Villanova University
Villanova School of Business
Financial Management and Reporting
VSB 2010 Section 5, MW 1:30-4:15, CRN 25480
Fall 2010
Instructor
Office
Phone
Email
Office Hours
Mrs. Nancy Heck
Bartley 2038
610-519-6922
nancy.heck@villanova.edu
To Be Announced
Dr. Robert West
Bartley 2040
610-519-4359
robert.west@villanova.edu
To Be Announced
Course Prerequisites: VSB 1000, 1001, and 1002; ECO 1001 and 1002.
It is your responsibility to be certain that the prerequisites have been met. If at any time during the
semester it is determined that you have not completed the prerequisites, you can be dropped from the
course without refund or credit.
Required Textbooks:
Financial Accounting: Tools for Business Decision Making by Kimmel, Weygandt, and
Kieso, 5th Edition, Wiley and Sons, 2009, ISBN-13: 9780470239803.
Business Financial Management by Heck, 2011 Custom Edition, JLH Press, Wayne, PA.
Required Calculator:
Texas Instruments BA II Plus Calculator, available online, in office supply stores, or at
the Villanova bookstore. For more information, go to
http://education.ti.com/educationportal/sites/US/productDetail/us_baii_plus.html
Please bring your calculator and texts to class every day!
Recommended Reading:
We cannot stress enough the importance of reading the assigned material in your
textbooks. We also recommend that you read the Wall Street Journal (WSJ) to stay
informed about current business news. In addition to the print version of the WSJ, which
is available in Bartley Hall, all VSB students have access to the online version of the
WSJ.
1
Course Description:
This course presents an integrative perspective on understanding financial issues
in business. Transaction analysis, revenue recognition, expense matching, cash flow,
financial markets, time value of money, risk/return, valuation, cost of capital, capital
budgeting, working capital management, financial analysis, and short-term financial
planning are among the topics covered.
Classroom Policies:
Students are expected to attend class on a regular basis. Missing more than 2 classes will
affect your final course grade. If you must miss a class, it is your responsibility to obtain
class notes and assignments from a classmate - do not expect your professors to privately
tutor you on the missed material (in this course or any college course).
Electronic devices (smart phones, etc.) are to be turned off during class. Laptop usage
during class is permitted only when designated by the instructors.
A break will be given mid-class. Please use that time to take care of your personal needs it is very disruptive to have students leaving and entering the room while class is in
session. Students are expected to be able to remain seated and pay attention for at least 75
minutes at a time.
Course Grading:
VSB 2010 is a challenging, quantitative course. Study strategies that have worked for you
in the past may not be adequate for this course. As a rule of thumb, you should plan on
spending 3 hours on homework between class meetings for any given college course.
Since this course is the equivalent of two 3-credit courses, that means spending at least 6
hours between classes (for a total of 12 hours per week) reading the chapters, completing
assignments, and studying course material. Again, this may be very different from the
approach you’ve taken with courses in high school or in your college career to date, but
you will need that kind of commitment and discipline to succeed in this course.
Students will pass or fail this course based solely on performance - in the classroom, on
assignments, and on exams. While we recognize that students may put a great deal of
effort into the course, final grades are based on objective measures of performance, not
subjective estimates of effort. Additionally, no extra credit opportunities will be offered
to anyone at any point during or after the semester. It is unfair to your fellow students for
us to give one student the opportunity to improve his or her grade without offering it to
everyone. Instead of asking for extra credit at the end of the semester, you should plan on
spending “extra” time working now on mastering the assigned material.
2
Final Grades will be based on the following:
4 Semester Exams @ 15% each
2 Final Exams @15% each
Homework Assignments, Cases, Project*
60%
30%
10%
100%
*Students must complete the STI project in order to pass the course.
Exam dates, contents, and weights are subject to change.
Make-up Exam Policy:
No make-up exams will be offered after a scheduled exam has been given. You must
notify the instructor in advance if you will not be able to take a scheduled exam. If you
fail to notify the instructor in advance or if the instructor determines that your absence
from an exam is not excusable, you will receive a zero for the missed exam.
Grading Scale for Final Course Grade:
A = 93 and up A- = 90-92
B- = 80-82
C+ = 77-79
D+ = 67-69
D = 63-66
B+ = 87-89
C = 73-76
D- = 60-62
B = 83-86
C- = 70-72
F = below 60
Academic Integrity Policy: The Code of Academic Integrity of Villanova University
addresses cheating on exams, fabrication of submitted work, plagiarism, and other forms
of dishonesty. For the first offense, a student will receive a zero on the assignment or the
exam. The violation will be reported to the Dean’s office and recorded in the student’s
file. In addition, the student will be expected to complete an education program. For the
second offense, the student will be dismissed from the University, with the reason noted
on the student’s official transcript.
The "Academic Integrity Gateway" is a web site featuring information about academic
integrity and avoiding plagiarism. The web site contains an interactive quiz, information
about citation styles and links to resources on writing research papers. We encourage
you to take the interactive quiz: http://www.library.villanova.edu/academic_integrity/
Academic Support: If you need additional help in this course, there are resources
available such as Gamma Phi tutoring and study skills counseling; stop in at The Clay
Center for more information. Villanova University also makes reasonable
accommodations for qualified individuals with disabilities. If you are a person with a
disability, please speak to one of us after class and arrange to register with Learning
Support Services by contacting 610-519-5636 or nancy.mott@villanova.edu
immediately. Registration is required in order to receive accommodations.
