The University of Texas at Dallas

Global Leadership Executive MBA Program

FIN 6301: Financial Management

Fall 2006: August 21 – October 22, 2006

Professor Contact Information

Carolyn Reichert Phone: (972) 883.2726 (W) Fax: (972) 883.6164
(972) 867.7088 (H)
E-Mail: Use Blackboard e-mail
Office Location: SM 1.506
Office Hours: By appointment

Course Pre-requisites, Co-requisites, and/or Other Restrictions

There is no pre-requisite for this class. While a strong mathematical background is not assumed,
we will make use of basic algebra throughout the course.

Course Description

The course introduces students to financial decisions and processes. The basic objective is to help
executives to understand how financial decisions are made, the tools used to make these decisions
and their limitations. The course begins with topics such as the time value of money and the selection
of capital investment projects. Additional topics include analysis of the risk-return trade-off and
corporate financing decisions. Tools used to investigate these issues will draw upon accounting,
economics, mathematics, and statistics.

Student Learning Objectives/Outcomes

• Recognize how financial decisions are made

• Analyze financial problems and produce a solution

Text: Principles of Corporate Finance, 8th ed.

Richard Brealey, Stewart Myers and Franklin Allen, McGraw-Hill Irwin, 2006

Cases: Listed by Week Due

Other: Microsoft Excel will be used extensively throughout the course.

Schedule of Assignments

Retreat: Introduction to Finance

Date: May 12 or August 12

1
Web Conference: Syllabus review
Web Conference Dates: Sunday, October 20 from 7:00 – 8:00 pm CST
______________________________________________________________
Week 1: Topic: Time Value of Money
Dates: August 21 – August 27
Lecture: Time Value
Readings: Chapters 2 and 3

Case: Ginny’s Restaurant: An Introduction to Capital Investment Valuation

Harvard Case 201-099

Practice Set: Time Value Practice Set

Web Tutorial: Time Value Functions in Excel

Web Tutorial Date: Sunday, August 27 at 7:00 pm CST

Plan Ahead: Individual Assignment #1 due September 10

______________________________________________________________
Week 2: Topic: Stock Valuation
Dates: August 28 – September 3
Lecture: Security Valuation
Readings: Chapter 4, pages 366-372

Practice Set: Stock Valuation Practice Set

Plan Ahead: Individual Assignment #1 due September 10

_______________________________________________________________

Week 3: Topic: Bond Valuation

Dates: September 4 – September 10
Lecture: Bond Valuation
Readings: Chapter 4, Pg. 372-375, pg. 625-632 and 636-641

Case: Bay Lin

Practice Set: Bond Valuation Practice Set

Assignment: Individual Assignment #1

Due date: Individual assignment #1 posted to Digital Drop Box by September 10 at 4
pm CST

#1 Web Conference: Ginny’s Restaurant and Market Topics

Web Conference Date: Sunday, September 10 at 5:00 pm CST

Web Tutorial: Bond Functions in Excel

Web Tutorial Date: Sunday, September 10 at 7:00 pm CST
_______________________________________________________________

2
Week 4: Topic: Capital Budgeting
Dates: September 11 – September 17
Lecture: Capital Budgeting
Readings: Chapters 5 and 6

Practice Set: Capital Budgeting Practice Set

Assignment: Individual Assignment #2

Due date: Individual assignment #2 posted to Digital Drop Box by September 17 at
midnight CST
_______________________________________________________________

Week 5: Topic: Risk and Return

Dates: September 18 – September 24
Lecture: Risk
Readings: Chapters 7 and 8

Practice Set: Risk Practice Set

#2 Web Conference: Discuss Bay Lin: Cash Flows and Risk

Web Conference Date: Sunday, September 24 at 5:00 pm CST

Web Tutorial: Risk Functions in Excel

Web Tutorial Date: Sunday, September 24 at 7:00 pm CST

Plan Ahead: Individual Assignment #3 due October 15

________________________________________________________________

Week 6: Topic: Investment Analysis

Dates: September 25 – October 1
Lecture: Investments
Readings: Chapter 9.1 to 9.3, Ch. 10, pgs. 275-278 and 280-281

Web Tutorial: Data Tables in Excel

Web Tutorial Date: Sunday, October 1 at 7:00 pm CST

Plan Ahead: Individual Assignment #3 due October 15

____________________________________________________________

Week 7: Topic: Capital Structure

Dates: October 2 – October 8
Lecture: Capital Structure
Readings: Chapters 17 and 18
Articles: “Is a Share Buyback Right for Your Company?” HBR R0104K
“How Much Cash Does Your Company Need?” HBR R0311J

