Managerial Finance II
FIN 3332 TBAA (1 pm)
Summer Semester 2012
Instructor:
Dr. Larry Fogelberg
Course
Prerequisites:
Finance 3331
Office Hours:
MW 11-12, or by appointment
Office Location:
Bibb Graves 108
Office Telephone:
334-670-3513
334-670-3143 Secretary
334-670-3599 FAX
Email:
fin3331@yahoo.com
Time of Class:
MTWTH 1-3:20 Bibb Graves 143
Course Description:
Second course in a sequence of managerial finance. Continuation of FIN 3331
with focus on topics in financial management not covered in FIN 3331.
Prerequisite: FIN 3331.
Course Objectives:
Upon completion of the course, the student should be able to demonstrate
mastery of all of the concepts covered in Fin 3331, including being able to
Evaluate capital budgeting projects
Estimate project cash flows
Calculate present values, future values.
In addition, the student should be able to:
Calculate the weighted average cost of capital for a firm.
Explain the method of optimal capital structure determination.
Forecast additional funds needed.
Calculate break-even points for quantity, price, total revenue, and operating
income.
Calculate degree of operating, financial, and total leverage.
Calculate working-capital financing needs, operating cycle, and cash cycle.
Analyze the management of cash, marketable securities, accounts receivable,
accounts
payable, credit, inventory, and short-term financing.
Analyze stock offerings and rights offerings.
Explain corporate dividend policies and procedures.
Evaluate leasing and other alternative financing methods.
Explain bankruptcy, reorganization, mergers, and acquisitions
Text(s):
Fundamentals of Financial Management 12th Edition, Brigham and Houston,
(South-Western College Publishing) 2007.
We will be using CengageNOW for Blackboard as well.
(eBooks are available at lower cost than print editions.)
Other Materials:
Calculators
You will need a financial calculator for this class. Recommended is either the
Texas Instruments BA II Plus, or any Hewlett Packard financial calculator. The
Blackboard Web
Site
HP is a slightly better buy. You are encouraged to read the Yahoo Finance
regularly. No subscription is required, and this is an online service. We will
discuss articles from these sources throughout the semester. You are encouraged
to bring to the attention of the class any information discovered from reading
these publications. Please note that these are not the only sources of information
available.
For class notes, go to [Troy University website] [Blackboard].
Grading Methods:
There will be three (3) midterm exams, each counting for 20 percent of the final
grade. The quiz average will also count for 20 percent of the final grade. And the
comprehensive final will count for 20 percent of the final grade. If the student has
an excused absence from any of the quizzes or exams, the other exams (and
quizzes) will be weighted more heavily.
Grade scale:
The grade range for this class is A 85 - 100%, B 75 - 84%, C 65 - 74%, D 55 - 64%,
and F 0 - 54%
Homework policy:
1. Homework will not be collected, but quizzes shall be selected from the
problems assigned, or may be similar to those assigned. We will work out
solutions to the homework assignments in class, so it is important that you do all
homework assigned.
2. Homework assignments will be announced during the semester.
Quiz policy:
Quizzes administered during the course may or may not be announced, and there
will be no make-ups. Normally, the class will begin with a quiz. A zero may be
assigned for an absence, even when a quiz is not given.
Exam policy:
There will be at 3 exams during the semester and a comprehensive final
examination. The material covered on the exams is indicated in the course
content section. The exams are given during regular class periods and may
consist of multiple choice questions. You will need to bring a Scantron sheet to
each exam. Excused absence will be given only for documented (on letterhead),
approved absences. See Attendance policy.
Final Exam Policy:
Final is
comprehensive
The above attendance policy will be strictly enforced for final exams. There will
be no alternative final exams given. Students who fail to show for the final exam
will receive a failing grade for the course. The final exam will be comprehensive
and will count for 20 percent of your grade. Conflicts with travel plans and flight
schedules is not an acceptable excuse for missing the final exam at its scheduled
time.
Incomplete Work
Policy:
Any incomplete work at the end of the term will not be accepted unless the
student can provide acceptable and clear documentation prior to grades being
submitted to the Registrar. All incompletes must be cleared within the first two
weeks of the next semester, or the incomplete will change to a failing grade.
Attendance Policy:
No Make-up exams
There are no make-up exams. If the student has an excused absence from any of
the quizzes or exams, the other exams (and quizzes) will be weighted more
heavily. Thus, all other exams and quizzes will count as 25 percent of the grade,
instead of 20 percent. A grade of zero will be assigned for an exam missed due to
an unexcused absence. Exams will be returned in class. Test dates will be
announced at least one week prior to the exam date. Comprehensive final
examination chapters will be announced.
