FIN 4424 Problems in Corporate Finance
Section 2218 Fall 2008
Instructor: Wendy Habegger, Ph.D.
Office location: Bldg 76 Room 216
Office phone: (850) 857-6319
Email: whabegger@uwf.edu
Office Hours (in office & online)*:
MW 10-11 am; 12-2 pm
F
10-11 am; 12-1 pm
*Other times by appointment only
Course objectives*: This is a survey course designed to be the capstone course for finance
majors. Students will apply financial management concepts and analytical techniques to
analyze and solve real world financial problems and issues. Students will present the analyses
and solutions in the form of written cases. I have adopted the format developed by Dr. R.
Constand, however I include my own variations of assignments, cases, quizzes, and/or tests.
*See course objectives and structure on page 4.
Course description and topics covered: “Cases and readings in corporation finance in areas
of capital budgeting, working capital management, capital structure, cost of capital, mergers,
reorganizations, and international finance. Prerequisite: FIN 3403.” (Source: University of West
Florida Catalog, 2007-2008, http://www.uwf.edu/catalog/fin.htm).
Prerequisites: FIN3403
Upon enrolling in this course, students should have taken and successfully completed several
finance courses, not only FIN3403. The instructor assumes all enrolled students have mastered
the material from FIN3403. Likewise, students should be knowledgeable with using e-mail,
word processing, and EXCEL. The purpose and focus of this course is so students can use
prior financial knowledge to critically analyze financial problems specific to corporate finance.
Students will produce professionally written cases containing such analyses.
Topics covered: Analysis of financial statements and financial rations, cash flow analysis,
market valuation, interest rates, yield curves, risk and return, portfolio diversification, asset
pricing models, time value of money, amortized loans, compounding, bonds, stocks, cost of
capital, weighted cost of capital, capital budgeting techniques, risk analysis in capital budgeting.
Student Learning Outcomes:
Students will:
1. apply financial analyses and financial calculation skills learned in other finance classes in
real world case settings
2. perform financial analyses and financial calculations using Microsoft EXCEL spreadsheet
3. format the EXCEL spreadsheets and spreadsheet models for printing and inclusion in
written case study reports
4. create written case study reports of professional quality addressing real world issues
Materials
Required Text: There are no required textbooks. Students should use and reference past
finance textbooks from prior finance courses as well as search for new finance materials that
may be useful and pertinent. A list of optional texts and reference books that students may find
useful are provided, however students are expected to utilize texts and references beyond this
brief list.
Optional Texts and Reference Books:
1. For writing help:
a. The Elements of Style, by Strunk & White, most current edition.
Habegger
Fall 2008
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b. A Manual For Writers of Term Papers, Theses, and Dissertations, by Kate Turabian
(most current edition). This is the recommended guide for paper formatting, citation of
other sources, footnotes, bibliography format and other mechanical aspects of writing
your term paper.
2. Any other Finance Textbook(s) such as:
a. Brigham & Houston (2007), Fundamentals of Financial Management, Any Edition
published by Thomson-Southwestern Publishers.
b. Ross, Westerfield, & Jordan (2008), Fundamentals of Corporate Finance, Any Edition
published by McGraw-Hill Publishers.
c. Smart, Megginson, and Gitman, (2006), Corporate Finance, Any Edition published by
Thomson-Southwestern Publishers.
3. The “Dummies” books: Excel, Excel Formulas and Functions, Statistical Analysis
Case Assignments: The professor will post case assignments on Elearning. Students will
complete case assignments on almost a weekly basis. Cases will be due on a specified time
and day of each week. The cases should be uploaded into the appropriate dropbox in
Elearning. Students may work together, however the case assignment reports must be unique
with unique appendices and tables. While it is acceptable to share ideas with other students, it
is unacceptable to search for solutions on the web and share write-ups and/or EXCEL files.
Copies of all computer files used in the case report construction process must be kept. Failure
to submit these files when requested by the professor will result in a zero on the assignment.
See Case Assignment Guidelines on page 5.
All written assignments will be graded thoroughly. Each student completes approximately one
case per week, however I, the professor, must grade all the student cases. This will take time
and students should not expect to receive grades quickly. Cases are also checked for
accuracy, grammatical correctness, and originality. Students caught cheating and/or
plagiarizing will receive an F in the course and the academic misconduct will be reported. For
some examples of plagiarism, please see the following from the world wide web:
http://library.uwf.edu/Tutorials/module_plagiarism/content.htm
http://science.widener.edu/svb/essay/plagiar.html
http://www.princeton.edu/pr/pub/integrity/pages/plagiarism.html
http://people.brandeis.edu/~teuber/usemexamples.html
http://www.sussex.ac.uk/academicoffice/1-4-1-2-2.html
http://www.swarthmore.edu/NatSci/cpurrin1/plagiarism/types.htm
Tests: Students will have a midterm and a final exam, dates are listed below. Each test will be
delivered online through the Quizzes section on Elearning. Students will take the tests using
the Respondus Lockdown Browser. The tests will be multiple choice tests that will cover
random questions over the financial topics that are similar to the cases completed during the
semester. Tests are timed and students are expected to abide by the UWF Honor Code as
these test are individual tests. Students may use a calculator and a formula sheet on the tests,
they may not use texts or receive any other help on these tests. Doing so violates the UWF
Honor Code.
