Summer 07-Term II Larry L. Kurtulus
FIN 401, Financial Management Page 1 of 8
Argosy University
Schaumburg Campus
School of Business & Information Technology
COURSE SYLLABUS
FIN 401 CRN 4047
Financial Management
Instructor Information
Name: Larry L. Kurtulus, B.Sc., MBA
Background: Mr. Kurtulus earned an MBA degree in Business Administration from Illinois Institute of Technology and an
undergraduate degree from Milwaukee School of Engineering. He has 15 years of engineering and international
marketing experience in a variety of industries and marketing research/evaluation functions on both the client and
supplier side.
He is currently a Systems Engineer for United Conveyor Corporation and an instructor of Operations management,
International Business and Quantitative Analysis at Roosevelt University, Schaumburg Campus. During his business
career, Mr. Kurtulus has acquired experience in market evaluation and market entry strategy formulations, partnership
relationships, supply chain management and distribution channels developments and export documentation with valuable
experiences in trade finance practices. In addition Mr. Kurtulus has multiple Language Proficiency, ability to communicate
across cultural barriers and adapt to business protocols within global environment.
On the engineering front, he has years of system design experience in hydraulic, fluid and ash conveying systems and
new product development and productivity improvements. He also involved in managing continuous process
improvement programs and performed process evaluations and training of personal.
Office Hours: By appointment only.
Telephone Numbers are: 847-290 7400 (office), Toll –free 866-290 2777 or 847-392 7217 (residence, between the
hours of 6.00 to 10 PM please. E-Mail Address: lkurtulus@argosyu.edu
Course description: An introduction to the processes and principles involved in financial management. Practical
emphasis is given to corporate entities, capital markets, as well as stock markets. Basic principles such as financial
ratios and other financial measurements are examined.
Course Pre-requisites: None
Required Textbook: Melicher, R.W. & Norton, E.A. (2006). Finance: Introduction to institutions, investments, and
management, 12th ed. New Jersey: Wiley & Sons, Inc. ISBN: 0 471 67579 2 and 978-0-471-67579-2
Technology: Pentium III CPU/ Windows 98; 128MB RAM, printer; Microsoft Office Acrobat (full version), Microsoft
Internet Explorer 5.5 (PC) 5.0 (MAC) or Netscape Navigator 4.08. Norton Antivirus.
Course length: 7.5 Weeks
Contact Hours: 45 Hours
Credit Value: 3.0
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PROGRAM OUTCOMES:
1. Communication
1.1 Communicate business concepts effectively, both written and orally appropriate to the audience
2. Team
2.1 Define the attributes of an effective team member and leader and the characteristics of an effective team in
reaching specific business goals
3. Cognitive
3.1 Problem Solving – Given a business problem, select and defend a business solution chosen from specific
alternatives
3.2 Information Literacy – Given a business research question, access information from a variety of sources, select
appropriate sources to respond to a business question
4. Analysis/Application
4.1 Integration – Describe the interrelationship of the functional business areas of statistics, accounting, operations,
finance, marketing, and strategy
5. Ethics/Diversity
5.1 Diversity – Identify the issues and challenges related to diversity in current business organizations
5.2 Ethics – Identify the issues and challenges related to ethics in current business organizations
COURSE OBJECTIVES:
1. Identify the major Financial Intermediaries and their roles in the United States Financial System. (Program
Outcome(s): 1, & 4)
1.1. Identify various components of the Financial System.
1.2. Identify various types of Financial Institutions, Financial Markets and Securities
1.3. Describe the Structure and the Role of the Federal Reserve System.
1.4. Describe the important role of the Federal Reserve System in the U.S. Economy
1.5. Describe the U.S. Payments System.
2. Identify the functions of Banks and the Banking System. (Program Outcome(s): 1, & 4)
2.1. Explain various functions of Money and corresponding definitions of Money Supply.
2.2. Discuss the impact of various Legislations on the Banking System.
2.3. Explain Bank Management as related to Liquidity and Solvency.
3. Identify the major determinants of Market Interest Rates. (Program Outcome(s): 1, & 4)
3.1. Explain various factors affecting the Supply of Funds and Demand for Funds.
3.2. Explain what is meant by the term Structure of Interest Rates.
3.3. Compare the three theories used to explain the term Structure of Interest Rates.
4. Analyze and solve financial problems using Time Value of Money. (Program Outcome(s): 1, & 4)
4.1. Explain the concept of Time Value of Money and also explain why it is Central to Financial Decision-Making.
4.2. Demonstrate with examples, how different types of Cash Flows are evaluated using Time Value of Money
concept.
