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FIN 650 Cases in Finance
Instructor: Office Hours: Office Location: Contact Information: Semester: Day/Time: Dr. James S. Sagner Monday, 2 – 3:30 p.m.; Tuesday, 4 – 6 p.m. Room: Mandeville 315 e-mail – email@example.com telephone – 203-576-4376 Fall 2011 Monday, 6:15 – 8:45 p.m.
The focus of this course is the application of managerial finance principles (from FIN600: Financial Management) to the financial decisions made by business. The purpose is to develop student analytical ability through the discussion and analysis of finance cases. Topics covered include financial concepts and planning; valuation, rates of return and leverage; cost of capital; dividend policy; sources and uses of investment and working capital; and international finance.
COURSE OBJECTIVES Upon completion of this course, students will be able to: Develop skills in the analysis of financial problems and cases. Consider alternative views of standard managerial finance concepts. Apply appropriate analytical techniques to capital budgeting decisions, including risk, valuation, net present value, internal rate of return and cost of capital. Understand leverage, capital structure, and the analysis of financial statements. Appreciate significant topics in the management of working capital. COURSE OUTCOMES The following outcomes are expected of students in this course: Review the material covered in FIN 600 and self determine the need to review topics in detail, including questions and problems from the end of each assigned chapter. Actively participate in class discussions and activities as well as demonstrate skill in the application of financial calculator and spreadsheet tool applications.
This text was used in FIN 600. It is not acceptable to turn in your written work at the end of class after writing down or summarizing the gist of the class discussion.. 1. The written cases are to be typed. Case assignments (30%) – There are 4 written and 9 oral cases to be prepared for this course all from the Sulock and Dunkelberg text. Complete a mid-term and a final examination. ratio analysis. Wiley. Jordan. b. Randolph W. 2002. The second half of the course deals with other topics of importance. it is still the best choice for short finance cases. Limit your case analysis to 3 typed pages including exhibits. OUTCOME MEASURES Note: Percentages are the relevant components of the final grade for each student. Written case assignments are due to the instructor at the beginning of the class and before the discussion of the case. Wiley. Class discussion and case assignments in the first half of the course are oriented to the essential topics in finance as originally covered in FIN 600. international finance and the analysis of comprehensive financial cases. Although this book is getting old. If you wish to make notes on your case solution. McGraw-Hill Irwin. Case analyses will be evaluated on the basis of: a. diagnosis and the application of the tools presented in the course. capital budgeting techniques and cost of capital. Westerfield and Bradford D. J.Prepare a paper on a financial topic selected by them with the approval of the instructor.S. Ross. 1997. Stephen A. Analysis and Content – Use of financial concepts. and Dunkelberg. single-spaced and single-sided. make a 2nd copy for yourself. COURSE MATERIALS • • • Sulock. facts. including ethical issues. J. including basic financial concepts. A calculator. preferably a financial calculator Handouts to be distributed prior to the class in which they will be used and posted in Blackboard • Optional Material: • The Real World of Finance: 12 Lessons for the 21st Century by James Sagner. You may update the years noted in the case if it makes your analysis more relevant. Essentials of Corporate Finance.M. recent editions. Cases in Financial Management. 2 . Westerfield and Jordan text is to be used to support your analysis of the cases. 2nd edition. The Ross. Closure – Effective summarization and conclusion supported by the content presented in your analysis. ISBN: 978-0-471-11043-9.
which should be clearly stated. or consider another approach? • Are the securities markets “efficient” as claimed by the efficient market hypothesis? 4.33 77-79 Letter C CD+ D DF 3 . note that scheduling and topics are on a first come. see Outcome Measure #1 and the Course Schedule for the topics to be addressed. each team of 2 students will present a 15 minute PowerPoint explanation of a current topic of interest supported by appropriate research. you cannot come to class.00 Percentage Equivalency 74-76 70-73 67-69 64-66 60-63 < 60 Grading Scale for the Course: Quality Percentage Letter Points Equivalency A 4. b. first served basis.00 94+ A3. and calculators and/or laptop computers may be used.2.67 90-93 B+ 3. Provide a hard copy of the slides to the instructor. Oral presentation of a finance topic (15%) – Finance is a rapidly evolving discipline as events of the past four years have proved. Working with a partner you will self-select. Reasonableness of assumptions. Ability to clearly state conclusions and deductions. Exams will include financial case(s) and essay questions. Criteria in grading the case will include: a. In other words. You must indicate your partner and topic by week 4. Ability to gather data from available sources. c. Ability to integrate financial principles and concepts with case information. f. listen.67 0. provide that information in writing. tie currency values to gold.67 80-83 C+ 2.33 1. Mid-term and final examinations (25% each = 50%) – Two examinations will be given in class. Here are 10 possible topics: • Microfinance in developing countries – does it work? • The globalization of the securities markets – is this a good or a bad development? • How should the government manage banks that are “too big to fail”? • Problems with credit ratings agencies • Will Keynesian economics work to solve the global recession? • The “quants” and risk management failures (i. and receive a passing grade for the participation component.00 0. commentary and criticism of the case protagonists. Thoughtful comments are required as a component of the course grade.67 1. value-at-risk) • Are consumers adequately protected against the abuses of financial institutions? • What will happen if Greece or other EU countries leave the euro? • Should the international monetary system continue to use floating currencies. Quality Points 2. Presentations (no more than 2 per class) begin in week 6. You must be prepared to offer ideas. Proper weighing of all considerations and demonstration of relevant factors.33 87-89 B 3.. the instructor and your fellow students. 3.00 84-86 B2. The exams will be open book. d.e. Ability to identify and state the major case problem(s). Class participation and attendance (5%) – Students are expected to participate in class discussion of the cases to demonstrate their understanding and synthesis of financial concepts.00 1. e.
