FIN 5219
Financial Management Tools
Spring 2014
Room:
BA 289
Time:
8:30 a.m. – 3:30 p.m., Sunday, January 26th
12:30 p.m. – 6:30 p.m., Saturday, February 22nd
Professor:
David M. Harrison, Ph.D.
Office: BA 305W
Phone: (806) 834-3190
e-mail: david.m.harrison@ttu.edu
Office Hours:
As this course is being taught in a concentrated weekend format, office
hours will be conducted by appointment, with most contact taking place
either over the phone or electronically via e-mail. That said, I will be
available to answer questions both immediately before and after class
during the weekends while class is being delivered on campus.
Required Materials:
John R. Graham, Scott B. Smart, and William L. Megginson,
Corporate Finance: Linking Theory to What Companies Do, 3rd
edition, WOUTH-WESTERN/Cengage Learning, 2010.
Financial Calculator -- TI BA2+ recommended
(No graphing calculators will be allowed)
Course Description:
This course covers the basic tools necessary to adequately analyze complex
financial problems relevant to financial management and corporate finance. To
successfully complete this course, participants must demonstrate graduate-level
knowledge of the topics and techniques employed by today’s financial
professionals including a working knowledge of time value of money concepts,
financial statement analysis, risk and return measurement, and the basics of
valuation. Face-to-face class time will be devoted to subtle (but important)
technical aspects of managerial finance, case-based discussion of finance related
applications in a broad-based, cross-industry context, and group discussion on the
strengths and weaknesses of traditional finance metrics.
Student Learning Outcomes/Course Objectives:
After completing this course, the student should be able to:
 Demonstrate a basic understanding of financial statements.
 Employ financial ratio analysis to evaluate and compare firm performance.
 Calculate and interpret the results of basic time-value-of-money computations.
 Understand and employ basic financial valuation techniques such as IRR & NPV.
Course Requirements:
1) Quantitative Assessments
There will be two quantitative assessments given during the semester. Each of the
exercises will take place at the beginning of class on the dates indicated on the
course outline below. Make-up assignments will not be offered unless there are
extreme extenuating circumstances and the student brings the potential conflict to
my attention well before the scheduled assessment date.
2) Case/Problem Sets and Financial Analysis
Over the course of the semester, students will be expected to complete a small
number of integrated case analyses and a term project to demonstrate their
understanding of, and proficiency with, the core valuation and analysis tools
covered in this class. These assignments are designed to give students practice in
solving “real world” problems. In order to complete parts of the assignments you
will need to use a financial calculator and/or a spreadsheet program such as Excel.
If you are not familiar with these tools, please see me immediately. You may
consult with fellow students in completing these assignments, however, unless
otherwise noted each student must turn in their own write-up for each case. Due
dates for these analyses are typically 1 week before returning to campus for the
next on-site instructional setting, giving students approximately 3 weeks to
complete the assignments. Early submissions are accepted and encouraged. Take
special note of the due date for each project: LATE WORK WILL NOT BE
ACCEPTED & WILL RESULT IN NO CREDIT BEING RECEIVED FOR
THAT ASSIGNMENT!!!
Grading:
Your final grade in the course will be determined according to the following weights:
First Quantitative Assessment
20%
Second Quantitative Assessment
20%
Integrated Cases/Homework Sets
20%
Term Project/Financial Analysis
20%
Course Participation
20%
Note: Grading and assessment must be competitive. The cumulative GPA target for this
course is 3.4 on a traditional 4.0 scale.
Attendance and Protocol:
Classroom participation is expected and encouraged. In particular, students are expected
to read the required materials before each class session, and be prepared to discuss them.
Students should arrive on time, expect to stay throughout the entire class period, and be
attentive/respectful to both the instructor and their fellow students. Note: Cell phones
are NOT permitted in class.
ADA:
Any student who, because of a disability, may require special arrangements in order to
meet the course requirements should contact the instructor as soon as possible to make
any necessary arrangements. Students should present appropriate verification from
Student Disability Services during the instructor’s office hours. Please note instructors
are not allowed to provide classroom accommodations to a student until appropriate
verification from Student Disability Services has been provided. For additional
information, you may contact the Student Disability Services office in 335 West Hall or
806-742-2405.
SharePoint and MediaSite Access Information
The SharePoint site provides students access to course materials, peer and GPP contact
information and allows for a place of collaboration between students
(http://sharepoint.ttu.edu/cpd). Please monitor SharePoint regularly for updates and
announcements for the Working Professionals Program.
Mediasite is the online resource where video recordings and live stream instructor
lectures can be found. http://execmedia.ba.ttu.edu
The Greater Purpose of Finance:
Finance is the study of value. As the primary goal of publicly traded corporations is to
maximize long-run shareholder wealth or value, effective managers need to understand
the fundamental principles and determinants of value in order to effectively inform
strategic decision making. Even within alternative organizational forms such as not-forprofit and governmental entities, valuation concepts are critical in assessing the
contribution of the firm toward enhancing stakeholder welfare. As such, the greater
purpose of FIN 5219 is to introduce students to the fundamental concepts and valuation
principles of finance. If you are to succeed in business, a solid understanding of finance
is essential. In the Rawls Working Professionals MBA program, we are committed to
helping you succeed throughout your professional career.
Honor Code:
“It is the aim of the faculty of Texas Tech University to foster a spirit of complete
honesty and a high standard of integrity. The attempt of students to present as their own
any work that they have not honestly performed is regarded by the faculty and
administration as a serious offense and renders the offenders liable to serious
consequences, possibly suspension.”
Tentative Class Outline
Sunday, January 26th
Lecture Topic #1: Introduction to Financial Management – Chapter 1
Lecture Topic #2: Review of Basic Financial Statements – Chapter 2
Lecture Topic #3: Key Provisions of Federal Income Taxation – Supplemental
Lecture Topic #4: Financial Statements and Ratio Analysis – Chapter 2
Lecture Topic #5: Financial Statement Analysis – Chapter 2
Lecture Topic #6: Basic Applications of Time-Value-of-Money – Chapter 3
Monday, February 17th
Term Project Due – 1:00 p.m.
Saturday, February 22nd
Quantitative Assessment #1
Lecture Topic #7: Advanced Time-Value-of-Money Concepts – Chapter 3
Lecture Topic #8: Basics of Capital Budgeting – Chapter 7
Lecture Topic #9: Measuring Risk and Return – Chapter 5
Lecture Topic #10: Risk and Return in a Portfolio Context – Chapters 5 & 6
Lecture Topic #11: Capital Budgeting Complications – Chapter 8
Monday, March 24th
Integrated Cases/Problem Set Due – 1:00 p.m.
Saturday, March 29th
Quantitative Assessment #2