NEW YORK INSTITUTE OF TECHNOLOGY
SCHOOL OF MANAGEMENT
Financial Management (Finc 601) Fall 2019
I.
Professor:
Dr. Paul Kutasovic
Office:
Room 320, Wisser Library OW campus
Office hours: Tuesday and Thursday: 3:45 to 5:45 pm
And by appointment
Voice: (516) 686-7739
E-mail:
pkutasov@nyit.edu
II.
Catalog Description:
This course focuses on the foundations of business finance utilizing a decision making
approach. A balanced presentation of financial theory and its application to the solution
of practical problems is maintained. Topics include: evaluation and selection of assets
(investment decisions), evaluation of securities, cost of capital, leverage and financial
structure decisions. Focus is on the evaluation of financial courses of action with respect
to their risk-return trade-offs.
III.
Objective:
This is a 3-credit course and is designed as a foundation core Managerial/Corporate
Finance course for all MBA students. We shall explore the fundamental concepts in
Financial Management. The course will then cover the theoretical framework and
analytical tools for decision making in financial management.
IV.
Student learning outcomes:
After successfully completing this course, the student will be able to:
1. Analyze corporate financial statements.
2. Demonstrate the understanding of two basic financial questions: What
investments should the firm make? How to finance the investments?
3. Apply time value concepts to value a business and a capital investment project.
4. Understand risk-return analysis, cost of capital and capital budgeting.
5. Comprehend capital structure theory and dividend policy of a firm.
V.
Texts: (Required) Brigham & Ehrhardt: Financial Management – Theory & Practice,
15th edition, South-Western Cengage Learning, 2017.
(Optional) Study guide to the above text.
(Suggested Reading) The Wall Street Journal, Financial Times.
Computer-based supplements:
1. http://swlearning.com/finance/brigham
2. www.bloomberg.com
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3. www.cnbc.com
4. www.cnnfn.com
5. www.finance.yahoo.com
VI.
Calculator:
Financial Calculator with NPV and IRR key
(HP - 10B-II recommended). Your textbook follows this calculator.
VII.
Preparation:
1) Participation in class discussion is strongly encouraged.
2) Read assigned chapter(s) before scheduled class meetings.
3) Homework problems, projects and cases will be assigned from time to time which may
be collected for grading. However, it is to your best interest to keep up with the
assigned work diligently for class participation and exam preparation.
VIII. Class schedule:
Please see the following page. The professor retains the right to change the schedule as
and when necessary. This is a function of the progress of the class as a whole.
IX.
Attendance:
Since we meet once a week for 14 weeks and the teaching method includes class
discussion and participation, class attendance is mandatory. More than one unexcused
absences may result in a lower grade.
X.
Academic Integrity and Plagiarism Policies:
Each student enrolled in a course at NYIT agrees that, by taking such course, he or she
consents to the submission of all required papers for textual similarity review to any
commercial service engaged by NYIT to detect plagiarism. Each student also agrees that
all papers submitted to any such service may be included as source documents in the
service’s database, solely for the purpose of detecting plagiarism of such papers.
Plagiarism is the appropriation of all or part of someone else’s works (such as but not
limited to writing, coding, programs, images, etc.) and offering it as one’s own. Cheating
is using false pretenses, tricks, devices, artifices or deception to obtain credit on an
examination or in a college course. If a faculty member determines that a student has
committed academic dishonesty by plagiarism, cheating or in any other manner, the
faculty has the academic right to 1) fail the student for the paper, assignment, project
and/or exam, and/or 2) fail the student for the course and/or 3) bring the student up on
disciplinary charges, pursuant to Article VI, Academic Conduct Proceedings, of the
Student Code of Conduct. The complete Academic Integrity Policy may be found on
various NYIT web-pages, including:
http://www.nyit.edu/about/administration/academic_affairs/academics/resources_faculty.html
XI.
Grading:
Your final grade will be determined by your performance on the
following basis:
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Midterm Exam
Final Exam
Cases (3)
Class participation
Grade distribution: A
B+
B
C+
C
F
XII.
30%
40%
20%
10%
90%
85%
80%
75%
70%
0-69%
Missed Examination Policy:
There will be no make-up exam. A missed exam is a guaranteed zero – except, only
serious medical reasons or other excuses that are verifiable and acceptable to the
instructor. It is the student’s responsibility to arrange for the makeup prior to the class
exam date.
XIII. Special needs:
Students with disabilities who need special accommodations for this class are encouraged
to meet with me or the appropriate disability service provider on campus as soon as
possible.
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Topical Outline
Week 1:

Ch. 1 – An Overview of Financial Management
Ch. 4. –Time Value of Money
Week 2

Ch. 4 – Time Value of Money
Weeks 3 and 4:

Ch. 5 – Bonds, Bond Valuation and Interest Rates
Week 5:

Ch. 6 – Risk, Return & CAPM
Weeks 6 and 7:

Ch. 7 – Valuation of Stocks and Corporations
Ch. 2 – Financial Statements, Cash Flow and Taxes
Week 8

Midterm exam
Week 9:

Ch. 3 – Analysis of Financial Statements
Weeks10 and 11:

Ch. 9 – The Cost of Capital
Week 12:

Ch. 10 – Basics of Capital Budgeting
Week 13:

Ch. 12 – Corporate Valuation and Financial Planning
Week 14:

Ch. 14 – Distribution to Shareholders
Week 15:

Final Exam
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