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					                            University of Colorado at Denver
                                  The Business School



                              FNCE 6450-0L1:
                   Short-term Financial Management Summer 2009
Course Syllabus
Instructor: Dr. Beth Cooperman
Elizabeth.Cooperman@cudenver.edu or ecooperman2002@yahoo.com
Office: UCD Building, 2nd floor, Rm. 214 (1250 14 th St., Denver, CO. 80204.)
Office hours Online: Tues. and Weds., 3:00 to 5:30pm .
Or by appointment on-campus as well. I’ll also answer emails quickly, generally within 24
hours of any email.
Phone: (303) 556-5948 Fax: (303) 556-5948
Mailing Address: The Business School
                University of Colorado at Denver
                Campus Box 165, P.O. Box 173364
                Denver, Colorado 80217-3364
For Fed-Ex or UPS (use 1250 14 th St., Denver, CO. 80204, Office Support Office, CU
Bldg, Rm. 236 2nd floor)
   I.      Brief Instructor Bio: Hello, I am originally an islander, born in Galveston, Texas,
           the small island in the Gulf coast that often is a magnet for hurricanes. I left the
           island for New Orleans to go to college at Tulane University (a nice place to go for
           college) and earned a bachelor’s of science in psychology at that time. Later, I
           worked in Washington D.C. for a Colorado Congressman, and then went on to attend
           the University of Denver and earned a M.A. in English and Creative writing, and
           later an M.B.A. and Ph.D. in Finance at the University of Georgia. I have taught
           finance for about 24 years (yikes) at Bowling Green State University, the University
           of Baltimore, and for the last 12 years at the University of Colorado at Denver (my
           favorite, of course!), and am currently the Academic Program Director for the
           Professional MBA Program and Co-Director of the Managing for Sustainability
           Program. My areas of specialization are financial institutions management,
           entrepreneurial finance, short-term financial management, and corporate finance. I
           wrote a Financial Institutions Management text and have about 20 articles published
           in major finance/economics journals including Financial Management, Journal of
           Finance, Review of Economics and Statistics, Financial Review, and Journal of
           Financial Research. I am also an identical twin, and my twin sister lives in France
           and is now a joint U.S./French citizen. My favorite hobbies are swimming, playing
           the flute, reading, movies, hiking and skiing (when time). My husband, Robert
           Cooperman, is a Colorado poet who won the Colorado Book Award in 2000. I look
           forward to having you in the course. It should be fun as well as a pleasant learning
           experience.

II. Required Text for the Course (Available at the Auraria online and on-campus
bookstore) or Amazon.com or any other online bookstore):
(1) Terry S. Maness and John T. Zietlow. Short-Term Financial Management, 3rd
edition, 2005. (Be sure to get the 3 rd edition; note this edition is now out-of-print, but
lots of used editions are available on Amazon.com and other online bookstores ,and
the Auraria Bookstore ordered a few copies). The publisher is South-western Thomson
College Publishing (Be sure to get 3rd edition), ISBN: 0-324-20293-8 (sometimes other
ISBN’s are given which are fine, just so it is the 3rd edition). Recommended and Required
for the CTP Exam. Note: the Auraria Bookstore was able to obtain 8 copies, but
www.amazon.com has over 48 copies at a very good price, and will get the book to you
very quickly, search under books versus text, along with other online bookstores.

(2) Essentials of Treasury Management, 2nd edition, by David P. Higgins Association
for Financial Professionals, www.AFPonline.org, (301) 907-2862;
FAX: 301-907-2864 (discount price for students ordering directly from the AFP; tell them
that you are in the CTM class at the University of Colorado Denver; I will also put a book
order form in doc sharing, if you would like to fax your order). The bookstore also has
copies.

The two texts are also the required texts for students who wish to sit for the Certified
Treasury Professional-A (CTPA) examine (formerly the CCM, Certified Cash
Manager Exam), can also be ordered directly from www.AFPonline.org (301-907-
2862).

III. Prerequisite: BUSN 6640 (Financial Management I or equivalent). This
pre-requisite is important to be able to understand the material in the course.

IV. Course Description: The course emphasizes the understanding and management of
short-term assets and liabilities (i.e. working capital management). Specific topics include
cash management, banking and payment systems; short-term forecasting; managing
receivables, inventory, and payables; collection and disbursement systems; and short-term
borrowing and investing.

