Southern
Connecticut State University
Department of Economics and Finance
Spring 2003
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COURSE
NUMBER:
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MBA
503 |
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COURSE
TITLE:
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Managerial
Finance |
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COURSE
DESCRIPTION:
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This
course addresses the financial management issues of an economic
agent within the context of a free-market capitalistic economy,
using a manufacturing corporation operating in a "domestic"
as well as international market as a basic model. At the end of
the course, the student will have an understanding of the issues
involved and their general solution, with the objective of maximizing
the wealth of the firm's owners through maximizing common stock
prices. |
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PREREQUISITES:
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None
stated. However, successful completion of the course is virtually
impossible without first completing MBA 502 and 506. |
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PROFESSOR:
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Dr.
Robert M. Eldridge.
Tel: (203) 876-5046
(H); (203) 392-5628 (O)
Fax: (203) 392-5254
Email: eldridger1@southernct.edu |
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OFFICE
HOURS:
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Tues:1700
- 1900
Wed: 1600 - 1800
Thurs: 1300 - 1500
or by appointment. |
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CLASS
HOURS:
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Tues
1935 - 2205, ENA115 |
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MATERIALS:
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1.
Financial Management, Theory and Practice, 10e, Brigham and Ehrhardt,
Southwestern Press, 2002
2. Subscription to the Wall St Journal |
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COURSE
OBJECTIVES:
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The
objective of this course is to establish a foundation in the financial
management of the publicly-traded, for-profit firm in the context
of a free-market capitalist system. The course will cover, inter
alia, basic analytics, treasury management, capital budgeting, capital
structure, cost of capital, security pricing, and dividend policy.
At the end of the course the student should have an understanding
of the major issues facing the corporate financial manager. |
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INSTRUCTION:
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The
course will consist of lectures, readings from the Wall St Journal,
usage of the World-Wide-Web and a term paper. |
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METHOD
OF ASSESSMENT:
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1.
Exams: (2@ 25 %) = 50%
2. Term Paper = 30%
3. "Two minute drills" = 15%
4. Participation and attendance = 5% |
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SPECIAL
NOTES:
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1.
"Two minute drills". At the end of each class there will
be a one question quiz lasting two minutes. I will count only the
top 10 grades. This will constitute 15% of the course grade.
2. At the end of the course the student will be requested to complete
a "Course Survey" form, separate and distinct from any
University Evaluation form. This survey helps me in preparing the
course for the next time it is offered. For each form returned,
1/n points will be added to the final grade, where "n"
represents the number of students enrolled in the course based on
the registrar's final class list.
3. The student is permitted and encouraged to tape record lectures
for personal study use only.
4. If any student has a particular disability-related need in order
to participate in this course, such as special seating, note-taking
assistance, use of tape recorders or modified exam conditions you
will need to visit the Disability Resource Office, EN15, to arrange
for approved accommodations. If you have other information you wish
to share with me such as emergency medical information, or arrangements
in case the building has to be evacuated, please tell me as soon
as possible.
5. Weather Check number: 203-392-7669.
6. Following the finishing of the draft of this book, the title
was sold to Southwestern Press and printed under its imprint. As
a result, there are a large number of web site references that refer
to HarcourtBrace, the previous publisher, that were changed by Southwestern
on the web, but not in the book. Therefore, whenever you see a reference
to www.harcourtcollege.com, it should be changed to www.swcollege.com.
7. It is recommended that you form yourselves into study groups
for the purpose of doing the homework problems.
8. Cell phones and audible pagers MUST BE TURNED OFF during class
unless the permission of the instructor has been obtained in advance.
Failure to comply will result in a failing grade for the class.
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TERM
PAPER:
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You
are to select a publicly-traded (NYSE or AMEX) manufacturing firm
and do a five year analysis of it, using its publicly available
financial statements using SAS programs to be provided. The Analysis
will cover the years 1997-2001 inclusive. Based on your analysis
of the various results, you will answer the following question:If
you had all the money in the world, would you buy this company;
if so, why so; if not, why not?The length of the paper is not
important. Please attach a copy of the 2001 annual report as an
appendix to the paper. The grade on the paper will be a function
of both the finance and the writing. While I don't expect Pulitzer-prize
English, I do expect the following:
1.
No spelling errors
2. Standard grammar:
a.
Every sentence must have a subject and a verb.
b. Subject and verb will agree in number.
c. No split infinitives.
d. No dangling participles
e. No dangling prepositions.
3.
