FIN/419

Syllabus School of Business FIN/419 Finance for Decision Making

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Course Description This course addresses advanced principles in financial management and decision making. Emphasis is placed on providing relevant theory, best practices, and skills to effectively manage risk, time value of money, working capital, capital structure, the regulatory environment, and evolving issues in financial management. Policies Faculty and students/learners will be held responsible for understanding and adhering to all policies contained within the following two documents: University policies: You must be logged into the student website to view this document. Instructor policies: This document is posted in the Course Materials forum.

University policies are subject to change. Be sure to read the policies at the beginning of each class. Policies may be slightly different depending on the modality in which you attend class. If you have recently changed modalities, read the policies governing your current class modality. Course Materials Gitman, L. J. (2009). Principles of managerial finance (12th ed.). Boston, MA: Pearson Addison Wesley. All electronic materials are available on the student website.

Week One: Financial Risk Management

Details
Objectives 1.1 Explain the role of Limited Liability Corporations and Limited Liability Partnerships. 1.2 Compare and contrast financial decisions based on alternative scenarios and potential outcomes. 1.3 Utilize current risk management techniques to maximize shareholder wealth. Read Ch. 1 & 5 and Section 10.2 in Ch. 10 of Principles of Managerial Finance. Read this weeks Electronic Reserve Readings. Post your personal biography to the Chatroom. Participate in class discussion. Tues 4 out of 7 days 1

Due

Points

Readings

Biography Participation

Discussion

Respond to weekly discussion questions.

DQ1- Wed

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Questions Weekly Summary Individual Limited Liability Corporation and Partnership Paper Post weekly summary to Main Forum. Write a 700- to 1,050-word paper in which you explain roles of limited liability corporations and partnerships. If you were establishing your own business, under what circumstances would you choose one instead of the other? Format your paper consistent with APA guidelines.

DQ2 - Fri Mon Mon 1 5

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Week Two: Time Value of Money and Decision Making

Details
Objectives 2.1 Apply time value of money techniques to financial opportunities and decision making. 2.2 Prepare a loan amortization schedule. 2.3 Determine the value of financing instruments using required rates of return. Read Ch. 4, 6, & 7 of Principles of Managerial Finance. Read this weeks Electronic Reserve Readings. Participate in class discussion. 4 out of 7 days DQ1- Wed DQ2 - Fri Mon 1

Due

Points

Readings

Participation

Discussion Questions Individual Assignments from the Readings

Respond to weekly discussion questions.

Resource: Principles of Managerial Finance Prepare responses to the following problems from the text: Ch. 5: P53, P54, P513 Ch. 10: P104

Learning Team Financial Outcomes Paper

Choose a faculty-approved Fortune 500 organization. Select a financial initiative from the managements message to the shareholders using its most recent annual report and other financial statements submitted to the Securities and Exchange Commission. Write a 1,400- to 1,750-word paper in which you compare and contrast three potential financial outcomes your Learning Team envisions for the initiative. Complete the following in your paper: Evaluate your findings to determine the most likely outcome. Include calculations that support your analysis of various financial outcomes and discuss the financial effect on the organization. Format your paper consistent with APA guidelines.

Mon

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Week Three: Working Capital Policies

Details
Objectives 3.1 Apply alternative financing methods to make optimal working capital decisions. 3.2 Explain how current asset and liability accounts affect cash management. 3.3 Determine working capital decisions based on forecasted financial data. Read Ch. 14 & 15 of Principles of Managerial Finance. Read this weeks Electronic Reserve Readings. Participate in class discussion. 4 out of 7 days DQ1- Wed DQ2 - Fri Mon 1

Due

Points

Readings

Participation

Discussion Questions Individual Assignments from the Readings

Respond to weekly discussion questions.

Resource: Principles of Managerial Finance Prepare responses to the following problems from the text: Ch. 4: P423, P432, P446. P448 Ch. 6: P615 Ch. 7: P76

Learning Team Capital Valuation Paper

Resource: Financial Outcomes Paper from Week Two Write a 1,050- to 1,750-word paper in which you justify the current market price of the organizations debt, if any, and equity, using various capital valuation models. Complete the following in your paper: Show calculations that support your findings, including those involving rates of return. Defend which valuation model best supports your findings.

