MBA 610

Fall 2010

Hilbert III

Instructor Information

Jim Mahar,

Contact Information

• Office Location:  Murphy 231
• E-mail address:    jimmahar@yahoo.com, jmahar@sbu.edu
• Phone number:     716.375-2359 (BUT RARELY THERE--ask in class for cell)
• Office Hours:       T 1:30-4:30. W 1:30 to 2:20 Online whenever...
• Twitter    http://twitter.com/jimmahar

Course Description

 MBA 610 is an advanced course in corporate finance.  Its purpose is to use the theory underlying corporate financial decisions developed in MBA 604 or other financial foundation course(s) to evaluate more sophisticated corporate decisions and issues.  We will extend and implement some concepts and techniques developed in MBA 604 (such as external financing, NPV analysis, and cost of capital) as well as cover new topics (such as capital structure, dividend policy, long-term financing, mergers and acquisitions, introductory option valuation, and applications of option pricing to corporate finance.)  The student is expected to apply these concepts and techniques to make intelligent analyses and well-reasoned decisions.

Course Objectives

• Describe the model of the financial system
• Explain the nexus of contracts model and discuss its importance through the eyes of various stakeholders (and be able to identify the incentives of various stakeholders)
• Apply Time Value of Money techniques in both personal and corporate decisions
• Correctly use various valuation techniques
• Identify opportunities to use finance theory
• Explain the implications of the Market Efficiency Hypothesis
• Understand the basics of behavioral finance
• Discuss intelligently differing capital structure theories
• Discuss the advantages of alternative capital structures
• Understand basic deriviatives and be able to explain uses and risks
• Discuss corporate governance crises and be able to identify good and bad practices in the field
• Discuss common trends in the finance

Prerequisites

            You have to have passed or waived MBA 604

                        you should be familiar with the Nexus of Contracts,  Time Value of Money, Capital budgeting, Valuation, Risk and Return, CAPM, and WACC.

            The textbook website is http://highered.mcgraw-hill.com/sites/0072338792/student_view0.  It contains multiple choice quizzes, essay quizzes, problems, and spreadsheet templates.

Class website: FinanceProfessor.com

            The Web site is meant as a means of assistance to you and not as a replacement for text or coming to class.  For some chapters there will be much online coverage, for others there will not be as much coverage.  Remember this is not meant to replace your other means of learning

Office Hours: see above and by appointment.

Please see me or contact me if you have questions.  Do so early before a problem becomes unmanageable

Required Texts and other Materials

1. Corporate Finance, Stephen A. Ross, Randolph W. Westerfield, and Jeffrey Jaffe (Irwin/McGraw-Hill, 2009, 9^thedition).  (8th edition is OK)  We will be using the book and you are expected to read it, BUT will probably not be collecting specific homeworks so  to do so is at your own peril.

2. Connect through McGraw Hill

3. Access to FinanceProfessor.com and Financeclass Blogs

4. Cases: to be announced:

Supplemental Texts and Websites

Text Website

Class website: http://www.financeprofessor.com/mba610/MBA610mainpagefiveweek.html

FinanceProfessorblog.blogspot.com Financeclass.blogspot.com

twitter.com/Jimmahar

Technology Requirements

• Proficiency in Excel, an internet browser etc
• A basic calculator able to do exponents is required for every class.

Evaluation Procedures

Students will be evaluated based on their performances on exams, quizzes, projects, and class projects.

• Exams will assess your comprehension of the covered topics as well as your ability to apply the concepts and theories to new and different situations.  One exam will be given during the course of the semester as well as a comprehensive final exam.  The dates for the exams are tentative.  The date of the final is determined by the university calendar.  Students who are absent from an exam without prior permission from the instructor will receive a “0” on that exam.

• Cases will be done as a group projects.  Each group will have approximately 3 members. Students will form their own groups.  Failure to hand in projects on time will result in a zero for that project.

Grades

            Class participation, attendance, homework/quizzes

28%

            Cases                                                               12%

            Midterm                                                           25%

            Final                                                                 35%    

Grading Scale

Due to the difficulty of the class, I reserve the right to grade on a curve, however, in the absence of that eventuality,  the schedule of grades will be as follows:

            A         90 – 100%

            B+       83 – 89.9%

            B          70 – 82.9%

            C         Below 70

Description of Instructional Methodology

Early classes are largely lecture-based although students will have periodic opportunities to work through material in class, either alone or in collaboration with other students.  In the later part of the semester we will be doing cases for which students will need to present. 

University Policies

Academic Honesty Policy at St. Bonaventure University:

I am committed to St. Bonaventure University’s academic environment for students, supporting and rewarding only the highest standards of ethical behavior.  That said, academic dishonesty, in any form, will not be tolerated.  Please consult the St. Bonaventure University Student Handbook for a list of unacceptable practices, penalties to be assigned and procedures to be followed in prosecuting cases of alleged academic dishonesty.  Further, the St. Bonaventure University Undergraduate Catalog may be consulted for specific details on all academic policies at St. Bonaventure.

Short version:  don’t cheat.  If you do and I catch you, you lose.  I will also be offering bonus points on the tests as a means of rewarding students for turning in other students who do cheat.  I also will most likely be screening multiple choice exams for high correlations.

Students with Disabilities

Students with disabilities who believe that they may need accommodations in this class are encouraged to contact the Disability Support Services Office, Doyle Room 26, at 375-2065 as soon as possible to better ensure that such accommodations are implemented in a timely fashion.  Documentation from this office is required before accommodations can be made.

            Short Version: Let me know and I will help you or help you find help.

Instructor Policies

Attendance

As you can see from the schedule, we will be investigating a new topic at nearly every class.  It is critical that you come to class.  Students who aren’t in class on a regular basis will not do well.  Students are also expected to be on time for class and to be prepared. 

   Short Version: come to class whenever possible

Participation

Students are expected to actively participate in class by asking and answering questions.  NOTE: attending class should not be confused with participation!

   Short Version: Participate

Preparation

Students are expected to have the reading assignment completed when they arrive at class.  While some material is difficult and may need additional explanation, students should have a basic understanding of the concepts that are to be covered that day. 

   Short Version: come to class prepared

Courtesy

Students are expected to arrive on time and prepared for each class meeting and to refrain from behavior that distracts other students (answering cell phones, text messaging, etc.).   You can use (and are encouraged to do so) lap top computers in classes (not in tests).  However, the computer should be used for class-specific activities only (so no instant messenging or email etc.—exceptions will be made on draft day ;) )

   Short version: remember the golden rule.

Collaboration

There will be occasions during this course when students will be given the opportunity to work collaboratively with one other student or in a larger group.  Collaborative work allows students to learn from each other.  Individual participation is key to the success of any collaboration.

     Short version: work well with others

REPEAT   Academic Integrity

            DON’T CHEAT!!!

            Exemplary academic integrity is expected and assumed.  Violating this assumption to any degree is not tolerated and carries severe consequences.  . 

     Be sure to give credit (cite) work in homeworks, papers, cases etc.  For instance, much of this syllabi (the various policies) and the format are a product of an email from Barb Russell and Mike Fischer.  So if it looks familiar, that is why. 

COURSE OUTLINE is available at 

http://www.financeprofessor.com/mba610/MBA610mainpagefiveweek.html