Syllabi

Instructors:
Dr. Seyed M. Mehdian from University of Michigan -Flint School of Management (USA)

Dr. Alexander Klimov from Togliati Academy of Management (Russia)

Dr.Mehdian:
Office: CROB, Room: G 357
Phone: (810) 762-3318
E-mail: seyed@flint.umich.edu
Help Sessions: See Meeting/dates/times

PREREQUISITES: Bus 202, 211; at least junior standing

Course description:

This course focuses on the financial tools and concepts, which must be understood by a financial manager. The emphasis is on the goals of the firm, valuation, financial analysis, capital budgeting process, long-term financing and firm expansion, and cost of capital.

TEXT: Fundamentals of Financial Management by Eugene F. Brigham and Joel F.Houston,9th Edition, The Dryden Press, 2001.

Learning Objectives and Assessments:

The learning objectives of this course and the assessment methods used are summarized as follows. After taking this course, students should be able to:

Objectives/Outcomes	Assessments
1. Analyze financial statements, compute financial ratios, and evaluate performance of the firm	Class discussion, problems, homework, exams, a project
2. Develop some understanding of financial system (instruments and markets)and behavior of interest rates	Class discussion, problems, homework, exams
3. Understand the concept of the time value of money and its applications	Class discussion, problems, homework, exams
4. Use the capital budgeting techniques and their applications in project evaluations and investment decisions	Class discussion, problems, homework, exams
5. Utilize the asset valuation models and their applications in pricing bonds, preferred stocks and common stocks.	Class discussion, problems, homework, exams
6. Measure risk and return, examine their relationship and analyze capital asset pricing model and its applications.	Class discussion, problems, homework, exams
7. Estimate cash flows, cost of capital, and incorporate risk in capital budgeting and project evaluation.	Class discussion, problems, homework, exams
8. Other topics in capital budgeting.	Class discussion, problems, homework, exams
9. Measure the effect of currency fluctuations on value of the Multinational corporations.	Class discussion, problems, homework, exams

Course requirements:

1. Examinations: There will be a mid-term exam and a final examination. Make up exams will be allowed with the prior approval of the instructor.

2. Power Point Presentations: There are power point presentations for each assigned chapter. The students are encouraged to go over these power point presentations.

Grading:

Mid-term 35.00%
Final Examination 35.00%
Project 30.00%
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Total 100.00%
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The final letter grade will be assigned based on the following scale:

A range 90%-100%
B range 80%-89%
C range 68%-79%
D range 60%-67%

Neither the midterm exam nor the final will be deliberately cumulative, although concepts developed in earlier chapters will be used in later chapters of the course. Formula sheets will be permitted during exams.

PROBLEM SET: Written solutions to assigned problems are strongly encouraged. The solutions to the assigned problems will be available following the week the chapter is covered.

MEETING DATES/TIMES

- American Students:

All meetings will be held in Room (building and number will be announced later). There will be four required meeting days:

January 10, 2002 Time: 6:45 - 8:45 PM Introduction
February 21, 2002 Time: 6:45 - 8:45 Help Session and Review for the Mid-term E
March 7, 2002 Time: 6:45 - 8:45 Midterm Exam
April 22, 2002 Time: 6:45 - 8:45 Help Session and Review for the Final Exam
April 25, 2002 Time: 6:45 - 8:45 Final Exam

- Russian Students:

Exams and help sessions are given at the same dates and time (but local ) supervised by
Dr. Alexander Klimov.

- Important note

- Students from both nations are encouraged to communicate and to exchange ideas about the materials of the course and assigned problems. Email addresses are available by instructors upon request.

Other information:

- This syllabus and/or assignment sheet may be modified as deemed appropriate. All changes will be announced in class.

- IMPORTANT NOTE REGARDING "I" INCOMPLETE GRADES IN SCHOOL OF MANAGEMENT COURSES. Please be aware that the School of Management does not follow the same calendar as the College of Arts and Sciences in regard to Incomplete grades in the School of Management courses.

A student whose work is incomplete in a minor way at the end
of a term, or who is unavoidably absent from the final examination
for a reason considered excusable by the instructor, may receive an "I" (Incomplete). Undergraduate work must be complete and submitted, or the final examination taken, within the six-week period which begins
on the last day of examinations for the term in which the incomplete
is given. (UM-Flint Catalog, 2001-03, pg.275).

The instructor may require a shorter deadline. The last day for making up an Incomplete received in an undergraduate course in the Winter 2002 semester is Monday, June 3, 2002. If you have questions regarding the above statement, please ask for clarification of your School of Management instructor, your advisor, or a member of the staff of the School of Management.

PORJECT

This is a group project based on a company's annual financial statements and ratio analysis.

STEPS:

1. Acquire the latest annual report for a company of your choice.
2. Calculate, analyze, and discuss financial ratios based on these statements.
3. Compare the financial position of the company to its industry.
4. Perform a Du-Pont analysis.
5. Prepare a report of your findings. Your report should contain the following:

a. A short discussion of the firm's activities and history. The overall financial picture (financial strengths and weaknesses) of the firm conveyed by the ratios in the major categories of liquidity, asset management, debt management, profitability and market value.

b. A short discussion of the appropriateness of the firm's capital structure.

c. Recommendation on whether or not to invest in this firm.

d. One page executive summary of the analysis.

e. Copy of the financial statements used.

Notes:

1. The project is due on the day of final exam. No late papers will be accepted.
2. The report should not be more than 6 pages including executive summary but excluding original financial statements.
3. Groups of three at maximum.

See also list of students