|
FINANCE #202: MANAGERIAL FINANCE
This syllabus will provide the basic reference for your studies of Managerial
Finance, this term. You will find a brief statement of our purpose
and responsibilities, an overview of the course, and a complete schedule,
including lecture and discussion topics, reading assignments, and examination
questions. You will determine your success in this course, as in life.
Early and consistent application will assure the success to which you
aspire.
Responsibilities and Expectations of this Course
The purpose of this course is to prepare students to manage the finances
of any private organization. You will develop understanding of the responsibilities
of financial managers, and the techniques for assessing financial needs,
selecting sources of finance, evaluation of capital projects, budgeting
and control. You will also become familiar with the jargon and conventions
of the industry, and the sources of financial information. Then, you
will apply these standard techniques to the evaluation of a company
of your choice.
This course has been planned to facilitate your learning. There will
be two hour tests and a company evaluation and planning exercise. These
provide some regular evaluation of your progress and help you to consolidate
your understanding of the material.There will one comprehensive examination
at the end of the term, covering all topics. You will be expected
to complete all assignments as scheduled. No dishonesty will be tolerated.
You are encouraged to study together, but all tests and exercises must
be the exclusive work of the student submitting the paper. To facilitate
thorough preparation, all test questions are included in this syllabus.
This procedure reduces anxiety and encourages co-operative learning.
However, students should also recognize that the opportunity for preparation
lowers my tolerance for superficial or sloppy work.
I assume that you are mature adults, who recognize your personal responsibility
for your success and your duty to the people of California who are subsidizing
your education. Accordingly, you will attend class, study a minimum
of three hours per week, submit your exercises and take your tests as
scheduled. The only reasonable exceptions are: job requirements, family
responsibilities, and personal illness. Otherwise, there will be no
special accomodations.
Your Course grade will be based on your total points earned:
85-100 = A; 70-84 = B; 50-69 = C; 40-49 = D; < 40 = F
1) You will receive 0-10 points for each test question:
A+ = 10, A = 9, B+ = 8, B = 7, C+ = 6, C = 5, C- = 4, D+ = 3, D = 2,
D- = 1, F = 0
Your eight test answers will be averaged and will contribute 60% of
your grade.
2) Your exercise be graded similarly and will contribute 30% of your
grade.
3) Attendance will be 10% of your grade.
4) You may be dropped after nine hours of absence from class,{ three
night classes or six day classes}. You may make up class by attending
either section of Finance #201.
Our Text will be: Gitman, Principles of Managerial Finance{Brief},
2nd edition, Addison-Wesley, 2000. You will also read The
Economist, Forbes magazine, or Fortune magazine. You
may share a subscription with your roommate or study group.
SCHEDULE
| DATE |
TOPIC |
ASSIGNMENT |
| Week One |
Responsiblities of the Financial Manager Financial
Institutions & Markets |
Gitman cha.1 & 2 |
| Week Two |
Capital Vehicles: Debt & Equity |
Gitman cha.3 |
| Week Three |
Financial Statements:
Income, Condition, & Cashflow |
Gitman cha.4 |
| Week Four |
Four Financial Statement Analysis: Profit, Liquidity,
Activity, & Debt |
Gitman cha.5 |
| Week Five |
First Hour Test |
two questions from
#1-5 |
| Week Six |
Time Value of Money |
Gitman cha.6
|
| Week Seven |
Valuation
|
Gitman cha.8 |
| Week Eight |
Capital Budgeting & Cashflow |
Gitman cha.9 |
| Week Nine |
Cost of Capital |
Gitman cha.11 |
| Week Ten |
Break-even Analysis & Leverage:
Operating, Financial, & Combined Leverage |
Gitman cha.12
|
| Week Eleven |
Second Hour Test
|
two questions from
#6-10 |
| Week Twelve |
Dividend Policy Investment Banking & IPOs
|
Gitman cha.13 |
| Week Thirteen |
Financial Planning: Cashflow & Pro Formas |
Gitman cha.14 |
| Week Fourteen |
Working Capital Fundamentals |
Gitman cha.15
|
| Week Fifteen |
Cash & Marketable Securities |
Gitman cha.16 |
| Week Sixteen |
Accounts Receivable & Inventory Management
|
Gitman cha.17 |
| Week Seventeen |
Complete Your Exercise;
Include Growth Plan & Pro-Formas
Review for Final Examination
|
prepare questions
#1-15 |
Exercise:
You have been retained to evaluate and advise one of the following companies,
which are suffering from low market valuations. You may choose any of
company from the Valueline list of Low PE companies.
Your assignment is to discover the sources of weaknesses which are depressing
the share price of you companyıs common stock, to prescribe immediate
actions which can improve the condition of the company, and to prescribe
a three year plan to achieve acceptable ROE accompanied by sound financial
conditions.
Begin by evaluating general economic conditions. (You may wish to visit
the Whitehouse Briefing Room on the internet). Then, investigate the
industry by looking at the appropriate sections of the U.S.Industrial
Outlook. Learn what you can about the company by visiting the companyıs
web site and reading the appropriate sections of the ValueLine, for
both company and industry data. Finally, pull recent finance statements
& SEC reports by visiting the EDGAR web site.
With this information, you can develop your report, which should include:
1) Calculate the financial ratios and trends for your company. What
is your opinion of the company's current financial condition ?
2) Recommendation of a strategy to improve return on equity, at an acceptable
level of risk. Identify your company's optimal capital structure.
3) Recommend a strategy for growth. Include pro forma financial statements.
|
