Syllabus FIN333 Spring 2007 online

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Syllabus FIN333 Spring 2007 online Powered By Docstoc
					                           Earl N. Phillips School of Business
                                 High Point University
                              Spring, 2007 Online Course
                                    Course Syllabus

Course:                FIN 333, Financial Management

Professor:             Jim Wehrley

Email:                 jwehrley@highpoint.edu
Blackboard:            http://blackboard.highpoint.edu
Phone:                 (O) 841-4560 (H) 869-0042
Office:                Cooke Hall 103/102
Office Hours:          Monday: 9:30 - 10:30
                       Tuesday: 9:30 - 10:30
                       Wednesday: 9:30 – 10:30; 5:30-6:00; 6:00+ Online Class
                       Thursday: 9:30 - 10:30
                       Friday: 9:30 - 10:30

While these are my official office hours, you are welcome to stop by my office at any
time. If I am not immediately available, we can set up an appointment. Of course, you
can also e-mail or call me.

General rules or guidelines to help you contact me: 1) During the work week, I try to
respond to e-mails or voice mail messages within 1 1/2 hours of receiving them. Of
course, I have meetings both on and off campus that will sometimes result in a slower
response time. 2) My teaching schedule: T, TH: 8:00 - 9:15; W: 6:00+ online course.

Please let me know how I can help!

Note-- 6:00 office hours: This is a time for the class to meet in person. With the
exception of graded work (e.g., exams), your attendance at this time is optional. During
this time, you may also post a question or comment on Blackboard for discussion or
clarification. If nobody attends or posts a question or comment, office hours will end at
6:30 p.m. Because this is an online class, I will not deliver any new material or lecture
material. Rather, I will respond to questions and comments from students. As much as
possible, notes will be posted on Blackboard.

Catalog Description:

A study of the principles of financing a business enterprise with special references to the
modern corporation. Attention is given to the methods of acquiring permanent capital,
administration of earnings, expansion, reorganization, and the problem of public control,
the impact of taxation on corporate financing, and corporate responsibilities affecting the
public interest.

Prerequisites: ACC 203: Introduction to Financial and Managerial Accounting



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Texts: Brooks, L. FinGameONLINE 4.0 participant’s manual (Login and Password
included)

Financial Management (Paperback) (2000) by Joel G. Siegel, Jae K. Shim, Barron’s,
Second Edition. (Highly Recommended or other Financial Management Book)

Course Objectives:

Completion of this course will enable the student to describe and explain financial ratio
analysis, cash budgets, stock and bond valuation, time value of money, and other key
financial techniques used by financial managers in the modern business environment.
Students must demonstrate knowledge of the material through practical application in the
following ways:

       1. Identify and explain the types of business organizations and the basics of
          corporate taxation;

       2. Evaluate the performance of a firm by analyzing its financial statements and
          interpreting its financial ratios;

       3. Demonstrate the ability to develop a statement of cash flows and interpret
          future financial needs of a company;

       4. Demonstrate the ability to develop pro-forma income statements and balance
          sheets by using the percentage of sales method;

       5. Demonstrate the ability to measure the market value and required rates of
          return for stocks and bonds;

       6. Explain and use a hurdle rate (discount rate), NPV, IRR, and payback
          methods of project evaluation;

       7. Identify the capital structure of a company and explain the tax consideration in
          developing a weighted cost of capital; and

       8. In all applications of financial techniques, the student must demonstrate the
          ability to use manual models, business calculator, and computer spreadsheet
          design.

Honor Code:

The High Point University Honor Code expects all students to act in a manner so as not
to infringe upon the rights and responsibilities of others. It is crucial to the development
of a college student that one has the right to learn and prosper in a society free from
fraudulence and dishonesty. It is the responsibility of each student to help maintain such
a society.

The High Point University Honor Code affirms that:


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    Every student is honor bound to refrain from conduct which is unbecoming of a
     University student and that brings discredit to the student and/or High Point
     University.
    Every student is honor bound to refrain from cheating.
    Every student is honor bound to refrain from collusion.
    Every student is honor bound to refrain from plagiarism.
    Every student has the right to report an Honor Code violation.

Full details of the High Point University Honor Code are found in the Student Handbook.

Course Teaching Methods:

You will also have to apply, practice, and use the material. If you are not actively
working and applying, you probably are not learning. That is, the approach in this class
emphasizes doing rather than passive observation.

