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MBA 643 Entrepreneurial Finance
Kao, Robert


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

MBA 643 Entrepreneurial Finance

Semester

F1P 2011 MBD

Faculty

Kao, Robert

Title

Assistant Professor of Finance

Degrees/Certificates

Ph.D. – Texas A&M University – College Station
M.S. – University of Nebraska - Lincoln

Office Location

MacKay Room 27C

Office Hours

Tuesday and Thursday 1:00-4:00 PM or by appointment

Daytime Phone

816-584-6852

E-Mail

robert.kao@park.edu

Class Days

-M-----

Class Time

5:30 - 9:50 PM

Prerequisites

MBA 615

Credit Hours

3


Textbook:

Entrepreneurial Finance, 4th Edition, South-Western/CENGAGE Learning,

Author: Leach / Melicher

ISBN:13:978-0-538-47815-1

Textbooks can be purchased through the MBS bookstore

Textbooks can be purchased through the Parkville Bookstore

Additional Resources:

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/.


Course Description:
MBA 643 Entrepreneurial Finance: This course will familiarize you with topics in entrepreneurial finance. It focuses on applying financial theory and principles to small firms. There is a special emphasis on the specific issues that confront small businesses through their life cycle of development, start-up, expansion, maturity and harvesting. The course will introduce the main financial issues affecting start-up companies, venture capital markets, private equity and debt financing, valuing small companies; harvesting methods. The course will be divided into two parts. Part one of Entrepreneurial Finance covers what might be called "small business survival skills", including assessing financial performance, financial planning, identifying external financing needs and business valuation. Part two of the course will address the issues and challenges associated with Financing for Entrepreneurial Enterprises. Prerequisites: MBA 615 (Formerly FI 655)

Educational Philosophy:

  • Establish a classroom where ideas can be shared, students can be challenged in areas of topic learning and real knowledge can be exchanged.
  • Create an interactive environment which is based on lectures, readings, quizzes, dialogues, examinations, assignments, websites, and topic-related writings.
  • Motivate the class with available on-campus or off-campus seminars/speakers that would support and inspire student learning.

Learning Outcomes:
  Core Learning Outcomes

  1. Explain the concepts of entrepreneurial finance and its difference to traditional corporate finance.
  2. Define the financing needs of an entrepreneurial firm.
  3. Demonstrate, through application, basic skills in building financial forecasts in Excel for an entrepreneurial firm.
  4. Explain how different financial resources of an entrepreneurial firm are managed and monitored.
  5. Apply entrepreneurial finance principles in issues related to the sale of an entrepreneurial firm.
  6. Analyze and discuss current research issues in entrepreneurial finance.


  Instructor Learning Outcomes
  1. Determine optimal ownership structures from both the sponsor and the financing source (venture capitalist).
  2. Outline key market participants: angel investors, venture capital investors, and financial institutions.
  3. Create a cash-planning model to determine if the opportunity can survive all short-term and long-term business cycles.
  4. Utilize the business plan and financial analysis to attract capital “funders” (debt, equity and off balance sheet financing).
Core Assessment:

Class Assessment:
Your grade will be determined by answers to discussion questions and responses, weekly homework assignments, and by the results of tests, final exam, and case projects/papers.  Except as otherwise stated, all submissions will be graded on relevance, comprehensiveness, specificity, clarity and analytical skills, as well as writing skills.

Grading:
Grades will be based on completion of the required assignments as well as exams. Grades will be awarded according to the following schedule:

Test (2)

250 points

Final Exam

250 points

Homework

125 points

Case Studies/Discussions

125 points

Project/Paper

250 points

Total

1000 points


The following letter grades are the associated point totals for the grades, based upon 1,000 total possible points:

900 points or above

A

800-899 points

B

700-799 points

C

600-699 points

D

Below 600 points

F


All exams will be comprehensive and will be closed book and closed notes.  Calculators are allowed, but they will not be multifunctional electronic devices that include features of phones, cameras, instant messaging, pagers, and so forth.  


Late Submission of Course Materials:
Late submission of material will not be accepted without prior arrangements being made with the instructor. No late assignments will be accepted after the regular semester ends.

Classroom Rules of Conduct:

Any classroom conduct that the instructor considers to be disruptive to the learning environment is unacceptable. 

All cell phones and digital entertainment devices should be muted or turned off and put away during class time. Your attentiveness in class and lack of behavior that impairs the learning opportunities of others are expected.

Course Topic/Dates/Assignments:
Our course will follow the general schedule in the table below. You will need to follow the specific weekly instructions in each weekly module to ensure that you meet all of the weekly requirements.

