FI 100 Financial Management Course Syllabus

Transcription

1 Golden Gate University Walnut Creek Spring 2008 FI 100 Financial Management Course Syllabus First / Last Class: January 12, 2008 to March 1, 2008 Instructor: Course Description: Prerequisites: William C. Sarsfield (Brief Resume Attached) Adjunct Associate Professor PO Box 1443 San Carlos, CA Telephone: Fax: wm_sarsfield@yahoo.com Business firm oriented. Introduce financial management and analysis of the firm. Concept To Manage: Measure. Theory and practical applications will be covered. Financial accounting and intermediate algebra required. Accounting 1A Introductory Financial Accounting and Math 20 Intermediate Algebra will satisfy requirements. Required Text: Fundamentals of Financial Management, E. Brigham and J. Houston, 11 th edition, 2007, Publisher: South-Western ISBN Study Guide, E, Brigham, J. Houston, D. Clark, 11 th edition, 2007, Publisher: South-Western ISBN X Financial Calculators: Hewlett-Packard 12C; or Hewlett-Packard 10-BII. Use of HP 12C will be covered in first in-class session. TI-83 or TI-84 may be used but use will not be covered in course. Course Requirements: This is a combination in-class and cyber course, eight in-class sessions augmented by cyber instruction and testing. Caveat Emptor We will cover in an eight week period material normally presented over a sixteen week period. This is a concentrated course and may prove to be quite demanding. We will use seven of the eight sessions to review material. There will be an open book terminology test due in the sixth week. The test will be the equivalent of a take-home examination. Page 2 Golden Gate University Walnut Creek * * * Spring 2008

2 FI 100 Financial Management Course Syllabus continued. The last session will consist of student presentations of a financial analysis of a firm and comparing its financial performance to its stated goals and the performance of competitors. Class attendance and participation is essential. If for whatever reason a class will be missed, it is imperative that advance notice be given. Makeup work will be required. Missing class may impact final grade. Grading: Attendance and Participation: 35 Percent Cyber Quizzes: Problem Set Assignments: Terminology Test: Presentation: 15 Percent 15 Percent 15 Percent 20 Percent Academic Integrity: GGU Standards of Academic Integrity apply. ///////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Course Topics: There will be eight in-class sessions. Each session will include a review of reading material, review of assigned problems, review of quiz result, discussion, and preview of assigned text material and problems. Students will be assigned to present assigned problem solutions. The final session will consist of student presentation of an analysis of a firm. Excerpts from current publications, such as The Economist, WSJ, New York Times, Financial Times, will be sent to students for information and discussion. Session Schedule: January 12, 2008 Introduction, Review Text Chapter 1, Overview of Financial Management; Chapter 2, Time Value of Money. Financial Calculator required. Preview Text Chapter 3, Financial Statements / Cash Flow; Chapter 4, Analysis of Financial Statements Page 3 Golden Gate University Walnut Creek * * * Spring 2008

3 FI 100 Financial Management Course Syllabus continued. January 19, 2008 Review Chapter 3 Financial Statements / Cash Flow; Chapter 4, Analysis of Financial Statements, including Problem Assignment and quiz result. Discussion. Preview Text Chapter 5, Financial Markets; Chapter 6, Interest Rates; Chapter 7, Bonds; Chapter 8, Stocks including CAPM/Beta. January 26, 2008 Review Chapter 5 Financial Markets; Chapter 6, Interest Rates; Chapter 7, Bonds; Chapter 8, Stocks, including Problem Assignment and quiz result. Discussion. Preview Text Chapter 10, Cost of Capital; Chapter 11, Capital Budgeting. February 2, 2008 Review Chapter 10 Cost of Capital; Chapter 11, Capital Budgeting, including Problem Assignments and quiz result. Discussion. Preview Text Chapter 12, Cash Flow Estimates and Risk Analysis; Chapter 13, Other Factors in Capital Budgeting. February 9, 2008 Review Chapter 12 Cash Flow Estimates and Analysis; Chapter 13, Other Factors in Capital Budgeting, including Problem Assignments and quiz result. Discussion. Preview Chapter 14, Capital Structure and Leverage; Chapter 15, Distribution to Shareholders Dividends and Repurchases. February 16, 2008 Review Chapter 14, Capital Structure / Leverage, Chapter 15, Dividends and Repurchase, including Problem Assignments and quiz results. Discussion. Preview Chapter 20, Hybrid Preferred, Leasing, Warrants and Convertibles; Chapter 16, Working Capital Management; Chapter 17, Financial Planning and Forecasting. Required Terminology Written definitions, brief but complete to be submitted by February 23, Presentation Outline Identify Firm including material reviewed Submit by February 21, Page 4 Golden Gate University Walnut Creek * * * Spring 2008

