MASTER IN BUSINESS ADMINISTRATION PROGRAM

MASTER IN BUSINESS ADMINISTRATION PROGRAM
BUS 550
Financial Management
Online
Syllabus
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Table of Contents
Westcliff University Mission Statements……………………………………………………………………………………….3
Welcome to Financial Management – BUS 550 ……………………………………………………………………………..4
Course Description……………………………………………………………………………………………………………………..6
Course Learning Outcomes (CLOs) Linked to Program Outcomes …………………………………………………..7
CLA Linking Table …………………………………………………………………………………………………………………….8
Detailed Description of Each Grading Criteria: ………………………………………………………………………………9
Rubrics…………………………………………………………………………………………………………………………………….13
Detailed Course Outline …………………………………………………………………………………………………………….18
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Westcliff University Mission Statements
Westcliff University
Westcliff University’s mission is to educate, inspire, and empower students from around the world to
acquire the competencies to excel personally and professionally through innovative, high-quality distance
and campus programs.
College of Business Mission Statement
Westcliff University’s College of Business mission is to deliver a high-quality business education that can
improve the lives of students, personally and professionally. The College’s teaching philosophy is to
vitalize business concepts by offering a curriculum in a pragmatic and relevant framework. Through the
use of innovative teaching methods, students are enabled to enhance their business acumen in an ethical
and socially responsible way.
MBA Program Mission Statement
Westcliff University’s mission for the Master of Business Administration program is to offer a broad
spectrum of core concepts in ancillary fields of business that prepare students to lead people and projects
in an innovative and creative environment, the program enables students to develop and implement
business strategic initiatives in an ethical and professional manner.
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Welcome to Financial Management – BUS 550
Hello Students and Welcome to Class:
I am looking forward to working with each of you as we embark on this journey together. Please feel free
to contact me anytime with questions about the course and the assignments described in this syllabus. I
am also happy to provide additional clarification of any assignment, so please do not hesitate to ask
questions.
I will generally return e-mail messages within 24 hours. Communication between Students and Instructors
is paramount to the overall quality of a course.
Assessing the individual needs of a student will make the difference between a mediocre and successful
experience, therefore each Professor at Westcliff University has a unique and personal instruction style
that focuses on increasing Student knowledge. As an Instructor, I try to foster an open learning
environment that leads to problem solutions through concept application. My goal is to show students the
many different possibilities available through research and study while providing my own professional
insight. It is my sincere desire to assist you in rising to the rigorous challenge presented by this course.
Additionally, if you are unable to participate in class discussion during a particular week, or are unable to
meet a deadline, I require that you contact me in advance to discuss this matter.
Professor: Dr. Ali Saad
Email: alisaad@westcliff.edu
Office Hours: By Appointment only
University Phone Number: 888-491-8686
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Instructor Biography
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Course Description
COURSE NAME Financial Management
CODE BUS 550
UNITS 3
CAMPUS Online
TERM Spring 2019 – Session 4
LENGTH OF CLASS 8 weeks
SESSION START March 04, 2019
SESSION END April 28, 2019
VIRTUAL CLASS SESSION
(VCS)
Wednesdays 6:00-8:00 PM
INSTRUCTOR Dr. Ali Saad
CONTACT INFORMATION alisaad@westcliff.edu
COURSE DESCRIPTION This course is an applied financial and managerial accounting
course. The course focuses on the principles of financial and
managerial accounting used to resolve difficult strategic and
operational decisions. The objective of this course is to provide
the decision makers with financial and managerial accounting
theory, concepts, and tools necessary to make better financial
management decisions as well as enable the student to make
sound judgments regarding financial analyses performed by
others.
REQUIRED TEXT Fundamentals of Corporate Finance, 11th Edition
Stephen A. Ross, Massachusetts Institute of Technology
Randolph W. Westerfield, University of Southern California
Bradford D. Jordan, University of Kentucky
ISBN: 978-0-07-786170-4
Copyright year: 2016
METHOD OF INSTRUCTION The course is conducted entirely online. Students interact with
each other and with the faculty in an online learning system.
Learning will be facilitated through quizzes, discussion questions,
professional individual assignments, cooperative learning, and
case studies.
SCOPE Student outcomes are measured through professional individual
assignments, discussion postings, comprehensive learning
assessments, and class participation. This ensures that the scope
of this course will be a closed cycle.
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Course Learning Outcomes (CLOs) Linked to Program Outcomes
Learning outcomes are statements that describe significant and essential learning that learners have
achieved, and can reliably demonstrate at the end of the course. Learning outcomes identify what the
learner will know and be able to do by the end of a course – the essential and enduring knowledge, abilities
(skills) and attitudes (values, dispositions) that constitute the integrated learning needed by a graduate of
this course. The learning outcomes for this course summarize what you can expect to learn, and how this
course is tied directly to the educational outcomes of your MBA degree.
Course Learning Outcomes (CLOs)
MBA
Program
Outcomes
(K)
Knowledge
(S) Skill
(A) Attitude
1. Develop an understanding of the accounting and finance vocabulary,
terminology, charts, tables, equations, and calculations. Distinguish,
and apply the principles of T-accounts, debits and credits. 1, 2, 3, 9 K, S
2. Analyze, and evaluate a Balance Sheet, Income Statement, and
Statement of Cash Flows. Prepare a SWOT (Strengths, Weaknesses,
Opportunities, and Threats) analysis. Compose a “horizontal” and
“vertical” analysis of the balance sheet and income statement of a
publicly traded corporation.
1, 2, 3, 6, 9 K, S
3. Develop a comprehensive understanding of the concept of Time
Value of Money (TVM). Calculate, and evaluate Present Value,
Future Value, Net Present Value, Internal Rate of Return (IRR),
Profitability Index (PI), and Coefficient of Variance (CV) as applied
in capital investment projects.
