KEYSTONE COLLEGE
Business 406-Online
Advanced Financial Management
3 Credits for sometime in 2010
Prerequisite is Acct 103, Business 306
Professor Kevin Vinson
Office is located in Harris 100
Online office hours Monday 6-7:30pm
Keystone Phone: 570-945-8430
Home Phone: 570-341-7476
Cell phone 570-561-3501
E-mail: kevin.vinson@keystone.edu
Textbook and Required Resources: Financial Management 12th Edition by Brigham/
Ehrhardtand and a Cengage Now semester course key for the textbook above. The
website is
http://www.cengagebrain.com/tl1/en/US/storefront/ichapters?cmd=catProductDetail&IS
BN=978-0-324-42269-6 and the cost is $59.49. You will be required to use a financial
calculator for this course. I strongly recommend the HP 10BII. There is a tutorial for it
in the course cartridge and it is the financial calculator I use. They can be purchased at
Walmart or Ebay for $30-$35 which is very inexpensive for a good financial calculator.
www.ebay.com (then do a search for HP 10BII).
Course Description and Objectives:
At the conclusion of this course the students will have sufficient knowledge in Financial
Management to analyze, evaluate, and make capital budgeting decisions using several
different types of analyses including: Discounted Cash Flow, Scenario Analysis,
Sensitivity Analysis, and Ratio Analysis. The students will be able to make
recommendations on a company’s capital structure and its affect on both its financial
and operating leverage. The students will be able to value and use options to hedge
against various types of risk.
Goals for Business 406
Students will:
A. Further expand their knowledge of business terms and apply theories and
equations to case analysis.
B. Calculate the value of various types of financial options and utilize their
ability to hedge different types of risk.
C. Calculate Net Present Value, Internal Rate of Return, and Discounted Payback
Period to make capital budgeting decisions.
D. Analyze the factors that influence a business’ capital structure along with the
effects that leverage and changes in the debt ratio affect EPS and shareholder
value.
Objectives for Business 406
Your objectives in the course are to prove that you are competent to:
1.
2.
3.
4.
Perform ratio analysis to evaluate the strengths and weaknesses of companies.
Make capital budgeting decisions.
Calculate the value of options and use them to hedge different types of risk.
Use sensitivity and scenario analysis to recommend a companies’ capital
structure and its affect on both financial and operating leverage.
Assessments
Goals
Homework assignments
ABCD
Exams
ABCD
Discussion Posts/Questions
ABCD
Cyberproblems/Case Studies ABCD
Objectives
1,2,3,4
1,2,3,4
1,2,3,4
1,2,3,4
Welcome to Business 406 Online
For those of you who are new to online learning I would like to spend a little time
discussing our new classroom. The main place where we meet each other is in the
GENERAL DISCUSSION BOARD. We will post answers to our assigned questions on
a specific discussion board entitled HOMEWORK. It is on this board that we will also
post comments and or questions to the answers provided. It is this board entitled
HOMEWORK that will be part of your final grade. We will have a different discussion
board (General) to post everything else including but not limited to information about
ourselves and our interests, general questions and answers pertaining to the class (but
NOT questions or comments on the assigned essay type questions). This is a cyberspace
classroom and we must be extra careful to make sure we address everyone with the
respect and consideration we ourselves would like to be shown. We need to know that
certain rules will be followed and everyone will be safe to express themselves. There are
rules of etiquette that people in polite societies follow and we will also discuss netiquette.
(Etiquette for the Internet.)
I would like to propose some rules for our cyberspace classroom. Many of you use
shorthand when communicating online. I am speaking of BRB which means be right
back or maybe a character display like , to express a smile. This is a new type of
language. As you read the syllabus you will note that posting your answers and
comments to the HOMEWORK discussion board is a portion of your grade in this
course. I expect you to become a valued member of this online community and in order
to do that you must attend class and post material on the discussion board in a timely
manner. I like to run a casual class...so I think abbreviations are OK in speaking with
one another. However, when answering the required questions on the HOMEWORK
board proper grammar and spelling is required.
Please start with the tab on blackboard START HERE to make sure you can use all the
tools required for our class. After properly loading the course cartridge and course key
please complete the orientation found in the ORIENTATION tab.
Class Resources
There are two different sites you will be using for this course. The first is blackboard
where the two discussion boards are located. In blackboard you can click on Course
Documents and find the power points for all 9 chapters. You can open them in
blackboard and scroll down them using the mouse but you will not see all of power points
on the left. I therefore recommend you save them to your desktop where you can then
view them in the usual manner. To do this you
1. Right click the power point chapter you want to view.
2. Then select “save target as”.
3. Then choose your desktop and it will save to your desktop for easy viewing.
Cengage Now has a calculator tutorial which I strongly recommend everyone go through
before attempting any homework assignments. I have it posted on Blackboard.
