Finance

------------------------------------------------- Corrected Course Syllabus Fin 571 – Version 3 Corporate Finance Course Start Date: 2/17/11 Course End Date: 3/24/11 Program Council The Academic Program Councils for each college oversee the design and development of all University of Phoenix curricula. Council members include full-time and practitioner faculty members who have extensive experience in this discipline. Teams of full-time and practitioner faculty content experts are assembled under the direction of these Councils to create specific courses within the academic program. Copyright Copyright 2001, 2003, 2005, 2010 by the University of Phoenix. All rights reserved. University of Phoenix® is a registered trademark of Apollo Group, Inc. in the United States and/or other countries. Microsoft®, Windows®, and Windows NT® are registered trademarks of Microsoft Corporation in the United States and/or other countries. All other company and product names are trademarks or registered trademarks or their respective companies. Use of these marks is not intended to imply endorsement, sponsorship, or affiliation. Edited in accordance with University of Phoenix® editorial standards and practices. . Course Syllabus Course Title: | Corporate Finance Fin 571 | Course Schedule: | Feb 17, 2011 - Mar 24, 2011 | Course Location/Times/Newsgroup: | Westside Learning CenterWednesdays, 6:00pm – 10:00pm | Required Text: | Note: All required text materials can be found on the Fin 571 course page. The page can be accessed through the University of Phoenix Student and Faculty Web site at https://mycampus.phoenix.edu/ | Electronic Resources: | (An Electronic Reserve Readings (ERR) page has been created for each week of this course. The ERR contains recommended readings and suggested key word search parameters related to the given week’s objectives. To locate the link for each week’s ERR, navigate to the “materials” field under the appropriate week on the Fin 370 page. No password is required.) | Instructor’s Name: | Dennis Hoerr | Telephone: | 281 580-9424 | University of Phoenix E-mail Address: | HouDennisH@email.phoenix.edu | Alternative E-mail Address: | HouDennisH@sbcglobal.net | Availability: | I am available from 9 a.m.-9 p.m. Central Time on most days, but I attempt to reserve Sunday for my family. During the week, I am online most of the time during that 9 a.m.-9 p.m. time frame. On Saturdays, I tend to be online in the morning only. If these times are not convenient for you, please let me know. I will be happy to accommodate your schedule, if possible. I provide you with these times to make it easier to communicate with me, and not to limit our contact. I want you to know that, should you need to contact me outside these time frames, you should not hesitate to do so.For emergencies, when you are not able to gain access to messages on the Online Learning System (OLS), please send a message to my personal email address. In the event a third party needs to contact me, please direct them to my contact information listed under "facilitator information." No third party should use your login credentials to gain access to the classroom. | Please print a copy of this syllabus for handy reference. Whenever there is a question about what assignments are due, please remember this syllabus is considered to be the ruling document. Welcome! “You can do this.” I am pleased to be one of your facilitators through your journey towards earning a master’s degree. I hope that I make your trip a little more relevant through real-life education and experience. I learn something new all the time as I teach, and I look forward to our mutual learning experience. Instructor Biography: Real Estate Analysis, Mar 2006 – Present; Management and Financial Consultant, 2002 – Present; Faculty Member, University of Phoenix, 2003 – Present; Executive Director, Care Net Crisis Pregnancy Center of Houston, Sep 2004 – Jun 2005; Executive Director, Christian Alliance for Humanitarian Aid, President, Vice President or CFO for various companies in the computer industry, the oil & gas industry, the healthcare industry and industrial equipment manufacturing industry. I also served as a military officer. How points and percentages equate to grades 95 + | A | | 74-76 | C | 90-94 | A- | | 70-73 | C- | 87-89 | B+ | | 67-69 | D+ | 84-86 | B | | 64-66 | D | 80-83 | B- | | 60-63 | D- | 77-79 | C+ | | - 59 | F | University of Phoenix Standard Policies and Procedures Please see the Policy link on your rEsource page for the standard policies and procedures for the University. Course Changes Please note that the instructor’s assignments may vary from the original syllabus you received from the student web page. Assignments in this document take priority. While the reading assignments and learning objectives remain the same, some of the assignments in this syllabus have been customized for this particular section. Your instructor will point out the changes. Course Standards The University of Phoenix’s Adult Teaching and Learning Model is based on the assumption that, in preparation for every course, students will satisfy all prerequisites. During the course itself, students will