V. Sitting for CTP-A Exam: This course is approved by the AFP as an associate
institution, which allows students completing the course with a grade of B or better to be
qualified to sit for the CTP-A examination. You will need to fill out and have me sign a
course certification form that will be on the class website. If you pass the CTP-A
examination, you become a CTP Associate with automatic certification upon completion of
the professional experience requirement. See the Association of Financial Professionals
website for further information on the exam (www.afponline.org). The AFP just
established a new policy for students taking an affiliated course that they will refund
the about $500 cost of taking the exam, if student pass the exam.
    Later in the course I’ll email a form for you to fill out and mail to me to certify successful
completion of the course with a B or better to allow you to sit for the CTP-A exam. The
exam is usually given in November and June (see information for exact dates on the AFP
website (www.afponline.org).
Association of Financial Professionals and the Certified Treasury Professional-A
(CTP-A) Exam: Treasury management is a dynamic field, and the Association for
Financial Professionals (AFP) is an excellent organization to keep you up to date, which also
has free student memberships. On the AFP website, http://www.afponline.org, at the bottom
of the left-hand side of the website, click on learn more about the AFP’s student membership


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program. As a student at the University of Colorado Denver, you have free student
membership to AFP by following the instructions on the website.

VI. Course Objectives:
(1) To understand and apply the fundamentals of cash management, accounts receivables
    management, inventory policy, and payables/short-term debt management.
(2) To develop analytical skills by applying the principles of financial decision-making to
    the management of short-term assets and liabilities.
(3) To use the concepts of value maximization, to develop a systematic approach to solving
    working capital problems.
(4) To be familiar with the evolving nature of working capital management including the
    ability of the manager to adapt to a dynamic environment including changes in
    innovations from new technology (e.g., EDI/EFT, expert systems), new regulations,
    financial product innovation, and new ways of doing business (e.g., globalization, re-
    engineering)
(5) To gain familiarity with the qualitative aspects of working capital management, such as
    the development and maintenance of professional relationships with bankers/creditors,
    suppliers, customers, employees, and other stakeholders and other ethical issues.
(6) To understand modern principles and techniques for corporate treasury management and
    to demonstrate an understanding of key financial concepts.

Overall Objective: Your goal should be more than to learn a collection of disjoint ideas
and formula. The objective of this class is to help you develop a “way of thinking” about
and solving problems involving working capital. You should strive to develop a systematic
methodology of identifying working capital problems, separating relevant from irrelevant
information, formulating solutions based on principles of value-maximization, and
presenting these results in a professional format.

VII. Grading & Due Dates: Course grades will be based as follows:
Self Assessment Quizzes & virtual café discussions             20%
Group Case Assignment (due by midnight July 5th)               20%:
Mid-term exam (due by midnight July 19)                        30%
Final exam (due by midnight Aug. 2nd)                         30%

   VIII. Technical Problems: If you have any technical problems, be sure and email:
         helpdesk@cuonline.edu for technical help or you can call Cuonline at 303-556-
         6505. I can’t help with technical problems, but the helpdesk is 24/7, and will get
         back to you right away. For any registration/name on registration problems, etc.
         inquiry@cuonline.edu can help right away as well.

IX. Email questions: I will be happy to answer any email questions and will try to answer
questions in 24 hours if not sooner for any email. If I have to be away and won’t have email
access for any period of time, I’ll let you know ahead of time.

X. Getting Ready for the Course:
(1) Be sure and log on to the course at (www.cuonline.edu) and take the e-college
student orientation .


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    The CU-Online Student Tutorial shows you how to move through a typical course and
its components and makes sure you are computer ready for the course and will understand
the format for moving around the course. Go to www.cuonline.edu and click on the CU-
Online Student Tutorial. If you need any help, email: helpdesk@cuonline.edu or call CU
Online if you have any problems logging in related to registration or other problems, be sure
and call or email CUONLINE, at inquiry@cuonline.edu or 303-556-6505.