Practice Set: Capital Structure Practice Set

#3 Discussion: Individual responses posted to the Discussion Forum no later than Sunday,
October 8 at midnight CST
3
Plan Ahead: Individual Assignment #3 due October 15
________________________________________________________________

Week 8: Topic: Capital Budgeting and Capital Structure

Dates: October 9 – October 15
Lecture: Capital Budgeting & Capital Structure
Readings: Chapter 19
Articles: “What’s It Worth?: A General Manager’s Guide to Valuation” Harvard 97305
“Using APV: A Better Tool for Valuing Operations” Harvard 97306

Practice Set: Capital Budgeting & Structure Practice Set

Assignment: Individual Assignment #3

Due date: Individual assignment #3 posted to Digital Drop Box by October 15 at
midnight CST

#4 Web Conference: Discuss Bay Lin: Investment Analysis and Capital Structure
Web Conference Date: Sunday, October 15 at 5:00 pm CST
________________________________________________________________

Week 9: Topic: Finance in Action

Dates: October 16 – October 22

Case: Spyder Active Sports – 2004. Harvard Case 206027

Assignment: Team Papers Due

Due date: Team papers posted to Digital Drop Box by October 22 at 4 pm CST

Web Conference: Team Presentations on the Spyder Case

Web Conference Date: Sunday, October 22 at 5:00 pm CST

Peer Evaluation Due: Peer evaluations on Team Paper and Presentation due October 22
Course Evaluations: Due October 22
____________________________________________________________

Grading Policy and Evaluation

Grading Formula

Individually Written Assignments 50%

One assignment at 10%
Two assignments at 20% each

Team Paper and Presentation 30%

Participation 20%
Best 3 out of 4

4
Individual Written Assignments: You do your own work on these assignments without input from
other students. You create your own spreadsheets as needed. Do not share information or
spreadsheets with other students at any time. If you have any questions on the assignment, ask
me. Evaluation of written assignments will be based on thoughtful, analytical, well-constructed
responses demonstrating knowledge of the topic by citing examples of the key concepts present in
the readings. Computations will also figure prominently in the assignments.
• A ---Excellent: Minor computational or analytical errors; understanding of all key issues;
no important omissions; concise, very well written and organized, makes appropriate
use of charts and tables. Examples of minor errors: mathematical errors, minor formula
mistakes, minor errors in applying the formula
• B---Good: Medium computational or analytical errors; understanding of most issues;
well-written and well-organized, makes appropriate use of charts and tables. Examples
of medium errors: combinations of minor errors, errors in formula choice or application,
omission of parts of a problem.
• C---Adequate: Major computational or analytical errors; understanding some issues,
but not all important aspects covered; poorly written or organized, makes inappropriate
use of charts and tables. Examples of major errors: combinations of medium errors,
serious errors in formula choice or application, omission of problems.

Team Paper: Teams discuss the case with their teammates in the appropriate group area on
Blackboard or through web conference calls. Evaluation of written assignments will be based on
thoughtful, analytical, well-constructed responses demonstrating knowledge of the topic by citing
examples of the key concepts present in the readings.
• A ---Excellent: Understanding of all key issues; no important analytical errors or
omissions; concise, very well written and organized, makes appropriate use of charts
and tables.
• B---Good: Understanding of most issues; only a few important issues not discussed;
few analytical errors; well-written and well-organized, makes appropriate use of charts
and tables.
• C---Adequate: Understanding of many issues, but not all important aspects covered;
various analytical errors; work unsupported by analysis; poorly written or organized,
makes inappropriate use of charts and tables.

Team Presentation: Each team will give one 15-20 minute presentation on an assigned case. A
maximum of 10 Power point slides to guide the presentation should be prepared and submitted to
Blackboard at least 24 hours prior to the web conference so the presentations may be loaded on
Elluminate.

Evaluation of the web conference presentation will be based on clear, concise presentation of the
material assigned to teams. The presentation should demonstrate knowledge of the topic, key
concepts and references to text, readings or other sources. During the discussion each team is
expected to add value by generating discussion among the class members

• A --- Excellent analysis and presentation --- Clear and concise analysis of the case
providing evidence from the text and other outside sources to support presentation.
Immediately and effectively responds to questions and generates class discussion
about the case and the self-assessment exercise. Presentation slides are clear,
concise, and well-organized.

5
 • B---Good analysis and presentation: Clear analysis of the case providing evidence from
the text to support presentation. Effectively responds to questions and generates class
discussion about the case and self-assessment exercise. Presentation slides address
key information and are generally organized to support presentation.
• C---Adequate: Shallow analysis – inadequately supports case analysis and /or fails to
explore the self-assessment exercise. There is little class discussion. Slides do not
wholly support the presentation.

