SPRING ’10
FIN 5023 FINANCIAL MANAGEMENT
Prof. Palani-Rajan Kadapakkam
458-5830
PalaniRajan.Kadapakkam@utsa.edu
Office: BB 4.02.60
Hours: 5:30 – 6:30 T
2:00 - 3:00 Th
Course Objectives: The course is designed as an introduction to managing the financing needs of
the firm. From a finance perspective, the manager has to make two major interconnected
decisions: what assets to acquire and how to finance them. Non-finance majors will gain an
appreciation of the responsibilities of the corporate financial manager and the critical relationship
between the firm and the financial markets. Finance majors should view this course as a stepping
stone to elective courses, which develop in greater detail some key concepts introduced here.
Required Text: Brigham and Ehrhardt, FINANCIAL MANAGEMENT: Theory and practice,
12th edition, Thomson, 2008
Students are also expected to have a financial calculator. Calculations in class will be based on
keystrokes using a HP-10BII calculator.
Course Webpage: http://faculty.business.utsa.edu/pkadapak - ID/pwd: fin5023 / finmgmt
Grading: Course grades will be based on preparation and class participation (5%), group
assignments (15%), a quiz (10%), a mid-term exam (35%), and a final exam (35%). If you are
not adequately prepared for class, you will be lost and frustrated in class. As evidence of
preparation, students should summarize the relevant facts in assigned problems. The students are
required to bring the textbook or a copy of the problems to class when end of chapter problems
are discussed.
Class Format: This is a lecture course. Class lectures (and problems in the book) will primarily
emphasize the conceptual framework. Students are expected to read the sections of the book
providing factual descriptions. Students are strongly urged to read the financial press and raise
relevant issues in class.
Assignments: There are three group assignments for the term. Students will work in groups of
four members and will submit one group report. Each member is responsible for working on the
assignment before the group meets. Students will be evaluated by their group members on their
contribution. The assignments are described below.
For the first assignment, students will analyze returns data on five stocks and answer
assigned questions. Details on this project will be announced in class. The report is due on
February 9.
For the second assignment, students will forecast financial needs of a firm under different
scenarios. This exercise will be a modification of the Chapter 14 case. A report summarizing
findings will be due on February 23.
For the third assignment, students will complete Problem 12-11. Students will submit a
printed copy of the spreadsheet. The assignment is due on April 6.
Student Responsibilities: Students are expected to be fully comfortable with financial ratios,
time value of money concepts, and the calculation of NPV and IRR. Students are also expected
to be fully comfortable with statistical concepts such as standard deviation and correlation
coefficients.
There will be no make-up exams except under very unusual circumstances. Missed
exams will be treated as a zero score. Students are expected to provide an explanation for
missing an exam at the earliest possible time.
Appropriate academic accommodation will be made for any student registered through
the Office of Disability Services. Please note only the Office of Disability Services, 210-4584157, (http://www.utsa.edu/disability/) may issue instructions for academic accommodations.
Academic Integrity Policy: Cheating is a very serious academic offense and is not tolerated in
any form. Students are expected to abide by the following pledge.
"On my honor, as a student of The University of Texas at San Antonio, I will uphold the highest
standards of academic integrity and personal accountability for the advancement of the dignity
and the reputation of our university and myself."
Master of Business Administration Degree Program Goals: Students will be
1. Able to apply business concepts and principles to a broad range of organizational and
corporate decision problems, both local and global.
2. Able to apply business concepts and principles to assess the attractiveness of various
industries, and identify the strengths and weaknesses of firms.
3. Proficient at using a broad set of quantitative problem solving tools that may be used as
aids in decision making in all functional areas of management.
4. Knowledgeable of the ethical and other leadership issues facing business organizations,
and have an appreciation of the various leadership roles and social responsibilities of the
players in a business environment.
Finance 5023 supports the MBA Degree Program Goals through the following objectives:
Students will
1. Understand the measurement of value and the creation of value that occurs through
different business activities (Goal 3).
2. Understand the measurement and impact of risk on value (Goal 3).
3. Develop the analytical skills necessary to engage in financial analysis and planning
activities (Goal 2).
4. Be knowledgeable in the various alternatives to financing business activities.
5. Be knowledgeable of the issues relating to corporate governance (Goal 4).
COURSE SCHEDULE
Adjustments will be made if necessary based on actual progress during class meetings.
Date
Jan
Lecture Topic
12
19
26
Feb
2
9*
16
23*
Mar
2
9
16
23
30
Apr
6*
13
20
27
May
4
Chapter
Problems
Introduction, Taxes and Ethics
1
Understanding Financial Statements
3
5, 11, 12
Understanding Financial Statements
3
Case, parts a-h
Valuation of Bonds
5
1,2,14,16
Valuation of Stocks
8
4, 2, 11,18
Financial Options
9
1,2,3,6
Quiz (10%)
Risk and Return
6
1,2,3,10
Risk and Return
7
Cost of Capital
10
15,16,17
Financial Forecasting
14
Case, parts c, f
Valuation
15
1,7,10
Valuation
Capital Budgeting
11
1-6,13,14,15,16,22
Capital Budgeting
12
1,2,4
Review
MID-TERM EXAM (30%)
SPRING BREAK
Capital Budgeting
12
Chapter 13-1
Leasing
20
1,4
Issuing Securities
19
Convertible Securities
21
5-a, b
Capital Structure
16
Ch 16 Case –Parts h,i
Capital Structure
17
5,6
Capital Structure
Dividend Policy
18
3,10
Dividend Policy
Multinational Finance
26
1,2,3,9
Current Asset Management
22
1,6,11
Review
FINAL EXAM (35%) 8:00 – 10:30 (Estimated; check ASAP for confirmation)
Suggested review problems on time value of money:
Present Value
2
(1-6), 12,13,24,25