Metropolitan Community CollegeClass Syllabus

FINA 2230, Section 2A – Business Finance- Winter 2011CLASS IDENTIFICATIONTITLE:                              Business FinancePREFIX/SECTION:         FINA 2230 2ACREDIT HOURS:            4.5CLASS BEGINS/ENDS:  December 8, 2011 – February 23, 2012MEETING DAY(S)/TIMES:  Thursdays, 6:00 PM – 10:00 PMWITHDRAWAL DATE:  February 9, 2012CLASS LOCATION:      Elkhorn Valley Campus, Room 407CONTACT INFORMATIONINSTRUCTOR NAME:  David WilhelmOFFICE LOCATION:    FOC, Building 10, Office 222GOFFICE TELEPHONE:   402-457-2805TOLL-FREE NUMBER: 1-800-228-9553 (Use only during instructor's MCC office hours. Identify yourself as an online student and give the operator your instructor's office number.)FACSIMILE:OFFICE HOURS:      11:00 AM – 12:00 PM, Tuesday and Thursday 10:00 AM – 12:00 PM and 1:00 PM – 3:00 PM, Wednesday

EMAIL ADDRESS:       dwilhelm@m ccneb.edu FACULTY WEB SITE:  http://faculty.mccneb.edu/dwilhelmACADEMIC AREA:      Business

COURSE INFORMATION

COURSE DESCRIPTION:This course presents the basics of financial analysis, forecasting, operating and financial leverage, working capital, current asset management, short term financing, time value concepts and practices, cost of capital, equity financing, dividend policy, convertible bonds, warrants and options. These areas are primarily oriented towards corporate financial management.

COURSE PREREQUISITES:ACCT 1120 – Accounting III

COURSE OBJECTIVES:

Upon completion of this course, the student will be able to:

Describe financial instruments and financial markets. Analyze financial statements and prepare key financial ratios. Determine effect of taxes on financial decisions. Forecast financial trends. Evaluate use of operating and financial leverage. Evaluate working capital management and prepare cash budget and forecasts. Evaluate capital budgeting process. Apply long-term financing concepts involving capital markets, long term debt and leases.

Use the course specific software to:

Evaluate risk/return and forecasting problems. Develop long-term financial decisions. Assess working capital management.

TOPICAL UNIT OUTLINE/UNIT OBJECTIVES:

Upon completion of this course, the student will be able to:

I. THE GOALS AND FUNCTIONS OF FINANCIAL MANAGEMENTA. Analyze forms of business organization: proprietorships, partnerships, and corporations.B. Describe recent issues in finance and goals in financial management.C. Describe common financial markets and financial institutions.

II. FINANCIAL ANALYSIS AND PLANNINGD. Analyze financial statements and prepare key financial statement ratios.E. Describe the impact of inflation on financial analysis.F. Develop discounted cash flow models for use in financial decisions.G. Prepare cash budgets and forecasts.H. Forecast future financial requirementsI. Describe financial leverage.J. Demonstrate the effect of operating and financial leverage.

III. WORKING CAPITAL MANAGEMENTK. Describe the nature of asset growth and patterns of Financing.L. Estimate cash flow requirements.M. Identify and analyze short-term investment options including marketable securities.N. Describe the factors affecting inventory and receivables management.O. Describe the factors involved in current liability financing options on profitable and risk.

IV. THE CAPITAL BUDGETING PROCESSP. Describe and develop capital budgeting models.Q. Demonstrate the effect of the time value of money.R. Describe and analyze bond and stock evaluation methods.S. Use capital budgeting models to evaluate long-term financial decisions.T. Describe and evaluate capital structure.U. Integrate and concept of risk into valuation models and rates of return.V. Describe the portfolio effect.

V. LONG TERM FINANCINGW. Describe the international capital markets and the competition for funds in the U.S.

Capital markets.

X. Describe the organization and regulation of security markets.Y. Define investment banking and the roles of the investment banker.Z. Evaluate the use of long-term debt, stockholders equity, and hybrid financial instruments.AA. Analyze dividend policy.

