University of La VerneCollege of Business and Public Management

BUS 635 OnlineManaging Financial Resources (3 units)Summer 2015

INSTRUCTOR: Dr. Daniel Park Telephone: (909) 993 7380 Email: dpark2@laverne.edu * Email is the best communication tool for the instructor.

Professor Park holds his Ph. D. in Finance from the Michael F. Price College at the University of Oklahoma. Professor Park has a rich experience at the university-level including teaching, peer-reviewed publishing, national conference presentations, and academic administration. He is an associate Editor of two finance journals. He has received many awards and honors including the Rotary International Ambassadorial Scholar, Korean Honor Scholarship in America, and the Marquis Whos Who in America. He received the Annual Ph.D. Student Teaching Award, Professor of the Year Award, Student Athlete Faculty RecognitionAward for making a difference in the lives of student-athletes, and served as a BA program director and MBA chair from universities he has taught at.

PREREQUISITESBUS 500A (Accounting), BUS 500C (Statistics), and BUS 500D (Finance).

COURSE GOAL & OBJECTIVESThe goal of this course is to provide students with an understanding of the theory and application of advanced corporate finance. The course will concentrate on the use of financial theory and practice to make financial decisions.

At the end of the course, the student should be able to:1. Forecast financing requirements using the percent of sales method2. Assess financial position of a company using financial statement analysis3. Maximize firm value by efficiently allocating financial resources in an environment of uncertainty4. Evaluate financing alternatives using the weighted average cost of capital5. Evaluate whether a company should go public6. Use spot and forward foreign exchange rates to hedge exposure in international trade

ASSESSMENTCourse learning objective number 3 above will also be used for the MBA assessment. The assigned course case will be used for this purpose. The student will receive feedback on this objective, but the case solution submissions will be retained and forwarded to our accrediting body. If you wish to keep a copy of your submission, please do so before submitting your solutions to the instructor.

TEXTBOOKE. Brigham and M. Ehrhardt, Financial Management: Theory And Practice, 14th Edition, Thompson South-Western, 2012.

OPTIONAL READINGS1. Copeland and Weston, Financial Theory and Corporate Policy, latest edition.2. Benninga, Financial Modeling, latest edition.3. Financial news, print or broadcast 4. Business Articles from the ULV Wilson Library

CALCULATORSA financial calculator such as TI BAII Plus or TI83 and 84 series will be needed for class materials and quizzes.

EXAMINATIONS AND GRADES The grade in this course will be based on individual assignments including quizzes and case analysis, group assignments, and class participation.

Five individual quizzes500 points (100 points x 5)

Two group cases200 points (100 points x 2)

Capital budgeting case200 points

Class participation100 points

Total1,000 points

QuizzesQuizzes will be announced through Blackboard (either Friday or early Saturday) and will include the submission instructions. There will be no make-up quizzes. Failure to return any quiz without prior approval of the instructor will result in a grade of zero. Approval to have a make-up quiz will be granted in the case of extreme personal/work emergency or severe medical reason that is supported by a written statement issued by a physician. A mere appointment slip with a physician is not sufficient as an excuse for absence. Group AssignmentsThe course will have two group cases. The groups will be formed by the instructor at the end of the first week. Each group will have 4 to 5 students and will have its own group page. Only the members of the group will have access to that group page. Each group page will have its discussion board and email capabilities. It is highly recommended that all the communication between the group members to take place through the group page. The assignment announcements will provide guidelines on the format submission and requirements.

Class ParticipationStudent-student interaction and instructor-student interaction is an integral component of any successful online class. Thus, each student is required to participate via the Discussions and Groups on the Blackboard (Discussions and Groups are under Content from the Blackboard course menu) to help and learn from each other. Students are allowed to share ideas to understand class materials and assigned group cases through online posting. There areno limitsregarding the contents of the discussions. However, students are NOT allowed to discuss any individual quizzes and (individual) capital budgeting case see Academic Honesty Policy part of this syllabus.Students may post questions for the instructor.Please note that this forum is not private; all the class participants can read the posts. Therefore, if you have something private to tell the instructor, please use email. Your posting activities on both Discussions and Groups will be used to evaluate your class participation part of the class grade (10% of the class grade).

