MBAA 518 Online Syllabus 0515

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MBAA 518

Managerial Finance
Online Course Syllabus
Credit Hours: 3
Delivery Method: Online (Internet)
Required Course Materials

Ross, S.A., Westerfield, R.W. and Jaffe, J.F. (2013). Corporate


finance (10th edition). New York, NY: McGraw Hill.
ISBN 978-0-07-803477-0

Suggested Supplemental Materials


American Psychological Association. (2010). Publication manual of the
American Psychological Association (6th ed.). Washington, DC:
Author.
ISBN: 978-1-4338-0561-5
(APA website: http://www.apastyle.org/manual/index.aspx)
Course Description
This course focuses on the theoretical and practical approaches to effective financial
management. Planning, analyzing and controlling investment and short and long term
financing are examined for decision making purposes. Emphasis is placed on the
application of these methods in business settings. Topics include investment (capital
budgeting, risk and diversification), financing (debt and equity), payouts (dividends and
other payouts) and financial derivatives (options and futures).
Prerequisite(s): Satisfactory completion of Business Foundation courses, and/or permission of
the Graduate Program Chair.

This syllabus was developed for online learning by Dr. Ron Mau
MBAA_518_Online_Syllabus_0515.doc

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Course Goals
1. Develop an understanding of financial markets and the general environment in which
business operates
2. Develop an understanding of the qualitative and judgmental factors of financial decisionmaking under conditions of uncertainty.
3. Develop the skill to use modern quantitative methods in a structured procedure for
reaching a financial decision.
4. Equip the business manager with the capability of evaluating the financial impact of a
business decision under conditions of risk.
5. Develop economic intuition used in the financial decision making process.
Learning Outcomes
Upon successful completion of this course, the student will be able to:
1.
2.
3.
4.

Evaluate financial ratios.


Apply time value of money
Apply concepts of security valuation to value stocks and bonds.
Apply appropriate analytical techniques to investment opportunities (i.e. discounted cash
flow (DCF), internal rate of return (IRR), net present value(NPV)).
5. Describe the cost of capital and its determinants.
6. Analyze simple portfolios using modern portfolio theory (MFT).
7. Describe the effects of taxes on calculating cash flows and the determination of capital
structure.
8. Evaluate firm payout policies.
9. Discuss the use of financial derivatives to manage risk.
10. Analyze simple applications of financial derivatives.
11. Produce a concise research report of an investment opportunity by applying the various
concepts and analytical techniques from the course.
Grading
These are the major assignments in the course and will be the basis for evaluation according to
the grading scale shown in the table below.
Course Grade Scale

Evaluation Items & Weights

90 100%

Discussion

10%

80 89%

Readings Quizzes

10%

70 79%

Problem Sets

20%

60 69%

Short Papers

20%

59%

Midterm

20%

Final Paper

20%

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Discussions: (10 pct.)


Discussions are assigned in activities 1.7, 4.6, 6.5, 7.5, and 9.5. One posting is required and
responses to others are required as well (minimum of two). Your responses should be written
and make a substantive contribution to the discussion.
Readings Quizzes: (10 pct.)
Each module has a timed quiz that covers the material from the readings. These questions are
multiple choice and the quizzes will be timed. The allotted time is dependent upon the number
of questions in a given quiz. There is an option to take these quizzes twice. However, your last
attempt of the quiz is the recorded grade. Be sure to read the Important Quiz Information
located under the Course Specific Resources content in the Modules area of the course.
Problem Sets: (20 pct.)
Each module has a problem set. The problem sets have from 2 to 9 problems. Problems are
assigned various points based on the anticipated work involved in solving the given problem.
The questions apply the concepts from the readings and videos. They will require quantitative
analysis. They are multiple choice so be careful with your analysis and work. There is no
partial credit.
Short Papers: (20 pct.)
There are three short papers that will be completed throughout the course: Activity 2.4, 4.5, and
8.5. Descriptions of each Short Paper assignment are provided in the corresponding activity.
Midterm Exam: (20 pct.)
Module 5 consists of a midterm that covers the course materials presented in Module 1 through
5. Details about the midterm can be found in the Midterm Activity in Module 5.
Final Paper: (20 pct.)
In Activity 8.6, you will submit your final paper. The paper is introduced in Module 3 and will
apply various concepts you will study throughout the course. You may want to work on this
throughout the course and apply the concepts studied as you proceed through the course.
Details can be found in Module 3.
Additional Information
Online Sources
Supplemental sources are provided in the Course Specific Resources.
Library
Embry-Riddle Aeronautical University has one of the most complete library collections of
aviation-related resources in the world.