Important Dates:
Monday, September 1, 2008
Wednesday, September 3, 2008
Wednesday, October 29, 2008
Friday, October 31, 2008
Tuesday, November 11, 2008
Habegger
University Holiday Labor Day
Syllabus Agreement Due
Midterm Exam
Last Day to Drop/W
University Holiday Veteran’s Day
Fall 2008
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Thursday & Friday, November 27-28, 2008 University Holiday Thanksgiving
Monday, December 8, 2008
Final Exam
Tuesday, December 16, 2008
Final Grade Availability
Grades: Grades are computed using all grades. Final grades are comprised of 60% from the
case average and 40% from the test average. Grades are based upon a variation of the UWF
standard below.
A 94-100+
A- 90-93.4
B+ 87-89.4
B 83-86.4
B- 80-82.4
C+ 77-79.4
C 70-76.4
D+ 67-69.4
D 63-66.4
F 0-62.4
Special Technology: Students should be proficient in using basic e-mail, word processing,
Excel spreadsheets, the use of a calculator, and in using the Desire-to-Learn (D2L) website for
the course. This site is available at http://elearning.uwf.edu and is accessible using your Argus
account. Lecture notes, homework solutions, grades, and general course communications are
available via this resource.
Assistance:
Students needing reasonable in-class accommodation or reasonable special test-taking
arrangement because of a physical and/or perceptual limitation that has been certified by the
Office of Disabled Student Services, please contact the instructor at the earliest time possible.
UWF Honor Code:
As members of The University of West Florida academic community, we commit ourselves to
honesty. As we strive for excellence in performance, integrity--both personal and institutional--is
our most precious asset. Honesty in our academic work is vital, and we will not knowingly act in
ways, which erode that integrity. Accordingly, we pledge not to cheat, nor to tolerate cheating,
nor to plagiarize the work of others. We pledge to share community resources in ways that are
responsible and that comply with established policies of fairness. Cooperation and competition
are means to high achievement and are encouraged. Indeed, cooperation is expected unless
our directive is to individual performance. We will compete constructively and professionally for
the purpose of stimulating high performance and standards. Finally, we accept adherence to
this set of expectations for academic conduct as a condition of membership in the UWF
academic community.
Syllabus Agreement:
Complete and turn in the syllabus and academic honesty agreements on pages 6 & 7, on
or before the deadline. Failure to do so will result in failure for the course. To
“electronically sign” those documents and submit them, students should save the
syllabus document, delete the extra pages, type their names, dates, and all appropriate
information requested, then upload them into the appropriate dropbox on Elearning.
*The instructor reserves the right to adjust the syllabus as necessary during the course of the
semester.
Habegger
Fall 2008
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Course Objectives and Structure*
This is the capstone corporate finance course. It is a course students apply the information and
skills they have learned in earlier finance courses and develop skills that will be valuable in the
real world.
The course is designed so students are first given incomplete information relating to a financial
problem faced by a firm and then asked to research the problem and present possible solutions
in written report form. This course focuses on the development student’s financial modeling and
report writing skills.
This means that the course will not be structured in a lecture format in which the professor
provides the information and students memorize it for a test. Instead, the professor will take the
role of CEO of a financial consulting firm and students will assume the role of “junior analysts”
who have entered a financial analyst training program at their new job. The CEO will assign a
series of projects while the junior analysts will act as independent consultants producing a
series of written reports. The CEO is here to give direction and support as the consultants carry
out their assignments. It is not the CEO’s job to teach finance. If the junior analysts have a
gap in their finance knowledge, then it is their responsibility to fill that gap in order to complete
the assignment correctly.
The junior analyst will be given various assignments and it is their responsibility to find the
correct solutions and present the problems and solutions in professional quality written reports.
The students who successfully complete the course will have developed a set of valuable
analytical and communication skills that are highly valued in the workplace.
*Originally created by Dr. R. Constand, edited and appended by Dr. W. Habegger
Habegger
Fall 2008
Page 4 of 7
Case Assignment Guidelines*
I.
II.
III.
IV.
V.
VI.