1, 2, 3, 6, 9 K, S
4. Evaluate short term versus long term investment decision, increasing
shareholder values.
2, 6, 8 K, S
5. Compile technical and strategic investment principles.
6, 7 K, S, A
6. Determine and evaluate the performance of a well-diversified
portfolio.
4, 6, 7, 9 K, S
7. Specify the ethical issues in finance and accounting, as well as related
fiduciary responsibilities.
2, 5, 7 K, S, A
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CLA Linking Table
Comprehensive Learning Assessments (CLAs) directly measure Course Learning Outcomes and
indirectly measure MBA Program Outcomes. The following table shows how all those are linked
together.
Comprehensive Learning
Assessments (CLAs)
Course Learning Outcomes
(CLOs)
MBA Program Outcomes
CLA1 (Week 4)
1, 2, 3, 4 1, 2, 3, 6, 8, 9
CLA2 (Week 8)
1, 2, 3, 4, 5, 6, 7 1, 2, 3, 4, 5, 6, 7, 8, 9
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Detailed Description of Each Grading Criteria:
What are Grading Rubrics (Metrics)?
Westcliff University makes use of Grading Rubrics for scoring of grades in many assignments.
Grading or scoring rubrics are used as a tool used to delineate criteria and expectations pertaining to
assignments and to establish an outcome consistency in grading. Typically, rubrics are divided into
components so as to allow for a more direct and precise measurement and interpretation of
assignments. Hence, rubrics are designed to provide guidelines for grading assignments and
represents a systematic appraisal of student-work only from this perspective. The final grading of all
assignments will have a subjective component that typically includes the instructor’s interpretations,
judgments, and any policies pertaining to assignments.
A. Grading Criteria for Class Participation
For students participating in an Online course, students will receive two weekly Participation grades:
(1) Virtual Class Session (VCS) Discussions:
Students will also participate in a two hour Virtual Class Session (VCS) held on weekday evenings
each week. Attendance for the VCS is highly encouraged, but is not required. Students may earn credit
for the Virtual Class Session Discussions in one of two ways:
1. Students who attend the live VCS will receive a grade for their participation throughout
the VCS.
2. Students who opt out of attending the live VCS will be required to watch the posted
recording of the VCS. Students must then turn in a 1 page summary of the topics covered
in the VCS by Sunday at 11:59pm of the same week.
(2) Online Discussion Board Discussions
Each week, students will be assigned 1-3 Discussion Questions. For each Discussion Question,
students must post an answer in the Discussion Board on their course Global Academic Portal (GAP)
by the assigned deadline each week. Students must then post a Peer Response for each Discussion
Question by the deadline that same week. The GAP can be accessed online at gap.westcliff.edu.
You are expected to answer each discussion question critically by using your textbook, LIRN-based
research, and the Internet and actively participate in class. All discussion responses should be at least
1 paragraph in length with significant, rigorous content. Your response should reflect your ability to
conduct research and should include citations. You should also present your analysis and back it up
with specific examples. Responses to other learners’ analyses should add substance, request
clarification, provide a different perspective, or challenge the assertions made by providing real or
hypothetical scenarios that the original analysis does not adequately address. It is also good practice
to provide normal, supportive comments. Everyone appreciates this feedback. Remember, the purpose
of course discussions is to stimulate academic debate.
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At the graduate-level, discussion questions can be based on any one (or combination) of the
following resources:
 Textbook, current and previous chapter(s)
 Other readings
 Research (journals, periodicals, and other electronic resources)
 Lecture
The University makes a concerted effort to promote a variety of discussion questions that related to
the current course and/or its content as it relates to the field in business in general.
In assigning grades to class discussion, faculty will focus primarily on the quality of your input;
however, it usually takes at least some quantity of participation for us to make that evaluation.
Good case discussions take the group farther than any one individual or study group can go on their
own. However, it takes at least a certain quantity of participation to make that evaluation. Instructors
will develop grades and scores based on the quantity and quality of your contributions.
In general, the instructors’ criteria are:
1. Are points made relevant to the discussion?
2. Do they go beyond a mere recitation of case facts, and are implications clearly drawn?
3. Is there evidence of analysis rather than expression of opinion?
4. Are comments linked to those of others?
5. Did the contribution further the class’ understanding of issues?
Students who neglect to submit their Class Participation responses (either answers to discussion
questions or responses to classmates/faculty) by the stated weekly deadlines will be deducted up to
15% of the online participation points possible for that week. Discussion Boards close on Sunday of
each week at 11:59pm at which time students are no longer able to post responses and receive no credit
for missed posts. Technological issues are not considered valid grounds for late assignment
submission. Students are responsible for printing their own assignments, when necessary. Unless an
‘Incomplete’ grade has been granted, assignments submitted after the last day of class will not be
accepted
B. Grading Criteria for Professional Assignments:
In Weeks 2 and 6 students will write a 3-4 page paper in response to a case study or similar assignment
provided by your professor. Student answers are to be clear, well-organized, and specific. Provide a
concise, cogent argument and include details to support your response.
Please refer to Expectations of Student Assignments and the Formatting Requirements for
Written Assignments on page 10 of the University Policies for a detailing of specific expectations
for how to format and write your paper. Additionally, you may refer to the PA and CLA Grading
Rubric found on page 18 of the University Policies.
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C. Grading Criteria for Quizzes
In Week 7 you will have a quiz. Quizzes will cover the chapters assigned and discussed during the
previous week(s). Your access to the quiz begins on Monday and closes on Sunday at midnight. All
quizzes are strictly closed book.
Some Quizzes will be chosen for proctoring. Please see the Proctored Examination Policy on Pg. 11.
