss, Ph.D.

Office Location: MC26, Room 310B

Office Hours: Mo 4:00PM-5:30PM

Email: nweiss01@nyit.edu
Phone (Office): (212) 261 - TBA

3. Catalog Course Description: As the MBA core course in finance, this course uses data and
information technology resources to emphasize the development of a comprehensive framework for
the theory and practice of financial decision-making. Topics covered span a broad spectrum of financial
markets and of corporate financial practices.
 4. Course Overview
This course is structured around the following three modules:
Module 1 - Financial Markets and Instruments: This module focuses on evaluating, executing, and
reporting transactions in financial market instruments.
Module 2 - Focuses on Financial Planning and the Corporate Valuation Model in the valuing a firm’s
operating and non-operating assets. The Corporate Valuation Model is used as the
framework for evaluating a company’s managerial practices from the standpoint of value
creation and value maximization.
Module 3 - Merger Decisions and Capital Structure Decisions. This module focuses on the above
decisions as drivers of firm value. Students learn to apply the analytic frameworks for the
evaluation of capital structures and mergers and for setting the bid price for a merger.

5. Course-Level Learning Goals1

(A) Invariant Learning Goals (In support of the MBA Programmatic Learning Goal(s)) 2:
Upon the successful completion of this course, the student will be able to:

1
A note on School of Management Course-Level Learning Goals: Learning goals are partitioned into those that are in support of the
programmatic learning goals (Invariant), specific to the localized region of delivery (Contextualized), and specific to the domain
expertise of the instructor (Instructor-Specific). The former two categories are required for all courses. Invariant “Assurance of
Learning Validations” are specifically linked to the associated programmatic learning goal and objective, with course-level learning
goals representing the programmatic goal as it applies to the context of the course. Learning goals that focus on knowledge
acquisition (Bloom’s Taxonomy) are not specifically or necessarily included into the course-level learning goals, although it is
assumed that knowledge acquisition of all relevant business core fundamentals is addressed within each course. Examinations in
class are used to provide feedback concerning knowledge and comprehension for the purpose of ensuring that students who have
not mastered these will not advance through the curriculum. Attainment of knowledge within each core area is assessed by way of
standalone testing of each student as a required part of the instructional program prior to graduation (e.g. ETS).
2
The degree of attainment for each course level learning goal is validated through the composite set of scores for the referenced
Assurance of Learning Validations for that goal. For example, if a learning goal is followed by (A1), it implies that the average of the set of
scores for Assurance of Learning Validation A1 forms the basis of assessment/attainment of the learning goal. Alternatively, if a learning
goal is followed by (A3; A4; A6), this indicates that the composite set of scores for Assurance of Learning Validations A3, A4 and A6 are to
be used to assess the degree to which this learning goal has been attained with equal weights applied to each set of scores. That is, the
average of the scores for A3 is utilized and weighted equally (1/3) with the average for the scores of A4, and also A6. Unless specified
otherwise, the weights are equal. In the latter case the weight for each Assurance of Learning Validation would be 1/3.
 1. Design and direct a collaborative group effort to bridge the gap between abstract financial theories
and business practices by utilizing financial statements and technology support systems to estimate
cash flows, conduct analysis and performance evaluations and analyze company’s financial policies;
2. Demonstrate the ability to determine the value of a company based upon the corporate valuation
model;
3. Appraise synergies in mergers and in operations;
4. Solve financial problems and evaluate financial outcomes.
Assurance of Learning Validations (Linked to the MBA Programmatic Learning Goal(s)) 3:
A1: Financial Instruments, Valuation, and Financial Policies Project: This comprehensive team project is
composed of three parts which corresponds to the three modules described in the Course
Overview (section 4) above.

Module 1: Valuing Financial Market instruments: Each team of students will choose a multinational
company, and use technology (Bloomberg and Excel) collect and process data about the company,
leading to a valuation of the its bonds and stocks. The chosen bond must have a remaining time to
maturity of no less than 4 years (after 12/31/2019). Each team is required to analyze the bond as
demonstrated in the Mini Case found in the required text (B&E) on pp.230-231, chapter 5, and the
stock as shown in the Mini Case of chapter 7 on pp.322-323. Each team will then compare the
performance of the stock to the bond and also benchmark the bond against a similar Treasury Bond of
a similar maturity. The Bloomberg system is to be used to obtain the necessary data as shown in the
above Mini Cases [including Capital Gains Yield (CGY), Dividend Yield (DY), and Total Yield (TY) for the
common stock and Current Yield (CY), CGY, TY, and Yield-to- Maturity for the bond] for each of the last
four years (2015, 2016, 2017, and 2018). For evaluation of performance, each team must also to collect
similar data for another appropriate benchmark company.

