UNIVERSITY OF BRIDGEPORT
                       SCHOOL OF BUSINESS

                  FIN400-12 FINANCIAL MANAGEMENT
                  FALL, 2008, WEDNESDAY 1:00-3:30 PM


Professor Joseph J. Burke                           Office Hours by Appointment
803 Totoket Road                          
Northford, CT 05472-1456                            Office 203-484-5254
                                                    Cell 203-589-5446

Required Text: Corporate Finance, 8th Ed, Ross, Westerfield, & Jaffe (McGraw Hill).
The text is also available as an electronic downloadable document at:, or
bin/POL_page.cgi?page=newindex2.html&context=pol. You may purchase the entire
text, or download individual chapters at primis.
Optional: The World is Flat, Rel 3.0, Thomas L. Friedman, Picador/Farrar, Straus &
             Giroux (2007).
Recommended Periodicals: The Wall Street Journal, The Financial Times.

                             MISSION STATEMENT
The mission of the School of Business is to develop effective and responsible leaders for
global business, industry and government by equipping graduates with the technical,
analytical, managerial, ethical and cultural competencies required in an increasingly
complex international environment.

Course Description:
This course is intended to provide the student with a broad, practical approach to
corporate finance in a more challenging, exciting, and ever changing worldwide market.
The world’s financial markets are more integrated than ever before. Both the theory and
practice of corporate finance have been moving ahead with uncommon speed. We will
emphasize the modern fundamentals of corporate finance and make the theory readily
understandable with contemporary examples. Through the use of lectures, seminars,
guest speakers, case studies, and team involvement by students we will make such
matters as takeovers, junk bonds, financial restructurings, initial public offerings,
bankruptcies, derivatives, private equity and venture capital come to life.

Course Requirements:
1. Admission to the MBA program at the university.
2. Absolute and complete honesty.
3. Student involvement and participation in EVERY class.
4. Attendance at EVERY class with NO tardiness.
5.   Preparation for EVERY class.
6.   Knowledge of basic algebra.
7.   Knowledge of current events, including geopolitical, that shape our financial world.
8.   Treating all others, including other students, with complete respect.


You are expected to attend all classes unless you have a valid excuse. Attendance will be
taken and will be a factor in determining final grades. Permitted reasons for absence are:
            Illness requiring cessation of normal activities (a medical excuse from
                your healthcare provider may be required).
            University approved extra-curricular activity, with the prior approval of
                the instructor.
            Emergency Military Service
            Family emergency or death. Weddings, birthday, graduation and similar
                celebrations do not qualify.
            Religious holiday (prior notice must be given to instructor).

        Classes begin at 1:00 PM. Tardiness is not acceptable. Repeated tardiness will
have a negative impact on final grades. Returning to class late following a break will be
marked as an unexcused tardiness.
        Because a blank answer is undoubtedly wrong on quizzes and exams, blank
responses will be deducted at two times the point value.
        Cheating is absolutely unacceptable. A first offense of cheating will result in a
grade of “F” for the course. Cheating includes, but is not limited to, submitting work
that is not your own and discussing questions during exams.
        Baseball caps are prohibited, as are other head wear that has a bill, brim, or other
similar eye shade.
        Cell phones and other electronic devices must be shut off. You will lose one
letter grade for each time a cell phone rings or electronic device beeps or otherwise
interrupts the class.
        If you are having a discussion in class, and it is not addressed to the class, expect
to lose points. Private conversations should be reserved for non-class time.
        Personal issues arise from time to time. If you experience personal problems that
interfere with your attendance or performance in this course, please contact me as soon
as possible to discuss the issue. Similarly, if you are having difficulty with any aspect of
the course, please contact me as soon as possible. Do not wait until the end of the term
to raise these concerns because by then it’s too late to address the problem.

        Class participation is important. It will be factored into your final grade, but it is
important to ensure you understand concepts discussed and can convey those concepts to
        Timeliness is also important. You are expected to be prepared for class, arrive on
 time and return from breaks on time, as well as have assignments prepared and ready for
 submission at the assigned time.
          Be prepared. I encourage open debate in class about the topics we will cover.
Your contribution might help others understand concepts they are having difficulty with,
or you may have a perspective others have not considered. If you are uncomfortable
discussing issues in class, you are encouraged to submit your questions or discussion
points in writing prior to the start of class.