COURSE OBJECTIVES ASSESSMENT MEASURES1. Describe financial instruments and

financial markets.1. Objective problems and exams, class

discussion and a written project

2. Analyze financial statements and prepare key financial ratios.

2. Objective problems and exams, class discussion and a written project

3. Determine the effect of taxes on financial decisions.

3. Objective problems and exams, class discussion and a written project

4. Forecast financial trends. 4. Objective problems and exams, class discussion and a written project

5. Evaluate the use of operating financial leverage.

5. Objective problems and exams, class discussion and a written project

6. Evaluate working capital management-Prepare cash budgets and forecasts.

6. Objective problems and exams, class discussion and a written project

7. Evaluate the Capital Budgeting process. 7. Objective problems and exams, class discussion and a written project

8. Apply long term financing concepts involving: capital markets, long-term debt and leases.

8. Objective problems and exams, class discussion and a written project

REQUIRED & SUPPLEMENTAL MATERIALS: Required Text:  Principles of Managerial Finance (Brief)Authors:  Gitman/ZutterEdition:  6thPublisher:  Pearson, ISBN# 978-0-13-216479-5Textbook and other print materials can be purchased through the Elkhorn Valley Campus bookstore.Phone: (402) 289-1208 Cost: $122.00 (New)Online: http://shop.efollett.com

Textbook:  Required. COMPUTER REQUIREMENTS:The computer you use for this MCC course must be able to run one of the internet compatible web browsers listed on the Browser Support Page: http://www.mccneb.edu/online/browsers.asp.SOFTWARE/FILE SUBMISSION REQUIREMENTS:Metropolitan Community College uses Microsoft products as part of its standard software and encourages students to do the same. You may save word-processed documents for file attachments in Microsoft Word .doc or .doc format. If your software does not allow either of these, then save files in Rich Text Format (.rtf).CLASS STRUCTURE:Students complete the course by reading the textbook and chapter summaries, completing the end of chapter problems assigned, participating in class discussions, exams and communicating with the instructor via telephone, e-mail, or campus visits during scheduled office hours. RESPONSE TIME:Faculty will respond within 24 hours, Monday through Friday, to student emails concerning course content, learning activities, and private matters appropriate for discussion within the teacher-student relationship. Posting of feedback and grades for major assignments is addressed under Assessment of Student Work.

ASSESSMENT OF STUDENT WORKTYPES OF ASSESSMENTS/ASSIGNMENTS:Methods of assessing student progress will include performance on end of chapter problem assignments, attendance and participation on class discussions and exams over the 15 chapters in the textbook.  Each of the aforementioned assessment measures should be completed as proscribed to successfully complete the course. 

Course Activities: To successfully complete the course, each student will need to complete all course activities as presented in the course outline described below:  

Chapter Assignments:Homework Problems:

There are 75 chapter textbook problems assigned each worth 2 points for a total of 150 points of the total grade points available. According to the course schedule, students must read the chapters of the text that are assigned. Once the chapter text has been read, the homework problems assigned specific to the chapter text may be completed. Homework assignments submitted for credit must be legible with the calculations and solutions clearly displayed. The homework assignments may be submitted on standard college ruled paper (8 ½” x 11) for credit or printed using the MyFinanceLab Software. (Instructions on last page of syllabus)

Calculator settings and decimal points:Calculations must include 2 decimal points, this includes percentages. If your answer has a percentage, the answer must have the percentage plus two decimal points. This requirement means that you must set your calculator to 2 decimal points. In order for your calculations to be accurate, it is necessary for you to set the P/Y and C/Y on your calculator to 1.

Homework Inquiries:Student's may request help or assistance on any assignment. Your Instructor will provide guidance to ensure your successful completion of any course activity. However, you are strongly advised not to wait too long in seeking such assistance. Please note, your Instructor will respond to all correspondence within 24 hours unless otherwise advised in advance. If you have a problem, please contact me.