Grading Criteria for Comprehensive Learning Assessments (CLAs):
CLAs are comprehensive assignments that provide evidence of how well students have mastered the
course content and test the students on all the Course Learning Outcomes. CLAs measure student
achievement of CLOs in a way that goes beyond rote memorization and gauges true understanding
and mastery of course content. CLAs can include assignments such as case study analyses, research
papers, and/or student presentations. The answers provided to graduate level CLA’s must
demonstrate a broad view of organizational performance factors from the general management
perspective that demonstrate concepts pertaining to effective leadership and management in the 21st
century globalized business economy. One of the grading criteria requirements is that answers
provided exhibit skills that promote and integrate program outcomes and should include decisionmaking, strategic management, creativity and innovation, leadership, problem-solving and real-time
business application. Answers must also demonstrate the student’s ability to research and
demonstrate a graduate writing level.
D. Comprehensive Learning Assessment (CLA 1)
In Week 4 students are to write a 8-10 page minimum APA formatted paper in response to a case study
or similar assignment provided by the professor. Students must reference at least six sources beyond
the course materials. Students’ answers are to be clear, well-organized, and specific. Provide a
concise, cogent argument and include details to support your response. CLA 1 focuses on assessing
course foundations and the student’s ability to define and understand its main concepts.
Please refer to Expectations of Student Assignments located on page 16 of the syllabus and the
Formatting Requirements for Written Assignments located on page 17 of the syllabus for a detailing
of specific expectations for how to format and write your paper. Additionally, you may refer to the PA
and CLA Grading Rubric found on page 26 of the syllabus.
E. Comprehensive Learning Assessment (CLA 2)
Written Paper Criteria:
In Week 8 students complete CLA2, which is the logical culmination of the course. Your CLA2
submission (cumulative report) should be a minimum of 12-15 pages in length. The CLA assignments
encompass the learning outcomes for this course and are designed to demonstrate what has been
learning or achieved by the student. CLA 2 measures the student’s competency and mastery of the
course concepts, particularly the application of those concepts.
Please refer to Expectations of Student Assignments and the Formatting Requirements for
Written Assignments on page 10 of the University Policies for a detailing of specific expectations
for how to format and write your paper. Additionally, you may refer to the PA and CLA Grading
Rubric found on page 18 of the University Policies.
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F. Comprehensive Learning Assessment (CLA 2) Presentation
CLA2 Presentation Criteria:
In addition to your CLA2 report, please prepare a professional PowerPoint presentation summarizing
your findings for CLA2. The presentation will consist of your major findings, analysis, and
recommendations in a concise presentation of 15 slides (minimum). You should use content from your
CLA2 report as material for your PowerPoint presentation. In addition, you should include learning
outcomes from all your major assignments. This would include PA1, CLA1, PA2, and of course,
CLA2 (unless otherwise specified by your Professor). An agenda, executive summary, and references
slides should also be included. Please keep in mind that the university is moving towards a more digital
footprint for our students. This means that your final CLA2 presentation may be recorded, so that you
may include it in your “e-portfolio” (graduating students should have all of their CLA2 presentations
on a flash-drive, in addition to student biography, resume, interests, etc.) Students will present their
PowerPoint during the last week of class in either the On-Campus Class Session or the online Virtual
Class Session, as determined by the professor. Presentations should not exceed 15 minutes.
Each CLA2 and presentation will become a part of the student’s digital portfolio. Upon completion of
the program, the student’s digital portfolio will demonstrate the student’s mastery of the course and
program learning outcomes.
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Rubrics
GRADING METRICS FOR WEEKLY ONLINE DISCUSSION
Exemplary Proficient Needs Progress Unsatisfactory
Points 30 27 24 21 18 15 12 9 6 3 0 Weight of
Grade
Answering
Discussion
Questions
Student answers or responds
to all questions completely,
demonstrating knowledge
and understanding of key
concepts, ability to think
critically, and has included
original examples in his/her
response. It is required that
the textbook and/or scholarly
research be included to justify
and/or solidify any argument
or reasoning.
Student answers or
responds to all discussion
questions, but lacks some
demonstration of
understanding of key
concepts, or ability to think
critically, or does not
include examples and/or
textbook or scholarly
research.
Student answers or responds
to at least one, but not all
discussion questions, and/or
lacks some demonstration of
understanding of key
concepts, or ability to think
critically, or does not include
examples.
Student fails to answer or
respond to discussion
questions assigned and/or
does not demonstrate
understanding of key
concepts, or ability to think
critically, or does not include
examples.
30%
Points 30 27 24 21 18 15 12 9 6 3 0
Response to
Peers
Student’s responses are well
conceived, offering insight
and original examples.
Student incorporates or
builds off of the ideas of
others and provides analysis
of concepts discussed.
Student responds to
classmates’ postings but a
few responses are not well
conceived, or do not offer
insight, or original
examples. Student might
not incorporate or build off
of the ideas of others in a
meaningful way and may
lack analysis.
Student responds to
classmates’ postings, but
does not meet the minimum
number of responses
required, and some
responses are not well
conceived, or do not offer
insight, or original examples.
Student might not
incorporate or build off of
the ideas of others in a
meaningful way.
Student neglects to respond
to classmates’ postings or
responses are not well
conceived, do not offer
insight, or original examples.
Student does not
incorporate or build off of
the ideas of others.
30%
Points 25 22.5 20 17.5 15 12.5 10 7.5 5 2.5 0
Preparation
Student brings in outside
examples and is able to
examine a problem or
situation from a variety of
perspectives.
Student demonstrates an
understanding of key
concepts, but offers only
some analysis or original
thought.
Student responds to
questions and postings with
verbiage copied directly
from textbook, rather than
in their own words.
Student fails to
demonstrate knowledge or
understanding of the
assigned reading.
25%
Points 15 13.5 12 10.5 9 7.5 6 4.5 3 1.5 0
Accountability Student posts answers and
responses on time.
Student is late in posting
and/or responding to
postings, but has a viable
excuse and has notified the
professor in advance.