Proper punctuation
4. Pronouns will clearly reflect to a preceding proper noun.
5. Remember, a name like General Motors is a compound singular
noun and thus is never referred to as "they", but
always "it".
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EXPECTATIONS:
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A.
What you may expect from me:
1.
A strong grounding in Corporate Finance
2. A willingness to work with you on specific problems you have
with the course or scheduling.
3. A sense of excitement about the field of finance.
B.
What I expect of you:
1.
Come to class prepared by having read the assigned materials
and done any outside work assigned.
2. If you know that you will miss a class, a call to me would
be appreciated.
3. If something does not make sense in the course, you will
ask me either in class, in office hours or call me at home.
4. A sense of what is going on in the world of business and
finance through a daily reading of the Wall St Journal, sections
one and three at a minimum.
C.
Profile for success or failure. If you go into an exam behind
in the reading and not up with the class discussions or any assigned
homework, you probably will not be successful. If, on the other
hand, you have done the reading and homework and been faithful
in attendance, you should have no problem with any exam you get
from me.
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ASSIGNMENT
SCHEDULE
(subject to change)
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DATE
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TOPIC
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CHAPTERS
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PROBLEMS
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REMARKS
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| Jan
21 |
1.
Introduction
2. Accounting Review
3. Statistics Review
4. Financial Statements |
1,
2, 3 |
2-1,
2-2, 2-3, 2-5, 2-10, 2-12, 2-13, 2-15, 2-203-1, 3-2, 3-3, 3-4, 3-5,
3-6, 3-7, 3-8, 3-9, 3-10, 3-11, 3-13, 3-15, 3-17 |
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| Feb
1 |
Special
Class |
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Library/ComputerTutorial |
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| Jan
28 |
1.
Financial Statement Analysis
2. Forecasting
3. Risk and Return I |
4,
6 |
4-1,
4-2, 4-4, 4-5, 4-6, 4-8, 4-9, 4-11, 4-12, 6-16-2, 6-3, 6-6, 6-17,
6-18 |
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| Feb
4 |
1.
Risk and Return II
2. Interest Rates
3. Time Value of Money I |
6,
5, 8 |
5-1,
5-2, 5-3, 5-10, 5-12, 5-15, 5-168-1, 8-2, 8-3, 8-4, 8-5, 8-6, 8-7
,8-8, 8-9, 8-10, 8-11, 8-12, 8-13, 8-14, 8-16, 8-20, 8-30, 8-31
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Correl1.SAS
Results Due |
| Feb
11 |
1.
Time Value of Money II
2. Treasury Management I |
8,
22, 23 |
22-1,
22-2, 22-3, 22-4, 22-5, 22-6, 22-7, 22-8, 22-10,22-12, 22-1323-1,
23-3, 23-4,23-6, 23-10, 23-12, 23-13, 23-14, 23-16, 23-17, 23-18,
23-20 |
Correl2.SAS
Results Due |
| Feb
18 |
1.
Treasury Management II |
22,23 |
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| Feb
25 |
1.
Capital Budgeting
2. Mid Term Exam |
13,14
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| Mar
4 |
1.
Capital Structure |
16,
17 |
16-1,
16-2, 16-3, 16-7, 16-8, 16-9, 16-1117-1, 17-6 |
Finan.SAS
Results Due |
| Mar
11 |
1.
Cost of Capital |
11 |
11-1,
11-2, 11-4, 11-10, 11-11, 11-12, 11-13, 11-14, 11-16, 11-17, 11-18,
11-19 |
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| Mar
18 |
1.
Asset Pricing
2. Stock Valuation |
10 |
10-1,
10-3, 10-4, 10-5, 10-6, 10-7, 10-8, 10-9, 10-10, 10-19, 10-20, 10-22,
10-24 |
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| Apr
1 |
1.
Dividend Policy
2. Valuation/Value-Based Management |
18,
12 |
18-1,
18-2, 18-3, 18-4, 18-5, 18-6, 18-10, 18-11, 18-1212-1, 12-3, 12-4,
12-5, 12-6, 12-8, 12-9, 12-10, 12-11, 12-12 |
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| Apr
8 |
1.
Leasing |
20 |
20-1,20-3,20-6,20-7 |
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| Apr
15 |
1.
Initial Public Offerings |
19 |
19-1,
19-2, 19-4, 19-6, 19-7 |
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| Apr
22 |
1.
Derivatives
2. Bankruptcy |
24,
25 |
24-1,
24-2, 24-3, 24-425-1, 25-2 |
Term
Paper Due |
| APR
29 |
1.
Review |
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| May
6 |
1.
Final Exam |
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