| Learning objectives |
At the end of the course, the student
should be able to:
- To enable undergraduate business students to use financial
accounting data to assess the financial health and direction of a
business enterprise. 1. Final exam questions that emphasize
financial statement and ratio analysis, utilizing the income
statement, balance sheet, and statement of cash flows.
- To enable undergraduate business students to learn to utilize
time value of money mathematics to make multi-period investment
decisions. 2. Final exam questions on present and future valuations
of lump sums, ordinary annuities, and uneven cash flow
streams.
- To help undergraduate business students to understand working
capital and short-term financial management. 3. Final exam
questions on current asset and liability management, inventory and
receivables management, and the cash conversion cycle.
- To enable undergraduate business students to use statistical
analysis to quantify risk and return in uncertain economic
environments. 4. Final exam questions on determining expected rates
of return, standard deviation of returns, and other applications of
statistics to quantify risk and return forecasts.
- To help undergraduate business students to understand time
value of money applications to security analysis and pricing. 5.
Final exam questions on stock and bond valuation problems.
- To help undergraduate business students to understand how to
forecast cash flows and utilize capital budgeting decision
techniques to make capital investment decisions. 6. Final exam
questions on cash flow forecasting methods and capital budgeting
techniques, to include payback method, net present value method,
and internal rate of return method.
|
| Course prerequisites |
| Students must have completed and
received passing grades in undergraduate economics, undergraduate
accounting, and undergraduate statistics before enrolling in this
course. |
| Prerequisites for registering for the
exam |
|
Compulsory assignments
(assessed approved/not approved)
Mandatory Mid-term Assignment: Group Assignment. Chapter 8 Case:
Valuing Coca Cola Stock.
|
| Examination |
|
4 hour written
exam:
|
| Examination form |
Written sit-in exam |
| Individual or group exam |
Individual |
| Assignment type |
Written assignment |
| Duration |
4 hours |
| Grading scale |
7-step scale |
| Examiner(s) |
One internal examiner |
| Exam period |
Summer Term |
| Aids allowed to bring to the exam |
Limited aids, see the list below and the exam
plan/guidelines for further information:
- Additional allowed aids
- Allowed calculators
- Allowed dictionaries
- Books and compendia brought by the examinee
- Notes brought by the examinee
|
| Make-up exam/re-exam |
Same examination form as the ordinary exam
If the number of registered candidates for the make-up
examination/re-take examination warrants that it may most
appropriately be held as an oral examination, the programme office
will inform the students that the make-up examination/re-take
examination will be held as an oral examination
instead.
|
Description of the exam
procedure
Dictionaries, notes and books
permitted. Students are permitted to use CBS-installed software
such as WORD and EXCEL during this examination. In addition,
students may use any calculator they wish as long as it does not
have internet access. Students are also permitted to bring a
USB with saved files and upload them on the desktop of their
computer BEFORE the start of the exam. During the exam USBs will
not be allowed.
|
|
| Course content and
structure |
|
This course is a survey course designed for all undergraduate
business majors and is comprehensive it its scope. It
describes the corporation and its economic and operating
environment; it describes the manner in which management evaluates
investment and financing decisions and how firms create value; and
it is designed to provide students with analytical tools needed to
determine the "intrinsic value" of a corporation and to
assess the effectiveness of corporate management techniques in
maximizing that value.
Tentative Course Schedule: The following is a schedule of topics,
readings, assignments, due dates and examination dates.
Adjustments to the schedule may be made at my discretion. Note that
although the schedule is organized by week, there will be two class
sessions per week over the first five weeks and one class session
in the sixth week resulting in a total of 11 class meetings.
The course's development of personal
competences:
Interpersonal competences students will develop during this course
include:
The ability to do mathematical computations
The ability to speak comfortably in front of a large group of
other students
The ability to work and collaborate with other students
The ability to write effectively
The ability to listen effectively
|
| Teaching methods |
Lectures with exercises.
Preliminary Assignment: (to be conducted during the first two
classes of ISUP during the Week of June 24, 2013): Prior to the
first class, students should have read Chapters 1-4 of the textbook
and have reviewed the questions and problems assigned for those
chapters. As students will have completed the necessary
prerequisites, these four chapters consist of a review of material
you should previously have learned in previously completed
accounting and economics classes. After discussing the syllabus at
the beginning of the first class, we will begin with a short review
of the principal topics and concepts contained in the three
chapters followed by an interactive discussion. After the
discussion, you will be organized into teams and will be given the
case assignment “Financial Performance of Dell Computer” to
complete together within your team. Each team is required to
complete the assignment prior to the second class meeting during
which each team will make a presentation to the class as specified
in the case. |
| Expected literature |
|
The required textbook for this course is Foundations
of Finance, 8/E, Arthur J. Keown, John D. Martin, and
J. William Petty (ISBN: 9780273789956). Publisher: Prentice Hall.
Copyright: 2013. The course will also be supplemented with selected
cases from Ivey Publishing.
Tentative Course Schedule: The following is a
schedule of topics, readings, assignments, due dates and
examination dates. Adjustments to the schedule may be made at
my discretion. Note that although the schedule is organized by
week, there will be two class sessions per week over the first five
weeks and one class session in the sixth week resulting in a total
of 11 class meetings.
Preliminary Assignment: (to be conducted during the first two
classes of ISUP during the Week of June 24, 2013)
Week of June, 2013
- Chapter 1: An Introduction to the Foundations of Financial
Management - The Ties that Bind
- Chapter 2: The Financial Markets and Interest Rates
- Chapter 3: Understanding Financial Statements and Cash
Flows
Week of July 1, 2013
- Chapter 4: Evaluating a Firm’s Financial Performance; Chapter 4
Case: Financial Performance of Dell Computer
- Chapter 5: The Time Value of Money
- Chapter 6: The Meaning and Measurement of Risk and Return:
Chapter 6 Case: Alex Sharpe's Portfolio
Week of July 8, 2013
- Chapter 7: The Valuation and Characteristics of
Bonds:
- Chapter 8: The Valuation and Characteristics of Stock
Midterm Group Assignment: Chapter 8 Case: Valuing Coca Cola Stock
Week of July 16, 2013
- Chapter 9: The Cost of Capital; Chapter 9 Case: Encana
Corporation: The Cost of Capital
- Chapter 10: Capital budgeting Techniques and Practice
- Chapter 11: Cash Flows and Other Topics in Capital
Budgeting;
Week of July 23, 2013
- Chapter 12: Determining the Financing Mix;
- Chapter 14: Short-term Financial Planning
- Chapter 15: Working-Capital Management
Week of July 29, 2013
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