NOTE: This is not a self paced course. All work must be completed and submitted to the instructor by the due date. Please plan ahead and do not wait until 24 hours prior to a due date. Make sure that your work, travel and vacation schedules are planned around critical dates. Homework Assignment due dates will not be extended. If an assignment is not completed and submitted by or before thedue date, the awarded grade will be "0".

Company Selection Paper:POINTS:  The Company Selection Paper is worth 50 points of the 500 total grade points available for the course. Note:  Please note the assignment due date.  Further, please be aware that assignments will not be accepted late.  Any assignment which is not delivered by the said due date will not be considered for grading resulting in a grade of -0- for the assignment. Contact the instructor if you have extenuating circumstances before the due date that preclude you from completing an assignment by the due date.

Purpose:  The purpose of the Company Selection Paper is to engage you in the application of knowledge learned by hands-on research of a company and their financial information. This facilitates the learning process by demonstrating an appreciation for the important use of business finance information learned in class.  To be considered for a grade, the Company Selection Paper must meet the following criteria: 1st page of assignment:                                          Your Name                                                         Date Submitted

Software:  Microsoft Word or software that can be read as a Word document, you may also use Microsoft Excel for the assignments which include quantitative solutions. Length: 5-6 Pages or 1,700-2,000 words. Please respond to each question or problem with the solution requested. Please show all calculations as partial credit may be awarded for work completed.

Margins:   Top/Bottom margin of 1"; Left/Right margin of 1", APA Format RequiredSpacing:  Text should double spaced.Font Type and Size:  Times New Roman, 12pt

Select one publicly traded company of your choice. Prepare a 1,700-2,000-word paper (5-6 pages) in which you provide an overview of your company and answers to the following questions:

1. Company Overview: a. What is the company’s product or service?b. When was the company established?c. When did the company go public?d. What is its stock ticker symbol?e. On what index is the company traded?f. What is its current stock price?g. What is its lowest and highest stock price over the most recent 52 weeks?h. What accounting firm audited its financial statements?i. What is its standard industrial classification (SIC) code?j. What industry is the company in and what is the company’s ranking within that industry?

2. Company Financial Information: a. What types of financial data are found in the company’s financial statements, including

footnotes?b. What were the dividends over the last three years?c. Does the company have more than one type of stock (common, preferred, treasury)?d. How many common stock shares are outstanding?e. Does the company have any outstanding bonds?f. Review the statement of cash flows and identify how much cash was generated or used

by operating, financing, and investing activities.g. Using the statement of cash flows, identify some of the significant internal events that

affected the company’s cash position.h. Describe the changes in revenues and net incomes over the last three years.i. Using the following ratios, calculate and/or state the company’s solvency, liquidity, and

profitability:1) Current ratio2) Return on sales3) Earnings per share (EPS)4) Debt ratio5) Price earnings ratio

j. Compare the results of your ratio calculations with the industry standards.

3. Future Company Prospects: a. Examine the management summary discussed in the Annual Report to identify future

opportunities for growth in revenue and earnings. b. Explain future growth opportunities and provide examples learned from your researchc. Summarize what you have learned from this paper and how it may help you in the futured. Cite sources used as references in your paper and include a cover page

Class Exams:

Test Prerequisites:The prerequisite for taking the exams is reading the text and the successful completion of all prior assigned homework problems. There are four exams worth 50 points each for a total of 200 points possible. Each exam will consist of 25 multiple choice questions and students will be allowed one hour maximum to complete each exam. The exam dates are specified below in the Schedule of Assignments.

Note:  Please note the exam date.  Further, please be aware that exams will not be completed late.  Any exam which is not completed by the planned date will not be considered for grading resulting in a grade of -0- for the assignment.  Each exam will be timed; you will have   60 minutes   to complete the exam.   Final grades are due to the Student Services office by 5:00 PM on Wednesday, February 29 and made available through Web Advisor.  If you need proof of your grade for your employer, please contact the Registrar's office for a transcript.