Module 2: Financial Analysis and Corporate Valuation: Each team is required to analyze, evaluate, compare
and benchmark their chosen firm. Accordingly, each team will collect annual data (for the 4 years
identified in A1 above) of Financial Ratios and measures of EVA, MVA, DuPont equation, and Free Cash
Flows as shown in the Mini Cases of chapters 2 and 3 found the required text (B&E). Then the team will
combine the data collected in support of Module 1 to conduct analysis and performance evaluation of
the chosen company. Next, the team will collect data for the company as illustrated in the Mini Case of
3
A note on School of Management Assurance of Learning Scoring: Scores form the metric for the degree to which the validation (e.g.
learning outcome) satisfies the associated learning goal or objective. Assurance of learning validation descriptions identify the
criteria for each score that is to be given. All scores are scaled from 1-5 (1-poor, 2-fair, 3-good, 4-very good, 5-excellent). It must be
noted that scores are to be differentiated from grades. Scores form a criterion from which an instructor will ascertain an overall
grade for any instrument of assessment, and the overall assessment the student receives for an instrument is a “grade.” A score is an
extraction that specifically measures the degree of attainment of a learning goal and/or objective.
 the required text (B&E), chapter 12 on pp. 519-520, and determine the market value of your company
and its stock price based on the Corporate Valuation Model.

Module 3: Mergers and Capital Structure Decisions: Each team, guided by: (1) the Mini Case, found in the
required text (B&E), chapter 15 on pp.626-627, addressing the evaluation of the capital structure
decisions of their chosen company during the last five years; and (2) by the Mini Case found in the
required text (B&E), chapter 22 (pp.905-907) in evaluating their chosen company as a target firm to be
taken over by the firm that the team has been using as a benchmark. For item (1) above, you are to
estimate gains (or losses) to the selected firm due to its capital structure(s). For the above item (2) you
are to apply, to the chosen company, the APV framework (as guided by the Mini Case of chapter 22) to
determine the value of the company and the corresponding appropriate bid stock price. The team’s
concluding segment of this project must focus on the chosen company’s financial policies as reflected
in its financial plans, its capital structure decisions, and its synergy potential as a target for a takeover.
You are asked to evaluate those financial policies as drivers of the firm’s value.

For the purpose of assurance of learning, the team project will be assigned four (4) scores based on:
Score 1: Ability to utilize technology (such as Bloomberg and Excel) to compile and process relevant data
for the pricing of securities and companies in the global market environment (MBA-1M).

Score 2: Ability to utilize financial data and technology support systems to bridge the gap between
abstract financial valuation constructs and managerial practices (MBA-2M & MBA-FINC).

Score 3: Ability to conduct a realistic comparative evaluation of a multinational company and a peer, using
both traditional financial ratio analysis and the Corporate Valuation Model (MBA-3M, MBA-ACCT).

Score 4: Ability to evaluate financial policies and to apply the APV Model to estimate the bid price for a
merger (MBA-FINC).

(B) Contextualized (Globalized) Learning Goal(s):

Upon the successful completion of this course, the student will be able to:
1. Apply finance techniques to the valuation of securities and corporate entities, as well as to the
evaluation of mergers and acquisitions in multinational settings; and
2. Evaluate a firm’s financial performance.

Assurance of Learning Validation (In support of the Contextualized (Globalized) Learning Goal(s))
1. See Assurance of Learning Validation A1., Score 3, above.
 (C) Instructor Specific Learning Goal(s) (Optional):
None
Assurance of Learning Validation (In support of the Instructor Specific Learning Goal(s)):
None

6. Teaching and Learning Methodology

The School of Management’s teaching and learning strategy is informed by contemporary
indicators/sources that derive from its target market, specifically the millennial generation. In
particular, behavioral traits for this generation are identified and form the basis of emphasis for the
schools’ teaching and learning methodologies. These methodologies are reflected in the school’s
mission statement by way of its TEMPOS campaign 4. In addition, teaching and learning strategies are
informed by institutional indirect assessment results, periodically collected and reviewed by the Office
of Planning and Assessment and the school’s faculty5. Teaching and learning strategies are also
externally referenced systematically (e.g., the Annual Stakeholder’s Conference) through continuing
consultations with non-board key stakeholder groups, including employers, business and community
leaders, accreditation and ministerial agencies, alumni, students, peer institutions, and business and
governmental agency representatives.

A component of all courses, as a part of the teaching and learning strategies, is to maintain academic
rigor and to be intellectually challenging. This is validated in institutional survey results. However,
School of Management faculty members utilize an overall collective portfolio of strategies/initiatives
that obtain from the aforementioned sources in delineating those that are most appropriate or
emphasized in the courses they lead.