Student is late posting either
answers or responses.
Student fails to post answers
and responses on time.
15%
Total Possible 100%
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Rubric – Class Participation
Score Criteria
90- 100
●On time to/from:
 Arrives for class on time
 Returns from break(s) on time
 Stays for the full duration of class time
●Active and substantive contributions to the class discussion
●Respects others
 Cellular phones may not be used in-class, unless used for a class activity
●Comes prepared for class by bringing:
 Textbook or required materials
 Notebook and pen/pencil, or
 Laptop computer, or
 Both notebook and pen/pencil and laptop computer
●Asks thoughtful questions
75-89
●On time to/from:
 Arrives up to 10 minutes late to class
 Returns from break(s) up to 10 minutes late
 Leaves up to 10 minutes early
●Contributes to the class discussion somewhat actively and substantively
Respects others
o Cellular phones may not be used in-class, unless used for a class activity
●Comes prepared for class by bringing:
 Textbook or required materials
 Notebook and pen/pencil, or
 Laptop computer, or
 Both notebook and pen/pencil and laptop computer
50-74
●On time to/from:
 More than 10 minutes late to class
 Returns from break(s) more than 10 minutes late
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 Leaves more than 10 minutes before the end of class
●Does not actively contribute to the class
●Not attentive to the lesson, easily distracted
●Sometimes follows classroom rules OR disrespects faculty and/or other students at times
●Not prepared for class
 Has neither a notebook and pen/pencil, and/or laptop computer
25-49
●On time to/from:
 Arrives more than 30 minutes late to class
 Returns from break(s) more than 30 minutes late
 Leaves 30 minutes or earlier before the end of class
●Does not contribute to the class discussion
●Not attentive to the lesson, easily distracted
 Is on cell phone or other internet sites during class
●Does not follow classroom rules and/or is not respectful to faculty and/or classmates
Not prepared for class
o Has neither the textbook or required materials, nor a notebook and pen/pencil, nor a laptop computer
0
●Does not attend class or,
Does not attend 40 minutes or more of class lecture time (excluding any student services and/or administrative requests)
o 40 minutes or more may be a combination of minutes missed due to:
 Coming late to class
 Returning back late from break(s)
 Leaving class early
0-100
●Excused absence resulting in submission of a written assignment completed as per professor instructions in the time frame
given. Grade given based on quality of work. Faculty will typically grade the assignment within 4 days of submission, but also
reserves the right to grade submission at any time during the current session, up to and including the last day of the session. 0-
100 points
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Detailed Course Outline
The following outline provides important assignment details for this course, week-by-week. You are
responsible for all of the assignments given. Please refer to the Detailed Description of Each Grading
Criteria beginning on page 18 of the syllabus for specific information about each assignment.
1. Week 1
Assignments to complete this week:
 Reading: Ross, Westerfield, and Jordan: Chapter(s) 1, 2
 Topics: Financial statements and financial analysis
 Review Websites and Assignments document (posted on GAP under Week 1)
 Post DQ Answers by Thursday at 11:59pm
 Post DQ Peer Responses by Sunday at 11:59pm
Each week, students must post 1 answer and 1 peer response for every discussion question. Student
Discussion Question answers must be posted by Thursday at 11:59 and Peer Responses must be posted
by Sunday at 11:59pm. Please see Grading Criteria for Discussion Board Participation on page 18-19
of the syllabus for Discussion Question and Response expectations.
Discussion Question 1 – (CLOs covered: 1, 2)
Explain and discuss your understanding of:
a. Corporate finance;
b. Financial statements;
c. Taxes and Cash Flows.
Provide your explanations and definitions in detail and be precise. Comment on your findings. Provide
references for content when necessary. Provide your work in detail and explain in your own words.
Support your statements with peer-reviewed in-text citation(s) and reference(s).
Discussion Question 2 – (CLOs covered: 1, 2)
Discuss some of the accounting and finance vocabulary and terminology that you have learned from this
chapter(s). Specifically, regarding financial statements:
 Necessities of charts and tables
 Equations
Provide your explanations and definitions in detail and be precise. Comment on your findings. Provide
references for content when necessary. Provide your work in detail and explain in your own words.
Support your statements with peer-reviewed in-text citation(s) and reference(s).
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Discussion Question 3 – Applied Concepts (AC) – Week/Course Learning Outcomes
Using your textbook, LIRN-based research, and the Internet, apply the learning outcomes for the
week/course and lecture concepts to one of the following scenarios as applied to:
– your current professional career
– to enhancing, improving, or advancing your current professional career
– a management, leadership, or any decision-making position
– a current or future entrepreneurial endeavor
OR
Using your textbook, LIRN-based research, and the Internet, apply the learning outcomes for the
week/course and lecture concepts to a business organization that exhibits and demonstrates these
concepts. You should develop a summary of the organizations strategy and how they use these concepts
to compete.
This is a learning and application exercise designed to give you an opportunity to apply concepts learned
in a pragmatic and meaningful way that will enable you to gain valuable and relevant knowledge in an
effort to augment your skill set and enhance your professional careers.
Provide your explanations and definitions in detail and be precise. Comment on your findings. Provide
references for content when necessary. Provide your work in detail and explain in your own words.
Support your statements with peer-reviewed in-text citation(s) and reference(s).
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2. Week 2
Assignments to complete this week:
 Reading: Ross, Westerfield, and Jordan: Chapter(s) 2, 3, 4
 Topics: Simple and compound interest, time value of money and opportunity cost, annuities and
perpetuities, amortization
 Post DQ Answers by Thursday at 11:59pm
 Post DQ Peer Responses by Sunday at 11:59pm
 Professional Assignment 1 due by Sunday at 11:59pm
Each week, students must post 1 answer and 1 peer response for every discussion question. Student
Discussion Question answers must be posted by Thursday at 11:59 and Peer Responses must be posted
by Sunday at 11:59pm. Please see Grading Criteria for Discussion Board Participation on page 18-19
of the syllabus for Discussion Question and Response expectations.