4.3. Demonstrate using examples, the important applications of Time Value of Money Concept.
5. Discuss the managerial aspects of finance and financial decision-making. (Program Outcome(s): 1, & 4)
5.1. Discuss valuation of securities.
5.2. Explain the process of Issuing Securities to the public to raise funds.
5.3. Explain the problems of compliance with SEC Regulations.
5.4. Analyze Risk Management Strategies.
5.5. Explain the differences between short-term, long-term, and Strategic Financial
Decisions.
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6. Through problem analysis, develop skills in thinking through financial problems and in reaching sensible decisions
for action. (Program Outcome(s): 1, 3.1, & 4)
6.1. Explain the fundamental relationship between the Money Supply and the Velocity of Money; and the Real
Output and the Price Level.
6.2. Calculate the Capital Adequacy of a Commercial Bank.
6.3. Explain how GDP is calculated and also explain different components of the GDP.
6.4. Explain Purchasing Power Parity and Interest Rate Parity.
6.5. Analyze Time Value of Money problems using Timelines.
6.6. Solve problems using a Financial Calculator and also using Excel Spreadsheets.
6.7. Demonstrate how Valuation Techniques can be used for choosing among different courses of action available
to the Financial Manager.
6.8. Evaluate the performance of a firm using Financial Statement Analysis.
6.9. Estimate Project Cash Flows
6.10. Estimate the Weighted Average Cost of Capital.
6.11. Calculate the project NPV and IRR and making Accept/Reject Decision.
7. Describe the problems and role of financial management in large organizations. (Program Outcome(s): 1, & 4)
7.1. Describe the three major forms of Business Organization.
7.2. Describe different types of Financial Decisions made by a firm.
7.3. Explain the Financial Goal of a firm.
7.4. Discuss Ethical Aspects of Financial Decision-making
7.5. Explain the increasing role of International Finance in Financial Management.
7.6. Explain how conflicts of interests among various stakeholders of a firm can be addressed through contracts.
7.7. Explain the increasing role of International Finance in Financial Management.
7.8. Develop understanding on Pension Fund
7.9. Analyze Project Risk
8. Discuss managing financial returns and risk concepts. (Program Outcome(s): 1, & 4)
8.1. Demonstrate how to calculate the Rate of Return and Risk of an Investment.
8.2. Explain the concept of Portfolio Return and Risk.
8.3. Describe the Capital Asset Pricing Model (CAPM) and show how it is used in Financial Decision-making.
9. Describe strategies for managing long-term and short-term financial planning. (Program Outcome(s): 1, & 4)
9.1. Explain the percentage of Sales Technique used for long-term Financial Planning.
9.2. Demonstrate how to develop a Cash Budget.
9.3. Describe various sources of Short-term funds available to a firm.
10. Describe methods of capital budget analysis. (Program Outcome(s): 1, 3.1, & 4)
10.1. Explain the strategic aspects of the Capital Budgeting Process.
10.2. Identify and describe different methods used for Capital Budgeting Decisions.
10.3. Explain how relevant cash flows are estimated for Capital Budgeting Analysis.
10.4. Discuss how risk can be incorporated into Capital Budgeting Analysis.
11. Analyze the costs of capital and describe working capital and capital structure in a variety of organizations.
(Program Outcome(s): 1, & 4)
11.1. Identify and describe various components of the cost of capital.
11.2. Demonstrate how Weighted Average Cost of Capital of a firm is estimated.
11.3. Explain how Capital Structure Decision affects a firm’s discount rate used for Capital Budgeting Decisions.
11.4. Explain the strategic aspects of Capital Structure Decision.
12. Discuss the role and functions of securities markets in financial management of U.S. organizations. (Program
Outcome(s): 1, & 4)
12.1. Explain how firms issue securities to the public.
12.2. Explain how a well-functioning Financial Market is relevant to Financial Decision Making process of a firm.
12.3. Explain various functions of Securities Markets.
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Assignment Table
Date Module Module Topics Readings Assignments
July 1 • Financial systems, Melicher and Discussion Questions:
4 markets, and Norton 1. A well-functioning financial system is essential to
On-line institutions Chapter 1-3 promote economic growth in a country. Discuss.
2. Using examples, discuss recent unethical behavior by
corporate manager and the consequences.
