Financial Management Course: BUSN 323 at Christopher Newport University - Prof. Arthur C. , Exams of Corporate Finance

Download Financial Management Course: BUSN 323 at Christopher Newport University - Prof. Arthur C. and more Exams Corporate Finance in PDF only on Docsity! CHRISTOPHER NEWPORT UNIVERSITY BUSN 323 Financial Management Fall Semester, 2007 Section : CRN 5010 TTh 1430-1545 BTC 327 CRN 5013 TTh 1600-1715 BTC 327 CRN 7013 TTh 1100-1215 MCM 204 Prof. A. C. Gudikunst OFFICE HOURS: Mon and Wed, 1430-1600 BTC-Rm 402 Tue and Thur, 0900-1045 Telephone 594-7265 Office (other times by appointment) E-mail: agudikun@cnu.edu Business Program Mission Statement- …to prepare undergraduate students for graduate studies and for leadership in business and community, ……by building on student’s liberal academic foundation and enhancing communication, analytical and technological skills through individual attention, intellectual growth and applied learning. Course Description- This course is about the fundamental activity of any economic enterprise to acquire and expend MONEY. Money is the lubricant that enables a business to function. The goal of the firm is to maximize the economic utility of the firm for its owners, while meeting its other obligations to governments and other stakeholders. The role of Financial Management is to acquire and safeguard the firm’s cash (funds) resources, and to assist in the expenditure and consumption decisions of the firm’s cash resources in a manner consistent with the goals of the firm. EVERY DECISION in a firm affects either the acquisition or disbursement of the firm’s funds. In this course, we will build upon the student’s understanding of the financial statements summarizing the firm’s activities and condition. We will analyze the decision variables that result in the firm’s assets (both short term and long term) as shown on the Balance Sheet. We will explore the sources used to finance the firm’s assets, as shown on the Liability and Net Worth side of the Balance Sheet. The Income Statement will indicate progress toward meeting the obligations to the firm’s owners and other stakeholders, and ultimately fulfilling the owner’s utility maximization. The course is about DECISION MAKING, based on fundamental economic analysis, risk versus return considerations, and other non-quantitative variables. Making decisions today that will impact on the firm’s FUTURE is the essential element of the course. The trade-offs, pros and cons, benefits and costs that impact on decisions must be understood and evaluated. Financial Management is about evaluating, planning and executing decisions that will affect the FUTURE of the firm. That is our challenge for the course. Course Prerequisites- ACCT 201 and 202, Financial and Managerial Accounting ( yes, we will use this knowledge in Finance) Course Texts and Materials- TEXT Required: Foundations of Financial Management, 12 th edition , Authors: Block and Hirt Publisher: McGraw-Hill, Irwin Required: access to a Business Analysis calculator (TI BA II Plus) and computer spreadsheet program (EXCEL, Quattro Pro, etc) Suggested: Wall Street Journal subscription, or access to other weekly business magazine GENERAL COURSE OBJECTIVES- Students in the course are expected to meet the following learning objectives in this course, and performance evaluation (i.e., your grades) will be based on degree of mastery of these topics. 1. Understand the financial operations and objectives of an economic enterprise in the free market economy, and the ethical and regulatory environment in which business firms operate. 2. Understand the nature and impacts of financial markets and governmental taxation on a business enterprise. 3. Be able to use and apply financial statement analysis and basics of financial forecasting. 4. Be able to use and apply the mathematics of finance, i.e., time value of money, discounted cashflow, etc. 5. Be able to conduct basic valuation of corporate securities, including stocks and bonds. 6. Understand the basic concepts of risk analysis and the impact on valuing corporate debt and equity securities. 7. Be able to conduct basic long-term capital investment analysis using time value of money concepts. 8. Understand the determination of the firm's cost of capital using the weighted average cost of capital. Be able to use in capital investment decision analysis. 9. Understand the impact of a firm’s long-term capital structure on the risk-return tradeoffs affecting the owners of the firm. Know the structure and implications for Bankruptcy caused by the firm’s capital structure decision. 10. Understand the basics of working capital management and the role and financing of a firm’s current assets. 11. Understand the implications of conducting business activities in a multinational environment, focusing especially on multi-currency uses and sources of funding. Dr. G’s RULES of COURSE ENGAGEMENT- 1. To EDUCATE involves both TEACHING and LEARNING. Teaching is active on instructor’s part, learning is active on student’s part. 2. Communications in written and spoken form are essential in business. Student performance evaluation will consider both of these elements. The ”right” answer, poorly presented, will not earn full credit. 3. Analytical and computer skills are essential for tomorrow’s business leaders. The applications of basic mathematics, calculators and computer spreadsheet programs are critical to this course and student performance. 4. Application of the Internet in business is an essential tool for managers. 5. Reading newspapers, magazines and professional journals provides an essential supplement to the assigned textbook. Class participation grades will depend on this activity. 6. Ethical considerations must be practiced by students in the academic world in preparation for activities in the business world. High ethical standards will be an essential element of the course, both in theory and in practice. University policies regarding academic honesty will be enforced. Violations will result in assignment grade of zero, exam grade of zero and, potentially, dismissal from the course with a grade of “F”. 7. Class attendance is expected. Each unexcused absence will lower final grade average in course by one-half percent (0.5 %). Unexcused absence means prior notification to instructor by student was not provided before class. (Missing a night class is equal to 2 unexcused class absences) 8. Homework assignments (and cases or other projects) submitted after scheduled date will NOT be accepted without grade penalty. 9. There will be no MAKE-UP exams after the scheduled test date. If student makes prior arrangement with instructor, an alternative exam time can be arranged. Missing an exam means that the weight of that exam will be shifted to the other exam grade average. 10. Instructor reserves the right to give in-class quizzes, with or without prior notification. Only two-thirds of the quizzes will be used for grading purposes. 11. Instructor will provide for tutorial class before scheduled exams, time and location to be determined. Instructor will address student questions and problems, and will not re-teach the lecture material. GRADE DETERMINATION: Homework Assignments 20% Company Analysis Project 20% Quizzes 10% Mid-term exams (3) 30% Final Exam (comprehensive) 10% Class Participation 10% Total 100% Grade based on overall course average: 2