Week 1 (August 15) – Background and Environment (Introduction;Overview; Forming Business Plan)

  • Reading Assignment: Chapters 1-2 and handouts in class
  • Case Studies: (1) Interact Systems, Inc. (2) LearnRite.com Corporation
  • Discussion/Application: E-Commerce and VOS INDICATORTM
  • Internet Activities: IA1.1; IA2.2
  • Homework: Chapter 1: DQ10, DQ13, DQ17, EP4; Chapter 2: DQ2, DQ7, DQ15, DQ18, EP3

Week 2 (August 22) – Organizing and Operating the Venture (Organizing and Financing a New Venture; Measuring and Evaluating Performance)

  • Reading Assignment: Chapters 3-5 and handouts in class
  • Case Studies: (1) Cooperative Constructs (2) Jen and Larry’s Frozen Yogurt Company (3) Scandi Home Furnishings, Inc.
  • Discussion/Application: Business Angel Funding, NOPAT Breakeven, Ratio Analysis
  • Internet Activities: IA3.2; IA4.1; IA5.1
  • Homework: Chapter 3: DQ3, DQ13, DQ15, EP2; Chapter 4: DQ1, DQ2, DQ5, DQ17, EP4; Chapter 5: DQ4, DQ8, DQ13, DQ16, EP1

Week 3 (August 29) – Planning for the Future (Short-term and long-term Financial Planning)  

  •  Reading Assignment: Chapters 6 and handouts in class
  • Case Studies: Pharma Biotech Corporation
  • Discussion/Application: Implicit Financing cists
  • Internet Activities: IA6.1
  • Homework: Chapter 6: DQ1, DQ4, DQ6, DQ9, EP5

       Test 1 (Ch. 1- 5) – 2 Hours


Week 4 (September 5) – Financial Capital and Security Law (Types and costs of Financial Capital; Overview Federal and State security laws)

  •  Reading Assignment: Chapter 7, 8 and handouts in class
  • Case Studies: (1) Alpha One Software Corporation (2) The VirtualStream Company
  • Discussion/Application: WACC, Selected SEC Regulations
  • Internet Activities: IA7.2; IA8.1
  • Homework: Chapter 7: DQ1, DQ3, DQ20, EP2, EP4; Chapter 8: DQ4, DQ6, DQ13, EP1 

Week 5 (September 12) – Creating and Recognizing Venture Value (Valuing Early-Stage Ventures; Venture Capital Valuation Methods)

  • Reading Assignment: Chapter 9, 10, and handouts in class
  • Case Studies: (1) RxDelivery Systems, Inc. (2) R.K. Maroon Company
  • Discussion/Application: Value Maximization and the First Entrepreneurial Team; Sustainable Growth
  • Internet Activities: IA9.1; IA10.1
  • Homework: Chapter 9: DQ1, DQ4, DQ6, EP1; Chapter 10: DQ3, DQ6, DQ10, EP4
  • Individual Project Proposal is due on Sep. 19

Week 6 (September 19) – Structuring Financing for the Growing Venture (Professional Venture Capital)

  • Reading Assignment: Chapters 11 and handouts in class
  • Case Studies: Interact Systems, Inc.
  • Discussion/Application: Due diligence in venture investing
  • Internet Activities: IA11.1
  • Homework: Chapter 11: DQ12, DQ13, DQ15, EP1

Test 2 (Ch. 6-10) – 2 Hours


Week 7 (September 26) – Structuring Financing (continued) and Exit Strategies (Financing alternatives; security structure; Harvesting the Business Venture Investment)

  •  Reading Assignment: Chapters 12-14and handouts in class
  • Case Studies: (1) Jen and Larry’s Frozen Yogurt Company (revisited) (2) RxDelivery Systems, Inc. (revisited) (3) MiniDiscs Corp.
  • Discussion/Application: Due diligence in venture investing
  • Internet Activities: IA12.2; IA13.2
  • Homework: Chapter 12: DQ2, DQ3, DQ15, EP2; Chapter 13: DQ3, DQ6, DQ13, EP1; Chapter 14: DQ3, DQ8, DQ12, EP2
  • Review for the Final Exam

Week 8 (October 3) - Final Exam (comprehensive) and Project Presentations

*All subjects are subjected to change by the instructor due to the class progress and unforeseen circumstances.

Academic Honesty:
As a learning community, the University upholds the highest standards of academic integrity in all its academic activities, by faculty, staff, administrators and students. Academic integrity involves much more than respecting intellectual property rights. It lies at the heart of learning, creativity, and the core values of the University. Those who learn, teach, write, publish, present, or exhibit creative works are advised to familiarize themselves with the requirements of academic integrity and make every effort to avoid possible offenses against it, knowingly or unknowingly. Park University 2011-2012 Graduate Catalog Page 21

Plagiarism:

Plagiarism is the appropriation of another person's ideas, interpretation, words (even a few), data, statements, illustration or creative work and their presentation as one's own. An offense against plagiarism constitutes a serious academic misconduct.  Although offenses against academic integrity can manifest themselves in various ways, the most common forms of offenses are plagiarism and cheating. Plagiarism goes beyond the copying of an entire article. It may include, but is not limited to: copying a section of an article or a chapter from a book, reproduction of an art work, illustration, cartoon, photograph and the like and passing them off as one's own. Copying from the Internet is no less serious an offense than copying from a book or printed article, even when the material is not copyrighted.

Plagiarism also includes borrowing ideas and phrases from, or paraphrasing, someone else's work, published or unpublished, without acknowledging and documenting the source. Acknowledging and documenting the source of an idea or phrase, at the point where it is utilized, is necessary even when the idea or phrase is taken from a speech or conversation with another person.

Park University 2011-2012 Graduate Catalog Page 21


Attendance Policy:

Students must participate in an academically related activity on a weekly basis in order to be marked present in an online class. Examples of academically-related activities include but are not limited to: contributing to an online discussion, completing a quiz or exam, completing an assignment, initiating contact with a faculty member to ask a courserelated question, or using any of the learning management system tools.Park University 2011-2012 Graduate Catalog Page 25

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:

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Last Updated:7/21/2011 5:03:41 PM