To access it
1. Login to Cengage Now, (email and password). Do not pick the SSO Cengage
Now for this textbook as you normally would to access the course. Instead pick
the “students companion website” (it is below the SSO Cengage now option).
2. Under book resources choose the “calculator tutorial” then chose the HP 10BII
calculator assuming you have one.
Once you are logged into the course there are various resources for you to access to help
you throughout the semester. NOTE YOU MUST HAVE YOUR POP-UP
BLOCKER OFF at all times when you are in the course to allow course resources to
run. To find them
1. Click on the “assignments” icon
2. Then select Practice Chapter you are on.
3. Take the pre-test. Afterwards a personalized study plan will be available to you.
It will show your areas of weakness. Note the pre-test does not count towards
your grade. It is the post-test that counts towards your grade but you can take it
up to 4 times to help improve your grade.
4. After taking the pre-test there is an icon to the left under option 2 (Study Plan)
that says ALL CHAPTER CONTENT. Click on it to see the areas you need to
focus on based on the pre-test.
I also encourage students to review the New Student Blackboard Orientation tutorial
before the start of classes to resolve any “technical issues” early on. See the Online
Learning web page, FAQ’s at the following link
http://www.keystone.edu/about_us/departments_and_offices/faqs.dot?inode=79671&cru
mbTitle=Online%20Learning%20FAQ's
There is nothing worse than that late for class feeling….especially if you can’t find the
classroom.

You can get technical support or assistance by contacting IT Helpdesk by
phone (570) 945-8778 or helpdesk@keystone.edu

For Blackboard assistance http://blackboard.keystone.edu/ or e-mail the
Blackboard administrator at blackboard@keystone.edu

For many helpful student resources go to:
http://www.keystone.edu/onlinelearning/studentresources
Student Expectations
Online students will be completing online assignments in the form homework, tests, and
answering questions and posts in response to the questions in the discussion board
HOMEWORK each week/module. Most online students say the most important thing
about taking an online class is to set aside time each week to work on the class
assignments, just as you would in a regular classroom. You know all of your
assignments and their various due dates ahead of time so please prepare/budget your time
accordingly. Assignments must be completed by the corresponding due dates to receive
credit. It is easy to fall behind and very difficult to catch up. In this course you will
probably not be able to work ahead and get all of your course work completed in a
shorter time frame because there is a discussion board component that requires weekly
submissions. You will be able to work ahead by doing your homework and tests
assignments ahead of time as they are all available upon entrance to the class. Do not
expect that you can work on this class at your leisure. There are usually 3 assignments
and various end of chapter questions for each of the 9 chapters plus Cyberproblems/Case
studies for various chapters. This is a complex subject matter and reading, studying and
homework will require extensive amounts of time just as it does in a traditional classroom
environment. Most people are busy and choose online to fit education into an already
busy life. Deadlines are set for class questions and the corresponding posts required by
everyone in the class. As stated earlier all assignments, questions and tests must be
submitted by the specified due date to receive credit. Make sure you set aside time and
make a schedule that works for you to follow the due dates. I am not the only one who
answers the questions in general discussion thread. I can, at my discretion award extra
points at the end of the semester for students who have been helpful in answering others
questions as this can greatly enhance the learning process. The board can be a great
source for nearly instant help and support; someone is often online and working at the
same time. I will be posting answers to students’ questions as well as some sample
problems throughout the semester so please keep your eye on the discussion board.
Midterm and Final grades are determined using the Keystone Grading Policy.
Letter grade
A
AB+
B
BC+
C
CD+
D
F
Numeric Equivalent
4.0
3.67
3.33
3.0
2.67
2.33
2.0
1.67
1.33
1.0
0.0
Percentage of total
95-100
90-94
87-89
84-86
80-83
77-79
74-76
70-73
65-69
60-64
0-60
Please note that the assignments labeled “Practice” are in fact graded and part of
your grade (aside from the first one which is extra credit but is a required part of
the orientation).
Cengage Now automatically grades your homework and tests. It also keeps a running
total of your current average and the weights of each assignment. The weekly questions
and required posts will be manually graded and will compromise 10% of your final
grade. The Cyberproblems/Case Studies will also compromise 10% of your final grade.
The Cyberproblems/Case Studies, questions, and required posts are intended to inspire
learning and help further develop your analytical skills. These are points that can
certainly help your final grade in this challenging course. The grades for these will be
put into the gradebook on blackboard and then factored into your final average.