(2) Be sure to get your textbooks right away.
The textbooks can be picked up at the Auraria bookstore (limited # of books for the
1st text; so you might want to order it online) or ordered online from Amazon.com or
another online bookstore. Be sure to get the 3rd edition for the Maness and Zietlow text. and
the 2nd edition, of the Essentials of Treasury Management text which can be ordered
cheaply at (I will put an order form in doc sharing—be sure to let the AFP know that you are
in the course): (www.AFPonline.org).

(3) Be sure to check your Email User Profile: Cuonline requires that you use your
student email, but you can go to www.cudenver.edu to webmail and student webmail, and
have your student email forwarded to another email of your preference, such as a yahoo
account. If you have emails forwarded to a work email; it’s good have emails forwarded to
a personal account as well—since sometimes work environments have high security
preferences, and group emails wind up in spam. Similarly for some personal emails (such
as hotmail) be sure your security preferences aren’t set too higher or check your bulk
mail for messages—since sometimes emails will go to spam mail. Since this is an
online course, it is crucial that you have the correct course email, so you can receive
group messages from me and your group members. class, and your groups can send you
messages and you can converse. Make sure you have the correct email in your User
Profile (click on the User Profile at the top of the page when you log into the course).
Follow the instructions to change your password if you would like to change it. If your
student email has not been activated, your email will say Unknown, and no one will be
able to contact you, so be sure to go to www.cudenver.edu, then click on webmail, and
then click on student webmail, and follow the instructions to activate your email and
instructions to have email forwarded to another email if you would like.

Activating Your Student Email Account: All students have a campus email that the
University requires must be used for the course. If you are a new student and have not
activated your student email account, you need to go to www.cudenver.edu and then click
on Webmail; and then click on Student Webmail, and follow the instructions to activate your
student email and instructions to have any email forwarded to any other email accounts if
you would like to do that.

(4) Technical Problems: If you have any technical problems, be sure and email:
helpdesk@cuonline.edu for technical help or you can call CU-Online at 303-556-
6505. I can’t help with technical problems, but the helpdesk is available 24/7 and
will get back to you right away to help with any problems you might have.

X1 Technical Hint Notes:



                                                                                            4
(1) Some problems that often occur such as often with hotmail users is too high a bulk
mail preference that results in messages for the class or from other students not
arriving--ways to avoid this are using a school email instead or setting the preference
lower.

(2) Another problem that often occurs is having a very high firewall (generally when
using a work email) that doesn’t allow group messages to come in, so you may want to use a
yahoo or other free email service to avoid this. If you email helpdesk@cuonline.edu, the
helpdesk technician can walk you through any such technical problems.

(3) Deleting temporary files: After internet sessions, it’s a good idea to get rid of
temporary files by going to Programs, then Accessories, then System Tools, and then Disk
Clean to remove any excess temporary internet files to avoid having problems as well. You
can also go to Explorer, Internet Options, and then click delete for temporary files on and
off-line temporary files. Sometimes when too many temporary files build up, this can cause
problems with your internet access.

(4) Accessing Your Online Course: To be able to view your online course, if you use
AOL or another personal online provider that doesn’t go directly to the web, you’ll need to
minimize your AOL screen), and then click Internet Explorer or Netscape, and then
go to www.cuonline.edu. Often for long periods or to see graphics, if you just go directly
through AOL, for instance, you won’t be able to access the course well or remain on the
course for long-periods.

Doc Sharing: To make things easier to download, lecture notes, and other course materials
will be put in doc sharing as Word files to make downloading easier for you.

Group Café Case Buddies:
You’ll be divided into a study and case group for your first assignment, and also
occasionally for class virtual cafes. Be sure to keep up with your group and check your
group cafés frequently and make sure your group members have your correct email. We’ll
also have class cafes. Be sure to get to know your classmates which can be a great network
for you in the future.

XII Format for the Course: The course will have units with virtual cafes, list of reading
assignments, problems and questions to try with answers at the bottom, and a self-check.
There will be virtual discussions with classmates in units as well. This material will help
you do well on the case assignments, midterm, and final, so be sure and keep up as we go
along. I’ll let you know when you can enter a new unit (when it’s ready to go).

Announcements: Be sure to check for course and Business School and Student
Organization Announcements in the announcement section of the course.