Student Responsibilities in an Online Class:

In my opinion, online classes require much more motivation, involvement, and dedication
on the part of the student than is required in a traditional classroom setting. You will
have to be highly proactive and keep up with the assigned reading and homework.
Furthermore, it is your responsibility to check Blackboard and your e-mail regularly.

Why is this course important?:

This course focuses on what a business person should know about finance. School of
Business Advisory Board members have commented that finance courses have been
some of the most useful and important courses for them in the business world. Members
have commented on how vital it is to understand cash flow, P&L (Profit and Loss)
statements (aka income statements), and balance sheets.

Just like you, companies need money. Companies that operate intelligently from a
financial perspective increase the chance of prospering. Well run companies know how
to allocate capital (money), analyze risk, raise money, and budget. Companies that are
not well-run financially tend to exhibit stress throughout the organization.

Even if you do not expect to own a company, understanding how the company functions
financially can help you in your job. Some examples: 1) If you are requesting an
increase of 50% in a marketing budget as a marketing manager, can you explain the
benefit in financial terms? 2) If you would like to order more inventory, can you justify
it from a financial perspective? 3) If you would like a company car as part of your
benefits package, do you know the cost to the firm?

With all these decisions, the people involved in approving your request are likely to
understand the financial impact. If you understand their perspective, you can increase the
chance of selling your ideas.



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While this is not a personal finance class, understanding the concepts in this class can
help you with your personal finances. If you hire a financial advisor, the knowledge
gained in this class will help you understand your advisor.

Materials:

A "Business Financial Calculator" is needed for the material that starts with the Time-
Value-of-Money and runs through Capital Budgeting. It must have these keys: PV FV
PMT I% N. A good calculator will start at $20 (Texas Instrument, Hewlett Packard,
etc.). I will be using the Texas Instruments BAII Plus.

Outside Reading Material:

Recommendations: The Wall Street Journal, Fortune, Forbes, Business Week and other
business periodicals.

Grading Scale (in % format):

92 - 100       A       4.0
90 - <92       A-      3.7
88 - <90       B+      3.3
82 - <88       B       3.0
80 - <82       B-      2.7
78 - <80       C+      2.3
72 - <78       C       2.0
70 - <72       C-      1.7
68 - <70       D+      1.3
62 - <68       D       1.0
60 - <62       D-      0.7
Below 60       F       0.0

Grading:

Time Value of Money Exam: Chapters 6, 8, and 10              25%
FinGame ONLINE 4.0 Performance (p. 76)                       10%
FinGame Assignments                                          15%
Blackboard Questions-- Team Answers                          10%
Company Research Project                                     10%
Final Exam – Comprehensive                                   30%

Time Value of Money Exam: Chapters 6, 8, and 10 (25%)

It is very difficult to understand business and finance without an understanding of the
basics of time value of money. Many finance decisions are embedded in the concept of
time value of money. The time value of money test will include capital budgeting (NPV-
Net Present Value and IRR- Internal Rate of Return) and valuation of stocks and bonds.




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FinGame ONLINE 4.0 Performance (p. 76) (10%)

The top performer, in regards to accumulated wealth, will earn 100%. All other
performers’ grades will be based as a percentage of the top performer. The instructor has
the right to curve grades; however, at no time shall anyone earn greater than 100%.

FinGame Assignments (15%)

There will be a variety of assignments related to the simulation. Each assignment is
equally weighted. Some assignments may be group and some may be individual.

Blackboard Questions-- Team Answers (10%):

A class, whether traditional or online, should consist of a community of learners. It is
important that every one of your classmates helps you learn the material. Likewise, it is
important for you to help your classmates learn. The primary vehicle for sharing is
through the Discussion Board.

You will be assigned to a team. Each team will be assigned questions to answer on the
discussion board. Each student is encouraged to ask questions, make comments, or
provide solutions on the Discussion Board. Furthermore, students are encouraged to
respond to student comments or questions posted on the Discussion Board. There is
always a possibility that some of the information provided may be inaccurate. It will be
the job of the assigned team to ―set the record straight‖.

The team answers will be worth 10% of the grade. There will be an evaluation of each
team member by all other team members. Based on the evaluations, each student’s team
answers grade may be adjusted.

How do you know if your answers are worthy of a good grade? You are probably on the
right track if you can answer yes to the following questions.

