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FI 360 Financial Management
Strickland, Michelle A.


Mission Statement: The mission of Park University, an entrepreneurial institution of learning, is to provide access to academic excellence, which will prepare learners to think critically, communicate effectively and engage in lifelong learning while serving a global community.

Vision Statement: Park University will be a renowned international leader in providing innovative educational opportunities for learners within the global society.

Course

FI 360 Financial Management

Semester

S2T 2007 DLF

Faculty

Strickland, Michelle A.

Title

Adjunct Faculty

Degrees/Certificates

BSBA, MBA
Certified Defense Financial Manager

Office Location

Colorado Springs CO

Office Hours

By appointment

Daytime Phone

719-963-4863

E-Mail

michelle.strickland@pirate.park.edu

Semester Dates

19 Mar - 13 May 07

Class Days

TBA

Class Time

TBA

Prerequisites

AC 201 and AC 202

Credit Hours

3


Textbook:

Foundations of Finance, 5th Ed., by Keown, Martin, Petty, & Scott, Jr

In addition, you will need a financial calculator.  It is recommended that you use a Texas Instruments BA II Plus.  This is the model that is used in the textbook examples.  There are other financial calculators that will work (Sharp, HP etc.) however, they will not work exactly the same as the TI. 

The text also shows examples of how to solve problems using Excel.  However, it will not be possible to use a computer during the final proctored exam. 

NOTE:  You may try an alternative means of acquiring their textbooks, either through cut-rate bookstores or on-line sales outlets.  However, sometimes the wrong book is received or it takes too long to reach you.  Please be aware that you MUST have your text by the end of week 1 - if you don't have it by then, you won't be able to catch up your coursework.  Whatever method you choose to get your book, just ensure you have it.  Being prepared with the required materials is part of your responsibility as a student. 

NOTE:  The textbook website contains self-quizzes, exercises and templates that will help you in the class.  Please visit it regularly.  Click here!  This website is intended as a supplement to the textbook, NOT A SUBSTITUTION!

Textbooks can be purchased through the MBS bookstore

Additional Resources:

Recommended Readings:

The Wall Street Journal Interactive Edition- http://www.wsj.com

Business Week - http://www.businessweek.com

Fortune - http://www.pathfinder.com

The Economist - http://www.economist.com

McAfee Memorial Library - Online information, links, electronic databases and the Online catalog. Contact the library for further assistance via email or at 800-270-4347.
Career Counseling - The Career Development Center (CDC) provides services for all stages of career development.  The mission of the CDC is to provide the career planning tools to ensure a lifetime of career success.
Park Helpdesk - If you have forgotten your OPEN ID or Password, or need assistance with your PirateMail account, please email helpdesk@park.edu or call 800-927-3024
Resources for Current Students - A great place to look for all kinds of information http://www.park.edu/Current/.
Advising - Park University would like to assist you in achieving your educational goals. Please contact your Campus Center for advising or enrollment adjustment information.
Online Classroom Technical Support - For technical assistance with the Online classroom, email helpdesk@parkonline.org or call the helpdesk at 866-301-PARK (7275). To see the technical requirements for Online courses, please visit the http://parkonline.org website, and click on the "Technical Requirements" link, and click on "BROWSER Test" to see if your system is ready.
FAQ's for Online Students - You might find the answer to your questions here.


Course Description:
The role of financial management through the development of a framework appropriate for financial decision making. Emphasis on obtaining and effectively utilizing the funds necessary for the operation of an enterprise. Elements of financial planning, capital budgeting, and consideration of alternative sources of funds. Pre-requisites: AC201 and AC202.

Educational Philosophy:
The facilitator's educational philosophy is one of interactiveness based on lectures, readings, quizzes, dialogues, examinations, internet, videos, web sites and writings. The facilitator will engage each learner in what is referred to as disputatious learning to encourage the lively exploration of ideas, issues and contradictions.

Learning Outcomes:
  Core Learning Outcomes

  1. Describe the financial goals of the firm.
  2. Demonstrate an understanding of the principles that form the foundation of financial management.
  3. Evaluate financial statements including critical financial ratios.
  4. Calculate interest, rate, present value, and term of financial instruments.
  5. Determine values for stocks and bonds.
  6. Perform capital budgeting using more than one method.


  Instructor Learning Outcomes
  1. Define and measure risk.
  2. Determine bond values.
  3. Determine common and preferred stock values.
  4. Perform capital budgeting using more than one technique.
  5. Define the advantages and disadvantages of dividend policies.
  6. Define the advantages and disadvantages of cash management policies.
Core Assessment:

Class Assessment:

1)  Homework Application Problems - A number of application problems will be assigned each week to provide practical applications of financial techniques and methods of analysis. These problems will be selected from the end of chapters in the textbook. The solutions and analyses for these problems should be in detail, not just a reporting of final answers. This assignment is to be posted in the class Dropbox at the end of each week.  All homework will be completed in teams; no exceptions.