Student AFP Membership: The Association of Financial Professionals (AFP) provides job
information, journal databases, information on the Certified Treasury Professional Exam,
and other career information focusing on Treasury management at www.afponline.org . As a



                                                                                              5
university student you are entitled to a free student AFP member (by clicking on the student
link on their website and following instructions).

Virtual Cafés: Virtual Cafes are set up for you to ask questions for your classmates and
me. Also feel free to email me if you have any particular questions. I learn from you if
anything is unclear as well. In the first Unit virtual café, we’ll have introductions so you can
meet your classmates, and I can get to know you as well. From that information, I’ll put you
into compatible groups with a group leader to help each other with any problems you have to
set up group discussions and a group assignment.

Self Checks: Each Unit will have a self-check review with unlimited time for taking the
self-check and unlimited time for retaking the self check. Once you take the self-check,
your grade and incorrect answers will appear in your grade-book (the grade will
change to a final grade the last time you take the self-check). You can redo the self-
check as many times as you like. Goal: to achieve an 80% or better (your self check
grade will be the average of these grades). The self-check is a learning tool and will
help you to study and have a feeling for the types of questions that you’ll have on the
CTP exam and your midterm and final exam for the course.
    Be sure and save your answers on the self check and on exams, or they will
disappear when you log out or re-take them.




*****Be sure and keep on schedule for units, so you won’t fall behind.*****

XIII. Description of Parts: The course as an online course is designed for flexibility in
four (two-week) Parts or Units. Be sure and keep up with the time guidelines for each part,
since the summer semester goes very fast (really two weeks in one week). Each Part
contains reading material, problems, self assessments, and virtual café materials that is
knowledge that you need for the next Part, so you don’t want to get too far behind.
Material in Each two-week Part of the Course:
             (1) Introduction to Each Part: Summary of Material in Each Unit and
List of Items You Need to Do for that Particular Part.
              (2) Reading Assignment.
               (3) Lecture Notes to help you understand the material in each Part.
               (4) Review Questions and Problems for you to try (with the answers at
                   the bottom so you can check yourself).
               (5) Virtual Café: Meeting place for students and for class threaded
                   discussions and any questions you want to ask.
               (6) Self Check: Multiple-choice self-test to help you test your
                   understanding of the material. There is no time limit to the self-
                   check, and once you’ve taken it, your grade-book will show you the
                   correct answers and an explanation. You may also retake the self
                   check as many times as you’d like.



                                                                                               6
Format of the Class: For a summer course, remember each week is like two weeks in a
regular semester, so the semester moves fast, so you need to keep up to be ready for the next
part. So stick to the dates given for each part, which build upon each other. Please plan on
these dates for the beginning and completion of each unit. The units will be assessable as
they come up (do not enter units until the assigned dates or until I let you know that
they are ready). Once units are up, you can go back to study from previous units. Be
sure and do the readings, lecture notes, questions and problems virtual café and self
assessments by the due dates listed below.

*****Because this is an updated new online class with two new texts to update, some
units are under-construction. These units will be ready on the dates listed below. I’ll
let you know (will send a class email) if I am able to have units available before
time.*****

XIV. Course Policies
Business School Grading Policies: The Business School’s grading policy requires that the
average grade for graduate MS specialty electives falls between: a 3.3 to 3.6 GPA average,
where (A = 4.0; A- = 3.7; B+ = 3.3; B = 3.0, etc.). The final grades will be scaled such that
the class G.P.A. falls within the College of Business guidelines. In general, grades are: A
(96 to 100); A- (90 to 95); B+ (86 to 89); B (80 to 85).

Class Participation, Class Exercises, Problems; Discussion:
Class participation grades are primarily based on the quality of student involvement in
virtual café discussion and problem-solving sessions.

Academic Honesty: Any time you put your name on a piece of work for this course
(including exams and cases), you are asserting that it is your own work. If this is not the
case, it is academic dishonesty. I am required to submit all cases of academic dishonesty to
the College Internal Affairs Committee. Your reputation and your status at the University
are very valuable assets, so please refrain from cheating of any kind.

Time Commitment: As a graduate student for a three-hour class, you are expected to
allocate about 8 to 12 hours per week outside of class to reading, problems, studying for
exams, and preparing cases. Since in the summer, each week includes two weeks of class, the
time for out-of-class work is about 16 to 20 hours per week.