Ethics policy - Don't lie or cheat. (That's what Enron and Arthur Andersen did, and look
where they ended up!)
Helping others learn to be ethical policy – University of Bridgeport students don't lie or
cheat, nor do they tolerate those who do. You are morally obligated to inform the
instructor if you observe others cheating.
Skipping class policy - Not a viable option for anyone planning to pass.
Open book policy - If you don't open your books, you will flunk.
I have to have an "A" (or whatever grade you need) to keep my scholarship/financial aid
(or whatever reason) policy - Then you had better earn it from the first day of class.
Begging for extra points/higher grade policy - It isn't pretty and it won't work.
Complaining about how your team members rated you policy - see "Begging for extra
points/higher grade policy."
I need a higher grade in this class policy - You may retake this course next semester.
How many more points would I need to get a (next grade higher)? policy – It doesn't
matter. Grade changes are for clerical errors only!
I found an error in my final grade policy - Check the posting sheet regularly and tell me
about grading errors before the end of the term. After grades have been submitted to the
Registrar's Office, they are final.
Cell phone policy - Turn it off or leave it home.
Children in the classroom policy - This shouldn't need to be said: this is a university
classroom, not a day care center.
WIFI Policy - Feel free to use your laptop during class to take notes, but if I catch you
surfing the web during class, you're toast.
Civility policy - Businesses demand that employees treat others with respect. I expect no
less from students.
Incomplete grade policy - If you're failing the class, forget it (read the university policy).
Stupid question policy - Don't ask the following stupid questions:
1. "Do I need to buy the textbook" (or novel)?
2. "I have to miss class tomorrow. Will I miss anything important?"
3. "I was absent yesterday. What did I miss?"
4. "Will this be on the test?"
5. "Can I re-submit this for a better grade?"
6. "What can I do for extra credit?"
7. (Regarding unfavorable grades) “What are my options?”
1. Computers MAY be brought to class for the sole purpose of note taking, presentations,
or financial calculations. Financial calculators MAY be brought to class. If you have
neither, you may do well to yourself by getting an HP Business Calculator at an office
supply store, such as an HP NAE-10BII ($37.99), or an HP12C ($89.99). We will not be
memorizing complex financial formulas after initial understanding of their meaning is
understood by all, e.g. NPV, IRR, etc. No other electronic devices may be turned on
during class.
2. We will be reading The World is Flat by Tom Friedman. The soft cover lists @
$16.00. I strongly suggest that you buy a copy. I have a B & N (15% off) card if you
would like to use it. It is not a requirement that you have your own copy. I have
arranged with the Univ. Library to have 5 copies available.
3. This year marks the first time ever that Connecticut is hosting the SBIR/STTR
National Conference from November 12-14. Trust me, it’s a BIG deal! I’m trying to get
us free tickets. We may be making a field trip.
4. There will be a quiz after each and every class. Remember that you must come to
every class prepared. Some, however, may not understand the concepts, so we’ll work
our way through the material during class. With about 10 minutes to go, after it looks
like we’ve covered all the material, we’ll take a brief written quiz. This will
ACTUALLY benefit us both: I will know who didn’t “get it”; and you will know what
concepts are important to your future success.
5. The midterm exam will cover material thus far, and the final will cover the entire year.
It’s important to me that you retain financial concepts for your careers.
6. After we get about half-way through the material, we will begin making team
presentations of short duration. Real cases will be given to you for the team’s
analization. After classroom discussion and your presentation, we’ll ask the question:
What did he/she (the manager) actually do with those facts? This can be fun. Teams will
be rotated after every case. While you may be able to work with a buddy on one case,
you’ll get shifted for the remainder. We can’t pick who we’ll work with in real life
situations, so be nice to everybody!
7. Grades will be based on the following percentages:
                 20      Class Participation & Preparation
                 10      Quizzes
                 10      Knowledge of current events that effect financial markets
                 10      Team Projects & Interim Assignments
                 25      Midterm Exam
                 25      Final Exam
8. At various times throughout the semester we will have guest lecturers/speakers when
it fits the subject and they are available. Please be polite. Your conduct will reflect on
me and affect their return at another time.

                       CLASS SCHEDULE
       The following is to be prepared before the class date

August 27     Read Chapter 1: Really simple stuff
              Read Chapter 2: Easy Stuff: pay attention to cash flow
              Read Chapter 3: Starting to get harder
              Read Chapter 31: We live in a global market
              Read two articles available in Dean’s office:
              1. “How Coke is Kicking Pepsi’s Can….” Fortune, Oct. 28, 1996
              2. “…How did Coca-Cola’s Management go from first class to farcical in
                 six short years….” Fortune, May 31, 2004
              Be prepared to discuss “Warf Computers, Inc.”

September 3 Read Chapter 4: Discounted Cash Flow Valuation
            Friedman: pgs. 1-50
            Be prepared to discuss “The MBA Decision”

September 10 Read Chapter 5: Valuation of Bonds & Stocks
             Friedman: pgs. 51-199
             Be prepared to discuss “Ragan Thermal Systems, Inc.”

September 17 Read Chapter 6: Net Present Value, Internal Rate of Return
             Friedman: pgs. 200-259
             Be prepared to discuss “Bullock Gold Mining, Inc.”
             Teams organized and cases assigned.

September 24 Read Chapter 7: The Capital Investment Decision
             Read Chapter 30: Financial Distress
             Be prepared to discuss: “Edward I. Altman on Corporate Financial
             Distress and Bankruptcy”

October 1     Read Chapters 8-12: Risk and Return
              Friedman: pgs. 263-400

October 8     Continue Chs 8-12: Risk & Return
              Team Reports
              Review for midterm exam (Chs 8-12 will not be on the exam)

October 15    MIDTERM EXAM.
                 CLASS SCHEDULE CONT’D
       The following is to be prepared before the class date

October 22   Read Chapter 29: Mergers & Acquisitions
             Friedman: pgs. 403-474
             Team Reports

October 29   Read Chapters 22-23: Options & Corporate Finance
             Friedman: pgs. 477-530
             Team Reports

November 5   Read Chapters 24-25: Warrants/Convertibles/Derivatives/Hedges
             Friedman 533-579
             Team Reports

November 12 Read Chapters 26-28: Short Term Financing
            Team Reports

November 19 Read Chapters 19-21: Long Term Financing
            Friedman: 607-635
            Team Reports

November 26 No Class-Thanksgiving Recess

December 3   Read Chapters 13-18: Capital Structure and Dividend Policy
             Review for Final Exam

December 10 FINAL EXAM

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