Discussion Question 1 – (CLOs covered: 1, 3)
Calculating Market Value Ratios [LO2] Makes Corp. had addition to retained earnings for the year just
ended of $395,000. The firm paid out $195,000 in cash dividend, and it has ending total equity of $5.3
million.
a. If the company currently has 170,000 shares of common stock outstanding, what are earnings per
share?
b. Dividends per share?
c. Book value of share?
d. If the stock currently sells for $64 per share, what is the market-to-book ratio?
e. The price-earnings ratio?
f. The company had sales od 5.15 million, what is the price-sales ratio?
Provide your explanations and definitions in detail and be precise. Comment on your findings. Provide
references for content when necessary. Provide your work in detail and explain in your own words.
Support your statements with peer-reviewed in-text citation(s) and reference(s).
Discussion Question 2 – (CLOs covered: 1, 3)
Retirement Planning.
(a) By the end of this year you would be 35 years old and you want to plan for your retirement. You
wish to retire at the age of 65 and you expect to live 20 years (I hope more) after retirement. Upon
retirement you wish to have an annual sum of $50,000 to supplement your social security benefits. A
conservative bond fund has been returning 7% annually and you decide to invest your retirement money
in this fund. Assuming that the fund continues to return at least 7% during your planning horizon before
and after retirement, how much should you invest in the fund starting from now, annually, in order to be
able to withdraw $50,000 per year during your retirement?
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Now let’s extend the problem so that you protect yourself against inflation.
(b) Suppose you think if you were to retire right now you would have needed $50,000 each year to
supplement your social security and maintain your desired life style.
But because there is on average 3% annual inflation, when you retire in 30 years from now you need
more than $50,000 per year to maintain the life style you like. (Hint: first calculate what future amount
in 30 years is equivalent to $50,000 of now and then solve the rest of the problem).
Provide your explanations and definitions in detail and be precise. Comment on your findings. Provide
references for content when necessary. Provide your work in detail and explain in your own words.
Support your statements with peer-reviewed in-text citation(s) and reference(s).
Professional Assignment 1 – (CLOs covered: 1, 2, 3)
Search Yahoo Finance or/and any other credible source(s) to find the most recent income statement and
balance sheet of a major corporation located in your home country.
– Provide these statements in the appropriate format (financial statement)
– Perform a vertical analysis and comment on your finding.
– Perform a financial analysis incorporating
i. debt ratio
ii. debt to equity ratio
iii. return on assets
iv. return on equity
v. current ratio
vi. quick ratio
vii. inventory turnover
viii. days in inventory
ix. accounts receivable turnover
x. accounts receivable cycle in days
xi. accounts payable turnover
xii. accounts payable cycle in days
xiii. earnings per share (EPS), and
xiv. price to earnings ratio (P/E).
Provide your explanations and definitions in detail and be precise. Comment on your findings. Provide
references for content when necessary. Provide your work in detail and explain in your own words.
Support your statements with peer-reviewed in-text citation(s) and reference(s).
*Please refer to the Grading Criteria for Professional Assignments on page 20 of the syllabus for
specific guidelines and expectations.
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3. Week 3
Assignments to complete this week:
 Reading: Ross, Westerfield, and Jordan: Chapter(s) 5, 6, 7, and 8
 Topics: Investment analysis, payback period, modified payback period, internal rate of return,
modified internal rate of return, NPV and profitability index
 Post DQ Answers by Thursday at 11:59pm
 Post DQ Peer Responses by Sunday at 11:59pm
Each week, students must post 1 answer and 1 peer response for every discussion question. Student
Discussion Question answers must be posted by Thursday at 11:59 and Peer Responses must be posted
by Sunday at 11:59pm. Please see Grading Criteria for Discussion Board Participation on page 18-19
of the syllabus for Discussion Question and Response expectations.
Discussion Question 1 – (CLOs covered: 1, 3, 4, 5)
Discuss the notions of conventional and nonconventional cash flows in capital budgeting.
Which investment evaluation criteria would you use for unconventional cash flows and why?
Provide a fictitious example and apply the NPV, IRR, and MIRR methods to your example. Interpret the
results.
Provide your explanations and definitions in detail and be precise. Comment on your findings. Provide
references for content when necessary. Provide your work in detail and explain in your own words.
Support your statements with peer-reviewed in-text citation(s) and reference(s).
Discussion Question 2 – (CLOs covered :1, 3, 4, 5)
Select a company from your country which is publicly traded in the U.S. Go to Yahoo Finance
(http://finance.yahoo.com/) and punch the company’s name or ticker symbol in the search box.
Use the “financials” tab to discuss the following (choose the annual statements):
– Calculate and interpret the Company’s net working capital
– Calculate and interpret the company’s cash conversion cycle
– Can you detect a positive or negative time trend? If so, what does that imply?
Provide your explanations and definitions in detail and be precise. Comment on your findings. Provide
references for content when necessary. Provide your work in detail and explain in your own words.
Support your statements with peer-reviewed in-text citation(s) and reference(s).
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Discussion Question 3 – Applied Concepts (AC) – Week/Course Learning Outcomes
Using your textbook, LIRN-based research, and the Internet, apply the learning outcomes for the
week/course and lecture concepts to one of the following scenarios as applied to:
– your current professional career
– to enhancing, improving, or advancing your current professional career
– a management, leadership, or any decision-making position
– a current or future entrepreneurial endeavor
OR
Using your textbook, LIRN-based research, and the Internet, apply the learning outcomes for the
week/course and lecture concepts to a business organization that exhibits and demonstrates these concepts.
You should develop a summary of the organizations strategy and how they use these concepts to compete.
