EMGT 521 - - Financial Management in a Technical Environment

Course Syllabus � Spring 2007

course home page: http://www.rose-hulman.edu/~bremmer/quarter.htm

 

Location: �Suite 101, 3rd and Smith Office Building, Bloomington

Time: 5:30 � 9:00 p.m.

Scheduled Classes

The class will meet the following Tuesdays: (1) 6/12/07, (2) 6/19/07, (3) 6/26/07, (4)7/10/07,

(5) 7/17/07, (6) 7/24/07, (7) 7/31/07, (8) 8/7/07, (9) 8/14/07, (10) 8/21/07

 

Instructor: Dr. Dale Bremmer

Home Phone: (812)877-3412

Office: Room A217

Office Fax: (812)877-8909

Office Phone: (812)877-8456

Email:� dale.bremmer@rose-hulman.edu

 

I.��� Textbook

The required textbook is Fundamentals of Financial Management: Concise Fifth Edition by Eugene F. Brigham and Joel F. Houston (Thompson South-Western, ISBN: 0-324-31984-3).� Copies of the lectures and the publisher�s PowerPoint slides may be found on Angel and on the class webpage.

 

II.� Course Objectives

 ���� This course introduces students taking their first class in finance to the terminology, theory, and analytical techniques of corporate financial management

      The class provides an overview of the basic concepts and principles of financial management and it particularly emphasizes the concepts of risk, rates of return, capital budgeting and valuation. Students are introduced to models which examine the impact of investing and financing decisions on the value of the firm. The class applies this valuation model to several types of investing and financing decisions encountered in the real world.

      Over the course of the quarter, students develop a strong conceptual foundation in contemporary financial management. Upon successful completion of the course, students understand contemporary financial events as they occur. In addition, the class facilitates the students� use of either financial calculators or electronic spreadsheets in a financial management setting.

      The course focuses on theories, concepts, and principles as opposed to institutional material, although some institutional background is required. This class is intended to be a survey course that covers a great deal of material and that sacrifices some depth for a little more breadth.

 

III. Testing and Grading

A.� Possible points

There are 500 possible points to earn during the quarter.  The points are distributed in the following manner:

 

Assignment

Points

Possible

2 take-home exams (100 points each)

200

homework problems

100

8 in-class quizzes

100

1 paper

�100

Total Points

500

B.� Exams

There will be two take-home exams.� The exams consist of essay questions and problems covering assigned reading material and material discussed in class.� Neither the midterm exam nor the final will be deliberately cumulative, although concepts developed in earlier chapters will necessarily be employed in latter chapters.� The first exam will be distributed on July 17th and it is due July 25th.� The second take-home exam will be distributed August 21st and it is due August 29th.

 

C.� Homework

Each week no more than ten homework problems will be assigned.� They will be due the next week.� The problems are usually found at the end of the chapters. At the end of the summer, the homework assignment with the lowest score is dropped and the remaining assignments are worth 100 points.� For example, if a student earns 80 percent of the possible points on the homework, at the end of the quarter the student receives 80 points for his or her homework score.

 

D.� The paper

����� The paper is to summarize and critique a series of papers found in a symposium published by the Journal of Economic Perspectives.� Students are to pick one of the three following symposiums: (1) the Modigliani-Miller Propositions after Thirty Years (published in 1988), (2) Speculative Bubbles in the Market (published in 1990), and (3) Financial Market Efficiency (published in 2003).� All these articles will be found on Angel or the class webpage.� The paper should be between five and seven pages long, and it is judged on content, clarity of thought, and logical organization.  The research papers are due by the beginning of class on August 21st.

 

E.�� Quizzes

����� Starting June 19th, there will be a short quiz every class.� The quiz consists of true-false questions, short answer and problems.� The main purpose of the quiz is to make sure students review the notes and reading assignments from the previous class.� The quizzes should take no more than fifteen minutes.� There will be nine quizzes.� At the end of the summer, the quiz with the lowest score will be dropped, and the remaining quizzes will be worth 100 points.� For example, if a student earns 95% of the possible points on these nine quizzes, at the end of the class, the student will receive a quiz score of 95 points.

 

F.�� Grades

Grades are based solely on the performance on the homework, the two take-home exams, the quizzes, and the paper.� Academic misconduct results in failing the course. ��Exam grades are not dropped.  No extra credit is available.  Grades are not discussed over the phone.  Since 500 points are possible, final grades are assigned in the following manner:

 

Points Earned

0 - 299

300 - 334

335 - 349

350 - 384

385 - 399

400 - 434

435 - 449

450 - 500

Grade Earned

F

D

D+

C

C+

B

B+

A

 

IV. Attendance and makeup policy

Class attendance is expected.  A missed assignment is recorded as a zero.  No makeup opportunity will be given unless there is an acceptable excuse such as the following: (1) serious illness, (2) a death in the family, (3) an Institute-sponsored event, or (4) professional obligation.� Prior notification of an absence is expected.

 

V. Tentative course schedule

The table below lists the order the material is presented.  Any chapter or subsection listed below is to be considered as required reading.  Any modifications to this table will be announced.

 

 

Chapter

 

Title

 

1

 

An Overview of Financial Management

 

2

 

Time Value of Money

 

3

 

Financial Statements, Cash Flow, and Taxes

 

4

Analysis of Financial Statement

 

5

 

Financial Markets and Institutions

 

6

 

Interest Rates

 

7

 

Bonds and Their Valuation

 

8

 

Risk and Rates of Return

 

9

 

Stocks and Their Valuation

 

10

 

The Cost of Capital

 

11

 

The Basics of Capital Budgeting

 

12

 

Cash Flow Estimation and Risk Analysis

 

13

 

Capital Structure and Leverage

 

14

 

Distributions to Shareholders: Dividends and Share Repurchases

 

15

 

Working Capital Management

 

16

 

Financial Planning and Forecasting

 

17

 

Multinational Financial Management