3
Financial Management and Reporting
VSB 2010 Section 5 MW 1:30-4:15
Fall 2010
(Subject to Change at Discretion of Instructors)
Class
1
Date
M 8/23
Topics
Course Introduction
Homework Due Today
2
W 8/25
A: Ch 1 Intro to Fin Stmts
M 8/30
F: Ch 1 Finance and Business
A: Ch 1 continued
A: Read Ch.1,
Q1,3,4,5,6,8,10,12; BE8,9
F: Read Ch 1; Problems 1-9
A: Ch1:E5,8,12,13,16,P3A, 5A
Read Project on Investments
F: Read Ch 2; Problems 1, 2,
10-12
A: Read Ch. 2, ALL questions;
F: Ch 2 Problems 13-15
3
F: Ch 2 The Financial System
4
W 9/1
A: Ch 2 More on Fin Stmts
F: Ch 2 The Financial System
Labor Day - No Class
A: Ch 2 continued
F: Ch 2 The Financial System
5
M 9/6
W 9/8
6
M 9/13
A: Ch 3 AIS (debits + credits)
F: Ch 3 Time Value of Money
7
W 9/15
8
M 9/20
9
W 9/22
10
M 9/27
11
W 9/29
12
M 10/4
A: Ch 3 continued
F: Ch 3 Time Value of Money
A: Ch 4 Accrual Accounting
F: Ch 3 Time Value of Money
A: Ch 4 continued
F: Ch 3 Time Value of Money
A: Appendix D, Investments
F: Exam 1: Ch 1-3
A: Exam 1: Ch 1-4
F: Ch 4 Risk and Return
A: Ch 10 Liabs. & Appendix C
F: Ch 4 Risk and Return
13
W 10/6
A: Ch 10 continued
F: Ch 4 Risk and Return
M 10/11 Fall Break – No Class
W 10/13 Fall Break – No Class
4
A: Ch2: E4,7,9,11;P3A,4A
New Co transaction problem
F: Ch 2 Problems 3-9
A: Read Ch.3,Q1,9,10,13,19.
F: Read Ch 3 and Calculator
Instructions (see homepage)
A: Ch3: E2,10,14; P1A,3A
F: Ch 3 Problems 1-30
A: Read Ch.4, ALL questions
F: Ch 3 Problems 31-51
A: E2,3,8,10; P3A, 5A, Adj a-d
F: Ch 3 Problems 52-70
A: Read App D; do ED1,2,4
F: Read Ch 4; Problems 1-4
A: Read Ch10, append C;
ED6,8
F: Ch 4 Problems 5-11, Laptop
Assignment
A: P10-2A, E4,5,6,10,14; BE5
Lease problems.doc (use excel)
F: Ch 4 Problems 12-17
Financial Management and Reporting
VSB 2010 Section 5 MW 1:30-4:15
Fall 2010
(Subject to Change at Discretion of Instructors)
Class
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
Date
M 10/18
Topics
A: Ch 11 Equity (part)
F: Ch 5 Bond Valuation
W 10/20 A: Ch 11 continued
F: Ch 5 Stock Valuation
M 10/25 A: Ch 9 Long-lived Assets
F: Ch 5 Stock Valuation
W 10/27 A: Ch 9 continued
F: Ch 6 Cost of Capital
M 11/1
A: Exam 2 (chs. 9-11, AppD?)
F: Ch 6 Cost of Capital
W 11/3 A: Ch 5 Merchandising Ops
F: Exam 2 Ch 4-6
M 11/8
A: Ch 6 Inventory
F: Ch 7 Estimating Cash Flows
W 11/10 A: Ch 6 continued
F: Ch 7 Estimating Cash Flows
M 11/15 A: Ch 8 Receivables
F: Ch 8 Selection Methods
W 11/17 A: Ch 8 continued
F: Ch 8 Risk in Capital
Budgeting (Bring Laptops)
M 11/22 A: Ch 11 Equity, EVA
F: Ch 9 Working Capital
Management
W 11/24 Thanksgiving – No Class
M 11/29 A: Ch 12 SCF (Cash Flows)**
F: Ch 10 Financial Analysis
W 12/1 A: Ch 12 continued
F: Ch 11 Short-Term Financial
Planning
M 12/6
A: Ch 12 continued
F: View Enron Documentary
W 12/8 A: Ch 7 Fraud and Internal
Control
F: Enron Case continued
Homework Due Today
A: Read ch11; Equity 1,2 E116,14,P3A,7A
F: Read Ch 5; Problems 1-6
A: STI part 1 due
F: Ch 5 Problems 7-13
A: Read ch9; do FA 1,3,4,7
F: Ch 5 Problems 14-24
A: P9-1A,3A, E14; discuss STI
F: Read Ch 6; Problems 1-8
F: Ch 6 Problems 9-16
A: Read Ch5 E1,2,5,6,10,1A,5A
A: Read Ch6; exercises TBA
F: Read Ch 7
A: E6-5,10, P2A
F: Ch 7 Problems 1-9
A: Read Ch8; do BE2,6,10
F: Read Ch 8 and Calculator
Instructions (see homepage)
A: STI Part 2 due
F: Ch 8 Problems 1-17
A: AR 1,2; E8-3,5,6,7,11, P2A?
F: Read Ch 9; Problems 1-6
A: Read Ch12; Do BE1,2,3,4,5
F: Read Ch 10; Problems 1-11
A: Ralston; 7A, 9A
F: Read Ch 11 pp 346-359;
Problems 6-13
A: Goldblum, Napoli
A: Read Ch7; E4,5,6
F: Enron Case
Accounting Exam 3 (Ch 6, 8, 12, 5, 7) will be Tuesday, 12/14 from 8-10:30 a.m.
Finance Exam 3 (Ch 7-11) will be Tuesday, 12/14 from 10:45-1:15 p.m.
5