Mon

Format your paper consistent with APA guidelines.

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Week Four: Capital Structure

Details
Objectives 4.1 Describe the global investment banking process as it applies to an organization. 4.2 Assess the roles and relationship of operating and financial leverage on capital structure. 4.3 Evaluate alternative capital structures. Read Ch. 12 of Principles of Managerial Finance. Read this weeks Electronic Reserve Readings. Participate in class discussion. 4 out of 7 days DQ1- Wed DQ2 - Fri Mon 1

Due

Points

Readings

Participation

Discussion Questions Individual Scott Equipment Organization Paper

Respond to weekly discussion questions.

Scott Equipment Organization is investigating various combinations of short- and long-term debt in financing assets. Assume the organization has decided to employ $30 million in current assets and $35 million in fixed assets in its operations next year, provided the level of current assets, anticipated sales, and EBIT for next year are $60 million and $6 million, respectively. The organizations income tax rate is 40%. Stockholders equity will be used to finance $40 million of assets, with the remainder financed by short- and long-term debt. The organization is considering implementing one of the policies in the diagram. Amount of Short-Term Debt Financial Policy Millions of dollars $24 LTD (%) 8.5 STD (%) 5.5

Aggressive (large amount of short-term debt) Moderate (moderate amount of short-term debt) Conservative (small amount of short-term debt)

$18

8.0

5.0

$12

7.5

4.5

Determine the following for each policy: Expected rate of return on stockholders equity Net working capital position Current ratio

Write a 1,400- to 1,750-word paper in which you evaluate

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profitability versus risk trade-offs of these policies. Would you rate them low, medium, or high with respect to profitability? Would you rate them low, medium, or high with respect to risk? Format your paper consistent with APA guidelines.

Individual Assignments from the Readings

Resource: Principles of Managerial Finance Prepare responses to the following problems from the text: Ch. 14: P149, P1416 Ch. 15: P159

Mon

Learning Team Working Capital Strategies Paper and Presentation

Resource: Financial Outcomes Paper Write a 1,400- to 2,100-word paper in which you review your organizations most recent financial reports, such as balance sheets, statements of cash flow, management comments, and footnotes to financial statements, to explain how each current asset and liability account has affected cash management strategies. Complete the following in your paper: Assume next years forecasted revenues increase by 20%. Provide a detailed working capital recommendation to senior management based on next years increase in revenue along with assumptions you make regarding other line items in the pro forma financial statements. Discuss the effect of this revenue increase on the firms working capital policy. Identify lessons learned and discuss areas for further development in your conclusion.

Mon

15

Format your paper consistent with APA guidelines. Create a 5- to 8-slide Microsoft PowerPoint presentation for the organizations senior management with an executive summary of your Working Capital Strategies paper.

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Week Five: Contemporary Financial Topics

Details
Objectives 5.1 Analyze the role of regulatory bodies in financial decisionmaking. 5.2 Evaluate contemporary issues in international financial management. Read Section 10.3 in Ch. 10, Section 16.5 in Ch. 16, & Ch. 18 of Principles of Managerial Finance. Read this weeks Electronic Reserve Readings. Participate in class discussion. 4 out of 7 days DQ1- Wed DQ2 - Fri Mon 1

Due

Points

Readings

Participation

Discussion Questions Individual Assignments from the Readings

Respond to weekly discussion questions.

Resource: Principles of Managerial Finance Prepare responses to the following problems from the text: Ch. 4: P42, P43 Ch. 12: P124, P1219, P1221

Individual Final Examination Learning Team International Finance Paper

Resources: Principles of Managerial Finance Complete the Final Examination. Locate an organization that has an international presence. Write a 1,400- to 1,750-word paper on your organization in which you complete the following: Explain how the global investment banking process has assisted the organization. Explain how regulatory bodies affect financial decision making. Identify and evaluate contemporary issues in international financial management.

Mon

15

Mon

Format your paper consistent with APA guidelines. Copyright

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