Financial Management FIN 5213
Tentative Schedule
Spring 2014
INSTRUCTOR CONTACT INFORMATION:
Instructor: Dr. Larry J. Prather, John Massey Endowed Chair and Professor of Finance
Office Location: JMSB Russell Bld. Room 205
Email Address: lprather@se.edu or drprather@aol.com
Office Phone # (580) 745-2566 or (580) 9161-2779 (cell).
Fax # (580) 745-7485.
Office Hours: Monday 4:00-5:00, Tuesday 7:30-8:00 & 9:15-12:30, Wednesday 7:30-12:00,
Thursday 7:15-8:00
COURSE TITLE: Financial Management
CATALOG DESCRIPTION: This course covers the theory and practice of managers
making financial decisions for the firm. The basis for all decisions builds from the
premise of maximizing shareholder wealth. Topics include risk and return tradeoffs,
valuing stock and bonds, evaluating choices among sources of capital and capital
structure, evaluating dividend policy, evaluating and selecting expansion projects, using
derivative securities to manage risk, firm valuation, and short-term cash management.
PREREQUISITES: FIN 3113 and BUS 2633
REQUIRED MATERIALS:
(1) Brigham, Eugene F. and Michael C. Ehrhardt. Financial Management: Theory and
Practice, 13th Edition, Thompson Southwestern, 2011. ISBN: 1-4390-7809-2.
(2) A financial calculator capable of calculating internal rates of return (I recommend a
TI BAII Plus).
OPTIONAL MATERIALS: Study Guide to Accompany Financial Management:
Theory and Practice, 13th Edition, Thompson Southwestern, 2011.
TECHNICAL REQUIREMENTS: Available through the Southeastern Online
Learning website or http://www.se.edu/online-learning/technology/hardware-softwarerequirements/
NETIQUETTE (INTERNET ETIQUETTE): Available through the Southeastern
Online Learning website or http://www.se.edu/onlinelearning/technology/communication-netiquette/
LIBRARY AND INFORMATION RESOURCES: Available through the Southeastern
Online Learning website or http://www.se.edu/online-learning/student-services/
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An AACSB Accredited Program
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OTHER RESOURCES AND LOCATION: None
COURSE OBJECTIVES:
The following objectives will be met in this class:
Objective
Explain the
underlying goal
of financial
managers.
Exceeds
Expectations
4
Shows full
understanding of
the underlying
goal of financial
managers.
Meets
Expectations
3
Shows nearly
complete
understanding of
the underlying
goal of financial
managers.
Acceptable
Unacceptable
2
Shows good
understanding of
the underlying
goal of financial
managers.
1
Shows little or
no understanding
of the underlying
goal of financial
managers.
Shows full
understanding of
the risk-return
relationship and
can properly
assess business
opportunities
with no
computational
error.
Shows nearly
complete
understanding of
the risk-return
relationship and
can properly
assess business
opportunities
with few or
minor
computational
errors.
Shows nearly
complete
understanding of
computing
relevant cash
flows and can
solve complex
capital budgeting
problems with
few or minor
computational
errors.
Shows nearly
complete
understanding of
evaluating a
firm’s working
capital
management
with few or
minor
computational
errors.
Shows nearly
Shows some
understanding of
the risk-return
relationship and
can properly
assess business
opportunities but
makes
computational
errors.
Shows little or
no understanding
of the risk-return
relationship and
cannot properly
assess business
opportunities
without
significant
errors.
Shows good
understanding of
computing
relevant cash
flows and can
solve complex
capital budgeting
problems but
makes
computational
errors.
Shows little or
no understanding
of computing
relevant cash
flows and cannot
solve complex
capital budgeting
problems
without
significant
errors.
Shows good
understanding of
evaluating a
firm’s working
capital
management but
makes
computational
errors.
Shows little or
no understanding
of evaluating a
firm’s working
capital
management and
cannot make an
evaluation
without making
significant
errors.
Shows little or
Meets the
JMSB goal of
critical and
ethical thinking.
