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A.   a3TechnicalTechnical Document Style9Wg  2  1.   a4TechnicalTechnical Document Style8bv{ 2  a.   a1TechnicalTechnical Document StyleF!<  ?  I.   2Xa7TechnicalTechnical Document Style(@D i) . a8TechnicalTechnical Document Style(D a) . PleadingHeader for numbered pleading paperP@n   $] X X` hp x (#%'0*,.8135@8:08/10/98  ?  GOLDEYBEACOM COLLEGE .Course Syllabus FIN 333  FINANCIAL MANAGEMENT  ?   Fall 1998 # U$XX%%XX~~!~Y#$@SYL-@   !~Y# !~Y# !~Y# !~Y# !~Y# !~Y# !~Y# XX~~@XX%%`%%`  ?  1.X Course Description ƀ% X ƀ% X Financial Management develops a marketoriented framework for analyzing firms' financial decisions thereby enabling students to think critically about the essential features, assumptions, and implications of valuation and financing decisions. The course emphasizes the tools of modern finance, yet examines the evidence and implications of the rapidly emerging "new finance." Major topics include financial analysis, risk and return, time value of money, planning and forecasting, valuation methodologies, multinational finance, and capital budgeting. Cases provide students an opportunity to apply financial principles to actual business and personal finance decisionmaking situations. The course also includes segments on entrepreneurship and the financing of new ventures and an exposure to issues in international finance.ƀ%  ?  2. Instructor : Steven P. Bouchard Phone: 9988814 X338 X Office: G7; Office Hours: Posted outside my office doorƀ%  ?P  Email address: bouchars@goldey.gbc.edu X I am here at school nearly every day, feel free to give me a call to ask a question or set up an appointment.ƀ%  ?p  3.X Course Prerequisites : ECO 201/202; ACC 208ƀ%  ?  4.X Required Text : Eugene F. Brigham, Fundamentals of Financial Management, The CONCISE EDITION, Dryden Press, Harcourt Brace College Publishers, Philadelphia, Pennsylvania, 7th Edition, 1996.ƀ%  ? X Required Coursepack: Blueprints for Fundamentals of Financial Management: THE CONCISE EDITION. Blueprints is a set of integrated lecture notes which I will follow and use most of the time in class.ƀ%  ? X Required Text : Kenneth Morris and Alan Siegel, The Wall Street Journal Guide to Understanding Money and Investing, Lightbulb Press, Simon & Shuster, 1993.ƀ%  ?(#  X Required Publication: The Wall Street Journal. The instructor will  ?# explain the use of The Wall Street Journal at the first class meeting. Semester subscriptions are available.ƀ%  ?H&  X Recommended : Study Guide for Fundamentals of Financial Management: THE CONCISE EDITION. This workbook contains outlines of the chapters plus questions and problems with detailed answers. It should be useful in studying and in preparing for exams, and is recommended, but is not required.ƀ%0h)-`,`,``~Y# !0  ? X Required :` `  A financial calculator as described below.ƀ%`  ?  5.X Calculator : You must have a financial calculator to get through the course. It is a useful business and personal financial tool and we will use it extensively during the course; it is indispensable for exams.ƀ% X I recommend either the HewlettPackard (HP) 10B or Texas Instruments (TI) 83 financial calculators. The TI83 is required in some earlier classes, and I can provide assistance in mastering both of these calculators. I will go over the basics of how to use both calculators in class. I will also provide supplemental written material on each calculator. I have a limited number of HP 10B calculators available for rental for those who don't wish to purchase one see below. You can get the HP 10B at the school bookstore, "Footnotes" for about $32.95, or at Service Merchandise Kirkwood Highway for about $31.00. The TI83 costs about $98 in the bookstore. You may be able to get it cheaper at Staples (Prices Corner).ƀ% X The HP 10B and TI83 do everything needed in the course. There are many different types of calculators, and some of the others are adequate for  ? the course. An engineering or business calculator that has the following financial and statistical functions will do fine. Time Value of Money: FV, PV, Annuities, Amortization; Regression (Forecasting); Interest Rate Conversions; Cash Flows: IRR, NPV, NFV; Basic Statistics (mean, standard deviation, correlation); Exponential functions.ƀ%  ?P X Calculator Rental: As an alternative to purchase, I have a few HP 10B calculators that I rent for $10.00 each for the semester.ƀ%  ?  6. Course Objectives:  ?p   1.To introduce you to the principles, theory, methodology, and practice of financial management.ƀ% X 2.XTo develop your ability to read intelligently, understand, and make use of financial publications, including, The Wall Street Journal, Value Line Investment Service, Moody's Manuals, Morningstar Mutual Funds.ƀ%  3.To develop your ability to apply the central principles and methods of risk and return analysis, the time value of money, valuation, and financial forecasting in a variety of situations, including in managing your personal finances.ƀ% X 4.XTo develop your proficiency and mastery of the practical tools of financial management, especially the use of (a) the financial press, (b) a financial calculator, and (c) computer technology and spreadsheet models.ƀ% X 5.XTo provide you with opportunities for the practical application of principles and methodologies of financial analysis and valuation via an inclass stock picking contest.