achieve certain learning outcomes. All performance assessment depends upon the accomplishment of these outcomes. Students are graded on achievement, rather than effort. It is the responsibility of the student to come to class prepared for each workshop. Assignments are not accepted via e-mail. All assignments are to be posted in the OLS/Modality using the ASSIGNMENTS tab. Note: The University of Phoenix Assignment System will automatically mark all assignments as LATE after 6:00 PM on the day of class. Student Behavior Standards All students are expected to conduct themselves as mature adults and members of an academic community as defined in the University’s Code of Student Responsibility. Note: Please put all pagers and cell phones on vibrate. Note: These items are allowed in class: 1. Laptops for class assignment use only 2. Blackberry/Treo/IPhone/etc. Late Arrival / Early Departure Breaks: Each class will be given a “break” period. Students are expected to return from the break on-time. If you return from the break more than 10 minutes after the allowed break time, you will be penalized 1 point(s). Late arrival and early departure: Students are expected to be punctual. Late arrival or partial presence will be recorded and may result in a reduction of class participation points as follows: Entering class after 6:15 PM | 1 point from participation | Leaving class before 8:30 PM | 2 point from participation | Leaving class before 9:45 PM | 1 point from participation | Online Learning System Forums We will have a set of Online Learning System forums available to us during this class. To access the forums, click on the Go to class link on your student website. These web-based forums provide you with: * a common area solely for our class group (Main forum) where you can post questions between our on-campus workshop meetings * a Chat Room forum which you can use for non-class interactions with classmates (be sure to honor the Student Code of Conduct in this, and every, forum!) * electronic access to the course syllabus and grading rubrics which will be used in this class (see the syllabus in the Course Materials forum). Lectures, PowerPoint presentations, or other materials may be posted in this forum after it is covered in the classroom. For access to materials prior to the class, see my faculty webpage. * electronic venues for Learning Team meetings and team paper drafts to use as each team deems best (I will assign a specific Learning Team forum for each team’s use during our first on-campus workshop meeting) * a personalized electronic drop-box – Individual Forum - for communication with the instructor and distribution of Gradebook points and weekly feedback. Each student will be unable to access any individual forum except the one created for him or her individually. * Assignments are not accepted via e-mail.  Please ensure that all assignments are submitted via the ASSIGNMENTS tab in OLS by the due date indicated in this document. NOTE:  Assignments are only accepted via e-mail when the OLS forums are unavailable. Graded assignments will be returned via your Assignments tab. There are no online attendance or participation requirements during this course. All attendance and participation activity will occur only during our on-campus workshop meetings. If you have any questions about the class forums, please let me know during our on-campus class time or by posting your question(s) in the Main forum. Student Effectiveness In order for students to be successful there must be a commitment to effective processes. The classroom environment is a cooperative experience that requires the student to be responsible for several matters, some of which are listed below: 1. A working University of Phoenix email address 2. The reading of materials intended for and provided for this course 3. Making sure of the attachment of documents placed in their Assignment tab, meant for meeting homework assignment goals 4. The checking of their individual forums for messages from the faculty member on a regular, at least once a week, basis 5. Students should be mindful that the OLS forums are representative of an academic community. Therefore, professionalism and respectful behavior is required by all students for the facilitator and co-learners during any online chat, team discussion, or individual forum. 6. The student is responsible for the above conditions. Writing Standards The American Psychological Association (APA) 6th Edition Publication Manual, will serve as the primary reference materials for all students and faculty and will be required across all programs and colleges. All papers must be submitted in APA format as per UOP guidelines. The mechanics of student papers and work will be evaluated, as well as the content. It is imperative that guidelines be reviewed before an assignment is begun. It is also important that the required submission format be followed in compiling the final paper or assignment. Late Assignments Assignments must meet the deadlines established and late papers will not be accepted. Individual written work may be made up by prior arrangement with the instructor, with penalty. Presentations and group work cannot be