BUSINESS 170 – FUNDAMENTALS OF FINANCE                          

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III.  COURSE TEXT AND OTHER MATERIAL:

Required Materials

Foundations of Finance: The Logic and Practice of Financial Management, Keown, Martin, Petty, Scott, Jr.; Fifth Edition; Pierson Prentice Hall; and Study Guide, 5/E by Clark and Petty

ISBN 0132245663 

Reader/Case Studies (All Harvard Business School Publishing)

A-Rod: Signing the Best Player in Baseball; (9-203-047; Rev. January 27, 2003)

Beta Management Company; (9-292-122; Rev. November 17, 1993)

Dell’s Working Capital; (9-201-029; Rev. December 15, 2003)

Harris Seafoods, Inc.; (0-281-054; Rev. June 15, 1993)

Marriott Corporation: The Cost of Capital; (9-298-101; Rev. March 18, 1998)

NetFlix.com, Inc.; (9-201-037; Rev. March 24, 2003)

Sears, Roebuck and Co. vs. Wal-Mart Stores, Inc.; (9-101-011; Rev. March 12, 2003) 

Recommended Materials:

Financial Calculator  (i.e. TI BA II Plus, HP 10bII, HP 12c)

Access to Excel or other spreadsheet application

Subscription to Wall Street Journal (student discount form available at first class meeting)

IV.  COURSE CONTENT AND PREREQUISITES:

Course Objectives:  This course provides a broad overview of corporate finance, including:

How this Section may be different:  We will take a very practical focus on performing the function of an operational finance manager in a small or large enterprise.  We will cover the foundations of basic financial theory in class, but will not have time in a single semester course to dive deep into many of the topics.  You will need to learn a lot of the material through your own individual or group study sessions.  We will spend a significant portion of our in-class time on real world case studies. Recognizing that this is an introductory course to a broad and complex field, my goal will be to emphasize the most important concepts that are essential do doing well in more advanced courses and within (or outside) the finance industry for a career. My teaching philosophy is that classroom participation results in a more stimulating and effective learning experience.  For these reasons, a large percentage of the grade will be based on your participation and preparation for class.

Prerequisites:  Bus 21, Econ 1A, Econ 1B, Bus 90   (with minimum grade of “C” in each).  I will ask for confirmation in writing. 

V.  GRADING SCALE AND TESTING:

Mid term exam

50

Final exam (comprehensive)

125

Class group project/presentation

 50

Class participation/Case Study preparation

 75

Total points available 

300

     

    VI. HOMEWORK/PARTICIPATION

Homework will be assigned in class and posted on the class web site.  It is critical to prepare for the case study discussions.  I recommend that you prepare in groups, but this is not required.  The only required group activity will be the financial analysis project. 

    VII. CLASS ETIQUETTE and OTHER REQUIREMENTS

Since we are preparing you to be successful in the business world, this class will be conducted in accordance with good professional behavior.  You will also be expected to arrive in class on time and be prepared to provide answers to homework problems and participate in case study discussions. If you must miss a class or will be late, please email me in advance of your absence.  It will also be your responsibility to get a summary of the missed class from another student. 

Attendance at the first three classes and completion of assigned homework is required to establish an accurate headcount and award available spaces to those on the waiting list.  Students missing one or more of the first three classes, unless pre-excused by me, will be dropped to make room for students on the waiting list.  

Students are expected to adhere to COB Policies and Procedures.

BUSINESS 170 COURSE SCHEDULE

MTG

Wed

Topics

ACTIVITIES

1

1/25

Course Overview

Key Concepts in Financial Management  

 

2

2/01

Financial Markets, Securities and Interest Rates 

 

3

2/08

Understanding Financial Statements and Cash Flows                                    Measuring Financial Performance

 

4

2/15

Measuring Financial Performance 

Sears vs. Walmart Case

5

2/22

No Lecture 

Group Project Exercise

6

3/01

Time Value of Money                              Risk and Return 

Group Presentations

7

3/08

Valuation of Stocks & Bonds                  Mid-course review 

Beta Management Company

8

3/15

Forecasting Planning & Budgeting 

Mid-term exam

9

3/22

Cost of Capital and Capital Budgeting 

NetFlix.com, Inc

 

3/29

Spring Break 

 

10

4/05

Cost of Capital and Capital Budgeting

Marriott Corporation: The Cost of Capital 

11

4/12

Dividends and Internal Financing 

A-Rod: Signing the Best Player in Baseball

12

4/19

Determine Financing Mix                           S/T Financial Planning
Harris Seafoods, Inc.

13

4/26

Working Capital Management 

 

14

5/03

Current Asset Management 

Dell’s Working Capital

15

5/10

International Business Finance             Course Summary and Exam Prep 

 

 

5/17

No Class: Conference/Study Day

 

 

5/24

FINAL EXAM – 17:15 – 19:30 (Tentative)

  

 

NOTE: This schedule is subject to change.  Any changes will be announced in class and posted to the class web site.