2)  Online Discussion Questions - A number of discussion questions will be posted weekly in a thread titled Discussion. Each student (or team) is required to select a question, develop a complete answer, and post it in the thread.
 
3)  Web Exercises Project - A Web Exercise is presented at the end of each assigned chapter in the textbook. Specific directions and instructions are provided for each exercise. These exercises involve case situations of actual companies and institutions. You are to select three web exercises and prepare a written report for each exercise.  You may do these exercises individually or with your team.  The deadline for completing this project is the end of Week 7.
 
4)  Mid Term Examination - A Mid Term Examination will be administered during the fourth week of the class. It will be sent to each student via the course dropbox and is to be completed alone and returned to the instructor via the dropbox.
 
5)  Final Exam - An examination must be taken in person at one of the Park University sites around the country or at an alternative location approved by the college where Park University sites are not available. See the thread in the conference for more details. It will be the responsibility of the student to arrange for a proctor who will be accepted and approved by the instructor within Park University guidelines.  
 
 
NOTE:  All written assignments and online postings in this course will be evaluated by the instructor using the following criteria:  thoroughness, application financial management concepts discussed in the readings, clarity, and creative thinking.

Grading:

The following table shows the points assigned for each component of required work in this course:
Weekly Homework Assignments  - 40%
Weekly Discussion Questions -  15%
Web Exercises - 5%
Midterm Examination - 10%
Final Examination - 30%
Total - 100%
 
Grading Scale
A = 90 - 100
B = 80 - 89
C = 70 - 79
D = 60 - 69
F  = below 60

All final exams will be comprehensive and will be closed book and closed notes.  If calculators are allowed, they will not be multifunctional electronic devices that include features such as: phones, cameras, instant messaging, pagers, and so forth.  Electronic Computers will not be allowed on final exams unless an exception is made by the Associate Dean.

The Proctored final exam for online courses must be passed with a grade of 60% or higher in order to pass the course regardless of the overall average.  The grade for students who pass the proctored final will be based on the overall average of homework and tests taken during the course.  The proctored final exam must address only material which the student has been taught in class.

Late Submission of Course Materials:
Homework must be submitted not later than the Sunday that follows the end of the week assigned.  Late homework will not be accepted without prior permission from the instructor.  

Classroom Rules of Conduct:

On-Line Participation - This course is offered on-line, over the Internet, using the eCollege computer service. Students are expected to devote a minimum of five hours per class week logged on to the computer conferencing system - the same amount of time you'd spend in the physical classroom.

Course Topic/Dates/Assignments:

Week 1 - During Week 1, you will focus on the goal of the firm, followed by a review of the legal forms of business organization, and a discussion of the tax implications relating to financial decisions. You will look at the market environment in which long-term capital is raised. The underlying rationale for the existence of security markets is presented, investment banking services and procedures are detailed, private placements are discussed, and security regulation is reviewed. Further discussions cover rates of return over long periods and recent periods, interest rate determinates, and theories of the term structure of interest rates.
Readings:
Chapter 1: An Introduction to the Foundations of Financial Management - The Ties that Bind
Chapter 2: The Financial Markets and Interest Rates


Week 2
- In Week 2, you will review the contents and meaning of a firm's income statement and balance sheet. You will look at how financial analysis can be defined as the process of assessing the financial condition of a firm. The principal analytical tool of the financial analyst is the financial ratio. You will learn a set of key financial ratios and a discussion of their effective use.
 
Readings:
Chapter 3: Understanding Financial Statements and Cash Flow
Chapter 4: Evaluating a Firm's Financial Performance

Week 3
- In Week 3, you will look at the time value of money; that is, a dollar today is worth more than a dollar received a year from now. We will examine the factors that determine rates of return (discount rates) in the capital markets. We are particularly interested in the relationship between risk and rates of return. We look at risk both in terms of the riskiness of an individual security and that of a portfolio of securities.
 
Readings:
Chapter 5: The Time Value of Money
Chapter 6: The Meaning and Measurement of Risk and Return

Week 4
- Week 4 introduces the concepts that underly asset valution. We are specifically concerned with bonds. We also look at the concept of bondholder's expected rate of return on an investment. Then, we will value preferred stock and common stock. We also look at the concept of a stockholders expected rate of return on an investment.
 
Readings:
Chapter 7: Valuation and Characteristics of Bonds.
Chapter 8: Valuation and Characteristics of Stock

Week 5
- Week 5 covers capital budgeting. This involves the decision-making process with respect to investment in fixed assets; specifically, it involves measuring the incremental cash flows associated with investment proposals and evaluating the attractiveness of these cash flows relative to the project's costs. During this week, we'll determine the required rate of return for the firm and for specific investment projects.
 