This is a learning and application exercise designed to give you an opportunity to apply concepts learned
in a pragmatic and meaningful way that will enable you to gain valuable and relevant knowledge in an
effort to augment your skill set and enhance your professional careers.
Provide your explanations and definitions in detail and be precise. Comment on your findings. Provide
references for content when necessary. Provide your work in detail and explain in your own words.
Support your statements with peer-reviewed in-text citation(s) and reference(s).
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4. Week 4
Assignments to complete this week:
 Reading: Ross, Westerfield, and Jordan: Chapters 9, 10 and 11
 Topics: Probability and random variables, Financial markets, stocks and bonds, treasuries and
notes, risk and expected rate of return
 Post DQ Answers by Thursday at 11:59pm
 Post DQ Peer Responses by Sunday at 11:59pm
 CLA 1 due by Sunday at 11:59pm
Each week, students must post 1 answer and 1 peer response for every discussion question. Student
Discussion Question answers must be posted by Thursday at 11:59 and Peer Responses must be posted
by Sunday at 11:59pm. Please see Grading Criteria for Discussion Board Participation on page 18-19
of the syllabus for Discussion Question and Response expectations.
Discussion Question 1 – (CLOs covered: 1, 3)
In chapter 9 of the textbook you learned about constant dividend model for valuation of a company’s
stock. However, in certain industries many companies do not pay dividend.
1 Discuss in which industries most companies do not pay dividend and why?
2 Which factors do you consider in order to value the stock of a company that does not pay
dividend and how would you value the stock?
3 Select two publicly traded companies from two different industries and discuss how you would
value the stock of those companies. Are your selected stocks overpriced or underpriced by the
market?
Provide your explanations and definitions in detail and be precise. Comment on your findings. Provide
references for content when necessary. Provide your work in detail and explain in your own words.
Support your statements with peer-reviewed in-text citation(s) and reference(s).
Discussion Question 2 – (CLOs covered: 1, 3)
Pick two of the major stock indices; explain what type of companies they represent and discuss what
could be the purpose of monitoring those indices.
Now, select a publicly traded company and imagine you were to invest in the shares of common stock of
that company. How would you evaluate the risk of your investment? Which one of the stock indices do
you use to evaluate your investment risk?
CLA 1 Comprehensive learning Assessment I – (CLOs covered: 1, 3, 4, 5)
Year Investment A Investment B
0 -$5,000,000 -5,000,000
1 $1,500,000 $1,250,000
2 $1,500,000 $1,250,000
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3 $1,500,000 $1,250,000
4 $1,500,000 $1,250,000
5 $1,500,000 $1,250,000
6 $1,500,000 $1,250,000
7 $2,000,000 $1,250,000
8 0 $1,600,000
You have been hired as a consultant for Pristine Urban-Tech Zither, Inc. (PUTZ), manufacturers of fine
zithers. The market for zithers is growing quickly. The company bought some land three years ago for
$2.1 million in anticipation of using it as a toxic waste dump site but has recently hired another company
to handle all toxic materials. Based on a recent appraisal, the company believes it could sell the land for
$2.3 million on an after-tax basis. In four years, the land could be sold for $2.4 million after taxes. The
company also hired a marketing firm to analyze the zither market, at a cost of $125,000. An excerpt of
the marketing report is as follows:
The zither industry will have a rapid expansion in the next four years. With the brand name recognition
that PUTZ brings to bear, we feel that the company will be able to sell 3,600, 4,300, 5,200, and 3,900
units each year for the next four years, respectively. Again, capitalizing on the name recognition of
PUTZ, we feel that a premium price of $750 can be charged for each zither. Because zithers appear to be
a fad, we feel at the end of the four-year period, sales should be discontinued. PUTZ believes that fixed
costs for the project will be $415,000 per year, and variable costs are 15 percent of sales. The equipment
necessary for production will cost $3.5 million and will be depreciated according to a three-year
MACRS schedule. At the end of the project, the equipment can be scrapped for $350,000. Net working
capital of $125,000 will be required immediately. PUTZ has a 38 percent tax rate, and the required
return on the project is 13 percent. What is the NPV of the project?
Provide your explanations and definitions in detail and be precise. Comment on your findings. Provide
references for content when necessary. Provide your work in detail and explain in your own words.
Support your statements with peer-reviewed in-text citation(s) and reference(s).
*Please refer to the Grading Criteria for Comprehensive Learning Assessments (CLAs) on page 20-
21 of the syllabus for specific guidelines and expectations.
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5. Week 5
Assignments to complete this week:
 Reading: Ross, Westerfield, and Jordan Chapter(s) 12 and 13
 Topics: Investment rate of return as a random variable, Statistical estimation, Portfolios, Security
market line, beta and required expected rate of return, leveraged beta
 Post DQ Answers by Thursday at 11:59pm
 Post DQ Peer Responses by Sunday at 11:59pm
Each week, students must post 1 answer and 1 peer response for every discussion question. Student
Discussion Question answers must be posted by Thursday at 11:59 and Peer Responses must be posted
by Sunday at 11:59pm. Please see Grading Criteria for Discussion Board Participation on page 18-19
of the syllabus for Discussion Question and Response expectations.
Discussion Question 1 – (CLOs covered: 1)
Two bonds A and B have the same credit rating, the same par value and the same coupon rate. Bond A
has 30 years to maturity and bond B has 5 years to maturity.
– Discuss which bond will trade at a higher price in the market
– Discuss what happens to the market price of each bond if the interest rates in the economy go up.
– Which bond would have a higher percentage price change if interest rates go up?
– Try to substantiate your argument with a numerical example.
As a bond investor, if you expect slowdown in the economy over the next 12 months, what would be
your investment strategy?
Provide your explanations and definitions in detail and be precise. Comment on your findings. Provide
references for content when necessary. Provide your work in detail and explain in your own words.