accepted late. No assignments will be accepted after the conclusion of Workshop 6. Please Note: Facilitator will not request or remind students of missing or late assignments. Feedback on Assignments The faculty will return the student assignments via the student’s Assignment tab by the next class with specific and objective feedback to facilitate student learning. All graded assignments will be returned to students via the Assignments tab. Gradebook published Weekly Feedback will be posted in the Individual forums for both individual and team assignments. If there are concerns about the work or grade, the student may be contacted by the instructor, either by email or telephone, to resolve the concern. In addition, the student may contact the faculty to discuss concerns or schedule a conference. Withdrawals University policy does not permit the instructor to issue course grades other than a "W" to students with more than one class absence. Learning Teams Learning teams are an essential part of the academic experience of UOP students. In addition to providing a supplemental learning environment for mastery of course content, learning teams provide students an opportunity to develop and refine teamwork skills. Learning Teams may meet face-to-face, virtually, or telephonically. During the first learning team meeting, the team members should collaborate in completing the Learning Team Charter. This exercise will help the team plan for effective achievement of team tasks, establish ground rules, and minimize conflict in the team process. Team members will sign the charter, indicating that they contributed in the preparation of the form. Each team member should receive a copy and a copy should be submitted to the instructor at the second course class/workshop. Note: If a person/people on your team did/does not participate in a “team assignment”, that lack of participation must be note on the team log and each team member must sign the log. Note: Please treat the Team Charter as a contract. It should specify all of the agreed upon ground rules, guidelines and consequences for the various “team” assignments. Non-Participation in Team If it comes to my attention that someone has not carried his or her share of the load in the group project, I reserve the right to grade each student individually on that project. i.e., Learning team members will be graded individually for every team assignment based on that team member's contribution. Team evaluations will play a key role in the grading process. Learning Team Standards The Learning Team Log is used to document objectives, resources and activities, accomplished tasks, and hours. The team should develop an effective team charter. Members should effectively manage conflict within the group and resolve problems, share workload equally, build consensus, and effectively share in decision making. Products of the team process (i.e., oral presentations, papers) are cohesive and should present the image of a single product rather than a collection of individual products. Tasks should be completed on time and meet established requirements. Grading for Team Assignments Everyone in the Learning Team generally receives the same grade for the team project. Sometimes, however, when it becomes apparent to me, either through other Learning Team members or through my own observations, that a Learning Team member is an uneven or non-contributor, I reserve the right to grade that team member individually, as it is not right for a non-participating member to receive the same grade as a student who has done all of his or her required work. Course Description This course applies corporate finance concepts to make management decisions. Students learn methods to evaluate financial alternatives and create financial plans. Other topics include cash flows, business valuation, working capital, capital budgets, and long-term financing. ------------------------------------------------- Course Topics & Objectives Week One: Foundations of Finance Discuss the 12 principles of foundational corporate finance. Compare and contrast accounting net income and cash flows. Compare and contrast the market value of an asset or liability from the book value. Week Two: Business Valuation Apply valuation techniques to determine the intrinsic value of debt and equity instruments. Analyze how markets adjust for risk. Apply the capital-asset pricing model to calculate a business’s required return. Week Three: Working Capital Describe the cash conversion cycle and its importance to working capital management. Identify sources and uses of short-term financing. Evaluate how the business policies of a firm affect accounts receivable and inventories. Week Four: Capital Budgets Calculate the cost of capital. Apply techniques used in capital budgeting decisions. Analyze a capital project’s present value based on expected future net cash flows. Week Five: Long-Term Financing Outline a method for managing capital structure. Evaluate the effect of dividend policy on stock price. Explain the types and main features of long-term debt. Compare and contrast leasing with debt and equity finance. Week Six: Financial Planning Analyze the effect of