Please note that end of chapter questions must be answered with clear and concise
understanding of the topic posted that week. Finding excerpts from the textbook or
textbook resources and incorporating them into the students’ answer make it clear that the
student has a full understanding of the class goals. Discussion and/or responses such as
“good posts” or “I feel it is important” lack depth and they certainly do not tell the
instructor that you are reading the text and corresponding textbook resources.
Inability to submit work on time or missing a final exam does not constitute a valid
reason for an incomplete grade as described in the course catalog.
Please note: Any student with any kind of special need or accommodation that may
impair or influence participation in the activities of this course should notify the
course instructor as soon as possible.
Keystone College does not discriminate in any of its programs on the basis of disability.
While there is not a deadline for the disclosure of a disability by a student, in order to facilitate the
documentation and accommodation processes, students are encouraged to voluntarily and
confidentially disclose and disability requiring an accommodation prior to the beginning of class.
This disclosure should be made to Owen Conaghan, owen.conaghan@keystone.edu College
Counselor & Coordinator of Disability Services. Students who disclose a disability, and who are
seeking an accommodation, ultimately will be expected to provide documentation verifying the
disability.
Plagiarism &
Academic
Integrity
Academic misconduct and dishonesty includes any activity that compromises the
academic integrity of the College or subverts the educational process. For information on
dishonest acts including plagiarism, cheating, and fraud, consult your Student Information
Guide or click on the link below. If you have any questions, talk with your instructor.
http://web.keystone.edu/Library/syllabus/integrity.htm
Copyright
Notice
The copyright law of the United States (Title 17, United States Code) governs the making
of photocopies or other reproductions of copyrighted materials, including music and
software. Copying, displaying, reproducing, or distributing copyrighted works may
infringe the copyright owner’s rights and such infringement is subject to appropriate
disciplinary action as well as criminal penalties provided by federal law. Usage of such
material is only appropriate when that usage constitutes “fair use” under the Copyright
Act. As a Keystone College student, you are required to follow the College’s copyright
policy. For more information about the fair use exemption, see the Miller Library’s
copyright page: http://web.keystone.edu/library/copyright.html
Email Use
Keystone College states that all official student email correspondence be sent only to a
student’s Keystone email address and that faculty and staff consider email from students
official only if it originates from a Keystone account. This allows the College to maintain
a high degree of confidence in the identity of all individuals and the security of transmitted
information. Keystone College furnishes each student with a free email account that is to
be used in all communication with College personnel.
Withdrawal
from Class
The College has set deadlines for withdrawing from courses. These dates and times are
published in the course catalog and on the Academic Calendar. It is the student's
responsibility to handle withdrawal requirements from any class. You must do the proper
paperwork to ensure that you will not receive a final grade of "F" in a course if you choose
not to attend once you are enrolled. If you are considering withdrawing from a class, talk
with your Advisor and consult the College Catalog.
Academic
Grievance
Procedures
Procedures for student grievances are found in the College Catalog. Please consult the
procedures before taking action.
Please note: The first step in attempting to resolve any student grievance regarding grades,
evaluations, or other fulfillments of academic responsibility, is to make a serious effort to
resolve the matter with the instructor. The College Catalog outlines any subsequent steps.
According to the College Catalog, an Incomplete (“I”) will only be awarded in the case of
exceptional circumstances. Mere inability to submit work on time, or missing the final
exam, is not valid reasons for an Incomplete.
Incomplete
Grades
Students must make arrangements with the instructor prior to the final exam it they wish
to receive a grade of incomplete. (Forms are available in the Office of the Registrar.) The
deadline for the completion of the coursework is four weeks into the next semester. If the
course work is not completed within the specified time frame, the incomplete grade will
become an “F.”
KC Connect
For information about classes & advisers, to check midterm and final grades or to register
for classes, logon to KC Connect.
Tutoring
Info
Advising &
Other
Student
Support Info
The College does offer tutoring assistance for many courses. For more information or to
schedule an appointment, consult the Tutoring webpage here:
http://www.keystone.edu/student_life/support_services/tutoring.dot
For information about academic advising, visit the Academic Advising Center homepage
here:
http://www.keystone.edu/about_us/departments_and_offices/detailed.dot?inode=142908&
crumbTitle=Academic%20Advising%20Center
For a list of Student Support Services, visit the Support Services webpage here:
http://www.keystone.edu/student_life/support_services/index.dot
Bookstore
Info
Visit the Bookstore at this link:
http://www.bkstr.com/webapp/wcs/stores/servlet/StoreCatalogDisplay?storeId=10117&la
ngId=-1&catalogId=10001
Library Info
If there are materials on course reserve or other subject specific details, list them here.
