Request: Northcentral U course syllabus

Can anyone squirt me the syllabus for FIN5013 - Investment Management (or any other finance related courses at NCU). I'm trying to determine the content for the PhD Finance program.

Please "PM" me if you can and I'll send you an email address.

Thanks.

 

Course content is here
http://www.ncu.edu/university_information/dpro_spec.asp?dpro_id=20&dpro_section_main_id=50

 

Last post

Thanks, but I'm trying to see the level of instruction in terms of the assignments, selected textbook, etc.

 

I was just doing some NCU textbook browsing here:

http://direct.mbsbooks.com/ncu.htm

It might open a little window into the program.

BTW, this is my first post. Nice to join you all!

 

DougC's post

Thanks. Excellent site. Are you in or planning on doing a NCU program? I'm accepted into their PhD BA program and just waiting for some work related timing issues before starting.

 

I'm just feeling the earliest stirrings of interest in a PhD/DBA. I'm a bit of a book nut, so checking out texts sometimes helps me clarify the depth and direction of my interest. Armed with titles I'll hit amazon and the publishers' sites.

Looks like the NCU programs have a lot to commend them.

 

Here is MGT5005-

If it looks bad, let me know and I can email it as .doc
COURSE OUTLINE


1. COURSE NUMBER & TITLE: MGT5005 Management Finance and Control

2. COURSE DESCRIPTION:
All organizations must manage financial resources through capital generation, asset planning, and asset management. Budgetary planning and controls, financial and risk analysis, and managerial decision-making are also detailed in this course.

3. COURSE LEARNING OUTCOMES: Learners will be expected to . . .
3.1. Learn the basic financial principles and concepts affecting the business firm.
3.2. Become familiar with fundamentals of investment analysis.
3.3. Know how to utilize financial resources to achieve goals of the firm.
3.4. Be able to analyze financial activities and their effects on the firm.
3.5. Understand the different types of securities and their utilization.
3.6. Recognize different components of the financial market and the characteristics of each.
3.7. Appreciate the role and activities of the financial manager in the operation of the firm.

4. COURSE CONCEPTS: Learners will understand the major concepts of . . .
4.1. Financial and profitability analysis.
4.2. Financial planning and forecasting.
4.3. Capital budgeting.
4.4. Internal and external financing.
4.5. Managing the capital structure.
4.6. Primary and secondary securities markets.
4.7. Mergers, acquisitions, and divestments.
4.8. Dividends and dividend policies.
4.9. Business promotion and finance.
4.10. Intermediate and current financing.
4.11. Time-value of money.

5. COURSE/LEARNING ASSESSMENT:
Learners are expected to complete all performance requirements for the course and to demonstrate mastery of the course concepts and learning outcomes. This will require Learners to use library resources and to document research with citations, bibliographies, and references as applicable in completing their coursework.

In addition to library research, mastery of course concepts may require demonstration of critical thinking and communication skills by a combination of examinations, term papers, oral presentations, self-assessments, and written assignments. Written assignments may be used to assess competency in graduate research writing skills.


6. PRIMARY TEXTS:
Block, Stanley B.B. & Geoffrey A. Hirt (2004). Foundations of Financial Management (11th ed.). McGraw-Hill Companies. ISBN 0072842296.

Block, Stanley B., and Geoffrey A. Hirt (2004). Study Guide and Workbook for Use With Foundations of Financial Management (11th ed.). ISBN 0072842334.

OR

Combination of text and Study Guide/Workbook ISBN 0073665630.

7. REFERENCES:

References and readings may be found in the primary textbooks.


COURSE SYLLABUS


COURSE NUMBER/TITLE: MGT5005 Management Finance and Control

FACULTY MENTOR: Joan Saunders
Please contact me through the NCU Message System.

PERFORMANCE REQUIREMENTS/COURSE GRADE:
Your grade for this course will be based upon mastery of course concepts as demonstrated by successfully completing the term assignment and final project.

Course Participation:
Learners are expected to be involved in a minimum of one scheduled instructional activity per week. To meet this expectation, learners must make contact with their faculty mentor on a weekly basis through one of the following methods:

· Posting of an assignment (e.g., a paper, project, etc.) in the Course Work area of the Learner’s web site.
· Posting of an assignment to share with the faculty mentor and other Learners in the course web site (e.g., a review of a book or article, a proposal for a research study, a presentation in the form of a PowerPoint presentation file, reporting on participation in a research study, etc).
· Participation in a threaded discussion in the course web site (e.g., commenting on a discussion question posted by the faculty mentor, providing feedback to another Learner, etc.).
· Viewing instructional materials (e.g., a PowerPoint presentation prepared by the faculty mentor, a streaming audio or video presentation, etc.).