ERAU Libraries: http://library.erau.edu/


Hunt Library Worldwide: Information, Services, Help

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o
o
o

Worldwide Library: Basic Training


Worldwide Library: Ask-a-Librarian
Reference: Research Request

Contact Information

Hours: Monday - Friday 8:00 a.m. - 5:00 p.m. Eastern Time


Telephone: 1-800-678-9428 or 386-226-6947
Email: [email protected]

RefWorks
RefWorks is an online database tool that can manage references and citations from almost any
source. It provides specific guidance in how to collect and use references, create
bibliographies, and write research papers.
You may access it through this ERAU organizational login link when signed in to ERNIE or
directly from the RefWorks website (http://www.refworks.com). A different link must be used
for off-campus access (see these instructions). RefWorks requires users to create a
RefWorks-specific username and password. Please contact the Hunt Library if you have any
questions.
Course Policies
Academic Integrity
Embry-Riddle is committed to maintaining and upholding intellectual integrity. All students,
faculty, and staff have obligations to prevent violations of academic integrity and take corrective
action when they occur. The adjudication process will involve imposing sanctions which may
include, but are not limited to, a failing grade on the assignment, a failing grade in a course,
suspension or dismissal from the University, upon students who commit the following academic
violations:
1. Plagiarism: Presenting the ideas, words, or products of another as ones own. Plagiarism
includes use of any source to complete academic assignments without proper
acknowledgement of the source. Reuse or resubmission of a students own coursework if
previously used or submitted in another course, is considered self-plagiarism, and is also
not allowed under University policy.
2. Cheating: A broad term that includes, but is not limited to, the following:
a. Giving or receiving help from unauthorized persons or materials during examinations.
b. The unauthorized communication of examination questions prior to, during, or
following administration of the examination.
c. Collaboration on examinations or assignments expected to be, or presented as,
individual work.
d. Fraud and deceit, that include knowingly furnishing false or misleading information or
failing to furnish appropriate information when requested, such as when applying for
admission to the University.

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Note: The Instructor reserves the right to use any form of digital method for checking
plagiarism. Several electronic systems are available and other methods may be used at the
Instructors discretion.
Online Learning
This course is offered through ERAU Worldwide Online and runs nine (9) weeks. The first week
begins the first day of the term and ends at midnight EDT/EST (as applicable) seven days later.
Success in this course requires in-depth study of each module as assigned, timely completion of
assignments, and regular participation in forum discussions.
Late work should be the exception and not the rule and may be downgraded at the discretion of
the Instructor, if accepted at all. Unless all work is submitted, the student could receive a failing
grade for the course. Extensions may be granted for extenuating circumstances at the discretion
of the Instructor and only for the length of time the Instructor deems appropriate. The most
important element of success in an online course is to communicate with your Instructor
throughout the term.
Conventions of online etiquette, which include courtesy to all users, will be observed. Students
should use the Send Email function in Blackboard for private messages to the Instructor and
other students. The class Discussion Board forums are for public messages.
It is highly recommended that students keep electronic copies of all materials submitted as
assignments, discussion board posts and emails, until after the end of the term and a final grade
is received. When posting responses in a discussion forum, please confirm that the responses
have actually been posted after you submit them.
Course Schedule

Modules

Titles / Topics

Introduction to
Corporate Finance
and Financial
Statements

Discounted Cash
Flow and Bond
Valuation

Stock Valuation and


Net Present Value

Activities
*Graded Activities
1.1 - Introduction
1.2 - Readings
1.3 - Videos
1.4 - Reading Quiz 1*
1.5 - Financial Ratios Assignment Preview
1.6 - Problem Set 1*
1.7 - Discussion*
1.8 - Video: Masters of Finance
2.1 - Readings
2.2 - Videos
2.3 - Reading Quiz 2*
2.4 - Assignment: Financial Ratios*
2.5 - Problem Set 2*
3.1 - Readings
3.2 - Videos
3.3 - Reading Quiz 3*
3.4 - Problem Set 3*
3.5 - Valuation using PE ratio preview
3.6 - Final Project Preview

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Making Capital
Investment Decisions

Risk and Return

Risk and Cost of


Capital

Capital Structure

Dividend Policy and


Other Payouts

Options, Futures and


Risk Management

4.1 - Readings
4.2 - Videos
4.3 - Reading Quiz 4*
4.4 - Problem Set 4*
4.5 - Assignment: Valuation of stock using PE*
4.6 - Discussion*
5.1 - Readings
5.2 - Videos
5.3 - Reading Quiz 5*
5.4 - Problem Set 5*
5.5 - Midterm*
5.6 - Video: Masters of Finance
6.1 - Readings
6.2 - Notes and Videos
6.3 - Reading Quiz 6*
6.4 - Problem Set 6*
6.5 - Discussion*
7.1 - Readings
7.2 - Videos
7.3 - Reading Quiz 7*
7.4 - Problem Set 7*
7.5 - Discussion*
8.1 - Readings
8.2 - Videos
8.3 - Reading Quiz 8*
8.4 - Problem Set 8*
8.5 - Assignment: Payout Strategy*
8.6 - Final Project*
9.1 - Readings
9.2 - Videos
9.3 - Reading Quiz 9*
9.4 - Problem Set 9*
9.5 - Discussion*
9.6 - Video: Masters of Finance

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