Support your statements with peer-reviewed in-text citation(s) and reference(s).
Discussion Question 2 – (CLOs covered: 1)
The cost of long-term borrowing is usually higher than the cost of short-term borrowing. The graph that
shows the relationship between maturity and interest rates for U.S. Government’s borrowings
(Treasuries) is called “term structure of the interest rates” or “the yield curve”. Shape of the yield curve
is often used by economists to forecast future status of the economy
1. Discuss why long-term rates are usually higher than short-term rates (upward yield curve)
2. Discuss under what economic conditions long-term rates might not be higher than short-term
rates (flat or inverted yield curve).
3. Go to http://www.bloomberg.com, brows various links on the site, find the yield curve for the
day of your search, and
4. Interpret your observation of the yield curve.
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Provide your explanations and definitions in detail and be precise. Comment on your findings. Provide
references for content when necessary. Provide your work in detail and explain in your own words.
Support your statements with peer-reviewed in-text citation(s) and reference(s).
Discussion Question 3 – CLA2 Preparation & Course Learning Outcomes
Welcome to week 5 of your course. This discussion question will help you prepare for your CLA2 paper
and final CLA2 PPP. Read the CLA2 assignment listed in week 8 of the course. Then, please provide an
outline that itemizes the concepts that you will include in your CLA2 paper and final PPP. Please be
sure to include concepts learned in the course and any information from your CLA1 paper if applicable.
Provide some brief details for each item that is outlined. Please keep in mind that you should have placeholders for material not yet covered in lecture from week’s 6 and 7.
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6. Week 6
Assignments to complete this week:
 Reading: Ross, Westerfield, and Jordan Chapter(s)14, 15, 16, and 17
 Topics: Weighted average cost of capital, investment analysis from corporate’s view based on
weighted average cost of capital, Investment returns as random variables, coefficient of variation
 Post DQ Answers by Thursday at 11:59pm
 Post DQ Peer Responses by Sunday at 11:59pm
 Professional Assignment 2 due by Sunday at 11:59pm
Each week, students must post 1 answer and 1 peer response for every discussion question. Student
Discussion Question answers must be posted by Thursday at 11:59 and Peer Responses must be posted
by Sunday at 11:59pm. Please see Grading Criteria for Discussion Board Participation on page 18-19
of the syllabus for Discussion Question and Response expectations.
Discussion Question 1 – (CLOs covered: 1)
Discuss pros and cons of debt financing in contrast to equity financing in capital budgeting. What are the
implications of each for shareholders’ wealth maximization?
Provide your explanations and definitions in detail and be precise. Comment on your findings. Provide
references for content when necessary. Provide your work in detail and explain in your own words.
Support your statements with peer-reviewed in-text citation(s) and reference(s).
Discussion Question 2 – (CLOs covered: 1, 5, 6)
This discussion question is in preparation of CLA 2. Using Yahoo Finance, http://www.bloomberg.com
or any credible source identify 5 securities that had significant appreciation in value from year 2000 to
2018.
In evaluating appreciation, you need to incorporate effect of stock split.
– Then organize the data on the value at the end of each year,
– Stock splits through these years, and annual paid dividend for each security in an Excel file.
– Organize it in a way that data on securities are arranged adjacent in horizontal direction.
Then evaluate annual return for each year and for each security
– incorporating change in value;
– paid dividends, and effect of stock split.
No two submissions should be exactly the same, otherwise the later submission will be rejected in favor
of the earlier submission.
Attach this Excel file to your post.
Also, in initiation of your written CLA 2 state your portfolio formation problem, provide the data on the
5 securities, as mentioned above, and the criterion for choosing these securities.
Attach this Word file to this post. Please provide your explanations in detail in the Word file.
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Provide your explanations and definitions in detail and be precise. Comment on your findings. Provide
references for content when necessary. Provide your work in detail and explain in your own words.
Support your statements with peer-reviewed in-text citation(s) and reference(s).
PA 2 Professional Assignment II – (CLOs covered: 1, 2, 4, 5)
I. Search Yahoo Finance, http://www.bloomberg.com or any other credible source to retrieve the most
recent income statement and balance sheet for a major leveraged corporation.
II. Provide these statements in proper format.
III. Also, retrieve the data on the company’s stock annual rate of return for the past 10 years.
IV. In addition, retrieve annual rate of return of a major financial index. Present this data as well.
V. Using the data on company’s stock rate of return and the index’s rate of return estimate beta of the
corporation. Make sure to adjust this value to obtain leveraged beta. Compare this value with the
value stated by the source. Retrieve the risk-free rate of return as the annual interest rate of US
treasuries. Based on these values estimate the expected annual rate of return of the corporation’s
security. Using the financial statements mentioned above estimate the annual rate of interest paid by
the corporation (cost of debt). Also, find the tax rate and capitalization ratio (proportions among
equity and debt). Using these values that you have found estimate the annual weighted cost of capital
(WACC) of the corporation.
VI. Suppose that the corporation is offered an investment which has the following cash flows.
In million doll.
Year 0 1 2 3 4 5 6 7 8 9 10
Cash
flow
-$10 $1,5 $1,5 $1,5 $1,5 $1,5 $1,5 $1,5 $1,5 $1,5 $1,5
Based on WACC, Is this investment viable?
For each part above state the problem before answering the questions, provide clear justifications, explain
your work in detail, and cite all references used for development of the content.
Provide your explanations and definitions in detail and be precise. Comment on your findings. Provide
references for content when necessary. Provide your work in detail and explain in your own words.
Support your statements with peer-reviewed in-text citation(s) and reference(s).
*Please refer to the Grading Criteria for Professional Assignments on page 20 of the syllabus for
specific guidelines and expectations.
