COURSE SYLLABUS
SOUTHEAST MISSOURI STATE UNIVERSITY
Department of Economics and Finance Course No. FI480
Revision Spring 2001
Title of Course: Financial Policy
I. Catalog Description and Credit Hours of Course:
A case course that examines the complex issues of establishing financial policy for organizations, i.e., appropriate capital structure, dividend policy, etc. (3)
II. Prerequisites: FI362 Advanced Financial Management with minimum grade of "C"; senior standing.
III. Purposes or Objectives of Course:
A. To apply fundamental financial principles.
1. To provide the student with the opportunity to apply the concepts and techniques of financial management to real life situations. (Demonstrate ability to make informed, intelligent value decisions)
2. To illustrate the interrelationships of financial concepts. (Demonstrate ability to integrate the breadth and diversity of knowledge and experience.)
3. To provide an in-depth study of advanced financial concepts.
B. To emphasize the importance of financial management to the business organization.
C. To develop problem recognition, analysis and solving skills. Develop the ability to formulate workable plans of action. (Demonstrate capabilities for critical thinking, reasoning and analyzing.)
D. To develop and refine communication skills (both oral and written). ( Demonstrate ability to locate and gather information and Demonstrate effective communication skills.)
IV. Expectations of Students:
A. General
Each student is expected to perform in a professional manner with reference to attendance, participation, compliance with assignments, etc. This is a professional course and requires a professional attitude on the part of the student. This means that the assigned material should be read with discrimination, intellectual curiosity, reflective thinking, and critical analysis.
B. Readings.
Each student will be expected to read the current issues of the Wall Street Journal and use other financial and business (Fortune and Business Week) publications to supplement the assigned readings
C. Examinations
There will be a minimum of a mid-term and final examination. The tests will cover both theory and problems.
D. Cases
The main focus of the course is on case analysis. Therefore, each student will be assigned several case problems during the semester for analysis and presentation
.
Suggested Time In
50 Minute Periods
V. Course Content or Outline:
A. Long-term Financing 10
1. Bond and Stock Valuation
2. Cost of Capital
3. Determining Appropriate Returns
4. Dividend Policy
B. Performance Analysis and Business Planning 10
1. Financial Statement Analysis
2. Financial Forecasting
3. Business valuation
C. Long-term Investment Decisions 11
1. Capital Budgeting-Evaluation Methods
2. Capital Budgeting-Cash Flow Estimates
3. Capital Budgeting-Risk Analysis
4. Lease Analysis
D. Working Capital Policy 10
1. Cash Management
2. Credit Policy/ Receivables Management
3. Inventory Management
E. Exams/Other 4
TOTAL 45
VI. Textbook(s) or Other Required Materials or Equipment
A. Required: Cases in Financial Management, Brigham, Gapenski and Klein, Dryden Press, 1999, Harcourt Brace College Publishers. (Note: Text is customized)
B. Required: Intermediate Financial Management, Brigham and Gapenski, 6th Edition, Dryden Press, 1999.
C. Required: Access to Wall Street Journal, Business Week and Fortune.
D. Students need to use reference services in performing strategic analysis, including Value Line, Robert Morris Associates, Standard & Poor's Industrial Reviews, Dun and Bradstreet, and Disclosure.
VII. Basis for Student Evaluation:
A. Quality of special class projects, homework assignments and papers.
B. Level of understanding demonstrated on the examination.
C. Completion of research and communication projects.