Notice to Students with Disabilities:
This syllabus and all other course materials can be made available in alternative formats on
request. Additional services may also be available through the Office of Disability Services
(556-8387). To request materials in alternative formats, or to discuss any concern you may
have about participation in the course, please get in touch with the instructor.

Group Café Case Buddies:
You’ll be divided into groups for the group case assignment in Unit 2. Get to know your
classmates which can be a great network for you in the future.




                                                                                               7
XV. Other Information
Treasury Management Professional Organization:
Association for Financial Professionals (AFP): www.afponline.org
 The Association for Financial Professionals (formerly the Treasury Management
Association) is an organization that promotes research, networking, and education in the
cash management area. As a student, you can have a free student membership in the AFP
(see procedures for joining on AFP website above).

The AFP also provides a Certified Treasury Professional (CFP) certification exam
(formerly, the Certified Cash Manager (CCM) certification). The course will attempt to
cover material that students need to know for the CTP (also you can order the book used for
the test to study for it, noted on the AFP website. The AFP website listed above which is
very useful, providing up-to-date information on Treasury Management and conferences on
different aspects of Treasury Management, a library of articles to search and download, and
career information, and job postings. Treasury Functions include: Cash Management,
Debt/Investment Management
 Foreign Exchange Management                  Bank Relationship Management
 Short-term Cash Management                   Risk Management; Investor Relations

Useful Web Sites: Association for Financial Professionals:
Association of Financial Professionals (AFP)           www.afponline.org
CFO Magazine: www.cfonet.com            (also see links on AFP website)
Treasury and Risk Management www.treasuryandrisk.com
CFO website: www.cfo.com
Treasury Management Information: www.gtnews.com
Treasury & Risk Magazine:                www.treasuryandrisk.com
Corporate Financial Statements:       www.sec.gov/edgar.shtml
Stern Stewart & Co.: www.sternstewart.com/cfo/home.shtml
American Productivity & Quality Center: www.apqc.org
Industry Week Magazine: www.industryweek.com
Careers-in-Finance (Corporate Finance: Overview) www.careers-in-finance.com/cf.htm




            Topic Schedule & Reading Assignments
June 8th to June 21: (Weeks 1 & 2)



                                                                                              8
Part 1: Introduction to Short-term Financial Management and Liquidity Analysis,
and Valuation Approach:
Readings: Zietlow&Maness (ZM) Chps. 1, 2, and 3
           Essentials (ETM): Chps. 1, 2, 4, and 5
Topics:
(1) Short-term Financial Management Introduction: ZM Chp. 1; ETM, Chps. 1, 2
(2) Working Capital & Solvency Analysis: ZM Chp. 2, ETM, Chp. 4
(3) Valuation Approach to Short-term Finance Decisions: ZM Chp. 3; ETM, Chp. 5
Assignments: (1) Read the assigned chapters and Lecture Notes
               (2) Introduce yourself in the Virtual Café to the class and to your
individual group for your group case assignment.
               (3) Do the review questions and problems and check yourself (answers
given at the bottom of the Review Question Section.
               (4) Take the self assessment quiz (get your grade and the correct
answers in your grade-book).

*** Note for Self Assessments: You may take the self-assessment as many times as
you’d like. This is to help you understand the material and counts towards your self
assessment and virtual café portion of your grade. I would recommend taking the self
assessment again to achieve an 80% or better (your class-participation grade will be
the average of these grades, along with virtual café participation).
Part 1: Learning Objectives:
(1) Be able to convert financial statements into a direct and indirect cash flow statement.
(2) Understand the cash flow timeline of a firm and the difference between accounting
    profits and cash flow.
(3) Understand a firm’s cash cycle and how managing receivables, inventory, and payables
    affect this cycle.
(4) Be aware of recent trends of firms to hold a lower working capital to sales ratio and how
    this affects firm profitability.
(5) Understand the concepts of solvency, liquidity, and financial flexibility and balance
    sheet and flow ratios used as indicators of a firm’s liquidity and solvency risks.
(6) Understand how short-term financial management activities create value for the firm and
    a present value (valuation) approach to help make short-term finance decisions and
    considerations for its inputs..
(7) Understand the concept of Economic Value Added (EVA).
(8) Understand which cash flows are relevant to use in NPV models.
______________________________________________________________________
__

June 22 to July 5th (Weeks 3 & 4)
Part 2: Management of Working Capital
Readings: Zietlow&Maness (ZM) Chps. 4, 5, 6, 7; ETM, Chps. 6 7, 19

Topics: Inventory Management: ZM Chp. 4 and ETM, Chap. 7.
        Accounts Receivable Management: ZM Chp. 5 & ETM, Chp. 7.
        Credit Policy and Collections: ZM Chp. 6
 Managing Payables and Accruals: ZM Chp. 7 and ETM Chps. 6, 7.