Properly use the
risk-return
relationship in
assessing
business
opportunities.
Meets the
JMSB goal of
analysis.
Compute
relevant cash
flow and solve
complex capital
budgeting
problems.
Meets the
JMSB goal of
analysis.
Evaluate a
firm’s working
capital
management.
Meets the
JMSB goal of
analysis.
Forecast pro
Shows full
understanding of
computing
relevant cash
flows and can
solve complex
capital budgeting
problems with no
computational
error.
Shows full
understanding of
evaluating a
firm’s working
capital
management
with no
computational
error.
Shows full
The John Massey School of Business
An AACSB Accredited Program
Shows some
Page 2
forma financial
statements.
Meets the
JMSB goal of
analysis.
Evaluate a
firm’s capital
structure.
Meets the
JMSB goal of
analysis.
Evaluate a
firm’s dividend
policy.
Meets the
JMSB goal of
analysis.
Value a firm
and a firm’s
stock.
Meets the
JMSB goal of
analysis.
Use derivative
assets to reduce
risk.
Meets the
JMSB goal of
critical and
ethical thinking.
understanding of
forecasting pro
forma financial
statements and
can forecast with
no computational
error.
complete
understanding of
forecasting pro
forma financial
statements and
can forecast with
few or minor
computational
errors.
understanding of
forecasting pro
forma financial
statements but
makes
computational
errors.
Shows full
understanding of
evaluating a
firm’s capital
structure and can
evaluate with no
computational
error.
Shows nearly
complete
understanding of
evaluating a
firm’s capital
structure and can
evaluate with
few or minor
computational
errors.
Shows nearly
complete
understanding of
evaluating a
firm’s dividend
policy and can
evaluate with
few or minor
computational
errors.
Shows nearly
complete
understanding of
valuing a firm
and a firm’s
stock and can
compute value
with few or
minor
computational
errors.
Shows nearly
complete
understanding of
using derivative
assets to reduce
risk and can
hedge with few
or minor
computational
errors.
Shows some
understanding of
evaluating a
firm’s capital
structure but
makes
computational
errors.
Shows full
understanding of
evaluating a
firm’s dividend
policy and can
evaluate with no
computational
error.
Shows full
understanding of
valuing a firm
and a firm’s
stock and can
compute value
with no
computational
error.
Shows full
understanding of
using derivative
assets to reduce
risk and can
hedge with no
computational
error.
Shows some
understanding of
evaluating a
firm’s dividend
policy but makes
computational
errors.
Shows some
understanding of
valuing a firm
and a firm’s
stock and can
compute value
but makes
computational
errors.
Shows some
understanding of
using derivative
assets to reduce
risk and can
hedge but makes
computational
errors.
no understanding
of forecasting
pro forma
financial
statements and
cannot make a
forecast without
making
significant
errors.
Shows little or
no understanding
of evaluating a
firm’s capital
structure and
cannot make an
evaluation
without making
significant
errors.
Shows little or
no understanding
of evaluating a
firm’s dividend
policy structure
and cannot make
an evaluation
without making
significant
errors.
Shows little or
no understanding
of valuing a firm
and a firm’s
stock and cannot
compute value
without making
significant
errors.
Shows little or
no understanding
of using
derivative assets
to reduce risk but
cannot hedge
without making
significant
errors.
ALIGNMENT OF OBJECTIVES WITH LOCAL, STATE, AND OR NATIONAL
STANDARDS: NA.
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An AACSB Accredited Program
Page 3
COURSE SCHEDULE:
Agenda: The following is the planned schedule for the course.
Week
Chapter(s) Topic
1
1, 2, 3
An Overview of Financial Management and the Financial
Environment; Financial Statements, Cash flows, and Taxes;
Analysis of Financial Statements
2
4, 6, 24
Time Value of Money; Risk, Return, and the Capital Asset
Pricing Model; Portfolio Theory, Asset Pricing Models, and
Behavioral finance
3
5, 7, 9
Bonds, Bond Valuation and Interest Rates; Stocks, Stock
Valuation, and Stock Market Equilibrium; The Cost of Capital
4
10, 11
The Basics of Capital Budgeting: Evaluating Cash Flows; Cash
Flow Estimation and Risk Analysis (EXAM #1 on chapter 1-7
plus 24).
