COURSE OUTLINE
Professor Sirousse Tabriztchi
Office: Room C335
E-mail: Cyrus1315@Aol.com
Office Hours: Wednesday
TEXT
§
Required: Eugene
F. Brigham and Joel F. Houston, Fundamentals of
Financial Management (
§
Optional: Study Guide for
Fundamentals of Financial Management
§
Supplementary:
Wall Street Journal.
A.1. COURSE DESCRIPTION
A study of sources and uses of funds, with emphasis on the financial models of selection of assets and the most economical means of financing asset formation. Introduces financial statement analysis, planning, forecasting and strategy development, and improving corporate profitability.
A.2. INTENDED AUDIENCE
Financial management I is essentially designed for all business students and provides broad overview of finance.
§ Accounting Majors. The distinction between accounting and finance is rapidly disappearing. Generally accepted accounting principles require accountants to know how to measure present value of fixed assets, price options, and conduct forecasting and financial analysis. Many accountants are entering such fields as financial planning and business valuation. Financial managers have to rely on accounting information.
§ Marketing Majors. Marketers constantly work with budgets and have to prepare competitive capital expenditure projects. Analyzing costs and benefits of projects of all types is one of the most important aspects of finance. Tools that you acquire in finance are vital in marketing research and design of marketing strategy.
§ Management Majors. One of the most important areas of management is strategy. Design of a successful business strategy requires simultaneous thinking about financial strategy. The mangers should have a clear understanding of the financial requirements and consequences of their plans
§ Finance Majors. Although the course is for all business students, it is also designed to provide sufficient conceptual and technical training to make it a strong foundation course for all Finance majors.
A.3. OBJECTIVES
1. To develop an overview of the vast discipline of finance.
2. To teach critical analysis of financial information and use of financial models.
3. To relate financial analysis to recent developments in global financial markets.
4. To help you improve your skills in analyzing financial issues and presenting results.
5. To develop your oral and written communication skills.
6. To address ethical and environmental issues involved in management of business and nonprofit organizations.
B. PREREQUISITES
§ BU2420 Principles of Microeconomics
§ BU2430 Principles of Macroeconomics
§ BU3201 Principles of Statistics
§ BU3511 Principles of Accounting II
C. MODE
OF INSTRUCTION
§ The instruction will be primarily in the form of lectures that will begin with a series of questions and continue in a dialectical mode.
§ Assigning problems and observing the student efforts in solving them will frequently interrupt the lectures.
§ Structured problems and unstructured cases will be assigned in or ahead of a session and the class will be divided to small groups of students. Each group will work to solve the problems and prepare and present formal reports.
§ In the course of semester, each student will conduct a supervised-structured research on financial conditions of two major corporations and make presentations to class as the research progresses.
§ Guest presentations will be used if time allows.
C.1. CASES
1. We will cover a total of 3 cases.
2. The cases will be assigned a week in advance and each student will research the related materials and prepare a written report.
3. In the classroom, each team will analyze and discuss the individual reports and prepare and present a formal team report.
C.2. PROBLEMS
1. Each lecture session will be followed by an exercise session.
2. Exercises will be assigned a week in advance and must be done.
3. If you miss an exercise session you have to do the problems and hand them in the next session.
C.3. TERM PROJECT AND CLASSROOM PERFORMANCE
You will receive the outline of the term project and should begin working on it immediately. The project research will require collecting and analyzing information about two major companies. A careful study of your textbook is a must. You should know that your textbook is a how to do manual. However, you should always be critical.
D.
STUDENT
RESPONSIBILITIES
1. Normally, all of you will perform well and produce good research projects in this course. However, if you are interested in financial management, you can put forth more effort, learn more, and earn an excellent grade. Generally, for each class hour you should schedule 2 hours of reading and research each week.
2. Your participation in the classroom team discussions and report preparation and your performance in consulting work should represent top quality professional work.
3. All assignments have to be submitted on time. Delayed submission will decrease your grade.
4. Regular class attendance is required. Missing three sessions could result in failure.
5. If a test is missed because of illness or similar reasons it will be rescheduled.
E. GRADING
Your grade for the course will be determined as follows:
Requirement Value Number Total
Cases and problems 5% 3 15%
Mid-term and final 10% 2 20
Term
Project 65% 1 65
100%
E. AGENDA
|
DATE |
CHAPTER AND TOPIC |
ASSIGNMENTS AND TIME |
|
§
Week 1 |
§
Overview of Financial Management §
Additional |
§ Chapters 1 and 2 §
§ Study Time: 8 Hours |
|
§
Week 2 |
§
Analysis of Financial Statements §
Additional §
Students will present overview of the Companies they have selected for
their term projects. §
Integrative case is assigned.
Students will prepare written analysis for the next session. |
§
Chapters 2 and 3 §
§
Study
Time: 8 Hours |
|
§
Week 3 |
§
Financial Planning, Control, and Environment §
Group analysis of integrative case |
§
Chapters 4 and 5 §
§
Study
Time: 8 Hours |
|
§
Week 4 |
§
The Time Value of Money §
Students present preliminary analysis of financial statements of the
Companies |
§
Chapter 7 §
§
Study
Time: 8 Hours |
|
§
Week 5 |
§
Risk and Rate of Return §
Additional §
Review of the assigned problems and test questions |
§
Chapter 6 §
§
Study
Time: 12 Hours |
|
§
Week 6 §
Week
7 |
§
Bond And Stock Valuation §
Test-time value and risk and return (1 hour) §
A major case will be assigned and the students will prepare written
analysis for next session. |
§
Chapters 8 and 9
§
§
Study
Time: 8 Hours |
|
DATE |
CHAPTER AND TOPIC |
ASSIGNMENTS AND TIME |
|
§
Week 8 |
§
Capital Budgeting Techniques §
Students will discuss the case §
Chapter problems will be assigned |
§
Chapter 11 and 12 §
§
Study
Time: 8 Hours |
|
§
Week 9 |
§
Review and Discussion of the Term Projects §
Students will report their analysis of the companies §
Review of the assigned problems |
§
§
Study
Time: 16 Hours |
|
§
Week 10 |
§
Cost of Capital §
Students will report their analysis of the Companies §
Review of the assigned problems |
§
Chapter 10 §
§
Study
Time: 8 Hours |
|
§
Week 11 |
§
Capital Structure §
Additional §
Last major case is assigned |
§
Chapter 14 §
§
Study
Time: 8 Hours |
|
§
Week 12 |
§
Dividend Policy §
The Case will be discussed in groups and formally presented |
§
Chapter 15 §
§
Study
Time: 12 Hours |
|
§
Week 13 §
Week 14 |
§
Working Capital Management § Managing cash and Marketable Securities § Review of the final test |
§
Chapters 8 and 9 §
§
Study
Time: 8 Hours |
|
|
Term
project is due |
|
|
§
Week 15 §
Week 16 |
§
Managing Inventories and Receivables |
§
Chapter 16 §
§
Study
Time: 8 Hours |
|
|
§
Course Review Final test (1 hour) |
|
F. ADDITIONAL
The students are encouraged to read the following articles from Journal of Financial Education and prepare one page summary and evaluation of each article. The reward will be an improvement in your grade.