Financial Management FIN G200, Winter Spring Semester, 2004

flickhookΔιαχείριση

10 Νοε 2013 (πριν από 3 χρόνια και 9 μήνες)

90 εμφανίσεις


1

Financial Management

FIN

G200
, Winter


Spring Semester, 2004


Instructor:


Donald Margotta, 413 Hayden Hall


(Admin. Assistant 373
-
3616)


Website:


http://www.cba.neu.edu/~dmargotta/


Phone:


617
-
373
-
4739

(O)


Emergency Only:
617
-
536
-
2095 (H)

Fax:



617
-
373
-
8798





email:

d.margotta@neu.edu


Class Meetings:

Tuesday:


12:30

-

2
:
3
0 PM

Room
370 DG



Office Hours:


Tuesday:


11:00
-

12:00 PM

(Or by appointment)


Reading:


Fundamentals of Financial Management,” Brigham & Houston,

10t
h ed., (ISBN: 0
-
324
-
1782
9
-
8
). Text referred to as “B&H” in the syllabus





Case Packet (from bookstore)




Other required readings will be distributed or made available as needed.





Regular reading of relevant WSJ articles is expected.


1.



COURSE DESCRIPTION

Financial manage
ment is concerned with analysis of financial statements, flow of funds
available to an organization, and financial strategy designed to maximize the value of the
firm. Financial management is global in nature and international dimensions of the topic
will

be integrated throughout the course. Similarly, financial management provides many
opportunities for ethical considerations and these too will be discussed as appropriate.


2.



ADMINISTRATIVE

Assignments should be completed on the date for which they are a
ssigned. You are
responsible for everything discussed in class. If you miss a class, please make
arrangements to get notes, handouts, assignments, etc. from a fellow student. The
syllabus may, and probably will, change as we go along so be sure you keep

abreast of
any announced changes.


Special Announcements
:

On occasion there may be special announcements (syllabus
changes, corrections or modifications to homework assignments etc.
).

Please check my
web page for such announcements.

Information on weathe
r related delays or
cancellations can be found on
www.Boston.com

and WBZ radio (1030) AM. The
University’s main number also carries such information (617
-
373
-
2000).


Voice mail:

1. Please state name and phone number

at the
beginning

of your message.

2.

Please be as
brief
as possible.



2

3.



CASES AND DISCUSSIONS


Several cases will be discussed in class
-

see syllabus for details. Active and constructive
class participation requires attendance, of course, and that you
complete all reading and
other assignments before each class. This is true, for case discussions as well as for
discussions based on the text material.


4.



GRADES


The grade in this course will be based on two examinations, a group presentation, class
part
icipation, and three hand
-
in homework assignments, weighted as follows:



Exam 1
-

(30%)
:


See Class Schedule for date (closed notes)



Exam 2
-

(30%)
:


See Class Schedule for date (closed notes)



Group Paper and Presentation (
20
%)


Details TBA



Class Pa
rticipation
-

(10%)
:




See “Cases and Discussion” for expectations.



Hand
-
in Homework Assignment 1 (5%)


See Class Schedule for dates



Hand
-
in Homework Assignment 2 (5%)

See Class Schedule for dates




Note
:
You are required to have (or quickly develo
p) spreadsheet literacy in this class
and be able to use a financial calculator to calculate present values, IRR, and YTM.
Spreadsheets should be of professional quality in accuracy and appearance.



3

1.


01/0
6
/0
4


Overview of Financial Management

Chapter 1 (
B&H

10th
) : Overview of Financial Management

The financial manager's responsibilities, goals of the firm, forms of business
organization, ethics and social responsibility, agency relationships.

Begin
discussion

of time value of money


2.



01/1
3
/04


Fina
ncial Statements

Chapter 2 (B&H 10th) : Financial Statements, Cash Flow, and Taxes

Financial statements and reports: balance sheet, income statement.