5
12, 13
Financial Planning and Forecasting Financial Statements;
Corporate Valuation, Value-Based Management, and Corporate
Governance
6
15, 14
Capital Structure Decisions; Distributions to Shareholders:
Dividends and Repurchases; (EXAM #2 on chapters 9-13).
7
8, 23, & 5
Financial Options and Applications in Corporate Finance (pages
(Madura)
305-310) and Section 8.7; Derivatives and Risk Management;
Currency Derivatives (Madura, Jeff. International Financial
Management, 8th Edition, Southwestern Publishing Company,
2006 Chapter 5
8
16
Working Capital Management, Final Exam Chapters 8, 14, 15,
16, 23, & 5 Madura.
Home Work Assignments: Read the chapters listed in the syllabus and work the
problems assigned below. Answers to homework are posted to Blackboard! If you have
questions, post them to BlackBoard to start a threaded discussion. That will enable other
students to answer your questions and generate a threaded discussion for class
interaction. I will monitor the discussion at least once per day (Monday through Friday).
Once you have completed your study of a chapter, I have created self-assessment tests in
BlackBoard for each chapter. They can be taken multiple time and are similar to the
exams for the course. If you can answer the homework and self assessment questions,
you should do well on the exams. The opposite is also true!
Students should review materials from basic statistics courses and be comfortable
computing means, variances, and standard deviations.
Suggested Homework:
Week
Chapter(s) Questions/Problems
1
1, 2, & 3
Chapter 1
Questions 1-1 through 1-9
Chapter 2
Questions 2-1 through 2-8, Problems 2-1 through
2-7, 2-10, and 2-12.
The John Massey School of Business
An AACSB Accredited Program
Page 4
Chapter 3
2
4, 6, & 24
3
5, 7, & 9
4
10 & 11
5
12 & 13
6
15 &14
7
8, 23, 5
(Madura)
8
16
Questions 3-1 through 3-6, Problems 3-1 through
3-7, 3-10, and 3-13.
Chapter 4
Questions 4-1 through 4-5, Problems 4-1 through
4-8, 4-11 through 4-14, 4-19 through 4-21, 4-25
through 4-273-6, and 3-13.
Chapter 6
Questions 6-1 through 6-7, Problems 6-1 through
6-13.
Chapter 24
Questions 24-1 and 24-2, Problems 24-1 and
24-4.
Chapter 5
Questions 5-1through 5-5, Problems 5-1 through
5-13 and 5-16 through 5-17.
Chapter 7
Questions 7-1 through 7-4, Problems 7-1 through
7-12, and 7-19.
Chapter 9
Questions 9-1 through 9-5, Problems 9-1 through
9-17.
Chapter 10
Questions 10-1 through 10-6, Problems 10-1
through 10-18, 10-21 and 10-22.
Chapter 11
Questions 11-1 through 11-11, Problems 11-1
through 11-12.
Chapter 12
Questions 12-1 through 12-6, Problems 12-1, 122, 12-4 through 12-6.
Chapter 13
Questions 13-1 through 13-5, Problems 13-1
through 13-3, 13-8, and 13-9.
Chapter 15
Questions 15-1 through 15-8, Problems 15-1
through 15-6, 15-8 and 15-9.
Chapter 14
Questions 14-1 through 14-5, Problems 14-1
through 14-7 and 14-9.
Chapter 8
Questions 8-1 through 8-3, Problems 8-1 through
8-2.
Chapter 23
Questions 23-1 through 23-6, Problems 23-1 and
23-2.
Chapter 5 Madura
Questions 1-16.
Chapter 16
Questions 16-1 through 16-9, Problems 16-1
through 16-8 and 16-11 through 16-15.