In this course (FINC601), four (4) prioritized teaching and learning strategies focus on:

1. use of technology;
2. use of the web;
3. case-based learning; and
4. critical analysis of their work.

4
Teaching and Learning Strategies: ”TEMPOS and the Millennials,” revised September 2008.
5
E.g., Student Survey on Teaching Quality – Quantitative Data: School of Management.
 All faculty members that instruct this course should consider how to execute the course to emphasize
these key components of the strategies considered. Following a review of learning outcomes, faculty
members consider how re-orientation of teaching and learning strategies might result in strengthening
these outcomes, and adjustments are made, accordingly. Faculty members also consider how the
School of Management Triple Platforms of Excellence (Professional Enrichment, Experiential Education,
and Student Advancement) might be leveraged as a part of this strategy, and provide
recommendations to the Directors of those platforms. The school also reviews the distribution of
identified teaching and learning strategies periodically to ensure comprehension and the integration of
each (from the designated list of approximately 20-25 strategies) within the curriculum. Finally, results
from student teaching evaluations also provide indications of how various teaching and learning
strategies are integrated into the course delivery. The following issues (indicator number is provided)
are among those in the evaluations that bear on this review and analysis:

7. The amount of work in this course was appropriate.

15. The instructor was available for course related consultation and advice.
17. The instructor assigned challenging course work.
18. The instructor graded and returned student work and exams promptly.
19. The instructor provided helpful, constructive feedback on assignments and course work.
20. The instructor respected cultural differences and diversity among students.
21. The instructor incorporated information technology (e.g. computer or the Internet) in the course.
25. The instructor challenged me to think.

Along with teaching and learning strategies, the notion of student effort/time on task is also
considered, although it is not necessarily driven by metrics. It is noted that the notion of student
effort, specifically metric driven, is not a universally adopted approach 6. However, if an instance occurs
where student learning outcomes do not meet targeted academic standards, the School of
Management utilizes indirect inputs in this area to explore the interdependencies between factors
including the amount of work required in the course, the degree of challenge in the coursework, and
level of critical analysis, among others7.

6
See the Victorian TAFE Association Response – Strengthening the AQF: Proposal, June 2009. East Melbourne, Victoria, Australia,
retrieved from http://www.vta.vic.edu.au/docs/PositionDiscussion%20Papers/VTA_Response_Strengthening_the_AQF.pdf on
February 22, 2010.
7
Sample data regularly collected through the New York Institute of Technology Student Rating of Courses/Teaching Form.
 7. Required Resource(s)

Brigham & Ehrhardt, FINANCIAL MANAGEMENT: Theory and Practice, South-Western, CENGAGE
Learning, 14th Edition. (B&E).

Mishkin & Eakins, FINANCIAL MARKETS and INSTITUTIONS, Eighth Edition, PEARSON. (M&E).
Required only Chapters 11, 12, and 13 of M&E.

8. Reference Resource(s)
Megginson, CORPORATE FINANCE, Second Edition, ADDISON-WESLEY.
www.bloomberg.com
www.finance.yahoo.com

9a. Assessment Methodology:

Instrument Points (i.e. weights)
A1. Module 1 – Valuing Financial Market Instruments 10 points
A1. Module 2 - Financial Analysis and Corporate Valuation 10 points
A1. Module 3 - Mergers and Capital Structure Decisions 10 points
Midterm Exam (See 9b.1 and 2 below) 30 points
Final Exam (See 9b.1 below) 40 points
TOTAL 100 points
9b. Graded (Not-Scored) Assurance of Learning Validations:
1. Examinations: Students will take two in-class examinations. The in-class midterm and final
examinations are mostly numerical and problem-solving oriented but they also require a sound
mastery of concepts. Examination topics for the midterm and final are specified in section 17
below.
2. Two current events items dealing with ethics and standards of conduct will be graded. The first
item will account for 2 points of the midterm score and the second item will account for 2 points
of the final exam score.

[a] Formative assessment assignments: Each student is required to solve all Self Test problems for each
of the assigned textbook chapters. The solutions to the Self Test problems are available in Appendix A
of B&E. Professor will periodically review some of the assigned problems that require reinforcement.
Also some of the Midterm and Final Exams questions may be based on the Self Test problems.
Professor will also assign additional problems for each assigned chapter.
10. Grading Guidelines: The final grade for the course will be calculated using the relevant grading scale:
N/A

9. Attendance Policy: Students are expected to attend each class session on a regular and punctual basis
to obtain the educational benefits that each meeting affords. Students shall be informed by their
instructors whether latenesses or absences will be allowed during the semester. Instructors shall inform
students of the consequences following excessive absences and/or latenesses. In the event of a student's
absence from a test, the instructor will generally determine whether the student will be allowed to make
up the work. The privilege of taking a make-up examination is generally not extended beyond one
semester from the original date of examination. Make-up examinations are under the jurisdiction of the
appropriate academic dean.

