College of Southern Maryland BUSINESS FINANCE. Course / Instructor Information. Things to Purchase. Course Description.

Transcription

1 College of Southern Maryland BUSINESS FINANCE Course / Instructor Information Course: ACC 2681 Semester: Spring Section: Year: 2015 Time: n/a (Web-based section) Prerequisites: ACC 2010 Location: n/a (Web-based section) Credit Hours: 3 Instructor: William L. Morton, MBA Office Phone: (301) Office Location: ST 172 Laplata Campus Home Phone: (703) Office Hours: Monday through Thursday 11:45 AM to 12:45 PM (or by appointment) FAX Number: (301) bmorton@csmd.edu (or WebCT ) Things to Purchase Required Text: Other Materials: Lasher, William R. Practical Financial Management, 7th Ed., South-Western (required) Computer with internet access. (recommended) Calculator with a square root function, or Excel software. Course Description Purpose: Students examine business finance in the American economy. Topics include equity and credit capital, ratio analysis, cash flow, capital budgets, and financial leverage. Students develop concepts and tools for use in effective financial decision making and problem solving for the manager. Course Objectives Objectives: 1. Conduct ratio analysis to determine the financial health of a company Are expected to be able to: Conditions: Given a company's income statement and balance Performance: Calculate and interpret liquidity, profitability, activity, and leverage ratios.

2 Course Objectives (continued) Objectives (continued): 2. Calculate present and future values using compound interest tables. are expected to be able to: Conditions: Given a calculator, compound interest tables, and a list of time value problems. Performance: Calculate the present value of sums and annuities and the future value of sums and annuities. 3. Calculate the cost of capital. Conditions: Given a calculator, a formula sheet, and a list of cost of capital problems. Performance: Calculate the cost of common stock, preferred stock, debt, and the weighted average cost of capital. 4. Calculate Net Present Value and Internal Rate of Return for capital budgeting. Conditions: Given a calculator, compound interest tables, and a list of capital budgeting problems. Performance: Calculate net present value and internal rate of return for mutually exclusive investments to determine the best choice. 5. Calculate Breakeven Points. Conditions: Given a calculator, a formula sheet, and a list of breakeven problems. Performance: Calculate breakeven points in sales dollars and in number of units. 6. Calculate Leverage Factors. Conditions: Given a company's income statement and balance Performance: Calculate leverage factors to determine the amount of profit gained by borrowing. 7. List factors influencing credit. Conditions: Given blank paper and a requirement to list factors that influence the decision to extend credit. Performance: List five different factors weighed by lenders when deciding whether or not to extend credit. 8. Calculate inventory order size using Economic Order Quantity. 9. List the advantages and disadvantages of equity financing. Conditions: Given a calculator, a formula sheet, and a list of economic order quantity problems. Performance: Calculate economic order quantity in units. Conditions: Given blank paper and a requirement to list advantages and disadvantages of equity financing. Performance: List three advantages and three disadvantages of using equity financing.

3 Course Objectives (continued) Objectives (continued): 10. List the legal rights of common stockholders. 11. List the advantages and disadvantages of debt financing. are expected to be able to: Conditions: Given blank paper and a requirement to list the legal rights of common stockholders. Performance: List five different stockholder rights protected by the Securities and Exchange Commission. Conditions: Given blank paper and a requirement to list advantages and disadvantages of debt financing. Performance: List three advantages and three disadvantages of using debt financing. 12. Calculate the price of a bond. Conditions: Given a calculator, compound interest tables, and a list of bond price problems. Performance: Calculate the price for premium and discount bonds. 13. Calculate a Z score to determine the potential for bankruptcy. Conditions: Given a company's income statement and balance Performance: Calculate and interpret a Z score. 14. Calculate currency exchanges. Conditions: Given a calculator, a formula sheet, and a list of currency exchange problems. Performance: Calculate the proper amounts to be exchanged. Grade Calculation Evaluation: Weekly Assignments points Exam#1 200 Weekly Assignments Exam#2 200 Total Points 1000 Grading Scale: A 900 and above B C D F below 600

4 Graded Items Assignments: Exams: Assignments, along with their due dates will be listed on the course web page. All necessary information will be provided to complete the assigned work. Students will be required to submit their work via course . Each exam will be made up of multiple choice questions and short answer problems. The questions will all come from the text material. The short answer problems will be like those in the assignments. Exam #1 will cover chapters 1-3 and 6-8. Exam #2 will cover chapters 9, 10, 13, 14, 16, and 18. Exams must be taken in one of the college's test centers. A window of time of approximately ten days will be allowed for each test period to give students ample opportunity for testing. Course Policies Make-up Policy: Late Work: Integrity: If a student cannot complete an exam within the designated testing period, the student should notify the instructor as soon as this becomes apparent. With prompt notification a make-up may be arranged at the instructor s discretion and convenience. All exams not made up by the end of the course will be given a grade of zero! The instructor will decide. The Final Exam must be taken before the last day of classes. One make-up day will be provided. Late assignments or exams will have five percent deducted from the final assignment or exam score. All work must be received before the last day of classes or a grade of zero will be given for each missing assignment or exam. Students are expected to adhere to the academic conduct standards described in the Student Code found in the Student Handbook in effect for the current semester. Violations of the code may result in the penalties outlined in the handbook. Important Administrative Dates Last day to drop the course with a full refund: Monday 1/28/15 Last day to withdraw from the course without a grade, or change from credit status to audit status: Monday 3/30/15

5 Tentative Course Schedule Week# Dates Topics Readings Assignment # and due date 1 1/20 2/1 Financial Foundations 2 2/2 2/8 Statements and Taxes Ch 1 & Power-Points Assignment #1 due 2/1 Ch 2 & Power-Points Assignment #2 due 2/8 3 2/9 2/15 Financial Analysis Ch 3 & Ratio Notes Assignment #3 due 2/15 4 2/16 2/22 Time Value Ch 6 & Power-Points /23 3/1 Time Value Ch 6 & Power-Points Assignment #4 due 3/1 6 3/9 3/15 Bonds Ch 7 & Power-Points Assignment #5 due 3/15 7 3/16 3/22 Stocks Ch 8 & Power-Points Assignment #6 due 3/22 3/23 Review Sheet for Exam #1 Posted Lasher Chapters 1-3 and 6-8 See Discussion Board for Exam #1 Instructions 8 3/23 3/29 Risk and Return Ch 9 & Power-Points Assignment #7 due 3/29 3/30 4/13 Exam Weeks See Review Sheet Complete Exam #1 by 4/13 9 3/30 4/5 Capital Budgeting Ch 10 & Power-Points Assignment #8 due 4/5 10 4/6 4/12 Cost of Capital Ch 13 & Power-Points Assignment #9 due 4/ /13 4/19 Leverage Ch 14 & Power-Points Assignment #10 due 4/19 4/20 Review Sheet for Exam #2 Posted Lasher Chapters 9, 10, 13, 14, 16, and 18 See Discussion Board for Exam #2 Instructions 12 4/20 4/26 Working Capital Ch 16 & Power-Points Assignment #11 due 4/ /27 5/3 International Finance Ch 18 Assignment #12 due 5/3 14 5/4 5/6 Make-ups All Chapters All Work Due 5/6, 11 PM Disabled Student Services. Students with disabilities who believe that they may need accommodations in this class are encouraged to contact Disabled Student Services in the Learning Assistance Department at (301) as soon as possible to better ensure that such accommodations are implemented in a timely fashion.