4 FI 100 Financial Management Course Syllabus continued. February 23, 2008 Review Chapter 20, Preferred Stock, Leasing, Warrants and Convertibles; Chapter 16, Working Capital Management, Chapter 17, Financial Planning and Forecasting, including Problem Assignment and quiz result. Discussion. Presentation planning. March 1, 2008 Student Presentation Firm: Vision, Mission; Niche / Product; Management; Competition; Financial Results and Prospects. Presentations to include DuPont Analysis, Beta, Alpha, and Financial Results, relation Vision, Mission, Market Prospects. * * * * * * * This is a combination in-class and cyber course, eight in-class sessions augmented by cyber instruction and testing. Caveat Emptor (#2) We will cover in an eight week period material normally presented over a sixteen week period. This is a concentrated course and may prove to be quite demanding. Class Plan Each class session is 2 hours, 40 minutes. There will be two 10 minute breaks. Plan two hours review, including problem, quiz results and discussion, and twenty minutes preview. Assigned Readings Readings assignments will previewed, and then students will be requested to carefully review the readings prior to the next session. Session One: {See Also Chapter Highlight Outline follows) Session One Preview and Review, Chapter One will be combined; Session One Time Value and Calculations will be covered in class. Text Page Key Term Definitions Problem Assignments Due January 17, 2008: Page 56, 57: Problems 2-1; 2-2; 2-4; 2-7; 2-9; 2-10; 2-12; 2-17; 2-18; 2-20 Preview Chapters 3 and 4. N.B. Terms, Page 90 (ST-1); Page 129 (ST-1) Session One: Text Chapter 1, Overview; Chapter 2, Time Value Money

5 Chapter 1 An Overview of Financial Management Identify the three main forms of business organization and describe the advantages and disadvantages of each one. Identify the primary goal of the management of a publicly held corporation, and understand the relationship between stock prices and shareholder value. Differentiate between what is meant by a stock s intrinsic value and its market value and understand the concept of equilibrium in the market. Define business ethics and briefly explain what companies are doing in response to a renewed interest in ethics, the consequences of unethical behavior, and how employees should deal with unethical behavior. Briefly explain the conflict demands between managers and stockholders, including priorities customers, community, employees, government, and shareholders. Identify the key officers in the organization and briefly explain their responsibilities. Chapter 2 Time Value of Money Convert time value of money (TVM) problems from words to time lines. Relationship between compounding and discounting, between future and present value. Calculate the future value of some beginning amount, and find the present value of a single payment to be received in the future. Solve for interest rate or time, given the other three variables in the TVM equation. Find the future value of a series of equal, periodic payments (an annuity) and the present value of such an annuity. Solve for annuity payments, periods, and interest rates. Calculate the value of a cash payment in perpetuity.

6 Demonstrate how to find the present and future values of an uneven series of cash flows and how to solve for the interest rate of an uneven series of cash flows. Solve TVM problems for non-annual compounding semiannual, quarterly, monthly. Solve time value of money problems that involve fractional time periods. Construct loan amortization schedules for fully-amortized loans. Session Two: Text Chapter 3, Financial Statement; Chapter 4, Analysis Chapter 3 Financial Statements, Cash Flow, and Taxes History of accounting and financial statements, and how financial statements are used. Information found in a corporation s annual report. Review what a balance sheet is, the information it provides, and how assets and claims on assets are arranged on a balance sheet. Review what an income statement is and the information it provides. Differentiate between net cash flow and accounting profit. Identify the purpose of the statement of cash flows, list the factors affecting a firm s cash position that are reflected in this statement, and identify the three categories of activities that are separated out in this statement. Specify the changes reported in a firm s statement of retained earnings. Review how certain modifications to the accounting data are needed and used for corporate decision making and stock valuation purposes. Terms: net operating working capital, total operating capital, NOPAT, operating cash flow, and free cash flow; calculation and use. Review the terms Market Value Added (MVA) and Economic Value Added (EVA), how each is calculated, and differentiate between them. Review why financial managers must be concerned with taxation, and list some of the most important elements of the current tax law, such as the differences between the treatment of dividends and interest paid and interest and dividend income received.

7 Chapter 4 Analysis of Financial Statements Ratio analysis, usually the first step in the analysis of a company s financial statements. Trend analysis, why it is important. Du Pont equation calculation and use, is use, modified to form the extended Du Pont equation, which includes the effect of financial leverage. Benchmarking and its purpose. Limitations of ratio analysis. Some problems with ROE that can arise when firms use it as a sole measure of performance. Qualitative factors considered when evaluating a company s financial performance. WILLIAM C. SARSFIELD BANKING AND FINANCIAL CONSULTING, LITIGATION ANALYSIS AND CONSULTING, ADJUNCT ASSOCIATE PROFESSOR, SCHOOL OF BUSINESS, GOLDEN GATE UNIVERSITY, SAN FRANCISCO EMPLOYMENT / BANKING AND FINANCIAL CONSULTING Financial Consultant Chairman San Francisco, California 1980 to Present Sequoia Bancorp/Sequoia National Bank San Francisco, California, 1984 to 1992 President/CEO Commercial Bank of San Francisco and Chairman San Francisco, California, 1973 to 1980 Vice President and Manager Vice President Security Pacific National Bank San Francisco Main Office San Francisco, California, 1971 to 1973 Security Pacific National Bank San Francisco, California, 1968 to 1971 National Bank Office of the Comptroller of the Currency Examiner San Francisco, California, 1963 to 1968

8 Branch Manager First National Bank of Anchorage Anchorage, Alaska, 1961 to 1963 LITIGATION ANALYSIS AND CONSULTING Litigation Support Consultant/Analyst: San Francisco, California, 1982 to Present Analysis - banking, lending, financial services, and insurance litigation, including preparation and analysis of damage models. Offered expert testimony in state and federal actions in California, Oregon, Washington, Colorado, Idaho, Arizona, New Mexico, Maine, New Hampshire, Texas, Alabama, Florida, Hawaii, Missouri, Kansas, Michigan, Massachusetts, Hawaii, Maryland, and District of Columbia.