Readings:
Chapter 9: Capital-Budgeting Techniques and Practice
Chapter 10: Cash Flows and Other Topics in Capital Budgeting
Chapter 11: Cost of Capital

Week 6
- During Week 6, we'll focus on useful aids to the financial manager in his or her determination of the firm's proper financial structure. It includes the definitions of the different kinds of risk, a review of break-even analysis, the concepts of operating leverage, financial leverage, the combination of both leverages, and their effect on earnings per share (EPS). The cost of capital-capital structure argument is highlighted in a straightforward manner without dwelling exclusively on pure theory. Later, techniques useful to the financial officer faced with the determination of an appropriate financing mix are described. Agency theory and the concept of free cash flow as they relate tocapital structure determination are also discussed. An overview of actual pratice is also included. We'll then look at determining the firm's dividend policy and two important issues: dividend payout ratio and the stability of the dividend payment over time.
 
Readings:
Chapter 12: Determining the Financing Mix
Chapter 13: Dividend Policy and Internal Financing

Week 7
- During Week 7, you'll see an overview of the role played by forecasting in the firm's planning process then you'll focus on the construction of detailed financial plans, including budgets and pro forma financial statements for future periods of the firm's operations. You'll be introduced to working-capital management in terms of managing the firm's liquidity. In addition, this week we'll talk about the sources of short-term financing that must be repaid within 1 year.
 
Readings:
Chapter 14: Short-Term Financial Planning
Chapter 15: Working-Capital Management

Week 8
- During Week 8, we'll study liquidity management. The objectives of a sound cash management system are identified. The concept of float is defined. Several techniques that firms can use to favorably affect their cash receipts and disbursement patterns are examined. Finally, the composition of the firm's marketable securities portfolio is discussed. Additionally, the risk-return tradeoff associated with the firm's investment in accounts receivable is discussed. We'll introduce some of the financial techniques and strategies necessary for the efficient operation of an international business.
 
Readings:
Chapter 16: Current Asset Management
Chapter 17: International Business Finance

Academic Honesty:
Academic integrity is the foundation of the academic community. Because each student has the primary responsibility for being academically honest, students are advised to read and understand all sections of this policy relating to standards of conduct and academic life.   Park University 2006-2007 Undergraduate Catalog Page 87-89

Plagiarism:
Plagiarism involves the use of quotations without quotation marks, the use of quotations without indication of the source, the use of another's idea without acknowledging the source, the submission of a paper, laboratory report, project, or class assignment (any portion of such) prepared by another person, or incorrect paraphrasing. Park University 2006-2007 Undergraduate Catalog Page 87

Attendance Policy:
Instructors are required to maintain attendance records and to report absences via the online attendance reporting system.

  1. The instructor may excuse absences for valid reasons, but missed work must be made up within the semester/term of enrollment.
  2. Work missed through unexcused absences must also be made up within the semester/term of enrollment, but unexcused absences may carry further penalties.
  3. In the event of two consecutive weeks of unexcused absences in a semester/term of enrollment, the student will be administratively withdrawn, resulting in a grade of "W".
  4. A "Contract for Incomplete" will not be issued to a student who has unexcused or excessive absences recorded for a course.
  5. Students receiving Military Tuition Assistance or Veterans Administration educational benefits must not exceed three unexcused absences in the semester/term of enrollment. Excessive absences will be reported to the appropriate agency and may result in a monetary penalty to the student.
  6. Report of a "F" grade (attendance or academic) resulting from excessive absence for those students who are receiving financial assistance from agencies not mentioned in item 5 above will be reported to the appropriate agency.
ONLINE NOTE: An attendance report of "P" (present) will be recorded for students who have logged in to the Online classroom at least once during each week of the term. Recording of attendance is not equivalent to participation. Participation grades will be assigned by each instructor according to the criteria in the Grading Policy section of the syllabus.

Park University 2006-2007 Undergraduate Catalog Page 89-90

Disability Guidelines:
Park University is committed to meeting the needs of all students that meet the criteria for special assistance. These guidelines are designed to supply directions to students concerning the information necessary to accomplish this goal. It is Park University's policy to comply fully with federal and state law, including Section 504 of the Rehabilitation Act of 1973 and the Americans with Disabilities Act of 1990, regarding students with disabilities. In the case of any inconsistency between these guidelines and federal and/or state law, the provisions of the law will apply. Additional information concerning Park University's policies and procedures related to disability can be found on the Park University web page: http://www.park.edu/disability .

Copyright:

This material is copyright and can not be reused without author permission.

Last Updated:3/6/2007 9:15:12 PM