Earl N. Phillips School of Business
High Point University
Fall, 2004
Course Syllabus
Course:
BUA 333, Financial Management
Professor:
Jim Wehrley
Email:
Webpage:
Blackboard:
Phone:
Office:
Office Hours:
jwehrley@highpoint.edu
http://www.highpoint.edu/~jwehrley
http://blackboard.highpoint.edu
(O) 841-4560 (H) 869-0042
Cooke Hall 121/122
Monday: 1:30 - 2:00
Tuesday: 9:00 - 11:00
Wednesday: 1:30 – 2:00; 6:00 - 6:30
Thursday: 9:00 - 11:00
Friday: 9:00 - 10:00
While these are my official office hours, you are welcome to stop by my office at any
time. If I am not immediately available, we can set up an appointment. Of course, you
can also e-mail or call me.
General rules or guidelines to help you contact me: 1) During the work week, I try to
respond to e-mails or voice mail messages within 1 1/2 hours of receiving them. Of
course, I have meetings both on and off campus that will sometimes result in a slower
response time. 2) My teaching schedule: M, W: 2:00 - 3:15; W: 6:30-9:30.
Please let me know how I can help!
Catalog Description:
A study of the principles of financing a business enterprise with special references to the
modern corporation. Attention is given to the methods of acquiring permanent capital,
administration of earnings, expansion, reorganization, and the problem of public control,
the impact of taxation on corporate financing, and corporate responsibilities affecting the
public interest.
Prerequisites: ACC203: Introduction to Financial and Managerial Accounting
Text: Survivor’s Guide to Finance, 2002, South-Western.
McGraw Hill Cases (to be discussed in class)
Course Objectives:
Completion of this course will enable the student to describe and explain financial ratio
analysis, cash budgets, stock and bond valuation, time value of money, and other key
financial techniques used by financial managers in the modern business environment.
Students must demonstrate knowledge of the material through practical application in the
following ways:
1. Identify and explain the types of business organizations and the basics of
corporate taxation;
2. Evaluate the performance of a firm by analyzing its financial statements and
interpreting its financial ratios;
3. Demonstrate the ability to develop a statement of cash flows and interpret
future financial needs of a company;
4. Demonstrate the ability to develop pro-forma income statements and balance
sheets by using the percentage of sales method;
5. Demonstrate the ability to measure the market value and required rates of
return for stocks and bonds;
6. Explain and use a hurdle rate (discount rate), NPV, IRR, and payback
methods of project evaluation;
7. Identify the capital structure of a company and explain the tax consideration in
developing a weighted cost of capital; and
8. In all applications of financial techniques, the student must demonstrate the
ability to use manual models, business calculator, and computer spreadsheet
design.
Honor Code:
The High Point University Honor Code expects all students to act in a manner so as not
to infringe upon the rights and responsibilities of others. It is crucial to the development
of a college student that one has the right to learn and prosper in a society free from
fraudulence and dishonesty. It is the responsibility of each student to help maintain such
a society.
The High Point University Honor Code affirms that:

Every student is honor bound to refrain from conduct which is unbecoming of a
University student and that brings discredit to the student and/or High Point
University.

Every student is honor bound to refrain from cheating.



