Calumet College of St. Joseph

SYLLABUS FOR FINANCIAL MANAGEMENT

Term: Spring, 2003 (02-2) January 6 - April 19, 2003

Course Number: BUS 440X

Instructor: Mr. Kenneth Taylor, CPA

Office: Room # 518

Office Phone: (219) 473-4294

E-mail: kentcpa@surfnetinc.com

Home Phone: (219) 865-1516 after 6pm

Office Hours: Tuesday 6:00pm – 7:00pm and 10:00pm – 10:30pm

Thursday 6:00pm – 7:00pm and 10:00pm – 10:30pm

Other hours by appointment

Instructor Background: Certified Public Accountant licensed in Indiana and Illinois. Partner in public accounting firm. BS in accounting from Purdue University Calumet.

Course Time: Thursday, 7:00-10:00pm

Course Description:

The content of this course covers actual analysis of financial problems involved in the formation and management of organizations, especially businesses. The course includes study of the financial aspects of promotion, securing of capital, effective utilization of funds, capitalization, dividend policies, financial analysis, current financing, bankruptcy and related issues.

Prerequisites: MGT 220, either MGT 300 or ACC 210-211, and either MTH 160 or MTH 103-104.

Learning Outcomes/Student Competencies:

Upon completion of this course the student will be able to:

Understand the nature of the finance function and the role of the financial manager in the attainment of the goal of maximization of shareholder wealth.
Understand the relationships of the internal and external financial environment in regard to the risk/return impact of the decision making process.
Use the tools of financial ratio analysis to determine the financial strength and weaknesses of a business.
Understand the principles and theories of working capital management.
Apply capital budgeting techniques used in the control and development of the capital budget.
Apply NPV, IRR, PI, and payback methods to capital budgeting decision situations.
Solve problems involving the time value of money as it relates to the present value of a cash payment and the future value of existing funds.
Understand the elements of long and short term financing and the process of evaluating the elements of the cost of capital.
Demonstrate proficiency in financial management by applying techniques to case studies.

Textbooks: Foundations of Financial Management, Block/Hurt, 10^th ed., McGraw-Hill Irwin Pocket Calculator, Handout Materials

Learning Strategies: Lecture, Class Discussion

Assessment:

Exams (3 exams) 60 % of grade

Class participation/collaboration/attendance 10 % of grade

Homework 20 % of grade

Cases 10 % of grade

Class Policy For Assignments:

All problems must be turned in at the end of the class period for which they are assigned. Late class assignments will not be accepted without approval prior to the due date. Excessive missed assignments could affect your grade.

Grading Scale:

A: 92-100 A-: 90-91 B+: 88-89 B: 82-87 B-: 80-81 C+: 78-79

C: 72-77 C-: 70-71 D+: 68-69 D: 62-67 D-: 60-61 F: 59 & below

Class Policy on Attendance:

Attendance at all class sessions is important. Advance notice should be given of any anticipated absence. Your absence from six class sessions will reduce your grade one level.

Center for Academic Excellence:

Tutoring assistance is free to all students of Calumet College of St. Joseph. Call the Center for Academic Excellence (CAE), to make an appointment at 473-4287. The Center has experienced and well-trained tutors in most subject areas to help students who are struggling in a course or who are doing well and would like to do better. Regular weekly tutoring sessions are likely to improve your grade.

Statement of Plagiarism:

If an instructor or other Calumet College of St. Joseph personnel find that a student has plagiarized or been involved in another form of academic dishonesty, the instructor or other personnel may elect to bring the matter up for judicial review. The maximum penalty for any form of academic dishonesty is dismissal from the College. The procedures for judicial review are listed under the section of CCSJ handbook that addresses student grievances.

Citation Guidelines:

Calumet College of St. Joseph adheres to citation guidelines as prescribed by the particular discipline (i.e., MLA, APA, Chicago Manual of Style or Turabian.). All of these guidelines are available in the Calumet College of St. Joseph library or bookstore. These texts outline how to cite references from a variety of sources, including electronic media.

Withdrawal from Classes Policy:

After the last day for class changes has passed (see College calendar), students may withdraw from a course in which they are registered with permission from the faculty member conducting the course. A written request detailing the reason(s) for the withdrawal must be filed with the Registrar. Written request for withdrawal must be received by the Registrar by the last day of classes prior to the final examination dates specified in the catalogue.

Written requests may be mailed to the Registrar or faxed to the College fax number 219-473-4259. Students are to make note of the refund schedule when withdrawing from courses. The request is forwarded to the faculty member, who makes the final determination to accept or deny the request. If the request is honored, the student will receive notification of official withdrawal; if denied, the notification will indicate why the withdrawal is disallowed. Note: Degree Completion Division (DCD) students should consult the DCD Student Handbook for information on DCD withdrawals.

An official withdrawal is recorded as a "W" grade on the student's transcript. Dropping a

course without written permission automatically incurs an "F" grade for the course (see

Refund Schedule).

Class Assignments:

Class Date Topic-Assignment

January 9 Introduction to course outline

Chapter 1 – The Goals and Functions of Financial Management

Homework Ch 1:

Discussion Questions 1 – 13 odd

January 16 Read Chapter 2 – Review of Accounting

Homework Ch 2:

Problems 1- 23 odd

January 23 Read Chapter 3 – Financial Analysis

Homework Ch 3:

Problems 1 – 23 odd

January 30 Read Chapter 4 – Financial Forecasting

Homework Ch 4:

Problems 1 –23 odd

February 6 FIRST EXAM – Covers Ch’s 1 through 4

Read Chapter 5 – Operating and Financial Leverage

Homework Ch 5:

Problems 1 – 19 odd

February 13 Chapter 5

Read Chapter 6 – Working Capital and the Financing Decision

Homework Ch 6:

Problems 1 – 17 odd

Case 1

February 20 Read Chapter 7 – Current Asset Management

Homework Ch 7:

Problems 1 – 22 odd

February 27 Read Chapter 8 – Sources of Short-Term Financing

Homework Ch 8:

Problems 1 – 21 odd

March 6 SECOND EXAM – Covers Ch’s 5 through 8

Read Chapter 9 – The Time Value of Money

Homework Ch 9:

Problems 1 – 25 odd

March 13 Chapter 9

Read Chapter 10 – Valuation and Rates of Return

Homework Ch 10:

Problems 1 – 25 odd

March 20 Read Chapter 11 – Cost of Capital

Homework Ch 11:

Problems 1 – 22 odd

Case 2

March 27 Read Chapter 12 – The Capital Budgeting Decision

Homework Ch 12:

Problems 1 – 21 odd

April 3 Read Chapter 13 – Risk and Capital Budgeting

Homework Ch 13:

Problems 1 – 20 odd

Case 3

April 10 Read Chapter 14 – Capital Markets

Read Chapter 15 – Investment Banking: Public and Private Placement

Homework Ch 15:

Problems 1 – 17 odd

April 17 EASTER RECESS – NO CLASS MEETING

April 24 FINAL EXAM – Covers Ch’s 9 through 15