MBA 621 Game Plan – Fall 2010– Zietlow (continued)
Game Plan
MBA 621—Managerial Finance
Fall 2010 – Thursday nights, 10/21 – 12/16 (Mitchell Hall Rm. #203)
Note: Ethics readings are available on the Course Share (R:) drive at Malone (Go to JZietlow folder).
Session 1 – October 21
/ Chapter 1:
Scope of Corporate Finance
Chapter 2:
Financial Statement and Cash Flow Analysis / You have already read Chapters 1 and 2 prior to Session 1. Turn in one-and-a-half page single-spaced memo you wrote to FBO ED/CEO.
Study each numerical problem included in the chapter presentations carefully, plugging the numbers in yourself to practice the calculation. Begin committing to memory these 10 formulas: current ratio, inventory turnover, total asset turnover, net profit margin, ROA, ROE, P/E, EPS, debt ratio, times interest earned.
Session 2 – October 28 / Chapter 3:
Present Value
Chapter 4:
Bond and Stock Valuation
8 p.m.: How to access and download company financials – (Regula Hall #300 or @ Library). Completion of TXRH ratios.
Bring a USB flash/jump drive. / Due: Chapters 1 & 2 HW. Chap. 1: Questions 1-2, 1-5, 1-7, 1-8 (pp. 22-23); Chap. 2: Questions 2-5, 2-6, 2-7, 2-8 (p.52); Problems 2-4, 2-5, 2-6, 2-7, 2-10.
Read Chapters 3 and 4, practicing each in-text calculation. Use financial calculator (HP 10BII is strongly recommended).
Within 2 days of class: OCT. 30 - Turn in printout of TXRH ratios, evaluation column, and cell formulas.
Session 3 – November 4 / 6 p.m. – Guest Speaker:
Dave Wechter, Huntington Bank. “Basics of Short-Term Lending.”
Chapter 5:
Risk and Return
Chapter 6:
Risk and Return:
The CAPM and Beyond / Due: Chapters 3 & 4 HW. Chap. 3: Questions 3-2, 3-5, 3-7 (p. 97); Problems 3-6, 3-9, 3-13, 3-19, 3-20, 3-23, 3-30. Chap. 4: Questions 4-1, 4-7, 4-12, 4-16, 4-17 (pp. 150-151); Problems 4-5, 4-11, 4-14, 4-16, 4-20, 4-26.
Read Chapters 5 and 6, practicing each in-text calculation. Use financial calculator and formulas.
Session/Date / Topic / Assignment
Session 4 - November 11 / Exam 1: Chapters 1-4
Chapter 7:
Capital Budgeting Process and Techniques / Bring calculator. Ethics coverage included in exam. Partial cover sheet provided.
Due: Chapter 5 HW. Questions: 5-3, 5-4, 5-16, 5-18 (pp. 184-185); Problems: 5-4, 5-8a only, 5-11a and b only, 5-15b only, 5-19.
Read Chapter 7, practicing each in-text calculation. Use financial calculator and formulas.
Read: Graham, John R., and Campbell, R. Harvey, 2001, "The theory and practice of corporate finance: Evidence from the field," Journal of Financial Economics 60, 187-243. (see syllabus for access instructions). Be prepared to discuss their findings, and how they agree/disagree with text corporate practice profile (pp. 251-252, also Beth Acton video).
Session 5 – November 18 / Chapter 8:
Cash Flow and Capital Budgeting
/ Due: Chaps. 6 & 7 HW. Chapter 6: Questions 6-7, 6-15, 6-16, 6-22 (pp. 219-220). Problems 6-14, 6-18.
Chapter 7: No questions. Problems 7-2 (Beta, Gamma only), 7-6, 7-13, 7-15 (parts a,b,c only), 7-19, 7-24 (pp. 254-260).
Read Chapter 8, practicing each in-text calculation. Use financial calculator and formulas.
No class on Thursday, November 25 – THANKSGIVING.
Session 6 – December 2 / Exam 2: Chapters 5-7.
Chapter 10:
Market Efficiency
Chapter 11:
Long-Term Financing / Bring calculator.
Due: Chap. 8 HW. Chapter 8: Questions 8-1, 8-2, 8-7, 8-8 (p. 289).
Problems 8-6, 8-11, 8-18.
Read Chapters 10 and 11. Study each numerical problem in the text carefully, plugging the numbers in yourself to practice the calculation.
Session 7 – December 9 / Chapter 12: Capital Structure / Due: Chap. 10, Chap. 11 HW. Chapter 10: Questions 10-1, 10-4, 10-6, 10-7, 10-9, 10-12, 10-26, 10-27 (pp. 372-374).
Problems 10-4, 10-9.
Chapter 11: Questions 11-4, 11-7, 11-9, 11-11, 11-12, 11-13, 11-15, 11-16 (pp. 407-408). Problem 11-4 part f only.
Read Chapter 12. Study each numerical problem in the text carefully, plugging the numbers in yourself to practice the calculation.
Get Church Loan Case Analysis handout(s).
Session/Date / Topic / Assignment
Session 8 – December 16 / Exam 3: Chapters 8, 10, 11, 12 and Church Loan Case.
Chapter 22:
Strategic and Operational Financial Planning
Chapter 23 (pp. 813-815 only):
Cash Position Management (our “Current Topic”).
Church loan case and related handouts on church loan evaluation. / Bring calculator.
Due: Chapter 12 HW. Chapter 12: Questions 12-2, 12-4, 12-5, 12-7, 12-9, 12-10, 12-14 (pp. 437-438). Problems 12-1, 12-11.
Read Chapter 22. Study each numerical problem in the text carefully, plugging the numbers in yourself to practice the calculation.
Read: Gordon Donaldson, “Strategy for financial emergencies”, Harvard Business Review (November/December 1969): 67-79. (see syllabus for access instructions).
Read handout “The Optimal Cash Position” White Paper.
Be prepared to answer exam questions on Church Loan Case (have it read and analyzed). May have bonus question(s) on exam regarding Chapter 22, Donaldson article, and white paper.