NOTE: Make sure that your work and vacation schedules are planned around critical dates. Due dates will not be extended. Please note that the enforcement of this policy may result in a student failing the course if the assigned activity is not completed in the designated time period noted below.

Class Attendance/Participation:POINTS:  There is a total of 100 points for class attendance and participation in class discussions over textbook material or homework problems reviewed during class. In addition, if a student attends all class meetings, an additional 10 points of extra credit will be awarded.Note:  The planned activity will correspond with the chapter material presented each week.  Further, please be aware that student discussion and homework review counts as participation in the class.  Any class discussion which you do not participate due to absence or not contributing during class will result in a grade of -0- for the assignment. Purpose:  The purpose of the activity is to engage you during class in informative conversation/discussion with the instructor and other students in the class and explore the financial implications of the topic to the student.  You are also encouraged to interact with the other students in the class to share knowledge and information related to the topic discussed. 

GRADING POLICY:Final Grade Structure: Final grades will be based on the following point system:

Total Points Earned Total Points Earned

450 - 500 A

400 - 449 B

350 - 399 C

300 - 349 D

299 and below F

 Point Distribution: 

Point Distribution TOTAL

Chapter Textbook Problems 150

Exams - 4 - 50 points each 200

Class attendance/participation 100

Company Selection Paper 50

Total Possible Points 500

ASSESSMENT OF STUDENT LEARNING PROGRAM:

Metropolitan Community College is committed to continuous improvement of teaching and learning. You may be asked to help us to accomplish this objective. For example, you may be asked to respond to end of course surveys or questionnaires. In other cases, tests or assignments you are required to do for this course may be shared with faculty and used for assessment purposes.USE OF STUDENT WORK:By enrolling in classes offered by Metropolitan Community College, the student gives the College license to mark on, modify, and retain the work as may be required by the process of instruction, as described in the course syllabus. The institution shall not have the right to use the work in any other manner without the written consent of the student(s).

INSTRUCTOR’S EXPECTATIONS OF STUDENTS

ATTENDANCE/PARTICIPATION POLICY:Students are expected to attend class and participate in assigned activities at least once a week and complete the assignments scheduled for that week by the due date listed in the schedule of assignments.  An Instructor may request that a student be withdrawn from a course for failure to make satisfactory progress.  To remain eligible for financial aid students are responsible for meeting Satisfactory Academic Progress standards.  Students will be notified by mail and will have five working days to respond to this notification. If a student does not respond within the 5 day period, it will be considered a request for withdrawal. Students who do not attend any class meetings up to and including the Section Census Date of Thursday, December 15, 2011 which is published in the Class Schedule at http://www.mccneb.edu/schedule/ may be disenrolled (WX) from the class. There is no appeal for this disenrollment. A student who fails to meet class attendance expectations may receive a final grade mark of FX, indicating an absence-related failure, or a failing (F) grade.

COMMUNICATION EXPECTATIONS:When you communicate with others in this course, you must follow the Student Code of Conduct (http://www.mccneb.edu/catalog/studentinformation.asp), which calls for responsible and cooperative behavior. Please think critically, ask questions, and challenge ideas, but also show respect for the opinions of others, respond to them politely, and maintain the confidentiality of thoughts expressed in the class. You may also wish to review information at http://www.albion.com/netiquette/.html.

ACADEMIC HONESTY STATEMENT:Students are reminded that materials they use as sources for class work may be subject to copyright protection. Additional information about copyright is provided on the library website at http://www.mccneb.edu/library or by your instructor. In response to incidents of student dishonesty (cheating, plagiarism, etc.), the College imposes specific actions that may include receiving a failing grade on a test, failure in the course, suspension from the College, or dismissal from the College. Disciplinary procedures are available in the Advising/Counseling Centers or at http://www.mccneb.edu/procedures/V-4_Student_Conduct_and_Discipline.pdf.