   1. Are your answers correct?
   2. Will students understand the logic of your answers and any additional
      clarification you provide?
   3. Did you use FinGame as an example to help explain your answer? Note: In some
      cases FinGame may not be useful in your explanation.
   4. Are your answers clear, concise, and well-written?

Company Research Project (10%)

You will select a publicly traded company and complete the following tasks:
   1. Throughout the semester, read any press releases issued by the company.
   2. If available, listen to the company’s most recent (past or during the semester)
      conference call available on the company’s website.
   3. Read any articles you can find about the company.
   4. Read the company’s latest 10-K or annual report AND 10-Q or Quarterly Report--
   5. Write a one-page paper summarizing what you learned about the company.
   6. Write a one-page-or-less paper reviewing what you learned from the assignment.
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Potential sources to use: 1) Yahoo Finance; 2) MoneyCentral; 3) NASDAQ.com; 4)
Mergent (through High Point University Library’s website); and 4) the company’s
investor relations website.

Final Exam – Comprehensive (30%)

Attendance:

There is no attendance policy; however, you must attend class to complete exams. A
student who misses the exam period for a valid reason will be allowed to take a makeup
exam. Makeup exams are typically more difficult because students have more time to
prepare for them. Generally, for an absence to be valid, I must be contacted (e.g., e-mail,
voice mail) before the class period you miss. Clearly, in rare situations (e.g., automobile
accident), a valid absence may be allowed when I am notified after the class period you
miss. A ―valid reason‖ will be based on whether a ―typical‖ employer would view your
reason for the absence to be acceptable.

Important Notes:

1. All work must be typed or word-processed. All text must be double-spaced.

2. All work is expected to include correct grammar, punctuation, and spelling.

3. All exams will be held ―in-class‖. That is, all exams will be on campus—
Norcross/Cooke 106 or some other classroom in Norcross/Cooke Hall.

4. Return of Grades: Exams will not be returned; however, you are allowed to review all
exams in my office. Furthermore, discussion of exam answers can be completed through
the Discussion Board.

Academic Services Center

Students with diagnosed disabilities should contact Ms. Ingersoll, Assistant Director & Coordinator
of Disability Services: 841-9037 or iingerso@highpoint.edu. Students who need classroom
accommodations due to a diagnosed disability should contact Ms. Irene Ingersoll. Accommodation
arrangements should be made at the beginning of the semester. Accommodations are not retroactive.

I'm glad you registered for FIN333. I hope you enjoy the course!!!!
Always remember, Finance is Fun!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!




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Tentative Schedule:
Note: A more detailed weekly schedule will be provided each week on Blackboard.

Week 1: Wednesday, January 10
Introduction
Introduction of FinGame
Introduction of Financial Statements
Select a publicly traded company for Company Research Project

Week 2: Thursday, January 11 – Wednesday, January 17
Chapter 1: Introduction
Chapter 2: Understanding Financial Statements
Chapter 3: Analyzing Financial Statements
Read FinGame Book

Week 3: Thursday, January 18 – Wednesday, January 24
Chapter 6: Understanding the Concept of Time Value of Money
Chapter 8: Valuing Stocks and Bonds
Chapter 10: How to Make Capital Budgeting Decisions
FinGame Quarter 2 Decisions Due Sunday

Week 4: Thursday, January 25 – Wednesday, January 31
Chapter 11: Leverage and Capital Structure
Chapter 13: Short-Term and Intermediate-Term Financing
Chapter 14: Long-Term Debt Financing
FinGame Quarter 3 Decisions Due Sunday

Week 5: Thursday, February 1 – Wednesday, February 7
Chapter 16: Dividend Policy
Chapter 5: Analyzing and Improving Management Performance
Chapter 12: Using Working Capital Management Effectively
Time Value of Money Exam: Chapters 6, 8, and 10 (25%); Wednesday, February 7
FinGame Quarter 4 Decisions Due Sunday

Week 6: Thursday, February 8 – Wednesday, February 14
Chapter 4: Financial Forecasting and Budgeting
FinGame Quarter 5 Decisions Due Saturday
FinGame Quarter 6 Decisions Due Wednesday

Week 7: Thursday, February 15 – Wednesday, February 21
FinGame Quarter 7 Decisions Due Saturday
FinGame Quarter 8 Decisions Due Wednesday

Week 8: Thursday, February 22 – Wednesday, February 28
Company Research Project due (10%); Wednesday, February 28
Comprehensive Final Exam (30%); Wednesday, February 28




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