                                                                                           9
 Corporate Governance, SOX, and Ethical Considerations, Chp. 19

Assignments: (1) Read the assigned chapters and lecture notes.
               (2) Do the review questions and problems and check yourself (answers
given at the bottom of the Review Question Section).
                (3) Take the self assessment quiz (get your grade and the correct
answers in your grade-book). You may take the self-assessment as many times as
you’d like. This is to help you understand the material and counts towards your self
assessment and virtual café portion of your grade. .
                (4) Turn in your group case analysis as a word or rich text file in the
Unit 2 drop box by July 5th.
Part 2: Learning Objectives:
    (1) Understand the motives for holding inventory, the different costs involved in holding
        inventory and the trade-off between them, and different approaches for choosing the
        optimal ordering quantity, and also, be aware of other approaches and problems with
        inventory management.
    (2) Understand the inventory management cash flow timeline, and the present value
        approach for minimizing inventory costs, and alternative methods for monitoring
        inventory and why a balance fraction approach has less of a bias.
    (3) Understand the policies involved in account receivables management including
        credit policy and its components, and understand accounts receivable terms and the
        cost of trade credit versus bank credit and trends affecting trade credit.
    (4) Be able to use the present value approach for different types of credit decisions.
    (5) Understand what’s involved in the credit extension process and the timing of cash
        flows and know recent trends in receivables, collections, and electronic data
        interchange, and understand credit scoring models.
    (6) Know different ways to monitor receivables and advantages of the uncollected
        balance percentage method in avoiding bias associated with other financial ratios.
    (7) Apply present value approach to accounts payable decisions.
    (8) Be familiar with different methods of accounts payables monitoring and the
        advantages of a balance fraction approach.
    (9) Be familiar with the issues corporate governance, Sarbanes-Oxley, and ethics.

July 6 to July 19: (Weeks 5 & 6)
Part 3: Corporate Cash Management and Bank Relationships
Readings: Zietlow&Maness (ZM) Chps. 8, 9, 10, 11 and ETM, Chps. 3, 8, 9, 21
Topics: The U.S. Payment System ZM Chp. 8; ETM Chps. 3, 8
Cash Collection Systems & Relationships: ZM Chp. 9 & ETM Chp. 21
         Cash Concentration: ZM Chp. 10 & ETM Chp. 9
         Cash Disbursement Systems: ZM Chp. 11 & ETM Chp. 9
Assignments: (1) Read the assigned chapters and lecture notes.
               (2) In the virtual café, post your comments to the discussion..
               (3) Do the review questions and problems and check yourself (answers
given at the bottom of the Review Question Section).
               (4) Take the self assessment quiz (get your grade and the correct
answers in your grade-book). You may take the self-assessment as many times as
you’d like. This is to help you understand the material and counts towards your self


                                                                                           10
assessment and virtual café portion of your grade. I would recommend taking the self
assessment again if you don’t do well the first time.
             (5) Do the Midterm Exam by July 19th

Part 3: Learning Objectives:
    (1) Be able to explain the concept of float and calculate its value, and specify and
        explain the roles of the two major components of the payment system, and describe
        the major paper-based and electronic-based payment systems, and how an automated
        clearing house transaction works, and how it fits in with electronic data interchange.
    (2) Understand how the U.S. payment system works.
    (3) Use an availability schedule to calculate availability on deposited checks.
    (4) Explain the use of account analysis statement and balance requirements to
        compensate financial institutions for service fees.
    (5) Understand the options that firms have to collect payments from customers, and
        differentiate and choose the best collection system for a firm, and understand how a
        lockbox model works.
    (6) Understand the environmental variables influencing disbursement decisions, identify
        the major disbursement mechanisms, relevant institutional aspects, and major
        implementation variations, and specify the major funding alternatives for
        disbursement accounts.
    (7) Be able to conduct valuation of payment mechanism decisions and state the
        contribution of disbursement local model applications.

