Course Description

This course focuses on applying the fundamental ideas of corporate finance to real-world problems. We will explore how to make the acquired knowledge practical and deepen our understanding of the core principles of finance. During the course, we will analyze spreadsheet problems and cases covering a wide range of topics such as capital structure, private equity and venture capital, mergers and acquisitions, hostile takeovers and leveraged buyouts, and bankruptcy and financial distress. These cases provide an opportunity to bridge the gap between theory and real-life situations. Students are expected to develop their own Excel spreadsheets and provide recommendations based on their analysis of the case material.

Course Prerequisite(s)

The prerequisites are junior standing or above or the chair's consent, and FINC 4653. The student must earn a C or higher in FINC 4653.

Other Requirements

Each student also needs to have a financial calculator capable of calculating the time value of money and will need to bring it to each class. A student is expected to be familiar with his/her own calculator’s functions. Graphing calculators such as TI-83 or TI NSpire are not allowed on exams.

Learning Goals

I.     General Learning Goals: 

Problem-solving and decision-making abilities through the critical analysis, evaluation, and interpretation of business information. Increase your understanding of what financial managers should and should not do to guide a business to success. Each student must analyze a series of cases during the semester. The analysis will include identifying the problem(s), suggesting possible solutions, recommending the best alternative, and presenting an implementation plan. Excel competency is required.

Build your skills in sizing up company resource strengths and weaknesses and conducting financial analysis in various industries and competitive situations.

Get valuable practice in identifying corporate finance issues that need to be addressed, evaluating financing alternatives, and formulating workable plans of action that maximize shareholder value.

Enhance your sense of business judgment, rather than uncritically accepting the professor's authoritative crutch or “back-of-the-book” answers.

Gain in-depth exposure to different industries and companies, thereby acquiring something close to actual business experience.

Demonstrate competency in speaking and writing for common business scenarios. Each student, as part of a team, will present his/her analysis of at least two cases. Students will be graded on the quality of their oral speaking skills and the effectiveness of their case analyses.

Learn how to use teamwork and collaboration to achieve group objectives. Students will be divided into several teams. While no team grade will be given, each student will be graded on his/her effectiveness in working within the team. No formal instruction on teamwork will be provided.

Understand the influence of global and multicultural issues on business activities. Some of the cases will involve analyzing problems encountered by international companies.

Utilize available technology for typical business applications. Students will use Excel template models to analyze cases. 

Course Specific Learning Goals

After completing this course, students should be able to:

·        Apply financial techniques such as financial analysis and forecasting, asset valuation, cost of capital, and capital budgeting to analyze intermediate-level finance cases.

·        The use of advanced Excel techniques in valuation exercises.

·        Contribute to the analysis of intermediate-level cases.

·        Contribute to a logical and appropriately focused presentation of the conclusions and recommendations of case analyses.

·        Participate productively in class discussions of assigned cases. Submit well-written, grammatically correct, and organized case briefs of several assigned cases.

Course Policies

Attendance Policy: Regular attendance is expected. Participation in class discussions is graded, so reading the assigned material and completing assignments before coming to class are also expected. See the university catalog for the University Class Attendance Policy.

Class attendance, Midwestern State University Undergraduate Catalog:

Students are expected to attend all meetings of the classes in which they are enrolled. Although, in general, students are graded on intellectual effort and performance rather than attendance, absences may lower the student’s grade where class attendance and class participation are deemed essential by the faculty member. In those classes where attendance is considered part of the grade, the instructor should inform students of the specifics in writing at the beginning of the semester in a syllabus or separate attendance policy statement. An instructor who has an attendance policy must keep records daily. The instructor must give the student a verbal or written warning before being dropped from the class. An instructor’s records will stand as evidence of absences. The instructor may drop a student with excessive absences from a course. Any individual faculty member or college has the authority to establish an attendance policy, providing the policy is by the General University Policies.

For record-keeping purposes, a roll sheet is passed through the class each class period, and students must make sure that they sign it. Signing any other student’s name on the roll sheet is considered disruptive conduct in this course.

Instructor Drop, Midwestern State University Undergraduate Catalog:

An instructor may drop a student any time during the semester for excessive absences, for consistently failing to meet class assignments, for an indifferent attitude, or for disruptive conduct. The instructor must give the student a verbal or written warning before dropping the student from the class. An instructor’s drop of a student takes precedence over the student-initiated course drop of a later date. The instructor will assign a grade of either WF or F through the first 8 weeks of a long semester, the first 6 weeks of a 10-week summer term, or the 11th class day of a 4 or 5-week summer term consisting of 20 days. After these periods, the grade will be an F. The official drop date is the date the instructor drop form is received in the Office of the Registrar.

Students who fail to attend class meetings more than three times without valid excuses will be dropped from this course with a failing grade. A valid excuse is defined as an authorized absence (see Midwestern State University Undergraduate Catalog for the definition) or an unforeseeable, proved, and documented event that requires the student’s presence in a place other than the classroom during the class period, and such event is deemed acceptable by the instructor. In the case of an excused absence, the document justifying the absence must be turned in to the instructor within one week of the absence.

