University of Detroit Mercy College of Business Administration MBA 522 Financial Management Spring 2008 Instructors: Ali Ozbeki Phone: (586) 492-7095 E-mail: [email protected] - Information Systems & Services, General Motors Corporation - Ph.D. in Structural Engineering 1984 - Master of Business Administration 1992 - Master of Financial Engineering 2004 Textbook: Principles of Corporate Finance Classroom: Office Hours: By Appointment Notes: 1. 2. Exams will be closed book and closed notes. No make-up exams are allowed Final Exam: Cases: Assignments: 50% 30% 20% Course Description The primary goal of a firm is to maximize stockholder wealth in socially responsible ways. To attain this goal, the firm must perform three major functions: financial planning and control (supportive tools), the efficient allocation of funds (investment), and the acquisition of funds on favorable terms (financing). The basic purpose of this course is to help the student better understand these three functions through their real-world applications: case analyses, internet exercises, term papers, and other practical assignments. In other words, the course will use a combination of case presentation, lecture/discussion, and other projects. Tentative Outline - Chapter 1: Finance and the Financial Manager Chapter 2: Present Values, the Objectives of the Firm, and Corporate Governance Chapter 3: Present Value Chapter 4: The Values of Bonds and Common Stocks Case 1: Reeby Sports Chapter 5: Why Net Present Value Leads to Better Investment Decision Than Other Criteria Exam 1 Chapter 7: Introduction to Risk, Return, and the Opportunity Cost of Capital Chapter 8: Risk and Return Case 2: Restructuring the Capital Structure at Marriott Chapter 9: Capital Budgeting and Risk Chapter 14: An Overview of Corporate Financing Chapter 19: Financing and Valuation Exam 2 Group Assignment The class will be divided into groups of 3 or 4. Each group will do all two cases which require a report. Each group will need to make one presentation. Reports should be submitted on the of the case study.