Assignment due by July 8
1. Explain at least three recent, major developments in the
U.S. financial markets.
Class project
Assignments due by July 11:
1. Describe the roles of banks and the banking system.
July 2 • The Federal Melicher and Terms week 1
11 Reserve, Norton Quiz week 1
In-class • Monetary policy, Chapter 4-6 Class project
• International, Assignments due by July 18:
• Currencies 1. Go to: www.bis.org “Bank for International settlements”
website and describe risk based capital adequacy
standards for banks.
2. Explain at least three recent, major developments in
U.S. monetary policy.
3. Summarize the factors that can lead to a change in bank
reserves.
4. Describe the international monetary system currently in
use.
5. Go to: www.federalreserve.gov. Describe the role of
the Federal Reserve System in the U.S. economy.
July 3 • Savings, Melicher and Terms week 2
18 • Investments, Norton Quiz weeks 1 and 2
In-class • Inflation, Chapter 7-9 Assignments due by July 25:
• Interest rates, 1. Explain the life cycle stages of corporations and
• Time value of money individuals.
2. Describe at least three types of interest rates and how
they are determined.
3. What contributes to inflation? To deflation?
July 4 • Bonds, Melicher and Terms week 3
25 • Stocks, Norton Discussion Questions:
On-line • Securities markets, Chapter 10- 1. How will proposed and ongoing changes in the
• Returns and Risk 12 exchanges affect trading?
2. What is market efficiency?
3. What defines financial conservative?
Assignments due by August 1:
1. How are securities valued?
2. How are bonds valued?
August 1 5 • Business Melicher and Terms week 4
In-class organization, Norton Quiz weeks 1 through 4
• Financial statements, Chapter 13- Class projects
• Working capital 15 Assignments due August 8:
1. Describe the processes you would accomplish to start or
purchase a business.
2. Complete the ratio analysis of the statements provided by
your instructor.
3. Describe the criteria to be considered and evaluated in
determining the cash, equity, and debt levels in a company.
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August 8 6 • Business financing Melicher and Terms week 5
On-line • Capital budgeting Norton Discussion Questions:
• Capital structure Chapter 16- 1. What affects short-term financing?
• Cost of capital 18 2. Describe the capital budgeting process.
3. What are the pros and cons of NPV, IRR, and payback
period?
Describe the cost of capital?
Class project
Review for final
Assignments due by August 15:
1. Complete the capital budgeting problems provided by the
instructor.
2. Describe factors that are used in determining the cost of
capital.
August 7 Terms week 6
15 Final
in-class
Homework: Terms sheets. Each term shall include a definition in your own words, an example, and any further
information that will help you learn and comprehend the concept. Each write-up is due in hard copy to
the instructor by the scheduled quiz time. These form the quizzes. Each write-up receives three points.
Late write-ups receive half credit.
Total six write-ups at three points each = 18 points
Discussion questions = 15 points
Sixteen assignments at one to two points each = 27 points
Quizzes: Are comprehensive with one question from each of previous weeks,
and are taken from the term sheets.
Week 2 quiz (2 questions week 1) 2 points
Week 3 quiz (2 questions week 2, and 1 question week 1) 3 points
Week 5 quiz (4 questions weeks 3 and 4, + 2 questions weeks 1-2) 6 points
Total quizzes 11 points
Class projects: Nine at one point each: 9 points
Final Exam: 20 points
Final exam will be your evaluation of a case study using financial decision making practices, principles and
theories. A study review will be provided.
Total for terms, cases, class projects, quizzes, and final exam = 100 points
Class participation: This course will benefit from exchanging ideas. Your insights and experiences contribute to others’
learning. While the homework, quizzes, and exam are individual efforts (except study sessions), teamwork is
encouraged in preparing for and during class discussions. All students are to respect and support fellow students.
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Grading Criteria
Grading Scale Grading Requirements
Class projects 9%
A 100 – 93
Weekly Assignments 60%
A- 92 – 90
Quizzes 11%
B+ 89 – 88 Final 20%
B 87 – 83
B- 82 – 80 Total 100%
C+ 79 – 78
C 77 – 73
C- 72 – 70
D+ 69 – 68
D 67 – 63
D- 62 – 60
F 59 and below
Library: All resources in Argosy University’s online collection are available through the Internet. The campus librarian
will provide students with links, user IDs, and passwords.