We will cover 9 chapters over the semester. The following chapters and their
corresponding assignments are as followed:
Module #
Module 1
Orientation
____________
Module 2
Chapter 1
Module 3
Chapter 2
____________
Modular Learning Objectives
Set up the Cengage Now Program
Meet the other members of the class.
Assignments
Post a quick bio on yourself
on the General Discussion
Board
Complete the calculator
tutorial described in
syllabus under class
resources.
Complete Practice Chp. 1
_________________________________ _______________________
1. Understand the different forms of
financial markets.
2. Understand the factors that affect
the cost of money.
Retake Practice Chapter 1
upon reading chapter 1
1. Learn how to calculate present and
future values of single sums,
annuities, and uneven cash flows on
a financial calculator
2. Learn how to calculate amortized
loans payments.
______________________________
End of chapter questions
Practice Assignment Chp. 2
Chapter 2 Homework
Chapter 1 Test
______________________
Module 4
Chapter 2
1. Learn how to calculate the effective Chapter 2 Mini Case
versus the nominal interest rates
2. Learn how to calculate the
Chapter 2 Test
necessary savings to reach a
financial goal.
3. Understand the affect of different
methods of compounding interest on
the future value of sums.
Module 5
Chapter 3
1. Learn how to calculate Free Cash
Flow, Net Working Capital, and
NOPAT.
2. Learn how to calculate and interpret
End of chapter questions
Practice Assignment Chp.3
Module 6
Chapter 4
Module 7
Chapter 4
Module 8
Chapter 5
Module 9
Chapter 9
Market Value Added and Economic
Value Added.
3. Understand and calculate the affect
of taxes on income as well as
different financial instruments.
Chapter 3 Homework
1. Learn how to use ratio analysis to
evaluate a company’s solvency,
profitability, and level of debt.
2. Learn the limitations of ratio
analysis and try and detect window
dressing techniques used by
companies.
End of chapter questions
1. Learn how to look beyond the
numbers at the qualitative factors
when evaluating a company.
Chapter 4 Cyberproblem
1. Understand the different types of
bonds and the characteristics and
features of each type of bond.
2. Understand the different provisions
to call or redeem bonds.
3. Learn to calculate bond prices and
their change in value as interest
rates fluctuate.
4. Learn to calculate a bonds yield to
maturity, yield to call, as well as a
bond’s liquidity and maturity risk
premium.
End of chapter questions
Chapter 3 Test
Practice Assignment Chp. 4
Chapter 4 Homework
Chapter 4 Test
Practice Assignment Chp. 5
Chapter 7 Homework
Chapter 7 Test
1. Understand the different types of
End of chapter questions
financial options.
2. Learn how to calculate both the time Practice Assignment Chp. 9
and intrinsic value of options.
3. Understand how the changes in the
Chapter 9 Homework
5 factors of the Black-Scholes
Option Pricing Model affect the
option price.
Module 10
Chapter 9
Module 11
Chapter 11
Module 12
Chapter 11
Module 13
Chapter 12
Module 14
Chapter 16
Module 15
Chapter 16
1. Learn how to use different options
to hedge against various types of
risk.
2. Calculate the exercise value of
options with changes in the
underlying stock price.
Chapter 9 Mini Case
1. Learn how to decide among projects
with unequal lives.
2. Understand Capital Rationing and
the reasons why companies forgo
value added projects.
End of chapter questions
1. Learn to use various capital
budgeting techniques including
NPV, IRR, Discounted Payback
Period, and Profitability Index to
make decisions on accepting or
rejecting a project.
2. Understand how the WACC affects
the NPV rankings.
Chapter 11 Homework
1. Learn to use Scenario Analysis and
Decision Tree Analysis to estimate
expected return/revenue.
2. Learn to use a risk-adjusted discount
rate when evaluating potential
capital projects.
3. Calculate the after-tax incremental
cash flows of a project.
End of chapter questions
1.
Chapter 9 Test
Practice Assignment Chp 11
Chapter 11 Test
Practice Assignment Chp 12
Chapter 12 Homework
Chapter 12 Test
Understand the benefits and risks
associated with the issuance of
debt.
2. Understand the factors that affect
a firm’s capital structure.
3. Understand both Financial and
Operating Leverage and their
influence on both Business and
Financial Risk.
End of chapter questions
1. Calculate Unlevered Beta, and
Break-even quantity.
Chapter 16 Cyberproblem
Practice Assignment Chp 16
Chapter 16 Homework
2. Calculate stock price and value of
equity after a recapitalization.
3. Calculate the premium for
Financial Risk.
Chapter 16 Test
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