STUDENT WITHDRAWAL:If you cannot participate in and complete this course, you should officially withdraw by calling Central Registration at 402-457-5231 or 1-800-228-9553. Failure to officially withdraw will result in either an attendance-related failure (FX) or failing (F) grade. The last date to withdraw is November 2, 2011 as noted in the CLASS IDENTIFICATION section of this syllabus.

LEARNING SUPPORTMCC's Academic Resource Centers, Math Centers, and Writing Centers offer friendly, supportive learning environments that can help students achieve educational success. Staff members in these centers provide free drop-in assistance with basic computing, reading, math, and writing skills. Self-paced, computer-assisted instructional support in reading, vocabulary, typing, English as a Second Language, and online course orientation is also available. Detailed information about the Academic Resource, Math, and Writing Centers is in the Student Handbook, College Catalog, and online at http://www.mccneb.edu/arc/.

ACCOMMODATIONS FOR STUDENTS WITH DISABILITIES: If you have a disability that may substantially limit your ability to participate in this class, please contact a Disability Support Services Counselor located in the Student Services Office on each campus. Metropolitan Community College will provide reasonable accommodations for persons with documented qualifying disabilities. However, it is the student’s responsibility to request accommodations. For further information, please visit http://www.mccneb.edu/dss/ and/or contact Student Services.

SCHEDULE OF ASSIGNMENTS

NOTICE: This syllabus sets forth a tentative schedule of class topics, learning activities, exams and expected learning outcomes. However, the instructor reserves the right to modify this schedule to enhance learning for students. Any modifications will not substantially change the intent or objectives of this course and will conform to the policies and guidelines of Metropolitan Community College.

All activities, exam dates, and other important dates are also listed below.

Week# Class Date Chapter Class Meeting Homework Problems Due Date

Week 1 12/8/2011 1

Introductions. Course syllabusRole of

Managerial Finance

1, 2, 3, 4 & 5 12/15/2011

Week 2

12/15/2011 2

Financial Market

Environment1,5,6,7,8 12/22/2011

Week 3

12/22/2011 3

Financial Statements & Ratio Analysis

3,5,6,10,15 1/5/2012

Week 4 1/5/2012 4

Cash Flow & Financial PlanningExam 1 Review

1,4,6,7,9 1/12/2012

Week 5 1/12/2012 5

Exam 1, Time Value of

Money2,4,11,12,19,20 1/19/2012

6Interest Rates

& Bond Valuation

1,8,10,16,21 1/19/2012

Week 6 1/19/2012 7 Stock

Valuation 1,7,8,11,18 1/26/2012

8

Risk and ReturnExam 2 Review

2,7,13,24 1/26/2012

Week 7 1/26/2012 9

Exam 2, Cost of Capital

1,4,8,12,14 2/2/2012

10Capital

Budgeting Techniques

1,2,5,6,12 2/2/2012

Week 8 2/2/2012 11

Capital Budgeting Cash Flows

and Risk2,4,8,22,24 2/9/2012

12

Leverage & Capital

StructureExam 3 Review

2,4,6,9,12 2/9/2012

Week 9 2/9/2012 13

Exam 3, Payout Policy

4,5,9,10,14 2/16/2012

14Working Capital & Current

Assets Mgt.1,5,6,11,14 2/16/2012

Week 10 2/16/2012 15

Current Liabilities

Mgt.Exam 4 Review

2,4,6,9,11 2/23/2012

Week 11 2/23/2012

Exam 4Company Selection

Paper

TECHNOLOGY SUPPORT  If you have difficulty connecting to the Internet, call your Internet provider. For assistance with student email, passwords, and most other MCC technology, contact

the Help Desk at 457-2900 or mcchelpdesk@mccneb.edu.

TECHNOLOGY RESOURCES: By using the information technology systems at MCC (including the computer systems and phones), you acknowledge and consent to the conditions of use as set forth in the Metropolitan Community College Procedures Memorandum on Acceptable Use of Information Technology and Resources. It is your responsibility as a student to be familiar with these procedures. The full text of the Procedures Memorandum may be found at the following website: http://www.mccneb.edu/procedures/X-15_Technology_Resources_Use.pdf.