Learners must use the NCU messaging system on the course web site to contact faculty mentors. Learners who fail to make contact within the time period of one month may be withdrawn from the course by NCU.

Term Assignment: In order to complete the requirements for this course, the learner must read the textbook and study guide/workbook and complete the midterm and final examinations that are attached to this syllabus.

Assignment Submissions: When you "create" new assignments, use headers and footers to indicate your name, course, and assignment number. Name the file using this format: DoeJMGT5005-1 The 1 stands for the assignment number. Save the file in RTF (Rich Text Format). Open the Learner Area; click on MGT5005. Find the Course Work area. Read the Help file by clicking on the ?. When ready, click on the + and select your assignment file by browsing. Your file will be uploaded to the server. Your mentor will receive a message that course work has arrived. When the mentor grades your work, the mentor will upload the graded assignment and you will receive a message that course work has arrived. You may then view your graded assignment in the Course Work area. If you have questions, please contact the Learners Affairs at ext. 8042 or [email protected] Bulk assignments are not acceptable. Assignment Cover Sheet http://learners.ncu.edu/common_documents.asp.
Academic Integrity: All work submitted in each course must be the Learner’s own. This includes all assignments, exams, papers, and other projects required by the faculty mentor. The submission of another person’s work represented as that of the Learner’s without properly citing the source of the work will be considered plagiarism and will result in an unsatisfactory grade for the work submitted or for the entire course, and may result in academic dismissal. To avoid plagiarism, do not “copy and paste” into any assignments without using quotations marks and citing in APA format the source of the material. Your work may be submitted to TurnItIn.com for originality evaluation.

Submitting Your Term Assignment: Your responses to the problems and questions on the midterm and final exams should demonstrate your ability to think critically using terminology and relationships presented in this course. It is recommended that each test be submitted for grading as soon as it is completed so that feedback can be provided.

Course Grade: Your course grade will be based on the faculty’s evaluation of your completed midterm and final exams plus your final project according to the points listed for each question/problem. Percentage grades will be converted to letter grades as follows:
A = 90-100%, B = 80-89%, C = 70-79%, F = 0-69%.

Final Project: Your final project consists of a term paper, which must explore some aspect of finance covered in the textbook. The paper should be approximately 8 to 10 pages in length and must emphasize your research capability, critical thinking, and a deep understanding of the subject. The term paper is worth 15% of your final grade. You may review your topic choice with your faculty mentor at any time during the course.

Your grade for this course will be based on mastery of course concepts as demonstrated by successfully completing the performance requirements.


The Pre-Course survey provides important feed back for course improvement. Each Learner’s comments and evaluations give input to course and syllabus improvement. Please be sure to complete the Pre-course survey on your Course Page found by clicking the Course Code.

RECOMMENDED SCHEDULE FOR COURSE COMPLETION:
Assignment 1 Weeks 1 - 2: Read Chapters 1, 2, 3; Solve Midterm Problems 1, 2; Answer Discussion Questions 1, 2.

Assignment 2 Weeks 3 - 5: Read Chapters 4, 5, 6; Solve Midterm Problems 3, 4, 5, 6; Answer Discussion Questions 3,4.

Assignment 3 Weeks 6 - 8: Read Chapters 7, 8; Solve Midterm Problems 7, 8; Answer Discussion Questions 5, 6, 7; Submit Midterm for evaluation.

Assignment 4 Weeks 9 - 11: Read Chapters 9, 10, 11; Solve Final Problems 1, 2, 3, 4; Answer Discussion Questions 1, 2.

Assignment 5 Weeks 12 - 13: Read Chapters 12, 13, 14, 15; Solve Final Problems 5, 6, 7; Answer Discussion Questions 3, 4, 5.

Assignment 6 Weeks 14 - 16: Read Chapters 16, 17, 18; Solve Final Problems 8, 9, 10; Answer Discussion Questions 6, 7; Submit Final Exam and Final Project for evaluation.

You are encouraged to complete this course as soon as possible; however, the course must be completed by the end of the course session as stated in the Course Registration Information Form.

The Post-Course survey provides important feed back for course improvement. Each Learner’s comments and evaluations give input to syllabus improvement and course design. Please be sure to complete the Post-course survey found in Course Review.