Exam Schedule
Exam #
Chapters Covered
1
Chapters 1 -7 &
24
2
Chapters 9-13
Final Exam
Dates/Times Available
Exam open from April 7, 2014 4pm until April 9,
2014 7pm
Exam open from April 21, 2014 4pm until April 23,
2014 7pm
Chapters 8, 14-16, Exam open from May 7, 20148:00 am until May 9,
23, and Madura 5 2014 5pm.
SEMESTER CALENDAR:
Date
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An AACSB Accredited Program
Event
Page 5
March 10, 2014
March 12, 2014
March 17-21, 2014
April 11, 2014
April 18, 2014
April 26, 2014
May 9, 2014
Classes Begin
Last day to drop with a refund and no grade record.
Spring Break
Last Day To Drop with a automatic “W”
Easter Holiday
Last Day To Drop
Last day of class
COURSE POLICIES:
Attendance: All students are expected to log into BlackBoard on a daily basis and
participate in threaded discussions. Participation in these discussions will count
toward your final course grade.
Collaboration: Students are allowed, in fact encouraged, to collaborate on homework.
This can often crystallize important information. I expect students to use the
communications area of BlackBoard to pose questions to other students before
contacting me. I will monitor that threaded discussion and guide it as required to
create student interaction and ensure correct information is shared. However, no
collaboration is allowed during written exams (see the Academic Code of Conduct).
Late Assignments: A grade of zero will be assigned for any assignments not turned in on
schedule or for missing an exam. No extra assignments will be given at any time
during the semester to “bring up your grade!” Work diligently from the beginning
and complete every assignment as if IT is worth extra points that will raise your
grade!
Except for extenuating circumstances handled by the instructor on an individual
basis, any assignment received after the due date and time will be a zero. For the
record…there are very few extenuating circumstances. Excuses such as “The system
was down” and “I couldn’t get to a computer” are NOT considered extenuating
circumstances. Have a backup plan with at least one alternate location to complete
the assignment or take the exam. Don’t wait until the last minute to complete
assignments or take exams and you won’t encounter these types of problems.
Makeup Exams: Make-up examinations will be allowed only under extremely unusual
circumstances. If illness, injury, or serious personal problems arise contact me
immediately. Requests for make up exams must be made in writing (formal letter)
and explain the circumstances surrounding the request. Proper documentation must
accompany the request (i.e., attending physician, supervisor, etc.).
Expectations of Instructor and Students:
Student Expectations of Instructor – Students should expect a timely response to email
questions and prompt grading and posting of assignments. If you send an email, I will
typically respond within 24 hours (during the workweek). However, I prefer that you call
me! Use my home phone number if I am not in my office! I find that I am usually more
able to help you when we can speak on the phone or face to face.
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Page 6
Unless an announcement was posted indicating my lack of availability, you should
receive a response to your email within 24 hour (except weekends and holidays). If you
haven’t received a response within 24 hours, please email again just in case I overlooked
it. Grading of and posting of scores for all assignments will be completed before the next
assignment is due.
Instructor Expectations of Students: All students are required to produce their own
work unless the activity has been designed as a group project. Evidence of cheating will
result in at least a zero for that activity. Students are expected to complete all
assignments by the due date, attend all face-to-face meetings, participate in class
discussions, and when difficulties arise, contact the instructor.
Other Course Policies: The instructor reserves the right to make adjustments to the
syllabus and/or grading policy as needed in order to meet the instructional needs and
goals of the class. Students will be notified of any adjustments to the syllabus.
COURSE REQUIREMENTS:
Timeframe for Participation:
Student participation is critical to the success of this class. To be a successful online
learner, you must be highly self-motivated. You will be graded on your email responses,
timeliness of submitting homework, communication with other students, and meaningful
contributions to the discussion boards. The discussion board is where you and the
instructor make the class come alive, so be sure to participate early and often!
