Professional Documents
Culture Documents
Course Description Objectives The course deals with managing business funds and planning their use to accomplish organizational objectives. It covers the following: techniques of financial analysis and planning such as ratio analysis, pro forma projections and discounted cash flow analysis; domestic and international financial environments; the sources and uses of funds; problems of capital structure; capital budgeting and cost of capital; mergers and approaches to business valuation; international financial management. Prerequisite: Introductory accounting or equivalent.. Methodology I will use lectures, case discussions and overview of topical issues to create a rich learning environment in class. The lectures will be supported by online tools such as MyFinance Lab and various postings on the course website. I will emphasize theory and analytics, but also teach the course from an applied perspective. Course Requirements Students are expected to carefully review the assigned reading materials before each session, diligently work on the assigned problems/questions and cases, and to participate actively in the class discussions. You should be prepared to spend significant time to digest the material, to work on the assignments and case studies. Timely submission of the assigned work is critical. Late submissions will not be accepted. Best Preperation Method: You should invariably read the assigned chapters and supplementary materials before you come to the class and go over the assigned exercises and cases. After the end of each session, you should review handouts, your notes and highlights in your readings. I have created homework assignments for each session in MyFinance Lab. These homework assignments will help you to master the key concepts, and provide you instant help while you work on the exercises. Although I will not grade these assignments, I would strongly recommend you to review them before you work on session quizzes. Session quizzes are also good tools to gauge your learning. The questions in these quizzes are indicative of take home and in class exam questions. Textbook and Resources Principles of Managerial Finance, Gitman 12th Edition, Pearson Prentice Hall, 2009, ISBN: 013-801123-0 Textbook Website: http://wps.aw.com/aw_gitman_pmf_12/85/21793/5579249.cw/index.html
Financial Calculator (If you do not have one, purchase an inexpensive one) For basic calculator tutorials you can use http://www.tvmcalcs.com/calculator_index Coursepack Subscription to WSJ or Financial Times is required Assignments:
1.
Mini Projects (Graded) These are short projects to facilitate hands on learning. Mini projects will require analysis and interpretation of real life data. Each project will include detailed guidelines on deliverables. You are expected to submit three mini projects out of four. Case Analyses (Graded) We will use five HBS case studies in the second half of the class. You are expected to prepare a write up for two out of five cases. However, you should be prepared to discuss all five cases in the class. The case write ups are due on the day we discuss the cases. Case Analysis Guide : Your write up should be analytical rather than descriptive of the contents of the case. Your analysis should be geared towards identification of key questions and problems, evaluation of the situations, and offering alternatives and solutions as well as discussing pros & cons of alternatives suggested. You should choose one alternative as a decision maker, and provide a clear reasoning for your decision. Since most cases used in the class require a composite of careful thinking, conceptualization, quantitative analysis and some form of decision making your analyses will be evaluated based on breadth and depth of your thought process documented in your submitted paper.
2.
Exams: There will be two exams. Exam-I will cover chpaters 1 through 7 and will practically address the issues covered in the first half of the class. Exam-I is a take home exam. The Exam-II will cover the second half of the class and will be administered in class. You will be allowed to use a four page cheat sheet in Exam-II. Both exams will be a mixture of multiple choice and short problems. Make up exams are available only for officially documented cases. Grading: Exam-I Case Write Ups x2 out of 5 Mini Projects x 3 out of 4 Attandance & Participation1 Exam-II Total 95 <
1
25 20 15 10 30 100 C+
65-69
Attandance & Participation refers to consistent, consturctive and creative engagement in the class with the instructor and your peers. You are expected to make non trivial remarks, bring up interesting issues for discussion and offer clarifying comments to enhance your peers understanding during the class discussions. Quality and substance of your contributions will determine your participation grade.
AB+ B B-
C CF
Students who enroll in courses for credit are expected to attend all classes, take the midterm and final examinations, and complete all other coursework. If a student is absent from a class meeting for any reason, including registering late, it is the student's responsibility to make up all work from that class. All work submitted to meet course requirements is expected to be the student's own work. A student suspected of academic dishonesty in any form is subject to review and disciplinary action by the Summer School Administrative Board. Disciplinary action may include, but is not limited to, required withdrawal from the course and/or required withdrawal from the Extension School. Extension School regulations regarding academic honesty are discussed in detail in the Extension School student handbook.
Introduction
Required Readings: Gitman Chps 1 and 2 Topics Covered: Introduction to Managerial Finance Key components of the stockholders report: the income statement, balance sheet, statement of retained earnings, and the statement of cash flows. Evaluation of financial statements using ratio analysis. Liquidity, Activity, Debt, Profitability and Market Ratios. DuPont Analysis September 13th
September 20th
September 27th
October 4th
October 18th
October 25th
Exam-I will be made available on October 25th and will be due on November 8th
November 1st
Dividend Discount Model and Free Cash Flow Models Required Readings: Gitman Chapter 7
November 8th
November 15th
November 22nd
Gitman Chapter 11 A Practical Guide to Calculation of Cost of Capital HBS Case: Midland Energy Resources Assignments Case Write up Midland Energy Resources November 29th
December 6th
December 13th
December 20th