EVA (Economic Value Added)

Chapter 6 (B&H 10th) : Time Value of Money

Future Value, Present Value,
Perpetuities

Constant cash flow and constant growth models


3.


01/2
0
/04


Financial Environment. Risk and Return

Chapter 3 (B&H 10th) : Analysis of Financial Statements

Financial statements and reporting, ratio analysis, data sources and differences.


Cha
pter 4 (B&H 10th) : Financial Environment: Markets, Institutions, Rates

Financial markets, risk, and the cost of money.
F
ocus on descriptive parts of this chapter.


Chapter 5 (B&H 10th) : Risk and Rates of Return: Basics

Risk and return and beta. The CA
PM and portfolio risk Focus in this chapter on the
concepts of risk and return rather that the statistical definitions and calculations.

Homework 1 distributed


4.


01/2
7
/04


Financial Assets

Chapter 7

(
B&H 10th
) : Bonds and Their Valuation

Appendix A: Zero

coupon bonds (browse, not necessary to read in detail)

Appendix B: Bankruptcy and Reorganization: (browse, not necessary to read in detail)

Case Preparation:


Continental Couriers


Simply read this case (no in
-
depth analysis required) to acquaint yourself

with some of
the issues which arise in choosing debt financing.


Homework 1 due




4

5.


02/03
/04

Financial Assets

(cont’d)

Chapter 8 (B&H 10th) : Stocks and Their Valuation


6.


02/10/04

Cost of Capital and Capital Budgeting

Chapter 9 (B&H 10th) : The Cost of

Capital

Understanding cost of capital is critical to understanding capital budgeting and other
topics and is one of the critical concepts in finance. Cost of debt, cost of equity, WACC.

Case Preparation: Pressco

Chapter 10 (B&H 10th) : Basics of Capital

Budgeting

Capital budgeting in one of the most important concepts in financial management. It uses
the present value techniques developed earlier. Pressco handout.


7.


02/17/04

Exam 1

Exam 1 (approximately 2 hours)


8.



02/17
/04

Cash Flow, and Capital
Bud
geting

Chapter 11 (B&H 10th) : Cash Flow Estimation and Risk Analysis

Topics in cash flow estimation

Chapter 12 (B&H 10
th
): Other Topics in Capital Budgeting

Briefly look over


we will not cover topics in this chapter in any depth.



9.

02/24
/04

Capital St
ructure and
Dividends

Chapter 13 (B&H 10
th
)


Capital Structure and Leverage


Case Preparation:


Pioneer Petroleum

Simply read this case (no in
-
depth analysis required) to acquaint yourself with some of
the issues which arise in choosing an appropriate c
ost of capital

Chapter 14 (B&H 10
th
)


Distributions to Shareholders: Div’s, Share Repurchase

Case Preparation: Netscape IPO

What strategy has Netscape used to explain its success to date?

How risky is its
current competitive position?

Does Netscape need

to go public to satisfy its capital
needs?


What are some of the advantages and disadvantages of going public for
Netscape?

(Note: we will consider analytical valuation questions in class, but you should
at least briefly consider the financials provided
)


03/02
/04

Spring Break


No Class





5

10.


03/0
9
/04

Managing and Financing Current Assets

Chapter 15 (B&H 10
th
)


Managing Current Assets


Pay particular attention to Table 15
-
1 (cash budget)

Chapter 16 (B&H 10
th
)


Financing Current Assets


Cost of Credit Te
rms (such as 2/10, net 30)


11.

03/09
/04

Financial Forecasting

Chapter 17 (B&H 10
th
)


Financial Planning and Forecasting



Pay particular attention to Table 17
-
4

Chapter 18

(10
th
)
: Derivatives and Risk Mgmt (minimal prep
.
)


12.


03/1
6
/04

Leasing and Hybrid Stock
s

Chapter 20: Leasing and Hybrid Stocks

Case Preparation: Toy World

Homework 2 distributed (Leasing)


13.


03/23
/04

Multinational Issues


Chapter 19 (10
th
): Multinational Financial Mgmt (minimal prep.)