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7. Week 7
Assignments to complete this week:
 Reading: Ross, Westerfield, and Jordan Chapter(s) 18, 19, and 20
 Topics: Random variables, correlation, Fundamentals of portfolio theory, Financial forecasting
 Post DQ Answers by Thursday at 11:59pm
 Post DQ Peer Responses by Sunday at 11:59pm
 Quiz – Opens Monday – Sunday at 11:59pm
Each week, students must post 1 answer and 1 peer response for every discussion question. Student
Discussion Question answers must be posted by Thursday at 11:59 and Peer Responses must be posted
by Sunday at 11:59pm. Please see Grading Criteria for Discussion Board Participation on page 18-19
of the syllabus for Discussion Question and Response expectations.
Discussion Question 1 – (CLOs covered: 1)
A rapidly growing small firm does not have access to sufficient external financing to accommodate its
planned growth. Discuss what alternatives the company can consider in order to implement its growth
strategy.
How can the firm determine the cost of those alternative sources of capital?
Provide your explanations and definitions in detail and be precise. Comment on your findings. Provide
references for content when necessary. Provide your work in detail and explain in your own words.
Support your statements with peer-reviewed in-text citation(s) and reference(s).
Discussion Question 2 – (CLOs covered: 1, 4, 5)
Select a publicly traded company, preferable a company from your country that its securities trade in the
U.S. capital market.
Download five years of daily stock price of the company and the same for an appropriate index
Estimate the beta of the company and using the information in its financial statement unlever the beta.
Now use the market value information and financial statement information of the company and calculate
the levered and unlevered WACC of the company.
What is your recommendation for the company’s capital structure policy?
Provide your explanations and definitions in detail and be precise. Comment on your findings. Provide
references for content when necessary. Provide your work in detail and explain in your own words.
Support your statements with peer-reviewed in-text citation(s) and reference(s).
Quiz – Online
The Quiz can be accessed under Week 7 of your course GAP site. The Quiz will open on Monday and
will close on Sunday at 11:59pm. You will have 1 attempt to complete the quiz. Please see Quiz Grading
Criteria on page 20.
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8. Week 8
Assignments to complete this week:
 Reading :
o Review all chapters covered that will assist in the completion of the CLA 2 assignment.
 Post DQ Answers by Thursday at 11:59pm
 Post DQ Peer Responses by Sunday at 11:59pm
 CLA 2 Presentation due in class
 CLA 2 due by Sunday at 11:59pm
Each week, students must post 1 answer and 1 peer response for every discussion question. Student
Discussion Question answers must be posted by Thursday at 11:59 and Peer Responses must be posted
by Sunday at 11:59pm. Please see Grading Criteria for Discussion Board Participation on page 18-19
of the syllabus for Discussion Question and Response expectations.
Discussion Question 1 – Summary & Critical Thinking – Week/Course Learning Outcomes
Welcome to the last week of your course. In this discussion question you have the opportunity to be
creative and to relate what you have learned to your professional lives. Please explore and critically think
about some of the learning objectives and concepts presented in this course. Please effectively
communicate how you would lead an organization (or a group of people within the organization) by
applying the knowledge you have learned ethically and responsibly. Your discussion should also include
innovative thinking, and information-technology aspects (such as the Internet, social-media, computers,
etc.) that may assist you in decision-making. You may frame your discussion around any functional
component of business, and in any context; problem-solving, management, leadership, organizational
behavior, etc.
Provide your explanations and definitions in detail and be precise. Comment on your findings. Provide
references for content when necessary. Provide your work in detail and explain in your own words.
Support your statements with peer-reviewed in-text citation(s) and reference(s).
CLA2 – (CLO’s covered: 1, 4, 5, 6)
This is complete write up of your portfolio formation in a Word file, with calculations copied and pasted
in it from your Excel file.
1. Select the stocks of three publicly traded companies from different industries. State the criteria
for selecting those securities.
2. Retrieve monthly data on adjusted closing prices of your securities from Yahoo Finance for the
past 10 years and calculate the monthly rate of return of the stocks for every month.
3. Calculate the mean, variance, and standard deviation of the stocks’ monthly returns.
4. Calculate the correlation coefficient between every possible pair of stocks’ returns.
5. Decide what percentage of your money (weights) you want to invest in each stock and state the
criteria you used to select those weights.
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6. Now calculate your portfolio’s mean monthly return, variance, and standard deviation.
7. Assuming your portfolio return follows a normal distribution, calculate the chance that your
portfolio loses 10% of its value during any month?
8. Assuming you have invested $100,000 in your portfolio, what is value at risk (VaR) of your
portfolio at any particular month at 99% confidence level?
9. Now randomly change your portfolio’s weights 100 times (note total weights should always be
100%), for each weight combination calculate the mean and standard deviation of your
portfolio, and then draw the efficient frontier.
10. For each item mentioned above explain your rationale and cite peer-reviewed and/or seminal
sources.
Provide your explanations and definitions in detail and be precise. Comment on your findings. Provide
references for content when necessary. Provide your work in detail and explain in your own words.
Support your statements with peer-reviewed in-text citation(s) and reference(s).
*Please refer to the Grading Criteria for Comprehensive Learning Assessments (CLAs) on page 20-
21 of the syllabus for specific guidelines and expectations.
CLA2 Comprehensive Learning Assessment (CLA 2) Presentation
In addition to your CLA2 report, please prepare a professional PowerPoint presentation summarizing your
findings for CLA2. The presentation will consist of your major findings, analysis, and recommendations
in a concise presentation of 15 slides (minimum). You should use content from your report as material for
your PowerPoint presentation. Students will present their PowerPoint during the last week of class in
either the On-Campus Class Session or the online Virtual Class Session, as determined by the professor.
Presentations should not exceed 15 minutes.
*Please refer to the Grading Criteria for CLA2 Presentations on page 21-22 of the syllabus for
specific guidelines and expectations.