GRADING SCALE: based on 1000 points

A = 940 to 1000 pointsA- = 900 to 939B+ = 870 to 899B = 840 to 869B- = 800 to 839C+ = 770 to 799C = 740 to 769F = below 740

No extra credit assignments will be available.

INCOMPLETE POLICY According to the ULV catalog, incompletes are authorized only when it is impossible for the student to complete the course because of illness or other justifiable cause and only with a formal petition from the student to the professor before the end of the term. Please read the grading policy section of the ULV catalog. Incomplete grade (INC) may be assigned if the student meets all three of the following conditions. 1) The student faces an emergency (serious illness, death in the family, or unavoidable job transfer). 2) The student participates in at least 60% of the course work. 3) The student completes at least 60% of the course requirements. TENTATIVE SCHEDULE

From the Blackboard course menu, select Content to see weekly activities you need to do.

Week 1Review weekTextbook chapters 4, 5, and 7 (Ignore pages 304 through 311 in chapter 7)The material for this week is a review of topics that you have covered in the prerequisite courses. It is provided because these tools are extremely important for the rest of this course. It is essential that you familiarize yourselves with the calculations presented in these notes.

Some useful websites:Basic bond information:http://www.investopedia.com/articles/bonds/08/bond-market-basics.aspInvesting in bonds:http://money.cnn.com/magazines/moneymag/money101/lesson7/Basic stock information:www.moneychimp.comStock calculator:www.moneychimp.com/articles/valuation/dcf.htmStock investing:http://money.cnn.com/magazines/moneymag/money101/lesson5/Also checkout Yahoo finance, CNN money, the New York Times, the Economist, Barrons, and the Wall Street Journal. Just see if any of these work for you.

Week 2Risk and ReturnTextbook chapter 6The provided notes for this week are an expanded version of the notes used in prerequisite courses. In this course, we will cover portfolio analysis and the CAPM in much more detail that other classes. Journal articles:Nichols, N. A. (1993). Efficient? Chaotic? What's the new finance?. Harvard Business Review, 71(2), 50-60.

Fink, R. (2003). Some experts contend that options-pricing models give a better view of cost of capital than CAPM. CFO, 1.

Zuckerman, G. (2006, Dec 03). How the pros tell if a stock is a bargain. Wall Street Journal

*INSTRUCTIONS FOR RETRIEVING ARTICLES FROM ULV LIBRARY Business/finance articles including required for this class are available online through the ULV Wilson library. Here are the instructions. Go to the university library website at http://library.laverne.edu/ Click on [Databases A-Z] Under the letter A, Click on [ABI/INFORM Complete]At this point the search page appears. You can use key words, author, or title to search for articles. You can create your own collection of articles if you wish.

Week 3Financial statement analysisTextbook chapter 3

Journal articles:Brown, P. R. (1998). A model for effective financial analysis. Journal of Financial Statement Analysis, 3(4), 60-63.

Plender, J. (2003). Restoring trust after the bubble. Business Economics, 38(3), 21.

Again, the Business/finance articles including required for this class are available onlinethrough the ULV Wilson library. To access the two articles above, follow the instructions (as you did last week) on the previous page, INSTRUCTIONS FOR RETRIEVING ARTICLES FROM ULV LIBRARY.

Week 4Financial planningTextbook chapter 12

Week 5Capital structure and cost of capitalTextbook chapter 9

Group Case one announced

*Instruction for retrieving the cases (Course pack)

- CoursePack Title: BUS 635-03 Online Managing Financial Resources, Dr. Park Summer 2015 (CoursePack ID: 511671)- Course Name & Number: Summer 2015 BUS 635 03 (Instructor: Daniel Park)

To access your course pack, students will need to do the following:1. Open the XanEdu "Login/Register" page at: http://www.xanedu.com/sign-up/2. If you have previously registered for another CoursePack, log in. If not, click the Student Registration link. Complete the registration page and click Submit.3. Confirm your course pack Selection, and complete the purchase form. You can buy the course pack directly from XanEdu online. You can also chose to purchase a printed copy as well.4. After completing the purchase, you will be taken directly to "My XanEdu" where you can access your digital course pack.