Every student is honor bound to refrain from collusion.
Every student is honor bound to refrain from plagiarism.
Every student has the right to report an Honor Code violation.
Full details of the High Point University Honor Code are found in the Student Handbook.
Course Teaching Methods:
Problems, problems, and more problems. You will not learn finance just by listening to
me. You will also have to apply, practice, and use the material. If you are not actively
working and applying, you probably are not learning. That is, the approach in this class
emphasizes doing rather than passive observation.
Why is this course important?:
This course focuses on what a business person should know about finance. School of
Business Advisory Board members have commented on how finance courses have been
some of the most useful and important courses for them in the business world. Members
have commented on how vital it is to understand cash flow, P&L (Profit and Loss)
statements (aka income statements), and balance sheets.
Just like you, companies need money. Companies that operate intelligently from a
financial perspective increase the chance of prospering. Well run companies know how
to allocate capital (money), analyze risk, raise money, and budget. Companies that are
not well run financially tend to have more stress throughout the organization.
Even if you do not expect to own a company, understanding how the company functions
financially can help you in your job. Some examples: 1) If you are requesting an
increase of 50% in a marketing budget as a marketing manager, can you explain the
benefit in financial terms? 2) If you would like to order more inventory, can you justify
it from a financial perspective? 3) If you would like a company car as part of your
benefits package, do you know the cost to the firm?
With all these decisions, the people involved in approving your request are likely to
understand the financial impact. If you have an understanding of their perspective, you
can increase the chance of selling your ideas.
While this is not a personal finance class, understanding the concepts in this class can
help you with your personal finances. Even if you hire a financial advisor, the
knowledge in this class should help you understand what the advisor is recommending or
communicating to you.
Materials:
A "Business Financial Calculator" is needed for the material that starts with the TimeValue-of-Money and runs through Capital Budgeting. It must have these keys: PV FV
PMT I% N A good calculator will start at $20 (Texas Instrument, Hewlett Packard,
etc.)
Outside Reading Material:
Recommendations: The Wall Street Journal and Business Week.
Grading Scale (in % format):
92 - 100
90 - <92
88 - <90
82 - <88
80 - <82
78 - <80
72 - <78
70 - <72
68 - <70
62 - <68
60 - <62
Below 60
A
AB+
B
BC+
C
CD+
D
DF
4.0
3.7
3.3
3.0
2.7
2.3
2.0
1.7
1.3
1.0
0.7
0.0
Grading:
Time Value of Money Quiz
Financial Analysis Quiz
Finance Principles Quiz
Class Participation
Cases (10 Cases)
Presentation*
Project
Final Exam - Comprehensive
10%
10%
10%
10%
10% per case
10%
30%
30%
100%**
* Mandatory—there is a possibility that you can make more than one presentation
** During the first week of the semester, you will choose the work you will perform so
that the maximum potential total grade will equal 100%. This will be your contract.
Changes will be allowed throughout the semester with the approval of the instructor;
however, once you hand in work for a grade, it cannot be substituted.
Note: To measure your understanding (or for entertainment) purposes, you are allowed
to take the quizzes for no grade. That is, the quiz(zes) would not be a part of your
contract.
Time Value of Money Quiz (10%)
Many finance decisions are embedded in the concept of time value of money. You must
have a good understanding of this concept. Capital Budgeting; risk/return; and valuation
of stocks and bonds will also be part of this quiz. This will be a problem-based quiz.
Financial Analysis Quiz (10%)
It is difficult to fully understand business and finance without having an understanding of
a balance sheet and income statement. This quiz will focus on balance sheets, income
statements, and how the two are intertwined with each other. Additionally, the quiz will
cover cash flow analysis.
Finance Principles Quiz (10%)
This quiz will focus on basic finance concepts such as leverage/capital structure,
budgeting, and working capital management.
Class Participation (10%)
Class participation will consist of a variety of activities performed in class including
assignments, problems, group work, etc.
Cases (10% per case)
There are 10 cases which you are expected to read and understand. For those cases that
you would like to be part of your grade, you must complete the questions at the end of the
cases.
Presentation (10%)
This is the only mandatory assignment. It may consist of a group presentation, especially
if you present a case. You may also decide to present your project. Lastly, you can make
a proposal to me to present another finance topic.
Project (30%)
This project will consist of developing the financial side of a business plan, ideally a
start-up or new company. Specifically, you will have to develop a plan that determines
how much capital is needed, where the capital will be obtained, monthly budgets for the
first year, and a three-year projection of the income statement and balance sheet.
IMPORTANT: I will spend very little time in class directly discussing this project;
however, you will be exposed to the tools needed to complete this project. Furthermore, I
am very interested in helping you outside of class. To complete this project, it would
benefit you to have an understanding of Excel or be willing to learn Excel.
I am open to other project possibilities. For all projects, a proposal in which I will
approve or we will jointly alter will be required.
Final Exam – Comprehensive (30%)
This exam will consist of all topics discussed in class. The exam will be developed by
referring to all prior work with the exception of the project.
Attendance
Regular attendance is expected of all students. I will not downgrade or drop you from the
course due to nonattendance; however, most students cannot be successful without
regularly attending class. If you are absent from a class, you are likely to miss key
concepts critical to having a complete understanding of the subject material.
Important Notes:
1. Work is due at the beginning of the class unless otherwise stated. Quizzes and cases
cannot be late. The highest grade for other late work is a 70. Work that is over seven (7)
days late will not be accepted. Class participation work cannot be made up. Missing a
class (excused or unexcused) is not a valid excuse for late work.
2. All work must be typed or word processed. All text must be double-spaced.
3. All work is expected to include correct grammar, punctuation, and spelling.
Academic Services Center
Students with documented disabilities who may need academic accommodations should
discuss these with the director of the Academic Services Center, lower level of Smith
Library, during the first week of classes.
Tentative Schedule
Week 1, Aug. 25
Week 2, Aug. 30
Week 3, Sep. 6
Week 4, Sep. 13
Week 5, Sep. 20
Week 6, Sep. 27
Week 7, Oct. 11
OCTOBER 18
Week 8, Oct. 25
Week 9, Nov. 1
Week 10, Nov. 8
Week 11, Nov. 15
Week 12, Nov. 22
Week 13, Nov. 29
Week 14, Dec. 6
Final Exam Period
Dec. 14 @ 1:30
Dec. 15 @ 6:30
Dec. 17 @ 1:30
Chapter 1: Overview of Financial Management
Chapter 6: Time Value of Money
Valuing Stocks and Bonds
Chapter 5: Cost of Capital (through p. 191)
Chapter 7: Capital Investment Decisions
Case: Comparison of Capital Budgeting Techniques . . .
Time Value of Money Quiz
Chapter 2: From Scorekeeping to Financial Statements
Chapter 3: Financial Statement Analysis
Case: Cash Flow Analysis: Signal Cable Company
Case: Financial Ratio Analysis: Bigger Isn’t Always Better
Chapter 3 continued
Financial Analysis Quiz
FALL BREAK
Chapter 8: Budgeting, Financial Planning, and Control
Case: Cash Budgeting: Getting Our Act Together
Chapter 8, continued
Case: Cash Budgeting: The Elusive Cash Balance
Case: Est. Cash Flow . . . Lazy Mower
Chapter 9: Sources and Forms of Financing
Leverage – Chapter 5 (pages 192-200)
Case: Debt Versus Equity Financing: Look Before . . .
Chapter 10: Working Capital Management
Case: Working Capital Management: Timing is Everything
Day—Chapter 10 continued – evening - THANKSGIVING
Case: Accounts Receivable Management: A Switch in Time . .
Case: DuPont Analysis: Playing the Numbers Game!
Finance Principles Quiz
Review
Final Exam - Comprehensive
The Project will be due during the final exam period.
I'm glad you registered for BUA333. I hope you enjoy the course!!!!