Roy E. Crummer Graduate School of Business
Rollins College
Course Syllabus
Summer 2011
FIN 501 -- FINANCIAL MANAGEMENT
EAMBA – 17
Professor Ted Veit
Financial Management (FIN 501) provides students an opportunity to learn about and practice the application
of finance principles in business situations. Through reading assignments, case analysis, problem solving,
and class discussion, students will learn how financial managers should perform important functions. These
functions include conducting financial analysis and planning, managing working capital, estimating the cost
of capital, evaluating capital budgeting projects, making dividend decisions, managing the capital structure,
valuing financial assets, and managing firm value.
ASSIGNMENTS
Assignments include cases, end-of-chapter problems, and reading assignments. Students wanting to learn
about financial management in greater detail than we cover in class should read the chapter assignments
thoroughly. Some students will want to use the text more as a reference book to clarify things discussed in
class. The exams will cover only the material discussed in class, with a few noted exceptions.
When a case analysis or problem is assigned, participants should be prepared to discuss their work on the
case or problem, including all quantitative work. Case write-ups and problem solutions will not be collected.
While students are encouraged to work together in completing cases and problem assignments, each student
should develop his or her own spread sheet. You will need to develop effective spreadsheets on exams.
CONDUCT OF CLASS
Most classes begin with a discussion of that week's case or problem assignment, followed by discussion of a
new financial management topic. These topics are generally the basis of the following week's case or
problem assignment.
ACADEMIC HONESTY
Participants are reminded that upon enrolling in the Crummer School, they signed a document in which they
agreed to abide by the MBA Student Code of Academic Honesty and the Crummer Graduate School Policy
of Academic Honesty. If you need to review that document, please contact your program director.
COMPLIANCE WITH DISABILITIES LEGISLATION
Rollins College is committed to equal access and does not discriminate unlawfully against persons with
disabilities in its policies, procedures, programs or employment processes. The College recognizes its
obligations under the Rehabilitation Act of 1973 and the Americans with Disabilities Act of 1990 to provide
an environment that does not discriminate against persons with disabilities.
If you are a person with a disability on this campus and anticipate needing any type of academic
accommodations in order to participate in your classes, please make timely arrangements by disclosing this
disability in writing to the Disability Services Office at (box 2613) - Thomas P. Johnson Student Resource
Center, 1000 Holt Ave., Winter Park, FL, 37289 or call 407-646-2354 for an appointment.
GRADING
Exams: Student grades depend on the results of two exams and class participation. Each exam is worth 45
percent of the final grade. The second exam is not comprehensive. The exams are to be completed
individually without the benefit of shared input. Exams will consist of short-answer questions, quantitative
problems, and a few multiple-choice questions. The exams will cover everything covered in class, including
cases and problems discussed in class. The exams are open book, open note, and open computer, but students
may not use the Internet or communicate with anyone else by any means during the exam.
Class Participation: This grade constitutes 10% of the final grade and is based on the contribution the student
makes to the class during discussions of cases, assigned problems, and so forth. The quality of one's in-class
contribution is more important than quantity. Multiple absences from class can reduce a student's
participation grade. Most students are likely to receive a grade of 90 for class participation. A few students
are likely to be rewarded for exceptional participation with a grade above 90, while some also are likely to
receive grades below 90.
Letter grades are assigned for the course based on the weighted average numerical grade for the semester:
93 – 100: A
87 – 89: B+
77 – 79: C+
Below 70: F
90 – 92: A83 – 86: B
73 – 76: C
80 – 82: B70 – 72: CTEXTS
Brigham, & Ehrhardt, Financial Management, Theory and Practice, 13th Edition, Dryden, 2011.
Cases will be distributed in class or assigned from the text.
INSTRUCTOR
E. Theodore Veit
Crummer 304
(407) 646-2538
Office Hours:
Wednesday 12:30 AM – 3:30 PM
Other times by appointment. Also, feel free to stop by my office. Any time I am in my
office, I will be happy to talk with you.
TENTATIVE SCHEDULE
Session
Assigned Text Problems and/or Case Analysis
Discussion Topics/Reading Assignments
Class #1
4/27
Bring your computer to class.
Overview of Financial Management (Chapter
1), Financial Statements, Cash Flow, and Taxes,
(Chapter 2, except p. 75), and Analysis of
Financial Statements (Chapter 3). Also, read
pages 530 through 541 of Chapter 13, which
address corporate governance and ETHICS
ISSUES. Although we will not discuss Chapter
1 in detail, you are responsible for all of its
contents.
Class #2
5/4
Work problems 2-7, 2-12, 2-13 (we will discuss the Time Value of Money (Chapter 4), and Bonds,
problems during class but they will not be
Bond Valuation, and Interest Rates (Chapter 5).
collected).
Class #3
5/11
Be prepared to discuss the mini-case on BestCo
Products (to be distributed in a prior class). Also
work problems 5-8, 5-12 (a, b, & d only), and 5-21
(a & b only).
Risk and Return and the CAPM (Chapter 6).
Class #4
5/18
Work problems 6-3, 6-4, 6-5, and 6-13 (use the
Excel slope function to find betas).
Stocks, Stock Valuation, and Market
Equilibrium (Chapter 7) and begin Cost of
Capital (Chapter 9).
Class #5
5/25
Work the stock valuation problems posted on Bb.
Complete the discussion of Cost of Capital and
review for the mid-term exam.
Class #6
6/8
Mid-Term Exam (covers Chapters 1-7).
Class #7
6/15
Be prepared to discuss the mini-case on Southern
Medical Supply Company (to be distributed in a
prior class).
Capital Budgeting: Evaluating Cash Flows
(Chapter 10).
Class #8
6/22
Work problems 10-1 through 10-6, 10-16 (ignore
the question about the equivalent annual annuity),
and problem 10-22.
Cash Flow Estimation and Risk Analysis
(Chapter 11).
Class #9
6/29
Be prepared to discuss the mini-case on B&A
Hydraulics (Part A) (to be distributed in a prior
class).
Financial Planning (Chapter 12, except Section
12.3) and Distributions to Stockholders
(Chapter 14).
Class #10
7/6
Be prepared to discuss the mini-case on B&A
Hydraulics (Part B) (to be distributed in a prior
class). Also, work the problems at the end of the
Excel file on Financial Planning & Forecasting.
Capital Structure Decisions (Chapter 15,
through page 625 only) and Working Capital
Management (Chapter 16).
Class #11
7/13
Work the assigned problems on cash budgeting and Multinational Financial Management (no
distributions to stockholders.
reading assignment). We will also review for
the final exam.
Class #12
7/20
Final Exam.