FIN 376

Business Finance II

Spring 2008

Ralph Hooper

 

 

Course Description:  Business Finance II. Business Finance II builds upon introductory material in Business Finance I.  The course provides insight into the following advanced topics in financial management:  working capital management, accounts receivable and inventory management, risk management, and international business finance.  Emphasis will be placed on the link between financial management and business development in a competitive environment. Problem solving and analysis is performed utilizing Microsoft Excel.  Prerequisites: ”C” or better in FIN 375.

 

Required Textbook: Keown, Martin, Petty, and Scott, Financial Management, 10th Edition, Prentice-Hall, 2005.  ISBN# 0-13-145065-4.

 

Office Hours: M-W-F @ 10:00 a.m. – 10:50 a.m. and T-TH @ 10:30 a.m. – noon. (Room 127).

                       

 

Email: ralph.hooper@vcsu.edu                                   Phone: 845-7520

 

Grading: Your grade this semester will be determined based on the total points you earn.  Students will be assigned to groups.  Each group will turn in only one work product with the names of all group members who contributed to completion of the assignment.

 

Class Attendance

  50 points

Quizzes (8 @ 25 points)

200 points

Group In-class Problem Assignments (16 @ 25 points)

400 points

Comprehensive Final Exam

100 points

                      TOTAL POINTS

750 points

 

Course Objectives:  Upon completion of this course, students will be able to:

 

1.      Analyze capital budgeting alternatives using NPV, IRR, and MIRR.

2.      Determine a firm’s incremental after-tax cash flows.

3.      Determine a firm’s after-tax cost of debt, preferred stock, and common equity.

4.      Determine a firm’s estimated value as an enterprise and identify the value created for shareholders by a publicly held firm.

5.      Understand the historical relationship between internally generated corporate sources of funds and externally generated sources of funds.

6.      Understand the difference between business risk and financial risk.

7.      Understand the concept of an optimal capital structure and be able to use the basic tools of capital structure management.

8.      Understand the relationship between a corporation’s dividend policy and the market price of its common stock.

9.      Explain various cash-management objectives and decisions.

10.  Understand how inventory management decisions are made and the impact that TQM and single-sourcing have had on inventory purchasing.

 

Class Attendance and Participation:  Students are expected to attend class and be prepared to actively participate.

 

Ability/Skill Level:  The relevant ability for this class is Technology and the skill and level are Applies/Level 4.  Students are expected to be proficient in using Microsoft Excel.

 

Portfolio Project:  There is no project in this class that qualifies for inclusion in the student portfolio required for graduation.

 

Deadlines:  You will encounter deadlines for the rest of your working life.  Therefore, there will be established deadlines for submitting assignments and exams.   So plan and organize your time, and pay attention to the deadlines.  If you anticipate missing class, communicate with your group members so you can contribute to completion of the assignments even though you may not be physically present in class on a particular day.