Last Updated: 4/23/04
Copyright(c)2004 Northcentral University

 

MIDTERM EXAMINATION---MGT5005

Analysis of problems (58 points total).

Please read the following problems and provide full responses. You may use additional paper if necessary.

Problem 1. (15 points )
Using the Sources (S) and Uses (U) information provided below, construct the year-end 2002 balance sheet for the Crystal Corporation.

Year-End Year-End Source
2001 2002 Change or Use
Assets
Current Assets:
Cash . . . . . . . . . . . . . . . . 310,000 $ 20,000 S
Marketable securities . . . . . 46,500 10,000 S
Accounts receivable (net) . . . 682,000 50,000 U
Inventory . . . . . . . . . . . . . 806,000 70,000 U
Prepaid expenses . . . . . . . . 54,250 5,000 S
Total Current Assets . . . . . $ 1,898,750
Investments . . . . . . . . . . . $ 69,750 10,000 S
Plant and equipment . . . . . . 2,480,000
Less: Accumulated
Depreciation . . . . . . 930,000
Net plant and equipment . . . 1,550,000 200,000 U
Total Assets . . . . . . . . . . . $ 3,518,500

Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable . . . . . . . $ 545,600 $ 68,000 S
Notes payable . . . . . . . . . . 68,200 6,000 U
Accrued expenses . . . . . . 124,000 10,000 S
Total Current Liabilities. . $ 737,800

Long-Term Liabilities:
Bonds payable . . . . . 511,500
Total Liabilities . . . . . . . $ 1,249,300

Stockholders' Equity:
Preferred stock,
$100 par value . . . . . . . $ 155,000
Common Stock, $1 par value 620,000 $ 100,000 S
Capital paid in excess of par. 271,250 50,000 S
Retained earnings . . . . . . . 1,222,950 53,000 S
Total Stockholders'
Equity . . . . . . . . . . . . $ 2,269,200
Total Liabilities and
Stockholders' Equity . . .. $ 3,518,500


Problem 2. (10 points)
The financial statements of the KMS Company for 2001 are given below:

THE KMS COMPANY
Balance Sheet for 2001

Assets 2001
Cash $ 31,500
Account receivable 46,000
Inventories 77,500
Total Current Assets $ 155,000
Net property 80,600
Other assets 6,200
Total Assets $ 241,800

Liabilities and Stockholders' Equity
Accounts payable $ 37,200
Notes payable (6%) 21,700
Accrued expenses 6,200
Total Current Liabilities $ 65,100
Long-term debt (8%) 46,500
Common stock (38,750 shares, $1 par value) 38,750
Retained earnings 91,450
Total Liabilities and Stockholders' Equity $ 241,800

THE KMS COMPANY
Income Statement for 2001

Sales $ 403,000
Cost of goods sold 311,550
Gross profit $ 91,450
Selling and administrative expenses. 58,125
Operating profit $ 33,325
Interest expense 5,025
Net income before taxes $ 28,300
Taxes (15%) 4,245
Net Income. $ 24,055

Problem 2 (continued)
Please calculate the following ratios for KMS Company:
2001

1. Current Ratio = Current Assets _____
Current Liabilities

2. Quick Ratio = Current Assets - Inventory _____
Current Liabilities

3. Inventory Turnover = Sales _____
Inventory


4. Debt to Total Assets = Total Debt _____
Total Assets

5. Times Interest Earned = Earnings Before Interest and Taxes _____
Interest

6. Profit Margin = Net Income _____
Sales

7. Return on Investment = Net Income _____
Total Assets

8. Return on Equity = Net Income _____
Stockholder's Equity

9. Total Asset Turnover = Sales _____
Total Assets

10. Times Interest Earned = Earnings Before Interest & Taxes _____
Interest

Problem 3. (7 points)

Using the following information, prepare a pro forma income statement for 2002 for Constructo Company:

a. Projected sales $13,000,000
b. Cost of goods sold 55% of sales
c. Selling and administrative expenses $120,000/month
d. Depreciation expenses $150,000/month
e. Interest expense $200,000
f. Tax rate 40%
g. Dividend payout rate 50%

Problem 4. (6 points)

Two brothers, Glen and Kurt, plan to establish the G-K Bike Company and manufacture bicycles. They estimate the fixed costs of operation to be $30,000 annually. The variable cost of producing the bicycles is forecasted to be $20.

a. How many bicycles must be sold to break-even if they are priced at $100?




b. If Glen and Kurt seek to earn $10,000 in profits, how many bicycles must be sold?