Title Page (no page number)
a. Name of Company
b. Student name
c. Date
Executive Summary (no page number)
a. Single Page
i. Report Title in Header
b. Introductory Paragraph
i. Identify the assignment and/or issues to be considered
c. Body
i. 2 or 3 short paragraphs
ii. Summarize major findings from analysis
iii. Summarize major recommendations
iv. Do not reference appendix spreadsheets here – just refer to the major
write up of the report of analysis.
v. Needs to be one full page
Table of Contents (no page number)
a. List major and minor sections of the Content portion of the report (with page
numbers – right justify page numbers)
b. List all tables in Appendix (using table titles and page numbers)
Contents (pages numbered 1 - ???)
a. Written responses to specific questions and issues raised in the case in
report/discussion form.
b. Explanations of all assumptions.
c. Descriptions of all spreadsheet analyses performed.
d. Conclusions arising from the spreadsheet analysis (with appropriate references
to tables in appendix).
Appendix (continue pagination)
a. All major tables used in the analysis from EXCEL spreadsheet.
i. Tables must have headings and be referenced in Table of Contents.
ii. Pages should be numbered for easy reference.
iii. Avoid shading of cells in tables.
iv. Do not include row numbers and column letters in spreadsheets.
b. Additional financial data or information gathered from sources outside the case.
Bibliography
a. Properly cite all sources used in the write-up. This includes the textbook, the
case or assignment materials, the student resource disk or spreadsheets
supplied by the professor, the textbook website, or any other source of
information used.
*Created by Dr. R. Constand, edited and appended by Dr. W. Habegger
Habegger
Fall 2008
Page 5 of 7
Syllabus Agreement*
I, (please enter your full name)_____________________________, acknowledge that I
received and reviewed the (please enter the course title and
number)______________________course syllabus.
I am aware of the prerequisites for this course and state that I possess the required prerequisite
skills for this course. In addition, I am aware of and do understand the policies (e.g., applicable
prerequisites, material and text requirements, grading system, attendance policy, assignment
schedule, etc.) outlined in the course syllabus indicated above.
I am aware of my rights and responsibilities as outlined in the University of West Florida’s
Student Planner and Handbook, available online at
http://www.thezonelive.com/zone/public/6/schoolHome.asp?i=12706. These include, among
other things, Expectations for Academic Conduct, Classroom Behavior, and UWF Student
Conduct System.
I acknowledge the fact that I may withdraw immediately from this course if I do not agree with
the course policies. I am aware that I may be dropped from the course if I should be found in
violation of the University of West Florida’s policies on Academic and Non-Academic
Misconduct.
I understand that I am not permitted continue in this course until I submit a signed copy of this
Agreement.
______________________________________
Signature
_______________
Date
Reminder:
This Agreement documents that you received and reviewed the syllabus for the course
indicated above and that you are aware of the University’s Student Rights and Responsibilities
found in the Student Planner and Handbook, available online at
http://www.thezonelive.com/zone/public/6/schoolHome.asp?i=12706.
*Created by Dr. W. Habegger
Habegger
Fall 2008
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Academic Honesty Agreement for FIN 4424*
I have read the UWF Plagiarism Policy titled “Plagiarism 101” on the following website:
http://www.uwf.edu/studentaffairs/documents/PlagBroch.pdf and am aware that I am to use the
information in the handout when writing homework assignments or cases for the FIN 4424
class.
Dr. Habegger has discussed plagiarism in class and I understand that I must do the following:
1. Properly cite all outside material taken from any website and used in a chapter assignment
or a case report that I hand in.
2. Properly cite all outside material taken from any hard copy publication and used in a chapter
assignment or a case report I hand in.
3. Properly cite all textbook material used in a chapter assignment or a case report I hand in.
4. Properly cite the source of all spreadsheet components imported into my files from the web
site, the student CD ROM, or other sources.
I also understand that I must not do the following:
1. Copy spreadsheets, either whole or in part, from another student.
2. Copy any textual discussions from another student’s case report or chapter spreadsheet
assignments without proper citation.
3. Use any other author’s phrases, sentences, or paragraphs without proper citation.
4. Use any other author’s ideas without proper citation.
5. Have any other person develop or format the EXCEL worksheets I turn in as my own.
6. Use any information relating to the homework spreadsheet solutions or case solutions if that
information is supplied to me by another student or by any other person other than Dr.
Habegger.
7. Use any source found on the Internet that discusses or presents the solutions to the chapter
spreadsheet assignments or the assigned cases.
I understand that violation of ANY of the above rules relating to plagiarism and academic
dishonesty will result in the immediate assignment of a grade of “F” for the particular assignment
and the immediate assignment of an “F” for the FIN 4424 semester grade.
Furthermore, I understand that Dr. Habegger will have all evidence of academic dishonesty
placed in my permanent academic record.
Sign your name: _________________________
*Created by Dr. R. Constand, edited by Dr. W. Habegger
Habegger
Fall 2008
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