price setting on capital budgeting. Explain the methods, pitfalls, and benefits of capital rationing. Create a financial plan. * ------------------------------------------------- Course Materials Emery, D. R., Finnerty, J. D., & Stowe, J. D. (2007). Corporate financial management (3rd ed.). Upper Saddle River, NJ: Pearson Prentice Hall. All electronic materials are available on your student Web site. ------------------------------------------------- Weekly Point Values | | Week One |   | Individual Assignment: Guillermo Furniture Store Concepts Paper | 8 | Participation | 2 | Discussion Question | 1 | Week Two |   | Individual Assignment: Text Problem Sets | 12 | Participation | 2 | Discussion Question | 1 | Week Three |   | Learning Team Assignment: Lawrence Sports Simulation | 13 | Participation | 2 | Discussion Question | 1 | Week Four |   | Individual Assignment: Corporate Analysis | 13 | Participation | 2 | Discussion Question | 1 | Week Five |   | Individual Assignment: Text Problem Sets | 13 | Participation | 2 | Discussion Question | 1 | Week Six |   | Final Exam | 10 | Learning Team Assignment: Corporate Analysis Recommendation | 13 | Participation | 2 | Discussion Question | 1 | Point Total | 100 | | | ------------------------------------------------- Week One Foundations of Finance Discuss 12 principles of foundational corporate finance. Compare and contrast accounting net income and cash flows. Compare and contrast the market value of an asset or liability from the book value. ------------------------------------------------- Course Assignments Readings * Read Ch. 2 & 3 of Corporate Financial Management. * Read the following items, available at http://ecampus.phoenix.edu: Learning Team Handbook Guide to Charter Learning Team Charter Learning Team Log Learning Team Evaluation Individual Assignment: Guillermo Furniture Store Concepts Paper * * Resource: University of Phoenix Material: Guillermo’s Furniture Store Scenario * Write no more than a 700-word paper explaining the finance concepts found in the readings and how they relate to the context of the scenario. Format your paper consistent with APA guidelines. * Discussion Questions * Facilitators may choose one: Question 10, 11, or 12 from Ch. 2 in the text or Challenging Question 22, 25, 26, or 27 from Ch. 2 in the text. * Facilitators may choose one: Question 3 or 4 from Ch. 3 in the text. ------------------------------------------------- Week Two Business Valuation Apply valuation techniques to determine the intrinsic value of debt and equity instruments. Analyze how markets adjust for risk. Apply the capital-asset pricing model to calculate a business’s required return. * . ------------------------------------------------- Course Assignments 1. Readings * Read Ch. 5–7 of Corporate Financial Management. Individual Assignment: Text Problem Sets * * Navigate to the MBA preparatory companion website at http://www.pearsoncustom.com/uop/mba/ * Select the Introduction to Finance. * Read the Welcome. * Select from the pull down menu Ch. 1, 2, 5, or 7 and begin the Readiness Assessment Quiz on the left-hand menu once you select a chapter. * Complete the problem sets and show all steps: Ch. 5: Problems A1, A10, A12, A14, B16, B18, & B20 Ch. 7: Problem C1 Below are the answers to the problems. Points are given for the work shown, so make sure you show all work in reaching the answers. * * Ch. 5: Problem Answers A1 PV = -$895.94 * A10. P0 = $140.00 A12. 7.47% A14. $33.33 B16. a 1. PV = -$1,010.61 2. PV = -$1,059.42 3. PV = -$1,097.27 b. 1. PV = -$1,020.18 2. PV = -$1,116.03 3. PV= -$1,195.42 c. 1. PV = -$1,001.17 2. PV = -$1,006.39 3. PV = -$1,010.18 B18. r = -2.8746% APY = -5.6666% YTM = -5.7493% APR b. r = 11.0489% APY = 23.3185% YTM = 22.0977% APR B20. a. P1 = $14.29 P0 = $12.64 b. P3 = $11.11 P0 = $7.70 * * Ch. 7: Problem Answers C1. a. Expected Return M = 9.75% Expected Return Chicago Gear = 15.00% b. σM2 = 0.0121 Cov(Chicago Gear, M) = 0.018 β = 1.49 c. r = 11.59% Learning Team Instructions: Lawrence Sports Simulation * * Resource: University of Phoenix Material: The Lawrence Sports Simulation * Collaborate on the Lawrence Sports Simulation due in Week Three. Discussion Questions * Answer Challenging Question 8 from Ch. 6 in the text. Write a minimum 100 word answer. Use APA format. Submit the DQ to your Individual Forum before class. ------------------------------------------------- Week Three * Working Capital Describe the cash conversion cycle and its importance to working capital management. Identify sources and uses of short-term financing. Evaluate how the business policies of a firm affect accounts receivable and inventories. ------------------------------------------------- Course Assignments 1. Readings * Read Ch. 22 & 23 of Corporate Financial Management. Learning Team Assignment: Lawrence Sports Simulation * Resource: The Lawrence Sports Simulation located at https://ecampus.phoenix.edu/secure/resource/vendors/tata/sims/finance/finance_simulation1.html * Create at least three alternative working capital policies that reduce future difficulties, and make a recommendation on which policy Lawrence Sports should follow. Your recommendation must include: An evaluation of the risk associated with the recommendation Contingencies for the recommendation Performance measures that are used to evaluate your recommendation An implementation plan for your recommendation * Write a paper in no more than 1,750 words discussing your recommendation. Your paper must include a review of the cash conversion cycle for Lawrence Sports Simulation and its importance to their working capital management. Develop and explain your recommendation as fully as possible. * Format your paper consistent with APA guidelines. Discussion Questions * Answer Challenging Question 11 from Ch. 22 in the text. Write a minimum 100 word answer. Use APA format. Submit the DQ to your Individual Forum before class. ------------------------------------------------- Week Four Capital Budgets Calculate the cost of capital. Apply techniques used in capital budgeting decisions. Analyze a capital project’s present value based on expected future net cash flows. ------------------------------------------------- Course Assignments 1. Readings * Read Ch. 8–10 of Corporate Financial Management. Individual Assignment: Guillermo Furniture Store Analysis * * Resource: The Guillermo Furniture Store Scenario or your own organization, with the approval of your facilitator * Write a paper in no more than 1,750 words that focuses on the analysis of different alternatives available to Guillermo. Include a sensitivity analysis. * Determine the optimal weighted average cost of capital and discuss the use of multiple valuation techniques in reducing risks. * Calculate net present value of future cash flows for each of the alternatives. * Format your paper consistent with APA guidelines. Discussion Questions * Answer Challenging Question 14 or 16 from Ch. 10 in the text. Write a minimum 100 word answer. Use APA format. Submit the DQ to your Individual Forum before class. ------------------------------------------------- Week Five Long-Term Financing Outline a method for managing capital structure. Evaluate the effect of dividend policy on stock price. Explain the types and main features of long-term debt. Compare and contrast leasing with debt and equity finance. ------------------------------------------------- Course Assignments 1. Readings * Read Ch. 17, 18, 20, & 21 of Corporate Financial Management. Individual Assignment: Text Problem Sets * * Navigate to the MBA preparatory companion website at http://www.pearsoncustom.com/uop/mba/ * Select the Introduction to Finance. * Read the Welcome. * Select from the pull down menu Ch. 1, 2, 3, 4, 5, 6, 7, or 8 and begin the Readiness Assessment Quiz on the left-hand menu once you select a chapter. * Complete the problem sets and show all steps in your work: Ch. 17: Problem B1 Ch. 18: Problems A10 & B2 Ch. 20: Problem A2 Ch. 21: Problem C2 * Learning Team Instructions: Guillermo Furniture Store Recommendation * * Resource: The Guillermo Furniture Store Scenario or your own organization, with the approval of your facilitator * Collaborate on the Guillermo Furniture Store Recommendation due in Week Six. Discussion Questions * Answer Question 3, 5, or 9 from Ch. 17 in the text. Write a minimum 100 word answer. Use APA format. Submit the DQ to your Individual Forum before class. ------------------------------------------------- Week Six Financial Planning Analyze the effect of price setting on capital budgeting. Explain the methods, pitfalls, and benefits of capital rationing. Create a financial plan. ------------------------------------------------- Course Assignments 1. Readings * Read Ch. 11 & 24 of Corporate Financial Management. * Read Ch. 24 of Corporate Financial Management. Individual Assignment: Final Examination * Resources: Corporate financial management * Click the link to the Final Examination on your student website available from the end of Week Five through the end of Week Six. * Complete the Final Examination. You are allowed one attempt to complete the exam, which is timed and must be completed in 3 hours. Results are auto graded and sent to your instructor. Learning Team Assignment: Guillermo Furniture Store Recommendation * * Resources: The Guillermo Furniture Store Scenario or your own organization, with the approval of your instructor, for this assignment * Write a paper in no more than 2,100 words that analyzes Guillermo’s alternatives and make a recommendation of a financial decision. The paper must also include a justification for your recommendation. * Create a pro forma cash flow budget for the organization for at least the next 5 years. * Format your paper according to APA standards. Discussion Questions * Answer Challenging Question 9 from Ch. 24 from the text. Write a minimum 100 word answer. Use APA format. Submit the DQ to your Individual Forum before class. 1. Individual Assignment: Final Examination * Resources: Final Examination and assigned readings from all weeks * Select the link to the Final Examination on your student website available from the end of Week Five through the end of Week Six. * Complete the Final Examination. You are allowed one attempt to complete the exam, which is timed and must be completed in 3 hours. Post a copy to the Assignments Link.