Students who fail to meet class assignments, show indifferent attitudes, or reveal disruptive conduct will be given warnings each time such an instance occurs. Students with more than two warnings will be dropped from this course with a failing grade.

Other Related Policies

The exams must be taken as scheduled. There are no make-up exams in this course, and students missing an exam without a valid excuse will receive an exam grade of zero for the specific exam. A valid excuse is defined as an authorized absence (see Midwestern State University Undergraduate Catalog (2014-2016) p. 70, for the definition) or an unforeseeable, proven, and documented event that requires the student’s presence in a place other than the classroom during the class period. Such an event is deemed acceptable by the instructor. In the case of an excused absence, the document justifying the absence must be turned in to the instructor within one week of the absence, and the weight assigned for the missed exam will be redistributed to the other exams. No student will be allowed to miss the final exam.

Note: You may not submit a paper for a grade in this class that already has been (or will be) submitted for a grade in another course, unless you obtain the explicit written permission of me and the other instructor involved in advance.

Plagiarism is the use of someone else's thoughts, words, ideas, or lines of argument in your own work without appropriate documentation (a parenthetical citation at the end and a listing in "Works Cited")-whether you use that material in a quote, paraphrase, or summary. It is a theft of intellectual property and will not be tolerated, whether intentional or not.

Student Honor Creed

As an MSU Student, I pledge not to lie, cheat, steal, or help anyone else do so."

As students at MSU, we recognize that any great society must be composed of empowered, responsible citizens. We also recognize universities play an important role in helping mold these responsible citizens. We believe students themselves play an important part in developing responsible citizenship by maintaining a community where integrity and honorable character are the norm, not the exception.

Thus, We, the Students of Midwestern State University, resolve to uphold the honor of the University by affirming our commitment to complete academic honesty. We resolve not only to be honest but also to hold our peers accountable for complete honesty in all university matters.

We consider it dishonest to ask for, give, or receive help in examinations or quizzes, to use any unauthorized material in examinations, or to present, as one's own, work or ideas which are not entirely one's own. We recognize that any instructor has the right to expect that all student work is honest, original work. We accept and acknowledge that responsibility for lying, cheating, stealing, plagiarism, and other forms of academic dishonesty fundamentally rests within each individual student.

We expect of ourselves academic integrity, personal professionalism, and ethical character. We appreciate steps taken by University officials to protect the honor of the University against any who would disgrace the MSU student body by violating the spirit of this creed.

Written and adopted by the 2002-2003 MSU Student Senate.

The Americans with Disabilities Act (ADA) is a federal anti-discrimination statute that provides comprehensive civil rights protection for persons with disabilities. Among other things, this legislation requires that all students with disabilities be guaranteed a learning environment that provides for reasonable accommodation of their disabilities. If you believe you have a disability requiring an accommodation, please contact the Disability Support Services in Room 168 of the Clark Student Center, (940) 397-4140.

The professor considers this classroom to be a place where you will be treated with respect as a human being - regardless of gender, race, ethnicity, national origin, religious affiliation, sexual orientation, political beliefs, age, or ability. Additionally, diversity of thought is appreciated and encouraged, provided you can agree to disagree. It is the professor's expectation that ALL students consider the classroom a safe environment.

All instructors in the Department have voicemail in their offices and MSUTexas e-mail addresses. Make sure you add your instructor's phone number and e-mail address to both email and cell phone lists of contacts.

Obligation to Report Sex Discrimination under State and Federal Law

Midwestern State University is committed to providing and strengthening an educational, working, and living environment where students, faculty, staff, and visitors are free from sex discrimination of any kind. State and federal law require University employees to report sex discrimination and sexual misconduct to the University’s Office of Title IX. As a faculty member, I am required to report to the Title IX Coordinator any allegations, personally observed behavior, or other direct or indirect knowledge of conduct that reasonably may constitute sex discrimination or sexual misconduct, which includes sexual assault, sexual harassment, dating violence, or stalking, involving a student or employee. After a report is made, the office of Title IX will reach out to the affected student or employee in an effort to connect such person(s) with resources and options in addressing the allegations made in the report. You are also encouraged to report any incidents to the office of Title IX. You may do so by contacting:

Laura Hetrick

Title IX Coordinator
Sunwatcher Village Clubhouse
940-397-4213

laura.hetrick@msutexas.edu

You may also file an online report 24/7 at Maxient 

Should you wish to visit with someone about your experience in confidence, you may contact the MSU Counseling Center at 940-397-4618. For more information on the University’s policy on Title IX or sexual misconduct, please visit MSU Texas Title IX

Senate Bill 11 passed by the 84th Texas Legislature allows licensed handgun holders to carry concealed handguns on campus, effective August 1, 2016. Areas excluded from concealed carry are appropriately marked, in accordance with state law. For more information regarding campus carry, please refer to the University’s webpage at https://msutexas.edu/campus-carry/rules-policies.

If you have questions or concerns, please contact MSU Chief of Police at police@msutexas.edu.