Questions? Please contact XanEdu Customer Service at 1-800-218-5971.

Week 6Capital budgeting and riskTextbook chapters 10 and 11

Individual Capital budgeting case*The case is from the Course pack you purchased from Xanedu.com last week.

Week 7Corporate valuationChapter 7 (pages 304 through 311)

Week 8Mergers and AcquisitionsTextbook chapter 22

Week 9Initial Public Offerings (IPOs)Textbook chapter 18

Group Case two announced*The case is from the Course pack you purchased from Xanedu.com.

Week 10LeasingTextbook chapter 19

ACADEMIC HONESTY POLICY

The CBPM will follow current University policy found in the section of the current ULV Catalog entitled Academic Honesty. Some of the key elements of that section are summarized below.

Each student is responsible for performing academic tasks in such a way that honesty is not in question. Unless an exception is specifically defined by an instructor, students are expected to maintain the following standards of integrity:

*All assignments of all types are to be the work of the student or students presenting the material and only those students.

*Any use of wording, ideas, or findings of other persons, writers, or researchers requires the explicit citation of the source. Use of the exact wording requires a quotation format.

*Deliberately supplying material to another student for purpose of plagiarism or academic dishonesty is culpable.

As a member of a task force or work group each of us individually and all of us collectively have responsibility for the quality of the work product that is developed. That responsibility includes academic integrity. Take that responsibility seriously. If any group assignment is marred by plagiarism, all members of the group will fail the assignment. If a student is caught engaging or proven to have engaged in academic dishonesty, he/she will be required to drop the course and register in it at a later date. A student who drops the class after a certain dates will receive a grade of WF. The office of the provost will be informed of the incident. Course failure and dismissal from the university are also possible outcomes for plagiarized work. Academic integrity is essential. See the link to the University Catalog, http://laverne.edu/catalog/, and download the catalog.

SYLLABUS UPDATESThis course syllabus is a summary of the activities related to ECBU 635. The syllabus is subject to change and update by the instructor without notice or limitations on the changes.

Weekly Activity Summary (To do lists!)

Week Activities: Blackboard course menu, select Content

1 (6/8-14)Read the course syllabus and reply to your instructorStudy: Chapter 4, 5, & 7 using provided lecture notes and presentation filesPractice your financial calculator

2 (6/15-21)Study: Chapter 6 Do the quiz #1 and submit (email) your answers by Sunday 11:59 pm.Start assigned group article review 1: due Sunday (11:59 pm) of Week 3

3 (6/22-28)Study: Chapter 3 Group article review 1 due - Sunday (11:59 pm)

4 (6/29-7/5)Study: Chapter 12Do the quiz #2 and submit (email) your answers by Sunday (11:59 pm)Start assigned group article review 2: due - Sunday (11:59 pm) of Week 5

5 (7/6-12)Study: Chapter 9 Group article review 2 due - Sunday (11:59 pm)Group case 1 due - Sunday (11:59 pm).

6 (7/13-19)Study: Chapter 10 & 11Do the quiz #3 and submit (email) your answers by Sunday (11:59 pm)Start individual capital budgeting case

7 (7/20-26)Study: Chapter 7 (pages 304-311)Individual capital budgeting case due - Sunday (11:59 pm)

8 (7/27-8/2)Study: Chapter 22Do the quiz #4 and submit (email) your answers by Sunday (11:59 pm)

9 (8/3-9)Study: Chapter 18Group case 2 due - Sunday (11:59 pm).

10 (8/10-16)Study: Chapter 19Do the quiz #5 and submit (email) your answers by Sunday (11:59 pm)

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