DISCLAIMER STATEMENTYour instructor in this class will be a teacher and facilitator.  Your instructor will help you gain knowledge in your quest to become an informed and possibly skilled financial manager and/or investor.  However, your instructor WILL NOT act as a financial or investment counselor or advisor.  While numerous financial management/investment techniques and philosophies will be discussed and analyzed in the course, your instructor will not make specific suggestions or offer advice to students.  Nothing your instructor may say or do should be interpreted as making a financial recommendation.  Neither your instructor nor the College are, or will be, responsible for any financial management or investment decisions you may make during or after the completion of your attendance in the course.  You assume any and all risks regarding any financial/investment decisions you may make.

2011 Winter Quarter Important Dates

Classes Begin…………………………………………………………………………………………………….December 2 FLast Class Day before Holiday Recess…………………………………………………………………December 22 THHoliday Recess/College Closed……………………………………………...........December 24-January 2 SA-MSpring Priority Webadvisor only registration for Current Students w/ 50+credit hrs……….Jan. 3 TSpring Current Student Webadvisor only registration begins………………………………….January 5 THSpring General Registration Begins…………………………………………………………………….…..January 11 W

The Last Day to Drop for a student-initiated “W” grade is also the last day for students to change from “Credit” to “Audit” or “Audit” to “Credit” with instructor approval. Students must drop by this date to avoid being assigned a grade of “F”. NOTE: “Last day to drop” refers to grades only.To view the Last Day to Drop specific to your course section, go to the online class schedule at http://www.mccneb.edu/schedule/classschedule.asp and click on the “Important Dates” tab next to the course.The Refund drop dates for each course section are automatically calculated based on the start and end dates and the number of sessions for the course. NOTE: Refer to refund policy below to determine the last day to receive a refund for your course.REFUND POLICYEligibility for a refund is automatically calculated by the date of the withdrawal. The amount of refund is based on the number of class meetings held prior to the withdrawal compared to the total number of scheduled sessions for the course.For refund or account questions call: (402) 457-2405 or 1-800-228-9553, extension 2405.

How to Register and Enroll in Your MyFinanceLab CourseWelcome to MyFinanceLab! Your instructor has set up a MyFinanceLab course for you.

To Register for MyFinanceLabTo register, you will need a student access code and a course ID. If you don't have an access kit, you can purchase access online at http://www.myfinancelab.com.You will have the choice to purchase access with or without a full etext. Once enrolled in your professor's course, you will also have the option to purchase a discounted version of your text.

Textbook: Gitman/Zutter: Principles of Managerial Finance, BRIEF 6eCourse Name: Business Finance Course ID: XL0O-N1NC-401Z-6EA2

Steps to Register:

1. Go to http://www.myfinancelab.com and click the Student button, in the Register section.2. Enter the course ID, XL0O-N1NC-401Z-6EA2 and click Next.3. Choose to register an access code (came with your new book) or purchase access if you

don’t have an access kit/code. 4. Click the button to proceed to registration.5. Follow the instructions to create your account.6. Click the link to login. You’ll be directed to http://www.myfinancelab.com, where you

can enter the user name and password you just created. Click the login button.7. The first time you enter the site you’ll be asked to enter your course ID.  Enter your

course ID, XL0O-N1NC-401Z-6EA2.  8. Be sure to click on the Browser Check link on the Announcements page or in the upper

right of the screen the first time you login and anytime you use a new computer. This wizard will walk you through the installation of the software you will need to use the MyFinanceLab resources (such as Flash). Note: the software may already be installed in the school lab, so in that case check first with your lab administrator.

To log into MyFinanceLab

1. Go to http://www.myfinancelab.com2. Enter the user name and password you just created, and click Log In (or hit the enter

key).If you purchased access, visit the Textbook Resources inside your Instructor's Course for additional purchase options.

Need Help? For assistance, please visit http://www.myfinancelab.com/support.