SAINT JOSEPH’s UNIVERSITY
Haub School of Business
Department of Finance
MBA 503 - Spring 2011
Financial Management
Tuesday: 6:30-9:10 pm
Instructor: Dr. J. L. Heck
Office: Mandeville Hall 242
Phone: 610-660-3148
Email: jean.heck@sju.edu
Office Hours
Tuesday
6:00-6:30 and 9:10-9:30 pm
www.sju.edu/~jheck
COURSE PREREQUISITES: MBA 500 - Managerial Economics; MBA 505 - Business
Statistical Tools with Excel.
SCOPE OF COURSE: The central focus of this course is on the role of financial management
in large businesses. We will study the concepts, theories and methodologies that will enable
us to utilize financial information to make sound financial decisions; while keeping in mind
the ethical implications of these decisions and their relevance in an increasingly globular
economy.
LEARNING OBJECTIVES: Lectures, class discussions, readings and technology projects are
designed to give you a basic understanding of the objective and functions of financial
management, prepare you for the MBA core financial course that follows, and be enable you
to apply the principles of finance to the other functional areas of business management. At
the completion of this course you should have a sound understanding of the principles and
practices of the financial system, time value of money, how securities are valued, how firms
make assessment acquisition decisions and how risk is incorporated into the decision-making
process.
REQUIRED TEXT: Business Financial Management - Custom Edition by Cooley and Heck,
JLHPress, 2011) and Readings in Financial Ethics - Custom Edition I by Dobson and Heck.
CALCULATOR: To perform the tasks of financial planning and management you need to be
able to use a good financial calculator. In this course I will teach you how to use a Texas
Instrument BA-II Plus calculator to perform most of the financial calculations needed in
your personal and professional financial life. The calculator is available at office supply and
electronic stores that carry calculators. It is certainly possible to solve all problems on any
other calculator, but the task will be much easier if you have the BA-II Plus, since all of the
examples will be on that calculator.
FINANCE-TECHNOLOGY PROJECTS: There is a multi-component technology project
described in a separate document (located on the course web site) that requires you to
collect, analyze and interpret financial data on a chosen company. You may choose any
company you wish for the project, but be careful to choose a large company that has been
publicly traded for at least 10 years. Also, the company you choose must have long term debt
on its balance sheet. Please avoid financial firms, like banks or investment companies.
READINGS IN FINANCIAL ETHICS: There are six readings in your Readings in Financial
Ethics book that must be read and summarized. In your summary of each article you should
write two to three paragraphs that summarize the article, plus at least one additional
paragraph explaining why you either agree or disagree with the premise/conclusions of the
article. These summaries should be typed - each on a separate page with the article title at
the top of the page - and turned on at the beginning of class on Tuesday, March 22nd. Some
time after the summaries have been turned in, there will be class discussion on the readings.
ATTENDANCE: Attending class, listening to the lectures, and participating in the
discussions adds significantly to the learning experience. Unexcused absences or failure to
respond when called on will negatively affect your grade.
MISSED EXAMS: If you miss the mid-term exam with an approved excuse your final exam
grade will also be used as your mid-term grade and you will be required to take a cumulate
final exam. For an unapproved excuse your mid-term grade will be a zero.
COURSE GRADING: There a mid-term and a final exam given during the term.
Mid-term Exam
Final Exam
Technology Project
Ethics Readings
Tuesday, March 15th
Tuesday, May 3rd
Due, Tuesday, April 26th
Due, Tuesday, March 29nd
Total
40%
40%
10%
10%
100%
A = 95.00 to 100
B+ = 85.00 to 89.99
C = 65.00 to 79.99
A- = 90.00 to 94.99
B = 80.00 to 84.99
F = Below 65
ACADEMIC INTEGRITY POLICY: You are expected abide by St. Joseph’s University
Academic Honesty Policy. The policy is posted on the course website. Students found to
violate the policy will be given a failing grade for the course.
ACCOMMODATIONS FOR STUDENTS WITH DISABILITIES: It is the policy of St.
Joseph’s University to make reasonable academic accommodations for qualified individuals
with disabilities. If you are a person with a disability please contact me after class or during
office hours and make arrangements to register with the Advisor for Students with
Disabilities (212 Champion, 610-660-1774).
COURSE OUTLINE - Financial Management
CLASS
CHAP
TOPIC
T 1/18
1
Finance and Business
T 1/25
2
The Financial System
T 2/01
PROBLEMS *
2: 1, 3, 5, 9, 10, 11
Class Cancelled for Weather
T 2/08
2
The Financial System
T 2/15
3
Analyzing Financial Performance
3: 1, 3, 5, 8
T 2/22
4
Time Value of Money
Handout
T 3/01
4
5
Time Value of Money
Risk and Rate of Return
5: 1, 2, 5, 8, 12
T 3/08
T 3/15
Spring Break - No Class
5
T 3/22
Risk and Rate of Return
Mid-term Exam (Chapters 1, 2, 3, 4,5)
T 3/29
6
Security Valuation - Bonds
6: 1, ,2, 4, 6, 8
T 4/05
7
8
Capital Investments and Cash Flow
Evaluating Capital Investments
7: 2, 3, 4, 6. 8
T 4/12
8
Evaluating Capital Investments
8: 1, 2, 7
T 4/19
9
Working Capital Management
9: 1
T 4/26
9
Working Capital Management
Course Project Due
T 5/03
Final Exam (Chapters 6,7,8,9)
* The problems are designed to help you prepare for the exams. They are not turned in and are not
necessarily due on the dates shown above. I will notify you a week before hand when I expect to go
over the assigned problems in class.