July 20th to August 2nd (Weeks 7 and 8)
Part 4: Forecasting and Planning, Short-term Financing and Investing, Managing
Multinational Cash Flows and Managing Risk with Derivatives, and Treasury
Information Management
Readings: Zietlow&Maness (ZM) Chps. 12 to 19 and ETM Chps. 10 to 12, 15, to 18
Topics: Forecasting and Planning: ZM Chp. 12 to 13 & ETM Chp. 10
Treasury Systems and Information Management: ZM Chp. 19 & ETM Chp. 11, 12
          Short-term Investing: ZM Chp. 14 to 15 & ETM Chp 10.
          Short-term Financing: ZM Chp. 16 & ETM Chp. 10
Managing Multinational Cash Flows & Risk Mgt.: ZM Chp. 17 & ETM Chps. 15 to 18
Assignments: (1) Read the assigned chapters and lecture notes.
               (2) In the virtual café, post your comments to the discussion..
               (3) Do the review questions and problems and check yourself (answers
given at the bottom of the Review Question Section).
               (4) Take the self assessment quiz (get your grade and the correct
answers in your grade-book).
             (5) Take the final exam by August 2nd.
Part 4: Learning Objectives:
A. Cash Management and Investing, E-Commerce and Information Management
and Enterprise Resource Management Overview
   (1) Understand the basics of e-commerce
   (2) Understand the evolution of e-commerce as well as the cost, benefits, and barriers to
       implementation


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   (3) Know how e-commerce standards are used
   (4) Know the key terms and languages used for e-commerce on the Internet
   (5) Understand the security issues involved in e-commerce and their solutions
   (6) Understand the role of value-added networks (VANs) and banks in e-commerce
   (7) Know how e-commerce can affect an organization.
   (8) Know the objectives of cash forecasting and the distinction between short, medium,
       and long-term forecasting
   (9) Know the steps in the forecasting process: data selection, source selection, forecast
       method selection and forecast validation and implementation
   (10)Know different forecasting methods and how to apply them to forecast cash flows.
   (11) Understand why companies hold short-term investments and how companies assign
   authority and responsibility for short-term investments.
   (12) Understand how companies typically determine investment policies.
   (13) Understand factors affecting short-term investment yields.
   (14) Be familiar with frequently issued short-term investments, how their prices are
   quoted and how bond-equivalent and effective annual yields are calculated.
   (15) Under stand theories for yield curves and how they typically change over different
   stages of the business cycle.
   (16) Know differences between active and passive short-term investments strategies and
   specific strategies such as matching, riding the yield curve, and dividend capture.
   (17) Understand a company’s borrowing objectives and strategies.
   (18) Understand the principal features of borrowing alternatives.
   (19) Know how to calculate the all-in cost for lines of credit and commercial paper.
   (20) Know the most common provisions of loan agreements..
Part B: Financial Risk Management Overview
Learning Objectives:
   (1) Understand why there is a need for risk management and the objectives of financial
       risk management.
   (2) Define the different types of financial derivatives that are used for hedging risk.
   (3) Know how financial derivatives are used to manage risk.
   (4) Be able to define interest rate risk exposure and how to manage it.
   (5) Be able to define exchange rate risk exposure and how to manage it.
   (6) Be able to define commodity price risk and how to manage it.
   (7) Understand accounting and tax issues related to financial risk management.
   (8) Be aware of the importance of international treasury management.
   (9) Know the objectives of international treasury management.
   (10)Understand the basics of foreign exchange rates and markets.
   (11) Know differences between payment and banking systems of different countries.
   (12) Understand how cross-border check payments and wire transfers are made.
   (13) Know the techniques used to manage international cash flows.
   (14) Be familiar with types and uses of letters of credit and documentary collections.
   (15) Know the principal methods of export financing and credit management.
   (16) Know the tax considerations of international treasury management.
   __________________________________________________________________
               Final Exam Due by August 2nd
          Congratulations on completing the course!



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