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College of Industrial Management
Department of Finance & Economics

Fin 510: Managerial Finance Spring 2nd Semester 032- 2004
SM 6:30 - 7:45 pm * 24 - 236A

Dr. Yakubu Al-Haji Umar
Office: Bldg 24-241 Office Hours: S-M 5:20 -6:20 pm
Or By Appointment Office Phone: 860 - 2519

Course Syllabus - Contract of Rules and Regulations

Required Textbook: James C. Van Horne, Financial Management Policy, 12th Ed. 2001.You should read each chapter before it is discussed in class. Financial Management: Theory & Practice, 10 ed by Brigham & Ehrhardt and Principles of Corporate Finance by Brealey & Myers 7th Ed. and Contemporary Financial Management by Moyer, 9th ed. are highly recommended for additional readings. As with the text book, the appropriate chapter should be read before it is discussed in class. You should also read articles in the major periodicals, such as the Wall Street Journal, Business Week, Fortune, Forbes,  Dunn's, and Internet describing financial managers' involvement in some important challenging tasks and for current developments in the financial markets.

Calculator: Financial Calculator (FC) is required. You must bring a financial calculator that does TVM, PV, FV, NPV, IRR, and PMT problems for each class meeting.

Course Description: This is an integrative course that examines the major aspects of corporate financial policy. The course covers some of the advanced topics in modern corporate finance: valuation of corporate securities, capital structure decisions, dividend theory, lease financing, long-term financing and the investment banking process, financial planning and forecasting, derivative securities (options, rights, warrants, convertibles, and futures), corporate reorganization, evaluation of mergers and acquisitions, and issues in international financial management. The course will be conducted using a balanced mix of lectures, case analyses, and class presentations.

Pre-Requisites: Fin 301/501 and Acct 510

Course Objectives:
The objective of this course is to develop an understanding of the modern Managerial Finance theory and practice so that the student will have the conceptual foundations for making intelligent financial decisions. The course builds on the material covered in Fin 501 which introduced students to a variety of real-world problems faced by financial managers to advance their understanding of managerial finance concepts and theories. The course encourages students to use computer and other technological innovations such as internet to identify and analyze problems, consider alternatives, and make recommendations for feasible financial decisions.

AACSB Perspectives: The AACSB expects business curricula to incorporate various issues critical to contemporary organizations. Ethical, global and technological issues as well as the influence of legal, regulatory and environmental issues are some of the perspectives addressed in FIN 510 course. Ethical issues are integral part of the assigned reading at the end of each chapter materials on business ethics. Global issues in assigned chapters are integrated with other materials throughout the course.

Computer Usage: Course assignments and term projects requires the use of Computer, finance internet web sites and Excel spreadsheet. A specific problem at the end of each chapter refer students to a web site where they must use the internet to locate, solve, discus and present the assigned problem.

Communication Skills: Student oral communication skills are developed through class participation, discussions
and presentations. Students are strongly encouraged to use local and international financial publications to keep abreast of developments in the financial markets. Written communication skills are enhanced via term project and assignments.

Attendance & Participation: You must attend all the scheduled classes. Class attendance is required. More than three un-excused absences automatically results in lower grade or DN! This will be strictly enforced. Students must be in class on time. Being late at the start of class and leaving class without excuse automatically is considered as being absent.

Exams, Quizzes and Term Project: There will be two major 75 minutes exams and a 2-hour semi-comprehensive final for this course. There will be several unannounced quizzes on the assigned materials during the semester. Absolutely, there will be no make-up exam. Absence from any exam will result to zero except for serious emergency. There will be no exception. The University’s policy is that any student found guilty of cheating will be kicked out of the school. I intend to keep strict rule on this policy. One strike and you are out!

Grade Distribution:

1ST Major Exam 20%; 2nd Major Exam 20%; Final Exam (semi-comprehensive) 30%

Term Project 15%; Quizzes, assignments, Class participation & Attendance 15%
Total Grade 100%

Tentative Class Schedule:

Sept 14 (S)      Chapter 1: Goals and Functions of Finance: Overview of Managerial Finance

Sept 16 (M)     Chapter 1: Goals and Functions of Finance – Value Creation Perspective

Sept 21 (S)     Chapter 2: Concepts in Valuation: Time Value of Money (Review) 

Sept 23 (M)    Chapter 2: Concepts in Valuation: Stocks & Bonds

Sept 28  (S)    Chapter 6: Principles of Capital Investment – Methods of Evaluation

Sept 01 (M)     Chapter 6: Principles of Capital Investment – Cash Flow Estimation

Oct 06 (S)       Chapter 8: Creating Value through Required Returns

Oct 08 (M)      Chapter 8: Creating Value through Required Returns

Oct 13  (S)      Chapter 9: Theory of Capital Structure

Oct  15 (M)      Chapter 9: Theory of Capital Structure

Oct  20 (S)    First Major Exam I: Saturday March 20, 2004

Oct  22 (M)     Chapter 10: Making Capital Structure Decisions – Real World Perspectives

Oct 27 (S)       Chapter 11: Dividend Policy: Theory and Practice

Oct  29 (M)     Chapter 11: Dividend and Share Repurchase – Theory and Practice 

Nov  03 (S)     Chapter 17: Foundations for Long-Term Financing

Nov 05 (M)     Chapter 18: Lease Financing

Nov 10 (S)      Chapter 18: Lease Financing

Nov 12 (M)     Chapter 19: Issuing Securities

Nov 7 (S)       Chapter 19: Issuing Securities

Dec 19 (M)     Chapter 20: Fixed Income Financing

 Dec 26 (M)    Chapter 20: Fixed Income Financing

Dec 01 (S)     Chapter 21: Hybrid Financing Through Equity Linked Securities

Dec 03 (M)   Chapter 22: Managing Financial Risk with Derivative Securities

Dec 08 (S)   Chapter 22: Managing Financial Risk with Derivative Securities

Dec 10 (M)   Chapter 23: Mergers and the Market for Corporate Control

Dec 15 (S)   Chapter 23: Mergers and the Market for Corporate Control

Dec 17 (M)  Chapter 24: Corporate Distress and Structuring

Dec 22 (S)  Chapter 24: Corporate Distress and Structuring

Jan 03  (M)      Term Project Presentations and Final Exam Review


NOTE: The instructor reserves the right to alter the assignment schedule, the weights associated with exams and other assignments. Any changes made will be announced in class and it shall be the responsibility of the student to acquire this information in case of absence from class.