ƀ% X We will explore concepts, theories, and empirical research and will focus applying what we learn.ƀ%h)-`,`,``  ?  7. Class Procedures : X 1. The structure of this class makes individual study, and preparation outside class, extremely important. The lectures will focus on the major points introduced in the text and will largely use the Lecture Notes set BLUEPRINTS. If you read and have a least some familiarity  ? with the assigned chapter before the lecture, this will greatly assist you in understanding the lecture. The lectures will focus on the more difficult aspects of the chapters, and on problems related to the material. If you have not read the chapter, hence do not understand the definitions and simple concepts, you will not be able to understand the more complex topics covered in the lecture, and upon which the exams will be based. After the lecture, you should study your notes and work relevant problems from the endofchapter and practiceset questions.ƀ%  ?  8. Grading: EVENING CLASSES & 8WEEK DAY CLASS:  ?H  Exams and Cases.hh*0 Weight X XMidterm Exam #1hh*0620%ƀ% X XMidterm Exam #2hh*0620%ƀ% X XFinal Exam$hh*0620%ƀ% X XCases* $hh*0640%ƀ% X` ` Total$hh*0 100%ƀ%`  ?  8. Grading: DAY CLASS: 15 WEEK SCHEDULE:  ?P  Exams and Cases.hh*0 Weight X XMidterm Exam #1hh*0615%ƀ% X XMidterm Exam #2hh*0615%ƀ% X XMidterm Exam #3hh*0615%ƀ%  Final Exam$hh*0615% X XCases* $hh*0640%ƀ% X` ` Total$hh*0 100%ƀ%` X Note: (1) REGARDLESS OF YOUR NUMERIC AVERAGE, TO PASS THIS COURSE, All CASE ASSIGNMENTS MUST BE COMPLETED AND EARN AT LEAST 60% and ALL EXAMS MUST BE TAKEN AND/OR CORRECTED AND YOU MUST EARN A MINIMUM CORRECTED SCORE OF 60%. This means, for example, if you have an 80 average and fail to complete one case earning a minimum of 60% YOU DO NOT PASS THE COURSE UNLESS YOU COMPLETE THAT CASE with a grade of 60% or above. On some exams and cases, you will be allowed to correct/complete the exam and resubmit the exam for additional points.ƀ%  (2) You must attend at least 80% of the classes to pass this course. X * Cases may include homework or other inclass assignmentsƀ% #-`,`,``  ?  9. Case Assignments : X The following is a list of case topics from which five cases will be chosen and assigned by the instructor this semester.ƀ% X 1. Financial Statement Analysisƀ%  2. Risk & Return and Investment Analysis pBƀ%  3. Time Value of Money X 4. Valuationƀ% X 5. Cost of Capital and Capital Budgetingƀ%  6. International Foreign Country Direct Investment Analysis X 7. Financial Forecastingƀ%  8. New Venture Analysis and Forecasting  9. Comprehensive Case  ?H  10.X Historical Grade Disclosure ƀ% X For information purposes, I provide historical grade distributions from some of the FIN 333 classes which I have taught here at GBC. As with historical returns on investments, there is a disclaimer: past performance may not be indicative of future performance or of future grade distributions.ƀ% X ƀ% O ddx !ddx8 "O  8  ITEM "IjTOTALS8 P  Percent Students Who Drop Course"KZ9%P P  Overall Class GPA Students on Final Roll`"J2.72P P  Class GPA Students Who Complete Course"J2.98P P ` Percent A's"K23%P P  Percent B's P"K37%P P  Percent C's "K29%P P P Percent D's "KZ7%P   Percent F'sp "KZ4% p -`,`,``  ?  11.X Class Schedule : This schedule is tentative and subject to change. Any changes will be announced in class. We will essentially follow the chapter outline in the text. A more detailed schedule will be provided every other week so you may plan your work and exam schedules.ƀ%  ?  &DAY CLASS 8/24/98 12/9/98 ă T !ddx8 " Addxx h""" T   8 "WEEK" WEEK  BEGIN"%rB&H "F CHAPTERS"8bSCHEDULED COVERAGE8  x"\1 " 8/24 "%r1,2 Primary Goal; Agency Problem & Solutions; Financial Statements  "\2 " 8/31 "&3 Analysis of financial statements; intro Case #1; M&I    "\30 " ?h  9/7*0 "&40  ?h *labor day; Interest rates; yield curve; Wall Street Journal (WSJ)   "\4H" 9/14H"%r4,5H intro case #6; WSJ; risk & return; diversification    "\5`" 9/21`"# 5,Exam` CAPM, SML, Portfolio; statistical analysis P "\6x" 9/28x"&6x TVM, intro Case#2; P P ("\7" 10/05"%r7,8 bond valuation; stock valuationP  x"\8" 10/12"&8 stock valuation; intro Case #4: Mutual fund; Morningstar; WACC P "\90" 10/190"# Exam,90 Inclass Case #3; Mutual FundsP  " 10" 10/26"$69,10 Capital budgeting; Case #3 & WACC  0" 11" 11/02"$ 11,12 cash flow estimation; risk; Entrepreneurship; capital structure  H" 12x" 11/09x"$ 13,14x Dividend policy, financial forecasting; Inclass case #5  (" 13 " 11/16 "# Exam,15 Exam #3 Managing current assets  @" 14"" 11/23""%16" Entrepreneurship; Financing current assets  X!" 15$" 11/30$"&&$ Complete remaining material & Review   p#" 16'" 12/07'"$6EXAM' Monday Part I; Wednesday Part II  %'-`,`,``  ?  12.X Library Reference and Reserve Materials and Additional Texts ƀ% X We will make use of many of the library resources including, but not limited to the following:ƀ% X Moody's Industrial Manualsƀ% X Value Line Investment Serviceƀ% X The Wall Street Journalƀ%  Investors' Business Daily X Morningstar Mutual Funds hh*ƀ%h X Moody's Common Stock Handbooks (NYSE & AMEX, NASDAQ)ƀ% X RMA Annual Statement Studies (Ratio analyses)ƀ%  ?` X DISCLOSURE Software databaseƀ% X I will place on reserve various class materials including:ƀ% X Textbook, Blueprints, and Study Guideƀ% X General class materialsƀ% X In addition, I have a library of Financial Management texts which you may sign out for home study.