Note: Peer evaluations will factor into each individual’s team grade. Poor team participation will
result in a grade reduction on the team assignment.

Participation: Participation will be evaluated through web conferences and discussion forums.
You need to actively participate to receive credit. The best 3 out of 4 will be used to determine
your grade.

Web Conferences:
The purpose of the web conferences is to discuss cases and events in finance. Active participation
involves making comments and discussion during the web conference. Participation will be
evaluated using the following criteria:
• A --- Excellent comments: answers questions appropriately; understands all key issues;
often develops discussion by building on or integrating others’ comments
• B --- Good comments: answers most questions appropriately; understands most key
issues; introduces some new issues or adds to others’ comments
• C --- Adequate comments: answers few questions appropriately; understands some
issues, but not all important aspects; introduces issues without reference to prior
discussion or repeats previous points.

Discussion Forum Participation:

Students are expected to post responses that reflect content knowledge, analytical skills and add
value to the discussion topic. Active participation involves making meaningful contributions to the
discussion. Grades for discussions participation will be based on the quality of the response.
• A: Excellent contribution --- Insightful; key points and ideas set tone of other
contributions.
• B: Good contributions --- Used key points and issues to add value to the overall
discussion thread.
• C: Acceptable contribution --- Contribution was on topic; built on other’s ideas.
• D: Unacceptable contribution --- Contribution did not add value.
• F: No posting

Web Tutorials
The purpose of the web tutorials is to demonstrate Excel functions and review problems.
Participation in the web tutorials will assist you in understanding the assignments. Web tutorials
are NOT graded and do not count towards class participation.

Practice Sets: Weekly practice sets help you learn the quantitative and qualitative aspects of
finance. Practice Sets are designed for additional practice to prepare you for the graded
assignments. The best way to use them is to work the problems after you have completed the
audio/slides and the reading. Both the questions and solutions are provided. You can discuss
these problems with your teammates or ask me for assistance.
6
Information Files: The files contain one or more of the following: concepts, formulas or review
questions. Review questions are from the text or written by the instructor. The purpose is to help
you learn the qualitative aspects of finance. The best way to use these is to read over them after
you have completed the audio/slides and the reading.

Course & Instructor Policies

Format for Written Assignments

Written assignments should be Word documents, Excel spreadsheets or both (no html formats).
Do not embed Excel into Word documents. Written assignments should be:
• Single-spaced, 12 pt. Arial or Times New Roman font
• Citations properly formatted in MLA style
• Clearly identified by author or team
o For an individual assignment, the student name needs to be on the first page of the
document AND as part of the document name, i.e. ReichertAssign1.xls when it is
submitted.
o For a team assignment, the team number and names of team participants on the
first page AND the team number as part of the document name i.e.
Team2MNCs.doc when it is posted
o There is no need for a separate cover pages

Submission
Assignments are submitted to the Digital Drop Box under Tools tab on Blackboard (Bb) by the due
date. Be sure to use the SEND command to submit to the Drop Box. Do not use ADD command to
post.

Late Assignments
If you need to miss an assignment deadline, you must pre-notify the instructor and course manager
before the deadline. You should provide the reason for missing the deadline and an alternative
date for submitting the assignment. The instructor and course manager must approve the
extension and the new deadline. If you do not pre-notify the instructor, the instructor may
determine the appropriate grade deduction for the assignment.

Peer Evaluations

Students need to complete a peer evaluation for the Team Paper and Presentation. The peer
evaluation is an electronic document whose link is located on Blackboard (Bb) in the course area
under the Information button. Students allocate 100 points among the team members to reflect the
level of contribution made by each team member on a specific assignment.

Course Evaluation
The completion of a course evaluation is a course requirement. Students need to complete a
course evaluation form which is an electronic document whose link is located on Blackboard (Bb)
in the course area under the Information button. Students who do not submit a course evaluation
by the due date will receive an incomplete grade for the course.

UTD Policy on Cheating:

7
Students are expected to be above reproach in all scholastic activities. Students who engage in
scholastic dishonesty are subject to disciplinary penalties, including the possibility of failure in the
course and dismissal from the university. "Scholastic dishonesty includes but is not limited to
cheating, plagiarism, collusion, the submission for credit of any work or materials that are
attributable in whole or in part to another person, taking an examination for another person, any act
designed to give unfair advantage to a student or the attempt to commit such acts." Regents'
Rules and Regulations, Part One, Chapter VI, Section 3, Subsection 3.2, Subdivision 3.22.
Professors randomly use “Turnitin.com” to screen papers against other published works on the
web to insure against plagiarism.