BU393 Fall 2015
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BUSINESS 393: FINANCIAL MANAGEMENT II, Fall 2015
Section B1 (MW, 8:30-9:50am, Arts 2C3)
Section B4 (MW, 10-11:20am, Arts 2C3)
Section B7 (MW, 11:30am-12:50pm, Arts 2C3)
Instructor:
Name
Office
Phone
Michael Brolley
P3064
519 884-0710 Ext. 4836
SBE 2201
519 884-0710 Ext. 2063
(Email: mbrolley@wlu.ca)
Faculty Assistant:
Jane Thomas
Office Hours:
Wed, Thu 2:30pm-3:30pm or by appointment
Course Website:
MyLearningSpace (MLS)
Prerequisites:
BU383, Financial Management I
Textbook:
Custom bind of selected chapters from Corporate Finance (7th Canadian Edition), S.A. Ross,
R.W. Westerfield, J.F. Jaffe, G.S. Roberts, 2015. McGraw-Hill Ryerson Ltd.
Alternatively, you may use the 6th edition of the custom book. The main difference is that the 7th
edition custom book includes Chapter 30 Mergers & Acquisitions, while the 6th edition does not.
Or, you may use the full book:
Corporate Finance (either 6th or 7th Canadian Edition), S.A. Ross, R.W. Westerfield, J.F. Jaffe, G.S.
Roberts, 2011. McGraw-Hill Ryerson Ltd.
We do not use “Connect” and thus the “Connect Access Card” is not required for the course.
Course Website:
All course materials are available on mylearningspace.
BU393 Fall 2015
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Course Description:
This is the second part of the financial management core course. It focuses primarily on the
analysis of long-term financial management decisions and the application of appropriate
techniques. Topics covered include capital budgeting, cost of capital, long-term financing,
capital structure, payout policy, leasing, and mergers & acquisitions.
A calculator is required for this course. Any calculator is good for the course. You may use a
financial calculator. However, instructions for any calculator will not be provided in class.
Teaching Method:
Lectures and discussion of solutions to in-class examples will comprise the primary teaching
methods employed in this course. Students are strongly urged to attempt all the problems in the
BU393 question bank (which is posted in myLearningSpace), and to do so without first reviewing
the solutions.
Grading Schemes:
BBA Students
Option A
Option B
In-class quizzes (best 2 out of 3)
10%
Midterm Examination
40%
45%
Final Examination
50%
55%
100%
100%
Quizzes:
In order for students to stay current with the class material, there will be three in-class quizzes.
Quiz dates are noted in the course outline. Students completing the in-class quizzes, will receive
the higher of the grade calculated under Option A or B.
There will be no deferred or early quizzes under any circumstances.
Exams:
The midterm exam will be held on Friday, Oct 30th from 6-8pm (2 hours). The mid-term will cover
chapters 7, 8, 9, 13, 14, and 15, and last for two hours.
There will be no deferred or early mid-term exams under any circumstances.
The date of the final examination is yet to be determined. The final exam will be comprehensive,
i.e., its coverage being the entire course, with somewhat more emphasis on topics not covered
in the midterm exam.
In quizzes and the midterm and final exams, students will be provided with a formula sheet. The
sample formula sheet is posted on myLearningSpace for students to use. Present Value tables
will NOT be provided neither allowed. Students will need to bring a calculator to quizzes and
exams.
Academic Accommodation:
Students requiring academic accommodations are advised to contact the Accessible Learning
Centre for information regarding services and resources. Students are encouraged to review
the Calendar for information regarding all services available on campus.
BU393 Fall 2015
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Student Privacy Statement:
Students' names may be divulged in the classroom, both orally and in written form, to other
members of the class. Students who are concerned about such disclosures should contact the
course instructor to identify whether there are any possible alternatives to such disclosure.
Academic Misconduct:
Students are to adhere to the Principles in the Use of Information Technology. These Principles
and resulting actions for breaches are stated in the current Undergraduate Calendar.
Wilfrid Laurier University uses software that can check for plagiarism. Students may be required
to submit their written work in electronic form and have it checked for plagiarism.
Students are expected to be aware of and abide by University regulations and policies, as
outlined in the current on-line Undergraduate Calendar (see http://www.wlu.ca/calendars).
The University has an established policy with respect to cheating on assignments and
examinations, which the student is required to know. Students are cautioned that in addition to
a failure in the course, a student may be suspended or expelled from the University for cheating
and the offence may appear on one's transcript, in which event the offence can have serious
consequences for one's business or professional career. For more information refer to the current
Undergraduate calendar (University Undergraduate Regulations).
BU393 Fall 2015
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Tentative Class Schedule (I may go slower or faster than suggested in the schedule below).
Monday & Wednesday Classes
Class
Date
1
Sep 14
2
Sep 16
3
Sep 21
4
Sep 23
5
Sep 28
6
Sep 30
7
Oct 5
8
Oct 7
9
Oct 19
10
Oct 21
11
Oct 26
Topic
Text Chapter
Practice
Problems
Investment Rules
7 (omit 7.4)
Question bank
Q1-Q3
NPV, Capital
Budgeting and
Risk Analysis
8 (including 8A)
and 9 (omit 9.3)
Question bank
Q4–Q8
In-class Quiz 1 – Investment Rules
NPV, Capital
Budgeting and
Risk Analysis
8 (including 8A)
and 9 (omit 9.3)
Question bank
Q4–Q8
Risk, Return and
Capital
Budgeting
13 (omit 13.2)
(13.3 will be
discussed with
Chap 16&17)
Question bank
Q9-Q13
Capital
Budgeting &
Corporate
Financing
Decisions
13 and 14
In-class Quiz 2 – NPV, Capital Budgeting and Risk
Analysis
Long Term
Financing – Intro
and Equity
15 and 20
(omit 15.4)
BU393 Fall 2015
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Oct 28
Review Class
Midterm: Friday, Oct 30, 6-8pm (cover chapters 7, 8, 9, 13, 14, and 15)
13
Nov 2
Long Term
Financing – Intro
and Equity
(cont.)
15 and 20
(omit 15.4)
14
Nov 4
Long Term
Financing –
Debt
21
Question bank
Q14-Q16
15
Nov 9
16 and 17 (omit
17.9)
Question bank
Q17-Q20
16
Nov 11
Taxes and
Capital
Structure
17
Nov 16
18
Nov 18
Leasing
22
Question bank
Q25, Q26
19
Nov 23
In-class Quiz 3: Taxes and Capital Structure
Leasing
22
Question bank
Q25, Q26
Payout Policy
19 (omit 19.5,
include 19A)
Question bank
Q21-Q24
30
Question bank
Q27
20
Nov 25
21
Nov 30
22
Dec 2
M&A
23
Dec 7
M&A
24
Dec 9
Final Review