PEPPERDINE UNIVERSITY THE GEORGE L. GRAZIADIO SCHOOL OF BUSINES AND MANAGEMENT Course Syllabus

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1 PEPPERDINE UNIVERSITY THE GEORGE L. GRAZIADIO SCHOOL OF BUSINES AND MANAGEMENT Course Syllabus PROFESSOR: COURSE TITLE: Dr. James T. Martinoff MBA , Finance (4 UNITS) Wednesday, Morning MBA , Finance (4 UNITS) Thursday, Afternoon MBA Malibu Residential Program OFFICE ADDRESS: Pepperdine University, Malibu Campus The George L. Graziadio School of Business and Management Malibu, Campus Pacific Coast Highway, Malibu California Tel: (310) HOME ADDRESS: 2751 Cumberland Road San Marino, California Phone (626) Fax: (626) OFFICE HOURS: The professor will be available one-hour before and one hour after each class for students who have specific questions regarding the Finance course. Every effort will be made by the professor to be available when students request an appointment at other times during the week. I will be available for consultation, regarding any matter important to the students. TEXTBOOK: Financial Management, Theory and Practice Brigham, Gapenski, and Ehrhardt, 10th Edition Subscription to The Wall Street Journal Professors published manuscripts, reports, financial documents, and lecture outline series RECOMMENDED READING: Selected Business Periodicals and Academic Journals EQUIPMENT: HP-10B2 Financial Calculator Computer (Word Processing, Excel Spreadsheet, Internet Access)

2 COURSE DESCRIPTION: The objective of this course is to enable students to employ data provided through corporate financial reporting and from financial markets in analyzing business situations and developing pragmatic problem-solving strategies. Decisions common to financial managers wishing to maximize shareholder value are explored, including: ascertaining suitable sources and costs of capital; developing tax strategies; determining optimal capital structure, leasing arrangements and dividend policy; and valuing potential investments. The interaction of financial managers with financial markets in achieving these objectives is discussed in length. Potential agency problems and their solutions are discussed within the context of ethical management of the firm. COURSE CONTENT: The Principles of Finance course will be divided into four modules based upon a series of lectures provided by the professor, and supplementary learning products and materials provided by the publisher of the textbook. In addition, business cases and small group symposia involving interactive learning will focus upon contemporary issues and current events from domestic and global financial environments. Module #1: Fundamental Concepts of Financial Management An Overview of Financial Management and the Financial Environment Time Value of Money Financial Statements, Cash Flow, and Taxes Risk and Ret MBA , Finance (4 UNITS) MBA , Finance (4 UNITS) urn: The Basics* Risk and Return: Portfolio Theory and Asset Pricing Models* Module #2: Securities and their Valuation Bonds and Their Valuation Stocks and Their Valuation Financial Options and Their Valuation* Module #3: Projects and Their Valuation The Cost of Capital The Basics of Capital Budgeting: Evaluation Cash Flow Cash Flow Estimation and Risk Analysis Real Options* Module #4: Corporate Valuation Analysis of Financial Statements Financial Planning and Forecasting Pro Forma Financial Statements Corporate Valuation, Value Based Management, and Corporate Governance Module #5: Strategic Financing Decisions Capital Structure Decisions Capital Structure Decisions: Extensions Distribution to Shareholders; Dividends and Repurchases*

3 Module #6: Special Topics Working Capital Management* Derivatives and Risk Management* Bankruptcy, Reorganization, and Liquidation* Mergers, LBO s, Divestitures, and Holding Companies* Multinational Financial Management* Module #7: WEB Chapters Providing and Obtaining Credit* Advanced Issues in Cash Management and Inventory Control* Pension Fund Management* METHODS: Instructor Presentations (Lectures) Small Group (2 persons) Symposium Small Group Symposia on Contemporary Issues/Current Events Periodic Quizzes (4 out of 6) Midterm Test Final Examination EVALUATION and ATTENDANCE POLICY: Assessment of student performance will be based upon corporate finance theory and practice. All students will be evaluated by the same criteria. Students who desire to earn an A or B grade must complete all assignments and submit them on the date that they are due. Students who desire to earn an A grade must be present, demonstrate preparedness, and actively participate in all classes, symposia, and financial cases. Small Group Mini-Cases from the Textbook 10% Contemporary Issues/Current Events in Financial Management Issues 10% Best Grades from 4 out of the 6 Quizzes 10% Midterm Examination 30% Final Cumulative Examination 40% CODE OF CONDUCT: Graziadio School of Business and Management (GSBM) students are expected to respect personal honor and the rights and property of others at all times. The university rules on conduct can be found on pages of the GSBM Catalog. Additionally, students with disabilities are encouraged to familiarize themselves with the University s Policies on Disabilities on page 29 of the GSBM Catalog or contact the university s equal opportunity officer, Dr. Calvin H. Bowers, at (310)

4 PROPOSED SCHEDULE OF CLASSES: Week Number #1: Introduction to Course, Instructor and Students Review Course Syllabus, Requirements and Deliverables Lecture: Chapter 1: Overview of Financial Management and the Financial Environment Lecture: Chapter 2: Time Value of Money Week Number #2: Lecture: Chapter 3: Financial Statements, Cash Flows, and Taxes Week Number 3: Chapter 4: Risk and Return: The Basics* Chapter 5: Risk and Return: Portfolio Theory and Asset Pricing Models* Lecture: Chapter 6: Bonds and Their Valuation Week Number 4: Lecture: Chapter 7: Stocks and Their Valuation Chapter 8: Financial Options and Their Valuation* Week Number 5: Lecture: Chapter 9: The Cost of Capital Lecture: Chapter 10: The Basics of Capital Budgeting; Week Number 6: Lecture: Chapter 11: Cash Flow Estimation and Risk Analysis Chapter 12: Real Options Prepare for the Midterm Extra Class Session for an evening from 7:00 P.M. to 9:00 P.M. Week Number 7: Midterm Examination in one of the large lecture

5 Week Number 8: Review the Midterm Examination Lecture: Chapter 13: Analysis of Financial Statements Lecture: Chapter 14: Financial Planning and Forecasting Pro Forma Financial Statements Week Number 9: Lecture: Chapter 15: Corporate Valuation, Value-Based Management, and Corporate Governance Lecture: Chapter 16: Capital Structure Decisions: The Basis Week Number 10: Lecture: Chapter 17: Distributions to Shareholders, Dividends, and Repurchases Lecture: Chapter 18: Initial Public Offerings, Investment Banking and Financial Restructuring. Weeks Number 11-12: Lecture Chapter 19: Lease Finance* Lecture Chapter 20: Hybrid Financing: Preferred Stock, Warrants, and Convertibles* Lecture Chapter 21: Working Capital Management* Lecture Chapter 22: Derivatives and Risk Management* Lecture Chapter 23: Bankruptcy, Reorganization, and Liquidation* Lecture Chapter 24: Mergers, LBO s, Divestitures, and Holding Companies* Lecture Chapter 25: Multinational Financial Management* Lecture Chapter 26: Providing and Obtaining Credit* Lecture Chapter 27: Advanced Issues in Cash Management and Inventory Control* Lecture Chapter 28: Advanced Issues in Cash Management and Inventory Control* Lecture Chapter 29: Pension Plan Management* Lecture Chapter 30: Financial Management in Not-for-Profit Businesses* Final Examination