10. Deductions for Late Arrival, Early Departure, and Absences:

11. Policy for Make-Up Assignments or Quizzes: No Mak-eups.

12. Classroom Behavior: Behavior that disrupts, impairs, interferes with, or obstructs the orderly conduct,
processes, and functions within an academic classroom or laboratory violates the student code of conduct
and may result in disciplinary action. This includes interfering with the academic mission of NYIT or
individual classroom or interfering with a faculty member’s or instructor’s role to carry out the normal
academic or educational functions of his classroom or laboratory, including teaching and research.

13. Students with Physical or Educational Challenges:

It is the policy of NYIT to provide reasonable accommodations for students who are otherwise qualified
but have disabilities, in accordance with the Americans with Disabilities Act (ADA) and Section 504 of the
Rehabilitation Act of 1973. Such disabilities may include learning disabilities, health impairments, and
other documented disabling conditions. Possible accommodations include, but are not limited to, testing
modifications, class relocation, and possible assistance in acquisition of necessary equipment. Admission
requirements for students with disabilities are the same as for all other students.

The college has an interest in helping students with disabilities to be competitive in this academic
environment. Therefore, reasonable accommodations will be made upon proof both of disability, and need
for the accommodations, by a diagnosing professional with appropriate credentials, for example, a medical
doctor, psychologist, or psychiatrist. The diagnosing professional may not be a family member. It must be
understood that accommodations are meant to facilitate educational opportunities. Admission to NYIT and
 accommodations do not guarantee success. Therefore, in addition to accommodations, the college
encourages utilization of auxiliary services available to all students to maximize opportunities for success.
Students whose disabilities may require some type of accommodation must complete a request-for-
accommodations form and an intake interview with the assistant director of disability services, prior to the
academic semester. Accommodations may be requested at any time during the semester, however,
accommodations cannot be applied to past failures, only to future academic endeavors. Appropriate
modifications of accommodations will be worked out on a case-by-case basis and will not necessarily
incorporate all requested changes. Students for whom auxiliary services—such as readers, interpreters,
note takers, etc.—have been approved should arrange these with their campus services coordinator.

14. Academic Integrity:

 Academic integrity is the pursuit of scholarly work in an open, honest, and responsible manner.
Academic integrity is a basic guiding principle for all academic activity at NYIT, and all members of the
college community are expected to act in accordance with this principle. Academic integrity includes a
commitment not to engage in or tolerate acts of falsification, misrepresentation or deception in the
completion of academic work. Such acts of dishonesty violate the fundamental and ethical principles of
the NYIT community and compromise the worth of work completed by others.
 Plagiarism refers to representing the words or ideas of another as one's own in any academic
exercise without providing proper documentation of source. It is the responsibility of all students to
understand the methods of proper attribution and to apply those principles in all written, oral, and
electronic submissions. This information is available from instructors, library staff, library website and
at the WritingCenter. Additional information may be found at:
http://www.nyit.edu/policies/collection/student_handbook_us_edition#student_code_of_conduct.

17. Fifteen-Week Topical Class Schedule

Week Topic Readings
An Overview of Financial Management B&E, Ch. 1;
Financial Statements, Cash Flow, and Taxes B&E , Ch. 2;
Wks 1 & 2 Analysis of Financial Statements B&E Ch. 3
Wk 3 Applications of Time Value of Money B&E, Ch. 4; M&E, Ch. 3
Wk 4 The Money Market and Its Instruments M&E, Ch. 11
Wk 5 Applications of Risk-Return Relations B&E, Ch. 6; M&E, Ch. 5
B&E, Chs. 5, 7;
Wk 6 The Capital Market and Its Instruments M&E, Chs. 12, 13
Wk 7 Midterm Exam
Wks 8&9 Financial Planning & Corporate Valuation B&E, Ch. 12
 Wk 10 The Cost of Capital B&E, Ch. 9
Wks 11&12 Capital Structure Decision B&E, Ch. 15
Wk 13&14 Mergers and Acquisitions B&E, Ch. 22
Wk 15 Final Exam

15. Using the NYIT Library

All students can access the NYIT virtual library from both on and off campus at www.nyit.edu/library.
The same login you use to access NYIT e-mail and NYIT Connect will also give you access to the library’s
resources from off campus.

On the left side of the library’s home page, you will find the “Library Catalog” and the “Find Journals”
sections. In the middle of the home page you will find “Research Guides;” select “Video Tutorials” to
find information on using the library’s resources and doing research.

Should you have any questions, please look under “Library Services” to submit a web-based “Ask-A-
Librarian” form.