Discussion boards will be available on a weekly basis. New topics will be posted on
Mondays by 8:00 a.m. and will remain available until the following Monday at 8:00 a.m.,
unless noted otherwise on the Assignment Schedule. To receive credit for participating,
you must make meaningful contributions to the discussion boards each time a topic is
available. Simply “I agree” or “I disagree” is not meaningful. You are required to post
your solution/answer to a problem/question on the discussion board. The idea is to
“discuss” the problem or topic. Be sure to carefully read and follow the instructions
posted with each discussion.
Each discussion board will have its own set of instructions that you will see before
entering the discussion. There will be discussion boards for posting questions and/or
comments concerning general aspects of the class (General Class Chat), for posting
solutions to discussion questions and commenting on others’ answers (Graded Class
Discussion), for posting questions on homework (Homework Questions) and one just for
fun (Just For Fun).
Blackboard automatically tracks and records every click, including your name! I can see
if and when you logged on, the date and time of day you logged on, and even what you
accessed once you logged on! This is one way I can determine whether or not you
participated in the assignment.
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Approximate Time Required for Individual Activities:
This course will be conducted using a variety of instructional methods and learning
activities, including but not limited to, “virtual” lectures/chats, discussion boards,
homework, exams, written activities, and online activities. Approximately 12-15 hours
per week will be required for successful completion of course requirements. Read, read,
and re-read directions and information carefully before emailing or calling for help. You
will find most of your questions answered in the course syllabus or on the discussion
board.
Expectations for Communications:
Check the course website every day, at least five days a week!
Email Address – You are required to use your SE student email address when using
Blackboard. In addition, you are required to REGULARLY check your SE student email
account. All email correspondence will be sent to your SE student email address. Refer
to the Blackboard login page for details about your SE student email address. Be sure to
include your name in the body of every email you send to me.
Activity and Other Assignment Expectations:
Weekly assignments will be posted by 8:00 a.m. on Mondays. The due dates for all
assignments are listed on the Assignment Schedule, posted under Course Information.
All components of the weekly assignments (written assignments, discussion board posts,
etc.) must be submitted by 8:00 a.m. on the due date.
All homework assignments listed as “Written Homework” will be completed and
submitted using the Assignment Link on Blackboard. Instructions will be included in the
Introduction and Orientation Activities.
Survey Expectations:
Exam dates and availability are listed on the Exam Schedule, posted under Course
Information. The final exam is not comprehensive. Again, there will be no makeup exam
given. If you miss taking the exam during the time it is available, for any reason, a zero
will be recorded. The dates for the final exam are listed on the Exam Schedule, posted
under Course Information.
Other Course Requirements: NONE
ASSESSMENT (GRADING SYSTEM):
Exams: There will be three examinations during the course.
Grading: Grade weighting will be 30% for each exam (90% total) and 10% for
participation in threaded discussions. The following scale will be used:
90 - 100
A
80 – 89.9
B
70 – 79.9
C
60 – 69.9
D
< 60
F
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Rounding to the next letter grade is NOT AUTOMATIC and will be at the discretion of
the instructor.
UNIVERSITY AND SCHOOL POLICIES:
Privacy: Available through the Southeastern Online Learning website or
http://www.se.edu/academics/general-information/students-rights/
Academic Integrity: Available through the Southeastern Online Learning website or
http://www.se.edu/student-life/documents/student-handbook.pdf#page=6
You may also include policies or comments specific to your course.
There is a Zero-Tolerance Policy concerning Plagiarism and/or duplication of another
individual’s work. Besides making you feel horrible, you will receive a zero and the
policy will be enforced under the guidelines of the Academic Honesty Policy for the
University. Students are expected to work individually and turn in their own work. Any
violation of academic honesty will be reported to the Office of Student Affairs. The
policies regarding academic misconduct are set forth in the institution’s Student Code of
Responsibilities and Conduct.
Special Accommodations: Any student needing special accommodations due to a
disability should contact the Coordinator of Student Disability Services, GDJ Student
Union, Suite 204 or call (580) 745-2254 (TDD# 745-2704). It is the responsibility of
each student to make an official request for accommodations to the Coordinator.
Other University and/or School Policies: NONE.
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An AACSB Accredited Program
Page 9