Library Resources: Argosy University’s core online collection features nearly 21,000 full-text journals and 23,000
electronic books and other content covering all academic subject areas including Business & Economics, Career &
General Education, Computers, Engineering & Applied Science, Humanities, Science, Medicine & Allied Health, and
Social & Behavior Sciences. Many titles are directly accessible through the Online Public Access Catalog at
http://library.argosyu.edu. Detailed descriptions of online resources are located at
http://library.argosyu.edu/misc/onlinedblist.html.
In addition to online resources, Argosy University’s onsite collections contain a wealth of subject-specific research
materials searchable in the Online Public Access Catalog. Catalog searching is easily limited to individual campus
collections. Alternatively, students can search combined collections of all Argosy University Libraries. Students are
encouraged to seek research and reference assistance from campus librarians.
Information Literacy: Argosy University’s Information Literacy Tutorial was developed to teach students fundamental
and transferable research skills. The tutorial consists of five modules where students learn to select sources appropriate
for academic-level research, search periodical indexes and search engines, and evaluate and cite information. In the
tutorial, students study concepts and practice them through interactions. At the conclusion of each module, they can test
their comprehension and receive immediate feedback. Each module takes less than 20 minutes to complete. Please
view the tutorial at http://library.argosyu.edu/infolit/
Mission Statement - School of Business & Information Technology
Argosy University College of Business & Information Technology is dedicated to providing practical, evidence-based,
high-quality, solutions-focused business programs at the undergraduate and graduate level, as well as continuing
business education and specified certificate training to business practitioners and educators in public, private, and non-
profit sectors across industries. All undergraduate and graduate programs of the College of Business & Information
Technology are designed for the business practitioner and business educator, to instill excellence of execution in
knowledge, skills, and ethical values relevant to today’s global business environment. The inherent goal of these
academic programs is to foster values of social responsibility in a supportive, learner-centered environment of mutual
respect and professional excellence.
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Academic Policies
Academic Dishonesty/Plagiarism: In an effort to foster a spirit of honesty and integrity during the learning process,
Argosy University requires that the submission of all course assignments represent the original work produced by that
student. All sources must be documented through normal scholarly references/citations and all work must be submitted
using the Publication Manual of the American Psychological Association, 5th Edition (2001). Washington DC: American
Psychological Association (APA) format. Please refer to Appendix A in the Publication Manual of the American
Psychological Association, 5th Edition for thesis and paper format. Students are encouraged to purchase this manual
(required in some courses) and become familiar with its content as well as consult the Argosy University catalog for
further information regarding academic dishonesty and plagiarism.
Scholarly writing: The faculty at Argosy University is dedicated to providing a learning environment that supports
scholarly and ethical writing, free from academic dishonesty and plagiarism. This includes the proper and appropriate
referencing of all sources. You may be asked to submit your course assignments through “Turnitin,” (www.turnitin.com),
an online resource established to help educators develop writing/research skills and detect potential cases of academic
dishonesty. Turnitin compares submitted papers to billions of pages of content and provides a comparison report to
your instructor. This comparison detects papers that share common information and duplicative language.
Americans with Disabilities Act Policy: It is the policy of Argosy University to make reasonable accommodations for
qualified students with disabilities, in accordance with the Americans with Disabilities Act (ADA). If a student with
disabilities needs accommodations, the student must notify the Director of Student Services. Procedures for
documenting student disability and the development of reasonable accommodations will be provided to the student
upon request.
Students will be notified by the Director of Student Services when each request for accommodation is approved or
denied in writing via a designated form. To receive accommodation in class, it is the student’s responsibility to present
the form (at his or her discretion) to the instructor. In an effort to protect student privacy, the Department of Student
Services will not discuss the accommodation needs of any student with instructors. Faculty may not make
accommodations for individuals who have not been approved in this manner.
The Argosy University Statement Regarding Diversity: The Argosy University provides equitable access through its
services and programs to students of any social, geographic and cultural background, regardless of gender, and strives
to prepare all candidates to work with and provide services to diverse populations. Argosy demonstrates its
commitment to diversity through the development and support of a diverse educational community.
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ACKNOWLEDGEMENT OF SYLLABUS CONTENT
I have read and understand the course syllabus for Financial Decision Making B6520 at Argosy University, Schaumburg
Campus, which is being taught by Larry L. Kurtulus. I hereby agree to the terms stated in this syllabus.
_____________________________________________ __________________
Signature Date
Return this acknowledgement to the instructor at the first class meeting. Copy this page, provide your electronic
signature, and email it as a Word document to your instructor.