SHANGHAI UNIVERSITY OF FINANCE AND ECONOMICS and Webster University
Graduate Course Syllabus Joint MBA Program
COURSE:
FINC 5000: FINANCE
Location: Shanghai P.R.C.
Term: SPRING 1 , 2015
(Core Course)
THE INSTRUCTOR
Name:
Availability:
Home Phone:
Office Phone:
E-mail:
Paul P.M. Bon
e-mail/ 24 hrs. Service
86 21 65258240
Webster Shanghai
Paul_pmbon@yahoo.com
Public Mail:
To be decided
About the instructor
Paul P.M. Bon is a visiting Professor from and adjunct faculty at, Webster Netherlands, Webster UK and
Webster/SUFE China.
He has been CFO for ICI Plc.’s Specialty Chemical business (prior UNILEVER) , and Business Group
Director at SCA AB of Sweden, Vice President F&P Packaging at Buhrmann Tetterode NV, and Group
Controller for SONY (Japan).
Paul holds several Academic Degrees and a Doctorate from the University of Amsterdam and an Executive
MBA from IMD Switzerland.
He has been teaching for Webster’s graduate and undergraduate courses for Strategy, Finance, Marketing,
Accounting, Business Statistics, Negotiations and Management over the period 2001-now.
Since 2003 Paul has also taught for Webster’s joint programs in China with SUFE (The Shanghai University of
Finance and Economics) in Shanghai and Shenzen P.R.C. and UESTC (The University of Electronics, Science,
and Technology of China) in Chengdu P.R.C. , as well as for the EMBA Program of City London University ,
SHUFE and the Bank of China, SINOPEC, NYU-Stern University (US) and Duke University (US).
He is a member of COCFO (Chinese Organisation of CFO’s), AIA (Association of International Accountants
UK) and AAA (Association of American Accountants US)
Paul is part time consultant of Duke Corporate Education (Global Learning Resources Network) North
Carolina, US and owns a Packaging Consulting Business with branches in the UK and Shanghai, PRC.
Course Material, Announcements and Course information
www.websterchina.com - Handout- MBA- Username-Password (provided by the University)
THE COURSE
Course Definition (source: Webster University Graduate Catalogue)
The student examines the general nature of financial management, the American financial system, taxes, and
the major financial decisions of corporations. Specific attention is given to present value and capital
budgeting; risk and asset pricing; financial analysis and forecasting; financial decisions and market efficiency;
and capital structure. Problem-solving methodology is used to illustrate the theories and tools in financial
decision making. Prerequisite: Business Statistics and Financial Accounting, BUSN 5600 and BUSN 5760.
The course is a hands on course that focusses higly on applying learned concepts to day to day business
decisions.
During the courses students will be asked to follow the financial and business news on a daily basis.
This course is a required or core course for the MBA degree program.
However, all graduate students may take a course in any of the other programs, if approved after
consultation with the Academic Advisor. This implies that this course may contain a mix of students
from other graduate degree programs both in China and from abroad.
In relation to this students frequently have very different basic education. The pre-requisite knowledge
for this course has been summarized in so called PRIMERS. These primers will be uploaded on
www.websterchina.com and do allow students to get on top of the knowledge they need to start this
course. The primers fort his course cover:
Basic understanding of Accounting
The time value of money
Business statistics and formulas that you may have forgotten
Uncertainty and Risk
Students are strongly recommended to read the Primers. There is of course no need to spend a lot f time
on this if you find that you know the contents of the Primer(s) but experience tells that hardly any
student has the required knowledge of all the Primers once entering this core course.
Course Content
Course content can be covered using a variety of teaching methods. Lecture, problems, and case studies can be
integrated into the course to teach and reinforce the material. Students should be able to demonstrate, either
through direct testing or homework/case assignments, the ability to understand and perform the following:

Calculate selected financial ratios.

Differentiate the components of the extended DuPont equation, and calculate the return on equity
using the DuPont format.

Calculate or describe the common measures of investment performance.

Understand basic framework of the financial system.

Understand TVM concepts and calculations; including future value of a present sum, present value,
and present and future values of annuities. Algebraic methodologies and financial calculators should
be encouraged. Use of tables is discouraged.

Understanding of the differing rates of returns for differing assets.

Understanding Portfolio Theory and Investment Theory

Understand the concept of Diversification (Management of Risk)

Describe common features and types of bonds.

Describe major characteristics of common and preferred stock.

Understand how capital structure is related to investing decisions.

Integration of finance theory with the chapter materials.

Students should have a basic understanding of risk and return, efficient market hypothesis, and
competitive markets and the consequences and challenges for financial managers.

Calculate Weighted Average Cost of Capital.

Understand the various techniques used in capital budgeting decisions.

Describe techniques used to forecast financial statements.