Video: "Who's Getting Rich. . . . ." (International secti
on)

Homework 2 due


14.


03/30/04

Mergers

Chapter 21 (10
th
): Mergers, Divestitures, and LBO's



15.


04/06/04

Group Presentations

Group Presentations


and review


16.


04/13/04

Group Presentations

Group Presentations


and review


17.


04/20/04

Final Exam

Exam 2


NOTE:

This syllabus is a general guideline. Changes in the syllabus are likely and
students are responsible for all announcements made in class, regarding the syllabus or
anything else, including those made the first day, regardless of whether they are in
att
endance.


6


1.

COURSE DESCRIPTION

1

2.

ADMINISTRATIVE

1

3.

CASES AND DISCUSS
IONS

2

4.

GRADES

2

1.

01/06/04 Overview of Financial Management

3

Cha
pter 1 (B&H 10th) : Overview of Financial Management

3

Begin discusssion of time value of money

3

2.

01/13/04 Financial Statements

3

Chapter 2 (B&H 10th) : Financial Statements, Cash Flow, and Taxes

3

Chapter 6 (B&H 10th) : Time Value of Money

3

3.

01/20/04 Financial Environment. Risk and Return

3

Chapter 3 (B&H 10th) : Analysis of Financial Statements

3

Chapter 4 (B&H 10th) : Financial Environment: Markets, Institutions, Rates

3

Chapter 5 (B&H 10th) : Risk and Rates of Return: Basics

3

Homework 1 distributed

3

4.

01/27/04 Financial Assets

3

Chapter 7 (B&H 10th) : Bonds and Their
Valuation

3

Case Preparation:


Continental Couriers

3

Homework 1 due

3

5.

02/03/04 Financial Assets (cont’d)

4

Chapter 8 (B&H 10th) : Stocks and Their Valuation

4

6.

02/10/04 Cost of Capital and Capita
l Budgeting

4

Chapter 9 (B&H 10th) : The Cost of Capital

4

Case Preparation: Pressco

4

Chapter 10 (B&H 10th) : Basics of Capital Budgeting

4

7.

02/17/04 Exam 1

4

Exam 1 (approximately 2 hours)

4

8.

02/17/04 Cash Flow, and Capital Budgeting

4

Chapter 11 (B&H 10th) : Cash Flow Estimation and Risk Analysis

4

Chapter 12 (B&H 10
th
): Other Topics in Capital Budgeting

4

9.

02/24/04 Capital Structure and Dividends

4

Chapter 13 (B&H 10
th
)


Capital Structure and Leverage

4

Chapter 14 (B&H 10
th
)


Distributions to Shareholders: Div’s, Share Repurchase

4

Case Preparation: Netscape IPO

4

03/02/04

Spring Break


No Class

4

10.

03/09/04 Managing and Financing Current Asse
ts

5

Chapter 15 (B&H 10
th
)


Managing Current Assets

5

Chapter 16 (B&H 10
th
)


Financing Current Assets

5

11.

03/09/04 Financial Forecasting

5

Chapter 17 (B&H 10
th
)


Financial Planning and Forecasting

5


7

C
hapter 18 (10
th
): Derivatives and Risk Mgmt (minimal prep.)

5

12.

03/16/04 Leasing and Hybrid Stocks

5

Chapter 20: Leasing and Hybri
d Stocks

5

Case Preparation: Toy World

5

Homework 2 distributed (Leasing)

5

13.

03/23/04 Multinational Issues

5

Chapter 19 (10
th
): Multinational Financial Mgmt (minimal prep.)

5

Homework 2 due

5

14.

03/30/04 Mergers

5

Chapter 21 (10
th
): Mergers, Divestitures, and LBO's

5

15.

04/06/04 Group Presentations

5

Group Presentations


and review

5

16.

04/13/04 Group Presentations

5

Group Presentations


and review

5

17.

04/20/04 Final Exam

5

Exam 2

5