1. Class Roll: Class roll will be taken randomly, at the beginning of the class
session. Absences will count as a zero toward the quiz average 2. Attendance is
mandatory. If a student misses a class it is his/her responsibility to obtain all
information and materials presented (including materials covered, handouts,
skills learned, and homework assignments) during his/her absence. I do not
repeat lectures nor perform the tutoring function for students who are absent.
Each absence will make the successful completion of this course more difficult,
since finance courses are cumulative in nature and days missed from class are
lost knowledge. Exams will include not only the material from the assigned
chapters in the text, but also from any other materials covered in class lectures.
3. Excused absences: Excused absences have the following characteristics: a.
Professor was informed prior to the absence. b. Professor determines that the
absence is excused. c. Absence is of the following type: 1. Participation in a
documented official university function that does not permit the student’s class
attendance (e.g., participation in athletic events, field trips, etc.) 2. Severe illness:
A hospital stay, or a doctor's excuse saying that it is impossible for student to
attend class(es). Please note, this does not include scheduled medical
appointments nor driving someone else to doctor. 3. Death of immediate family
member (grandparent, parent, sibling, or child) 4. Appearance in court 5.
Personal situations that are approved by the professor in advance of the time the
student will to be absent. d. Written documentation (on letterhead) must be
provided.
Class Procedure and
Requirements:
There are no social promotions! You must earn a passing grade by meeting
course objectives. Examinations, assignments, and quizzes will be the criteria for
grades.
The approach used will be classroom lecture covering concepts and problem
solving technique(s). Class participation and discussion is strongly encouraged. I
believe participation is essential for this course to be interesting and for students
to get the maximum benefit from the course. If you have a question, ask it! It will
likely benefit us all. End-of-chapter questions and problems are assigned (in
class) to assist with your comprehension of chapter materials. While you will not
be required to hand these in, you should complete them when assigned and be
prepared to discuss them during class.
The student will be expected to attend scheduled class meetings, complete
reading and problem assignments prior to class.
Course Content:
Chapters Covered:
10. The Cost of Capital
11. The Basics of Capital Budgeting
12. Cash Flow Estimation and Risk Analysis
Midterm One, Thurs, July 5
13. Real Options and Other Topics in Capital Budgeting
14. Capital Structure and Leverage
Midterm Two, Wednesday, July 11
15. Distribution to Shareholders
16. Working Capital Management
Midterm Three Wednesday, July 18
17. Financial Planning and Forecasting
20. Hybrid Financing.
21. Mergers and Acquisitions
Final Exam Wednesday, July 25
Classroom
administration:
Students are expected to: 1. Punctually attend all scheduled classes. Students who
arrive after class begins will be counted absent. (See Attendance Policy). 2. Be
responsible for all instructions and assignments given in class as well as for the
supporting textbook content. 3. Read the textbook material before the lecture.
This leads to a better understanding of the lecture as well as the opportunity to
ask questions about material(s) in the text that were unclear or that the student
did not understand. 4. Not wear hats or sunglasses in the classroom
General Supports:
The computer labs in McCartha Hall are available for student use.
Daily Assignment
Assignments will be announced in class on Friday for the following week.
Additional Services:
Americans with
Disabilities Act
Any student whose disabilities fall within ADA must inform the instructor at the
beginning of the term of any special needs or equipment necessary to accomplish
the requirements for this course.
Students who have or may be dealing with a disability or learning difficulty
should speak with the instructor, contact the Office of Adaptive Needs Program
(Wright 226), or call 670-3220/3221. Various accommodations are available
through the Adaptive Needs Program. The faculty in the School of Business
makes every effort to accommodate unique and special needs of students with
respect to speech, hearing, vision, seating, or other possible disabling conditions.
Please notify the instructor as soon as possible of requested accommodations or
ways to help.
Cheating Policy:
If you are caught cheating, you will receive a course grade of "F". See ORACLE:
Student Handbook, 1998-1999" pp. 56-57. Plagiarism is the act of stealing and
passing off (the ideas or words of another) as one’s own or to commit literary
theft: present as new and original an idea or product derived from an existing
source (Webster’s New Collegiate Dictionary). Plagiarism will cause a student to
get a course grade of "F". According to the TSU ORACLE: Student Handbook,
1998-99, pp. 52, one definition of misconduct is: "Dishonesty, such as cheating,
plagiarism...". The ORACLE states on pp. 56 under the Academic Code subheading that: "A student is subject to disciplinary action: #3. Where the work
affects or might affect a student’s grade, credit, or status in the university, a
student represents to be his or her own any work which is not the product of his
or her own study and efforts". The penalty for such misconduct may be (pp. 56)
"A student’s grade in the course or on the examination affected by the
misconduct may be reduced to any extent, including a reduction to failure." A
student may be suspended from the university for a specific or an indefinite
period. p. 56-57.