Teaching Staff:
Associate Professor K. Gary McClure, PhD
Assistant Professor: Doc. dr. sc. Lidija Dedi
Office: EDABA Visiting Professor Office, 405
Phone: 098 615 531
Email: gmcclure@skidmore.edu
Office Hours: By Appointment.
Course Content Outline:
This course is a practical introduction to the overall field of finance and specifically corporate financial management and its role, activities, and contribution within the overall business enterprise. Specific course subjects include:

An Overview of Financial Management & the Financial Environment

Financial Statement Analysis

Financial Planning & Forecasting

Time Value of Money

Financial Risk & Return

Bonds and Their Valuation

Stocks and Their Valuation

The Cost-of-Capital

The Basics of Capital Budgeting

Cash Flow Estimation & Risk Analysis

Corporate Valuation & Value-based Management

Capital Structure Decisions

Distributions to Shareholders
The course will provide the student with an understanding of the relationship between finance and other corporate departments and will emphasize the decisions commonly made by financial managers and the quantitative techniques and computer applications used in making these important corporate decisions. The knowledge and understanding gained in this course will serve you well in your future business or professional careers regardless of your specific discipline and will establish a base from which those of you with interests in finance can continue to grow and develop your analytical and management skills.
Learning and Teaching:
A combination of lecture, group projects, homework, class discussion, and question-andanswer will be used. Computer applications to finance will be discussed throughout the class sessions and in the assignments. Students are recommended to obtain a financial calculator or laptop computer and your instructor will use the Hewlett-Packard 10BII as well

as a computer in class. Please note that the course introduces computer applications in financial analysis and develops "real-world" computer skills for the student as well as developing the written communications skills required to present the results of the analyses performed.
Computer Project: The Macbro Computer Project (distributed separately) is an integral part of the course and will be accomplished in groups of 3-5 students with each group member receiving the same group grade. The project is in two (2) parts covering: Financial Planning
& Forecasting and Capital Budgeting. The project will build on the course material studied.
By the end of the course you will have created on a computer, (1) a 5-year Financial Plan &
Forecast for a corporation (including debt and equity financing), analyzed the results, and presented a written report of your findings and recommendations and (2) evaluated of a series of capital budgeting projects, analyzed the results, and presented a written report of your findings and recommendations.
Media Report: During the course each student is to provide one (1) brief report
(approximately 2-3 pages) on a finance subject of interest to the student that is relevant to the course, and has been published in a current news/magazine article. Each report should properly reference the article in a footnote, briefly summarize the selected subject in a section titled
“Summary of Article”
, and, most importantly , present your personal assessment/critique/opinion of article in a section titled “Assessment of Article” . Pages must be numbered and stapled together in order. The selection of the subject is yours and is to be submitted as indicated in the Course Schedule.
Homework: Each student will complete and submit two (2) homework assignments during the course. These assignments will be distributed separately. Both your answers to the problems and all work must be shown for full credit.
Learning Resources:
Prescribed Textbook:
“Financial Management: Theory and Practice,” Eugene F. Brigham & Michael C. Ehrhardt,
Thompson /South-Western, 11 th
Edition, 2005.
Assessment:
Students are expected to read, study, and understand the chapter text material including the
“Case” at the end of each chapter prior to class. It is also recommended strongly that the student complete selected End of Chapter Problems (Solutions in Appendices) for practice and familiarization with financial mathematics.
There will be one (1) mid-term and one (1) final exam (1) required during the course. The
Final Exam will cover all the material in course. The exams will be closed-book but students may bring a copy of Appendix “C” from the textbook and a calculator to both exams. Any student late for an exam will not be given any additional time to complete.
ANY ASSIGNMENT TURNED IN LATE WILL LOSE AT LEAST ONE FULL GRADE
POINT OR IT WILL BE GIVEN A MAXIMUM OF HALF CREDIT, IF IT IS MORE
THAN ONE WEEK LATE. ANY ASSIGNMENT OR TEST MISSED WILL RECEIVE
A GRADE OF 0%.
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Your final grade will be determined by the Mid-term Exam (20%), the Final Exam (40%) the Computer Project (20%), the Media Report (10%), and Homework Assignments (10%).
Progression:
Prerequisites: Approval of Economics & Business International Program (EBIP) Office
Recommended Readings:
Your textbook has practical example cases and suggested articles that supplement the course and contribute to the learning experience for the student.
Recommended Information Sources & Websites:
The World Bank: http://www.worldbank.org
The International Monetary Fund: http://www.imf.org
The Organization for Economic Cooperation and Development: http://www.oecd.org
The European Union (USA Site): http://www.eurunion.org
Yahoo Finance: http://finance.yahoo.com/
The Securities and Exchange Commission: http://www.sec.gov
Hoovers Online (General Corporate/Business Information): http://www.hoovers.com
The Wall Street Journal (Current Corporate/Business Information): http://www.wsj.com
The Economist (Current Corporate/Business Information): http://www.economist.com
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Week/
Date
1
23/4-27/4
2
30/4-4/5
May 8
May 9
May 10
May 15
May 16
May 17
May 22
Tutorial
Ch 6
Ch 7
May 23
May 24
May 29
Tutorial
Ch 9
Ch 10
May 30 Mid-term Exam
Chapters
Covered
Ch 1-2
Tutorial
University of Zagreb
Graduate College of Economics & Business
EBIP Corporate Financial Management
Course Schedule
Spring 2007
Instructor
Dedi
Special Instructions/Notes
Overview & Financial Environment
Computer Cases
Dedi Financial Statements, Cash Flow & Taxes Ch 2-3
Tutorial
Ch 13
Tutorial
Ch 14
Ch 4
McClure
Dedi
McClure
McClure
Financial Statement Analysis
Financial Planning & Forecasting
Risk & Return (Basics)
Dedi
McClure
McClure
Dedi
McClure
McClure
Dedi
Note: Turn in Homework #1
Bond Valuation
Stock Valuation
Tutorial
Cost of Capital
Capital Budgeting (Basics)
May 31
June 5
June 6
June 7
June 12
June 13
June 18-
22
Summer
2007
Ch 11
Ch 15
Tutorial
Ch 16
Ch 18
Tutorial and
Review
Final Exam
&
Computer Case 2
Zivjeli! Vi ste financijski carobnjaci!!
McClure
McClure
Dedi
McClure
McClure
Dedi
Mid-Term Exam
In-Class: Closed Book, (copy of Appendix C permitted)
Chapters 1-4, 6-7, 13-14
Note: Turn in Computer Case 1
Cash Flow Estimation & Risk Analysis
Corporate Valuation & Value-based Management
Note: Turn in Media Report
Capital Structure Decisions (Basics)
Distributions to Shareholders
Note: Turn in Homework #2
Final Exam
In-Class: Closed Book, (copy of Appendix C permitted)
Chapters 1-4, 6-7, 9-11, 13-16, 18
Note: Turn in Computer Case 2
Good luck with the rest of your EBIP courses
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