objective. There are various methods for ranking capital budgeting proposals. provincial and local governments and other appropriate private and public regulatory agencies. the primary emphasis is on the inter-relationship between the ratios. Case 4 (page 19). 3 6/Oct. Week No. Case 42. 2./ Date 1/Aug. Specific outcomes include appreciation of alternative views of standard managerial finance concepts. qsts. An additional qst. 2. page 281. and understanding of the diagnostic process in analyzing financial cases. The instructor may discuss the Capital Asset Pricing Model. relevant. 19 Ratio Analysis: Holly Fashions.: What critical information is missing in the case? First team presentations Ethics: La Posta Mexican Restaurants. all qsts. all qsts. 10. 10. 3/Sep. except 5. They must comply with all applicable rules and regulations of federal. 3. 10 7/Oct. Capital Budgeting: Ft. qsts. 26 5/Oct. state. Team presentations OTHER: Review for the Mid-Term Examination 5 . At the discretion of the instructor. 2. specific issues are addressed such as additional working capital requirements. 3. 8. 12. 4/Sep. 3. Case 6 (page 35). discussion of the role of financial markets and governing regulation. See the comment below regarding the first two classes at *. qsts. 17 8/Oct. complete. timely and understandable information. 9. 11. 29 2/Sep. Assignments (written case assignments are in BOLD) Financial Concepts: Helping Hand. 1. including payback. 1. 9. Mid-Term Examination Cost of Capital: Taylor Brands. Greenwold. The investors' required rate of return translates into the cost of financing for the firm. Ratios can be used to evaluate any business. 6. and providing accurate.COURSE SCHEDULE See the notes below the schedule. net present value and internal rate of return. 24 Financial managers must act with honesty and integrity as well as avoiding conflicts of interest in personal and professional relationships. Ignore “deferred income taxes” (Exhibit 2) in your calculations. 5. all qsts. There should be a dual emphasis on properly determining the after-tax cost for each type of financing and on determining the appropriate weights to be assigned to the various sources of financing. 12 Activities Key FIN 650 topics and the role of financial cases will be discussed and completed in class. The basic selection methods are established. Case 30 (page 191). Case 20 (page 123). 10 Wonder Bars. Case 31 (page 197). Though the student must be familiar with the calculation and meaning of each individual ratio.
2. 4. with questions that the learner is expected to consider. and Case 13. 3. Case 57 (page 359). 5. qsts. 8. we categorize collections into cash receipts and expenses into cash disbursements. 5. The global use of the € and the resurgence of the £ have significantly changed global business. but must convert that profit into the appropriate currency. which is Labor Day * The instructor uses the Helping Hand case to establish the purpose of the finance case. or Deerpark. qsts. 1. repayment of loan or investment decisions. or those questions deemed important by the instructor. The cases in this course are all reasonably short. See pages 312 – 314 in Sulock and Dunkelberg for a discussion of comprehensive cases. 7. A firm must not only make a profit on a transaction. International finance has the same elements as domestic finance management although it is more complex. Case 56 (page 354) Team presentations OTHER: Review for the Final Examination 12/Nov. Case 14 (page 85). 6. = end of case questions to consider 3. The pro forma income statement and balance sheet for most businesses are based on accrual accounting.9/Oct. 5. Team presentations Comprehensive Cases: Meredith Corporation Case 55 (page 347) Team presentations Smithfield Drug. Case 15 (page 89). 5. 6. For example. 5 15/Tues. qsts. 7. 2. Case 43 (page 285). qsts. all qsts. there may be other issues that should also be reviewed. There is no class on Sep. 12 Notes: Final Examination 1. 6. resulting in borrowing. page 80. Certain topics require more than one class period and are assigned to consecutive weeks 2. 3. For the cash budget. 7. Questions for student responses will be provided in class. 4. Case 39 (page 265). 7. 28 14/Dec. page 75. 6 . 31 10/Nov. 5 Team presentations Either Triad Campers. and calculate the cash excess or shortfall.. Dec. 10 Team presentations International Finance: Either General Motors. whereas the case can easily be expanded to discuss any financial statement topic. While it is important to answer these questions. 11/Nov. 1. except 5. Everlast. all qsts. 2. Case 12. Team presentations Financial Forecasting: Topeka Adhesives I/II. 7 Continuation of the class 7 activity Financial forecasting is essential for the strategic growth of any business. 14 BOE of Colombia. while the cash budget is a cash accounting document that shows whether adequate cash will be on hand to meet financial obligations as they come due. Helping Hand addresses issues related to liquidity. Qsts. 21 13/Nov.
Cheating and Plagiarism. All forms of cheating and plagiarism are unacceptable and strictly forbidden at the University of Bridgeport. pagers and other electronic devices are not allowed to be on in class as they are disruptive and annoying. Classroom Policies: 7 .OTHER REQUIREMENTS Attendance: Class Participation: Students are expected to attend every class. The classroom is a forum for discussion where you will have the opportunity to exchange and explore ideas with the instructor and other students. as will be explained during the first class meeting. pulsating mode. More than 5 absences and/or substantially late arrivals will result in an automatic failure of the course. you must be as unobtrusive as possible. Cell phones. If a student is caught cheating or claiming work that he or she did not do. If you need to leave class to take a call. You must turn off these devices or put them on a silent. Cell Phones and Pagers. Note that 10% of your grade is reserved for participation and attendance. It should be understood that each student is responsible for his or her own work. All sources of information used in producing coursework must be properly documented. said student will receive a grade of F for the course and be subject to further punitive measures that could result in suspension or expulsion.
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