Week |
Subject |
Related Preparation |
1) |
• Describe the course.
• Explain the basic types of financial management decisions and the role of the financial manager.
• Explain the goal of financial management.
• Recognize the financial implications of the different forms of business organization.
• Define value creation as the most fundamental aspect of management and describes agency issues that can arise.
• Recognize real-world issues concerning conflict of interest and current controversies surrounding ethical conduct and management pay.
• Up-to-date discussion of Sarbanes-Oxley and its implications and impact.
• Examine the choice of organization form for a small business.
• Syllabus.
• Explain the Goal of the firm and agency problems.
• Discuss ethics, financial management, and executive compensation.
• Discuss Sarbanes-Oxley.
• Discuss the minicase: The McGee Cake Company.
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2) |
• Define the balance sheet and income statement.
• Define cash flow and spells out the differences between cash flow and earnings.
• Recognize the relevance of market values over book values.
• Explain the variation in corporate tax rates across industries in practice.
• Identify the key cash flow concepts in a small business setting.
• Exlain Balance sheet and Income Statement.
• Differentiate Cash flow vs. earnings.
• Distinguish Market values vs. book values.
• Discuss the implications of the average corporate tax rates.
• Minicase: Cash Flows and Financial Statements at Sunset Boards, Inc.
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Review the Syllabus.
Read in Ross, Westerfield and Jordan (2013) chapter 2 on pages 20-39.
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3) |
• Recognize Cash Flows and Financial Statements
• Identify the sources and uses of cash.
• Recognize the statement of cash flows.
• Explain Standardized Financial Statements
• Identify the evaluation of financial statements: Ratio Analysis
• Identify Sources vs Uses of Cash
• Recognize Common-size financial statements.
• Discuss Short-Term Solvency, or Liquidity, Measures
• Discuss Long-Term Solvency Measures
• Discuss Asset Management, or Turnover, Measures
• Discuss Profitability Measures
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Read in Ross, Westerfield and Jordan (2013) chapter 3 on pages 48-78.
Review the Lecture Notes.
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4) |
• Define enterprise value (EV) and discusses the widely used EV–EBITDA ratio.
• Explain the basic DuPont equation to better explore the interrelation ships between operating and financial performance.
• Analyze how to get and use real-world data thereby applying key chapter ideas.
• Explain how to evaluate financial statements.
• Illustrate the use of ratios and some pitfalls in a small business context.
• Recognize Market Value Measures
• Discuss Expanded DuPont analysis.
• Justify Expanded DuPont analysis using data from S&P Market Insight.
• Discuss The enterprise value–EBITDA ratio.
• Minicase: Ratio Analysis at S&S Air, Inc.
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Read in Ross, Westerfield and Jordan (2013) chapter 3 on pages 48-78.
Review the Lecture Notes.
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5) |
• Define the percentage of sales approach to creating pro forma statements.
• Discuss the importance of financial plan and capacity utilization for a small business.
• Recognize a vehicle for examining the interrelationships between operations, financing, and growth.
• Explanation of growth rate formulas clears up a common misunderstanding about these formulas and the circumstances under which alternative formulas are correct.
• Illustrate the importance of financial planning in a small firm.
• Recognize the percentage of sales method.
• Compute the external financing needed to fund a firm’s growth.
• Analyze the determinants of a firm’s growth.
• Analyze some of the problems in planning for growth.
• Justify the expanded discussion of sustainable growth calculations.
• Discuss the alternative formulas for sustainable and internal growth rates.
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Read in Ross, Westerfield and Jordan (2013) chapter 4 on pages 90-112.
Review the Lecture Notes.
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Program Outcomes |
Level of Contribution |
1) |
To gain basic knowledge about the basic functions in the field of business administration and to apply them in real life. |
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2) |
To use scientific research methods and technology in decision processes of business. |
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3) |
Evaluating the effects of political, legal, geographical, economic and technological factors on the competitive structure of the business area with team work and finding the necessary solutions. |
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4) |
To be aware of current issues in the field of business and to gain sensitivity to problems. |
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5) |
Transmission of written documents such as reports, printouts, internal correspondence orally in an effective manner. |
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6) |
Defining and analyzing the problem by forming a team within the framework of professional expertise and conceptual knowledge and using leadership qualities. |
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7) |
To be able to relate to other areas of business, to be aware of global and social ethical norms. |
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