Calculate the Equity and Company Value of assets and Companies

Understand Financial options (the Valuation of Options will be covered in FINC 5880)
Incoming Competency (Also See Course Definition Above)
Business Statistics and Financial Accounting, BUSN 5600 and BUSN 5760
AS YOU KNOW:
I have added some Primers (introduction and summary) on Finance, Accounting and Statistics for you to
review on the University’s website; www.websterchina.com please download them and read them as to make
sure you are ready to start this course with the appropriate background knowledge you should have.
What Students Will Learn During the Course
Finance ties the theoretical foundations of economics with the accounting field and language to develop a
managerial outlook on corporate financial management. Understanding the financial makeup of a firm and
managements' goal of increasing shareholder wealth through decisions on the capital structure and the creation
of Free Cash Flow to/from the firm's investments is the goal of the course and the main purpose of business.
One can argue that Finance is the main course in any MBA Program since Finance learn students how to
measure Value and how companies can create Value. Creating value for stakeholders/shareholders is the main
purpose of any business in China and abroad.
Students start with the basic framework of finance, the objectives of a business and the goals of finance and the
relationship to accounting and accounting statements and the information contained therein. Time Value of
Money is emphasized and utilized throughout the course. Using Time Value of Money (TVM) concepts,
together with risk and return, students learn to evaluate capital structure and basic weighted average cost of
capital. These concepts are developed to provide understanding of the importance of good financial
management and value creation. Capital Budgeting techniques are developed in a decision-making model.
The intent of the course is to take the student through the basics in order to understand the "big picture" of
what financial management is, what it means, and how it is used. For students that do not take any more
finance courses they should have a basic knowledge of the field of finance and the importance in their careers,
businesses, and personal lives. For students that go on to take more finance like FINC 5880 (Advanced
Corporate Finance), they should have a solid foundation from which the other courses can start building. In
either case, this knowledge will help the student gain the decision-making and problem-solving skills so crucial
in today's business environment.
Course Delivery- The learning is in Applying your knowledge !
The students are challenged with applying the Key Learning Points of each class to a (S&P 500) Company of
their choice. The true learning is in the application and discussion with team members about Business issues
from a Finance point of view. The assignments will be in the weekly PPT used in class. These class materials
will also be available through: www.websterchina.com. (Handouts MBA)
The instructor has prepared a seperate document in PPT format to make you more familiar with this part of the
Course. The PPT set is titled “The Project” and it will continue over a 16 week period (8 weeks Financial
Management and 8 weeks Advanced Corporate Finance)
During the courses students will be asked to follow the financial and business news on a daily basis. As well as
following the developments in the Company they chose to work on.
Required Reading Material- Supporting material for Homework/The Project
Corporate Finance, 公司理财(英文版原书第9版) [平装]
~ 斯蒂芬A.罗斯(Stephen A.Ross) (作者), 伦道夫W.威斯特菲尔德(Randolph W.Westerfield) (作者),
杰弗利F.杰富(Jeffrey F.Jaffe) (作者), 吴世农 (译者), 王志强 (译者), 75.60 RMB! (a bargain)
Recommended further reading:
Brigham and Ehrhardt, Financial Management, Theory and Practice, 11th edition,
Harcourt Inc., 2002. Note: this book will also be used for the follow up course FINC 5880 (chapters
16-27) See also: http://www.swlearning.com/finance/brigham/theory11e/theory11e.html
Note: If SHUFE will provide a more recent version of this book the students are kindly required to
make sure that they prepare according to the topics mentioned underneath; these topics may be
found in a chapter with a different number then the one indicated in this syllabus; this syllabus is
based on edition 10.
You are strongly recommended to visit the website of Prof. Aswath Damodaran (NYU-Stern) which
will give you webcast support for topics you missed or want to review and offers free of charge
spreadsheets (Excel) to help you with your homework and the Project. The website is a rich source
of relevant materials for this course and it is for free! Use it!
Web-address: http://pages.stern.nyu.edu/~adamodar/
Required Material
 A financial calculator that can handle exponents
 Good command of Excel’s statistical and financial formula’s ; be aware that Office 2011 is
not always available; prepare your documents in ppt and pptx format.
 Access to a computer with internet capabilities.
Text Book and Recommended Reading Material
 A study guide is available from the (internet) bookstore for those desiring additional
problems/questions see above the url. (follows as soon as new book has been decided)
 Reading the Wall Street Journal/Financial Times (www.ft.com) is highly recommended
 Following the Business News is also recommended (www.reuters.com;
www.bloomberg.com)
ACADEMIC POLICIES
Webster University's Graduate Grading System:
Letter grades mean that in the opinion of the instructor the work was
A (4.0), A- (3.67):
Superior
B+ (3.33), B (3.0), B- (2.67):
Satisfactory
C (2.0):
Barely adequate
F (0.0)
Unsatisfactory. No credit is granted
Other Designations
I:
Incomplete work
NR:
Not reported
W:
The student withdrew from the course
Attendance, Participation, Assignments
Students and auditors are required to attend all classes and participate actively. Their grade will partly reflect this. It is
usually appropriate for class participation to account for roughly 20% of the grade. Auditors do not receive academic
credit, but participate in all other classroom work. All classes include assignments (such as presentations or papers).
Students must report to the instructor all assistance they received and all sources they used in carrying out their
assignments, otherwise they will fail the course and may face other penalties as well.
The Instructors Will Evaluate the Student's Work as Follows:
Description:
Class Assignments and 2 Quizes (Closed Book/Notes)
Quiz 1: Portfolio Theory Quiz 2: Financial Options
Mid Term Exam and Team Assignments Portfolio (The Project)
Final Team Assignments Portfolio (The Project)
Final Exam (Closed Book/Notes)
Percentage:
(2 *5% each)
10%
20% (mid exam only)
30% (total project score)
40%
Students and Instructors will be asked to evaluate the course in a form handed out during the last lesson.
PLAGIARISM
Plagiarism is using another person’s words or ideas without telling the reader. This applies to books,
articles, but also to sources from the internet, or copying work from your fellow students. Those who are
discovered cheating or plagiarizing will normally receive a failing grade for the entire course and may
even be subject to dismissal. Please don’t fall into this trap, make proper references in your work and
include a bibliography in all your papers (for more information, see the Student Handbook on our
website). Please respect your sources, your audience and yourself
The first session of a course is very important and should not be missed. Therefore, in accordance with Student
Guidelines on Attendance, the instructor can request that students missing the first class without valid reason,
and without having obtained permission beforehand, be dropped from the course.
For this course, the instructor has requested that this rule is enforced.
Absence of class PROCEDURE:
In case of absence the student has to follow the Program regulations and bring a letter from his/her company to
proof that absence is required for Business purposes. This letter needs to be hand signed by the direct linemanager of the student. In case of illness the student has to proof absence with medical/doctor/hospital papers.
Absence will be granted by the Academic office not by the Professor teaching the course. Absence for more than
2 classes will automatically result in a rescheduled class for the student and the student will not be able to sit
for the Final Exam of that class (no matter the reason for absence).
PRE-COURSE WORK DEADLINES:
Date due:
August 2013
Prepare for this
session
Week 1
As scheduled by SHUFE
Time:
Ch. 1-Overview and Introduction /Finance Framework
Ch. 2-Fin’l Statements-Review
Ch. 3-Fin’l Statement Analysis and Financial Models
Problem set: as indicated in the Power Point slides of this week (all numbered
assignments)
August 2013
Week 2
Time:
Ch. 4- 5 Time Value of Money- Discounted Cash Flow Valuation
Net Present Value and Investment Rules
Prepare for this
session
Problem set: as indicated in the Power Point slides of this week (all numbered
assignments)
Date due:
Week 3
Time:
Ch. 10-Risk and ReturnCh. 11-Return and Risk
Ch. 7-Risk & Return Extensions
Ch. 5 1,2,3*,4,5*,6*,9*,13, *use geometric averages where appropriate
Ch. 6 P1-5,7,8,11
Problem set: as indicated in the Power Point slides of this week (all numbered
assignments)
Date due:
Prepare for this
session
Date due:
Week 4
Time:
Ch.11 Portfolio Theory- Return and Risk for Portfolio’s-Diversification
The Capital Asset Pricing Model (CAPM)
Prepare for this
session
Problem set: as indicated in the Power Point slides of this week (all numbered
assignments)
Date:
Week 5
Ch. 8 Bond Valuation
Prepare for this
session
Time:
Ch. 9 Stock Valuation
Problem set: as indicated in the Power Point slides of this week (all numbered
assignments)
Closed Book, closed Notes, Midterm Test on Chapters covered in week 1-4;
5 open questions exam to test your knowledge and formal grading of your
Mid Term Portfolio of Assignments finished during all classes; do not forget
to print off your mid term assignments and hand them in before you sit for
your Mid Term Test.
Date:
Week 6
Time:
Ch. 13- Ch. 6- Cost of Capital and Capital Budgeting
Prepare for this
session
Problem set: as indicated in the Power Point slides of this week (all numbered
assignments)
You will get back your Mid Term Test score and (indicative) Mid Term portfolio
score
Date:
Prepare for this
session
Week 7
Time:
Ch. 16- Capital Structure – The Disney DEMO –
Ch. 22- Financial Options introduction
Problem set: as indicated in the Power Point slides of this week (all numbered
assignments)
Prepare for this
session
Week 8
Time:
Ch. 22 – Financial Options- Options Strategy-Hedging riskSubject Review and Guidance for Final Exam
Problem set: as indicated in the Power Point slides of this week (all numbered
assignments)
Date:
Final Exam
Date:
Time:
October 2013
Prepare for this
session
Shanghai
December 2014
/
All materials of Week 1-8
Review the Guidance of week 8.
As set by SUFE.