MBA640 – Managerial Finance & Accounting II
Fall 2014
PROFESSOR:
PHONE:
E-Mail:
CLASS HOURS:
OFFICE HOURS:
Ronald L. Stoltzfus, CPA, Ph.D.
(540) 432-4155 office
stoltzfr@emu.edu
Th 6:00 p.m. - 8:00 p.m.
WF 3:30 p.m. - 5:00 p.m. and by appointment
OFFICE: CC214
REQUIRED:
1. Corporate Finance: Core Principles & Applications, 3th Ed. By Ross, Westerfield, Jaffe,
and Jordan, McGraw-Hill/Irwin, 2011
2. Cost Management: A Strategic Emphasis, 6th Ed. By Blocher, Stout, Juras, and Cokins,
Mc-Graw-Hill/Irwin, 2013
3. Access to CONNECT. Connect to http://connect.mheducation.com/class/r-stoltzfus-fall2014-th
4. Financial Calculator
PREQUISITES:
Financial Management or equivalent
Survey of Accounting or Managerial Accounting
Working knowledge of Excel
COURSE DESCRIPTION:
This course is a continuation of OLS 540 – Managerial Finance and Accounting I. From the
Finance discipline, this course covers the investment decisions managers make. Furthermore,
the course examines the contributions of Activity Based Costing and Value Chain Analysis for
decision making. The course digs deeper into financial statement analysis, including a thorough
analysis of cash flows. We also examine the impact of time value of money on financial
evaluations and capital budgeting decisions. Lectures, textbook and other readings, course
management software, and cases help bring the relevant topics to life. The overall aim of the
course is to continue to improve organizational decision-making based on financial, social, and
ecological metrics.
COURSE OBJECTIVES:
By the end of the course, students will be able to:
1. Develop an understanding of the cash flow from a basic set of financial statements.
2. Understand the role of finance in the management of the firm. You should be able to
analyze a firm using agency theory. There are many different ways people make
contracts that creates a conflict of interest in the management of a firm.
3. Use time value of money concepts in evaluation models.
4. Be able to understand and apply the relevant risks for pricing securities/assets.
5. Evaluate capital budgeting projects using relevant cash flows and choose the appropriate
decision rules.
6. Determine the required rate of return for investment projects.
7. Apply the principles of Activity Based Costing to management concepts.
8. Grasp a working knowledge of Value Chain Analysis
POLICIES:
Academic Integrity: See graduate catalog
Personal integrity and mutual trust are essential to the learning community at Eastern Mennonite
University. Students are expected to uphold high standards of personal ethics, including the
professional ethics associated with academic life. EMU considers a student's lying, cheating, or
stealing through the wrongful use or inappropriate attribution of information on tests, term
papers, or other academic assignments to be a serious violation of the standards of integrity in
the academic community. Knowingly helping or allowing someone to cheat also violates the
ethical standards of the community.
Plagiarism, the intentional use of ideas and words taken from another source without proper
credit, is a serious ethical offense. You must cite your source when you use ideas you borrow
from others.
When there is confirmed evidence of academic dishonesty, the professor deals with the student
on an individual basis and may assign a failing grade for course or for the particular assignment.
In cases where any disciplinary action is taken, a written record of the offense and the action is
submitted to the provost.
Accelerated Course:
The EMU MBA program delivers the course content in an accelerated format. Consequently,
you are required to do more work out of the classroom than the traditional delivery format. My
charge from the State Council of Higher Education is to make this course equivalent to a
traditional MBA course that meets three hours each week. Consequently, more of the
responsibility for learning the concepts presented in the textbook falls on your shoulders. You
must examine the solutions to the homework questions to make sure you understand the
concepts. Finally, I encourage web-based discussions to share questions and solutions.
Disabilities:
If you need course adaptations or accommodations because of a documented disability, please
make an appointment to discuss the issues in private.
Group Work:
I encourage class discussions on the homework assignments. My only caution is that each
person should actively engage the material. Cooperative learning represents a valid learning
technique. Anything you submit for an individual assignment must represent your work. Your
discussions, however, can influence your submitted material.
ASSESSMENT:
The following categories provide the basis of you final grade:
30% Homework (CONNECT)
A
25% Midterm Examination
A25% Final Examination (comprehensive)
B+
20% Cases
B
100% TOTAL
BC+
C
93 – 100%
90 – 92%
87 – 89%
83 – 86%
80 – 82%
77 – 79%
70 – 76%
Homework (30%)
A good grasp of the concepts and the techniques of finance, unlike some other business subjects,
cannot be obtained merely by reading. Real understanding is developed through working
problems.
CONNECT provides an immediate score on your submitted homework. Your work is due
Thursday night at 6:00 pm. I set the option to allow multiple attempts on your homework. I will
select the BEST grade of your attempts.
Examinations (Midterms 25%, Final 25%):
There will be one mid-term exam and one final examination. The final exam is comprehensive.
You must complete any take-home exams during the time scheduled.
Cases (20%):
You are required to prepare cases. You must include an executive summary of your case
analysis. You must submit your case on or before the designated due dates at the beginning of
class.
Preparation of Cases
Cases are longer than homework questions and most have more than one solution. Cases require
the reader to make interpretations of factual matters, and these interpretations will differ from
reader to reader. Furthermore, cases require the reader to make judgments on issues that may be
a source of unreconciled differences between readers. One of the benefits of casework is that it
prepares us for a world in which different interpretations and judgments are the rule rather than
the exception. Accordingly, you should view cases as vehicles for discussion rather than
problems for solution. I recommend the following procedure in preparing a case for class:
1. Read the case quickly (invest no more than a few minutes in this initial reading) and note the
study questions (if any) at the end of the case.
2. Read the assigned chapter or article(s) making brief written notes of ideas and issues related
to the case. Bring these notes to class. They can serve as a basis for your participation in
discussion. (Some students find it easier to perform the first two steps in the reading
procedure a day or so before the last two steps.)
3. Read the case carefully; as you read extend and embellish your notes.
4. Prepare the writing assignment, including an executive summary.