FIN4424 Problems in Corporate Finance
Section 0780 Spring 2009
Instructor: Wendy Habegger, Ph.D. Online office Hours*: MW 11:30-3 pm
Office location: Bldg 76 Room 216 [All times are US Central Standard Time]
Office phone: (850) 857-6319
*Other times by appointment only
Email: whabegger@uwf.edu
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.
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 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
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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.
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 by a
deadline that is published on Elearning calendar. The cases will be uploaded into the
appropriate dropbox on Elearning by the deadline. Failure to upload the case by the
deadline will result in the next case not being released in a timely fashion and thus
result in the student having less time available for completing the next case. If a
deadline is missed, it is the student’s responsibility to send me an email requesting
access to the next case. Late cases are not accepted. Cases that are not submitted on
or before the deadline will receive a grade of zero. All deadlines are based on US CST
zone.
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 case. See Case Assignment Guidelines.
All written assignments will be graded thoroughly. Each student completes
approximately one case per week, however because the professor must grade all the
student cases. This will take time and students should not expect to receive grades
quickly. Cases are graded for grammatical correctness, aesthetic, originality, and
accuracy.
Writing in business is critical. It will be the first impression others receive and often,
may be the only method of communication between some coworkers, bosses, and
clients. Therefore, correct and appropriate grammar is critical and carries the greatest
weight of the case grade. Papers containing misspelled words, misused words (i.e.
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using “wear” instead of “where”), contractions, use second person, passive voice, end of
sentence prepositions, and casual/familiar language or colloquialisms will not pass. All
cases should be grammatically correct, written in an active formal voice, and use of first
person is acceptable.
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 tests 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, January 5, 2009
Spring 2009 Semester Begins & Elearning
course site
Agreements Due @ 12 noon US CST
& first case released
Midterm Exam
Last Day to Drop/W
Final Exam and Last Day of Class
Final Grade Availability
Monday, January 12, 2009
Wednesday, March 18, 2009
Friday, March 20, 2009
Friday, April 24, 2009
Tuesday, May 5, 2009
Grades: Grades are computed using all grades. Final grades are comprised of 60%
from the case average and 40% from the exam average. Students will have at most 12
cases and 2 exams. Grades are based upon a variation of the UWF standard below.
A
AB+
93.5-100+
89.5-93.4
86.5-89.4
B
BC+
82.5-86.4
79.5-82.4
76.5-79.4
C
D+
D
69.5-76.4
66.5-69.4
59.5-66.4
F
0-59.4
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-toLearn (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.
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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 7
& 8, on or before the deadline.
To complete:
1. Download this document
2. Delete all pages but the syllabus and honesty agreements
3. Fill in the blanks by typing
4. Save document and upload into the Agreements dropbox in Elearning
OR
1. Print the syllabus
2. Fill in the blanks by writing
3. Scan them into a Word document or PDF file
4. Upload into the Agreements dropbox in Elearning
Failure to do so will result in the student not being allowed to continue in the
course. Furthermore, the availability of subsequent course material is contingent
upon timely submissions. The first case will not be released unless the
agreements are uploaded into the appropriate dropbox before the deadline.
Likewise, each subsequent case will not be released until the prior case report is
submitted.
*The instructor reserves the right to adjust the syllabus as necessary during the course
of the semester.
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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
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Case Assignment Guidelines*
I. Title Page (no page number)
a. Name of Company
b. Student name
c. Date
II. 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.
III. 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)
IV. 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).
V. 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.
VI. Bibliography
a. Properly cite all sources used in the case using one of the acceptable
format styles: APA, MLA, Chicago, or Turabian. This includes the format
reference source (MLA handbook, etc…), 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
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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 acknowledge 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 blocked 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.
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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 provided plagiarism information and links on our course website that I
have reviewed. After reviewing them, I acknowledge 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 accept that I must not do the following:
1. Copy spreadsheets, either completely 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 accept 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 acknowledge 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
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