Finance 350, Corporate Managerial Finance Spring 2010
Dr. Brian Maris Office #413 CBA
Phone: 523-7398 e-mail:
Webpage: www.cba.nau.edu/facstaff/maris-b
Office Hours: 10:30-12:00 Monday and Wednesday. Also available by appointment.
Text: Intermediate Financial Management, 10th ed., by Brigham and Daves.
Catalog Description: Development of theory and intensive application of techniques for long-term financial management of the firm. An emphasis is on capital budgeting and long-term financing, including capital structure and leasing.
Prerequisite: Finance 311.
Grades will be based on the following:
Item Points
Midterm Exams (2 @ 100 points) 200
Final Exam 100
Group Assignments (4 @ 50 points) 200
Professional Conduct 30
Homework (approximate) 70
Total (approximate) 600
Grading is on the basis of 90%=A, 80%=B, 70%=C, and 60%=D.
Exams: Exams will include multiple choice questions, a discussion question and several problems from the chapters covered on the exam. The syllabus lists several beginning of chapter (BOC) and end of chapter (EOC) questions from each chapter that you should be prepared to answer on exams. They may be augmented by additional questions handed out in class or posted on my webpage. You may bring four pages (two sheets of paper, 8 ½ x 11, both sides) of notes to each exam. They should include any formulas you need for the problems and outlines of your answers to the questions. If you must miss a scheduled exam, make arrangements in advance to take the exam at another time. If you are sick on the day of an exam, call me to arrange a make-up. Cheating on an exam will result in a grade of zero for the exam. You will not be allowed to drop the class or make up those points on the final.
Group Projects: Several case studies are assigned as group projects. For each group assignment, one grade will be given. However, at the end of the semester, you will evaluate contributions of your group members and points may be reallocated as a result of the feedback received. Each case assignment includes 10 points for class participation which will be deducted if you are not in class when the case is discussed (unless you have an excused absence), or if you are unprepared when called on.
Homework: Homework problems are listed on the syllabus for most chapters. Additional homework problems may be handed out in class. The homework for a chapter will be due after we have gone over the material in class and the due date will be announced in class. In most cases, those assignments are worth 10 points and I simply check to see if you turned it in. It is possible that some homework assignments will be graded and may be worth more than 10 points. I will let you know in class if an assignment is to be graded.
Professional Conduct. University students are expected to conduct themselves appropriately and with maturity. Behavior that is considered disruptive will not be tolerated and can result in your being asked to leave the classroom. Serious or repeated disruptive behavior can result in administrative withdrawal from the class. Each student begins the semester with 30 points for professional conduct. From that, five points will be deducted for each of the following:
absent (more than twice)
late
leave classroom
disrupt class
I see or hear your cellphone
sleep during class
Attendance: You are expected to attend class regularly and are responsible for information provided in class, including homework assignments, any handouts or changes in test dates or test coverage. If you are absent from class, try to get class notes from a source other than me.
Calculator: You should own and be able to use a financial calculator. If you do not own a financial calculator, you should get one now and learn to use it. Select a calculator with NPV and IRR functions and a cash flow key. Texas Instruments, Hewlett Packard and Casio all make good ones. Most students have a Texas Instruments BA II Plus, which costs about $40. Often someone else in class will have the same calculator and can answer your questions.
The following course outline is subject to change as announced in class.
Date Assignment
1/12 Ch 1, Overview (BOC Question 1)
1/14 Start Ch 2, Risk and Return (BOC Questions 1,4,5)
1/19 Continue Ch 2
1/21 Turn in problems 3,5,8,12 from Ch 2. Ch 5, Stock Value (BOC Questions 1,5)
1/26 Turn in problems 2,5,9,17 from Ch 5. Ch 7, pp. 215-234, Accounting for Financial Management.
1/28 Turn in problem 12 from Ch 7. Ch 11, Corp Value pp. 363-74 (BOC Questions 1,2,6)
2/2 Turn in problems 1,7 from Ch 11. Start Ch 10, Cost of Capital (BOC Questions 1,2,3,6,7;
EOC Questions 2,4,5)
2/4 Continue Ch 10.
2/9 Turn in problems 10,15,16 from Ch 10.
2/11 Exam #1
2/16 Start Ch 12, Capital Budgeting Decision Criteria
(BOC Questions 1,2,4,5,7; EOC Question 5)
2/18 Continue Ch 12.
2/23 Turn in problems 1,2,3,15,19 from Ch 12. Problems 15 and 19 are to be done
individually, in excel and will be graded (5 points each). Continue Ch 12.
2/25 Turn in problems 17,20,22,23 from Ch 12. Problem 23 is to be done individually, in excel
and will be graded (10 points). Start Ch 13, Capital Budgeting Cash Flows and Risk (BOC
Questions 1,4,5,6; EOC Questions 4,5).
3/2 Case (Northern Forest Products)
3/4 Continue Ch 13.
3/9 Turn in problems 1,2,3,4,8 from Ch 13.
3/11 Case (Fonderia)
3/16-18 Enjoy Spring Break!
3/23 Start Ch 15, Capital Structure (EOC Questions
1,2,7,9)
3/25 Continue Ch 15
3/30 Turn in problems 10,11,12 from Ch 15.
4/1 Exam #2
4/6 Start Ch 26, Merger Analysis (BOC Questions
2,4,6; EOC Question 3)
4/8 Continue Ch 26.
4/13 Case (Yellow Snow)
4/15 Turn in problem 1 from Ch 26 plus additional problems to be handed out in class. Start Ch
19, Leases (BOC Questions 1,5,6).
4/20 Continue Ch 19.
4/22 Case (Yeats Valve)
4/27 Turn in problems 4,5 from Ch 19. Start Ch 17, Dividends (BOC Questions 1,2,3,4,5,6).
4/29 Continue Ch 17
Final Exam: Tuesday, May 4, 7:30 am
Fin 350 Course Learning Outcomes. By the end of the course, the student is expected to be able to:
1. Determine the value of a firm’s securities based on cash flow forecasts.
2. Measure the risk and return of a firm’s assets.
3. Estimate cash flows for capital budgeting projects.
4. Apply various capital budgeting techniques to cash flow forecasts.
5. Make appropriate adjustments for risk in capital budgeting analysis.
6. Estimate the cost of various sources of financing, and the overall cost of capital.
7. Evaluate lease-vs.-purchase alternatives, and determine which is optimal.
8. Explain the factors influencing the optimal capital structure.
9. Determine the sources of value in mergers and acquisitions.
Academic Integrity. NAU takes an extremely serious view of violations of academic integrity. This includes cheating and plagiarizing. Students and faculty are responsible for conducting themselves honestly and for identifying cases of academic dishonesty in others. Violations can result in failure in the course and being dismissed from the University. The complete policy on academic integrity and related issues is at http://jan.ucc.nau.edu/academicadmin/policy1.html
Classroom Management. University students are expected to conduct themselves appropriately and with maturity. Behavior that is considered to be disruptive will not be tolerated and can result in your being asked to leave the classroom. Serious or repeated disruptive behavior can result in administrative withdrawal from the class. You should be familiar with and adhere to the CBA Code of Conduct that was developed with student input. It is located at www.cba.nau.edu/conduct.asp