BA 303 � Business Finance by mu80rArl

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									                          BA 319 – Intermediate Financial Management
                                    Portland State University
                               School of Business Administration
                                          Spring 2012

Professor: Michael Dimond              Faculty Website: http://www.pdx.edu/sba/fp-michael-dimond
Email: mcdimond@pdx.edu                LinkedIn: http://www.linkedin.com/in/michaeldimond
Voicemail: (503) 208-5725              Facebook: http://www.facebook.com/ProfDimond
Office Hours: by appointment           Twitter: http://twitter.com/ProfDimond

COURSE DESCRIPTION
Second level course in financial management to provide more depth in the study of asset pricing,
capital structure, dividend policy, working capital management, growth through mergers, and
leasing. Emphasis is on the development of problem solving capabilities.

The primary purpose of the course is to examine in more depth the various aspects of corporate
financial management and be able to apply them. The course is designed to develop a solid
foundation in the concepts of corporate financial management and introduce how these concepts are
applied in practice. The topics covered will be the most fundamental for financial management to
include how to evaluate potential investment opportunities available to the firm, factors involved in
financing corporate operations, and considerations related to payout policy decisions. While
examining these topics we discuss how the financial decisions are directly linked to the value of the
firm.

Upon completion of the course, students should be able to:
• Understand the objective of financial management.
• Be able to perform an analysis of a company’s financial health.
• Review and apply the concept of time value of money
• Understand the determinates of risk and how to estimate the firms cost of debt, equity and
weighted average cost of capital
• Calculate project cash flow and utilize a variety of approaches to assess the economic
attractiveness of an investment opportunity.
• Understand the framework and factors to consider in financing the firm.
• Be able to explain how firms make payout decisions
• Understand the importance of short term financial management and common practices
• Linking what you have learned in financial management to valuation

PREREQUISITES
1. BA 303

REQUIRED ITEMS
A financial calculator is required for this course. I recommend the Texas Instruments TI84 Plus.

Text: Corporate Finance, Linking Theory to What
Companies Do, 3rd Edition, Graham, Smart, Megginson (South-Western, 2010)

APPROACH
Lecture will cover a specific chapter/topic. Students should read the chapter and attempt the
questions and problems prior to the lecture. This will enhance the learning experience and make the
class discussion more productive. For each chapter, students are highly recommended to work the
Questions and Problems found at the end of each chapter.
GRADING PROCEDURE
Cases (10% each)                 30%
Exam #1                          20%
Exam #2                          25%
Final Exam                       25%

Assignments will not be accepted late for any reason. Exams will cover the chapters, lectures,
problems, questions and other material which precede the exam. Students are responsible to be
familiar with all material in the course. Class participation is encouraged and will be used in the final
grade evaluation in border line cases.

COURSE POLICIES
1. Personal digital assistants or any other type of mini-computer are not allowed for exams.
    Financial calculators are allowed and recommended.
2. One 8½ x 11” sheet of notes (both sides) is permitted for the tests
3. Failing to demonstrate honesty and integrity will result in a grade of ZERO for that test.
4. Students are held responsible for all announcements regarding class.

PROPOSED SCHEDULE
This is the course outline. The schedule will be adjusted as needed. Students are held responsible for
all announcements regarding class.
 Week        Date       Topic                                                        Turn In
 1             3-Apr    Ch 1-6         First Principles: Corporate Finance, Risk &
                                       Return, TVM, DCF Analysis, CAPM, Free
                5-Apr                  Cash Flows & Valuation
 2             10-Apr   Ch 7           Capital Budgeting Process & Techniques
               12-Apr   Ch 8           Cash Flow & Capital Budgeting                 Case #1
 3             17-Apr   Ch 9           Cost of Capital & Project Risk
               19-Apr   Ch 10          Mkt Efficiency & Behavioral Finance
 4             24-Apr   Midterm #1
               26-Apr   Ch 11          Overview of Long Term Financing
 5             1-May    Ch 12          Capital Structure: Theory & Taxes
               3-May    Ch 13          Capital Structure: Balancing the Benefits &
                                       Costs of Debt
 6              8-May   Ch 14          The Link between Capital Structure &
                                       Capital Budgeting
              10-May    Ch 15          Payout Policy
 7            15-May    Midterm #2                                                   Case #2
              17-May    Ch 16          Investment Banking &Public Sale of Equity
                                       Securities
 8            22-May    Ch 17          LT Debt & Leasing
              24-May    Ch 21          Strategic & Operational Financial Planning
 9            29-May    Ch 22          Cash Conversion, Inventory and
                                       Receivables Management
              31-May    Ch 23          Liquidity Management
 10             5-Jun   Ch 24          M&A, Corporate Governance
                7-Jun   Ch 25          Bankruptcy & Financial Distress               Case #3
 Finals        14-Jun   Final Exam     Thurs., June 14 1015-1205
 Week
http://www.pdx.edu/registration/final-exams-schedule

								
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