Problem 5. (6 points)

Construct a general break-even chart/graph and label the following parts:

a. Total revenue d. Profit area
b. Total cost e. Loss area
c. Total fixed cost f. Break-even point

Problem 6. (6 points)

Gary's Pipe and Steel Company expects next year's sales to be $800,000 if the economy is strong; $500,000 is the economy is steady; and $350,000 if the economy is weak. Gary believes there is a 20 percent probability that the economy will be strong; a 50 percent probability that the economy will be steady; and a 30 percent probability of a weak economy. What is the expected level of sales for next year?

Problem 7. (4 points)

Mark's Store has annual credit sales of $540,000 and an average collection period of 40 days. Assume a 360-day year. What is the company's average receivable balance?

Problem 8. (4 points)

Silly Sam is considering borrowing $300 from a loan company advertised in a service newspaper. The advertisement indicates that he may repay the principal plus "only $6.00 interest" at the end of the 30-day period. What rate of interest would he be paying?

Discussion Questions (6 points each)

Answer the following questions on separate paper. A few sentences and up to two pages per answer will suffice. Keep your answers concise and accurate. Do not write more than two pages per answer.

1. Contrast the liability provisions for a sole proprietorship, a partnership, a limited partnership, and a corporation.

2. What is free cash flow? Why is it important to leveraged buyouts?

3. Rapid growth in sales and profits can cause financing problems. Elaborate on this statement.

4. What does risk taking have to do with the use of operating and financial leverage?

5. Why are treasury bills a favorite place for financial managers to invest excess cash?

6. What is meant by hedging in the financial futures market to offset interest rate risk?

7. What is an asset-backed public offering?

 

FINAL EXAMINATION---MGT5005


ANALYSIS OF PROBLEMS. (58 points total)
Please read the following problems and answer any questions given. Please give full responses.

Problem 1. (5 points)
Mr. Joe Steam may elect to take a lump-sum payment of $50,000 from his insurance policy or an annuity of $5,650 annually as long as he lives. How long must Mr. Steam anticipate living for the annuity to be preferable to the lump sum if his opportunity rate is 8 percent?

Problem 2. (5 points)
Ms. Optimistic wishes to retire upon accumulation of $1,000,000. How many years must she work if she is able to save and invest $17,460 per year at 10 percent interest compounded annually?

Problem 3. (5 points)
The after-tax cost of Big Deal Corporation's outstanding bond is 6.1 percent. If the firm is in the 39 percent tax bracket, what is the before-tax (yield) of that debt?

Problem 4. (5 points)
The common stock of O-So Corporation is $200 per share. The expected dividend on its stock in the current period is $8 and the firm's cost of common stock is 10 percent. Determine the firm's dividend growth rate (assume that the growth rate is constant).

Problem 5. (10 points)
The Nanticoke Company utilizes the payback method to evaluate investment proposals. It is presently considering two investment opportunities:

Investment A Investment B
Net Investment = $100,000 Net Investment = $500,000

Year Cash Inflows Year Cash Inflows
1 $25,000 1 $125,000
2 25,000 2 250,000
3 25,000 3 300,000
4 25,000 4 225,000
5 25,000 5 100,000
6 10,000 6 25,000
7 5,000 7 0


a. Compute the payback period for each of the investments.

b. If the firm utilized a payback cutoff standard of three years, which, if any, of the investments would be acceptable?


Problem 6. (5 points)

City Manufacturing is evaluating an investment opportunity that would require an outlay of $100,000. The annual net cash inflows are estimated to vary according to economic conditions.

Economic Conditions Probability Cash Flow
very good .10 $ 35,000
good .45 28,000
fair .30 24,000
poor .15 18,000

The firm's required rate of return is 14 percent. The project has an expected life of six years.

Compute the expected NPV of the proposed investment.

Problem 7. (10 points)

Highway Trucking Corporation has recently received approval from regulatory authorities to expand its territory. The firm needs $20,000,000 to acquire trucks and other equipment for their expanded routes.

Company officials are confident that a 12-year term loan can be negotiated with a national insurance firm at an annual rate of 10 percent. The cost of arranging the loan is estimated to be $35,000. Alternatively, an investment bank has indicated that it will underwrite a common stock issue for a gross spread of 5.0 percent. The firm currently has 2,000,000 shares of stock outstanding.

a.If Highway's stock is selling for $35, how many shares of stock must be sold to net $20,000,000 assuming out-of-pocket costs are $200,000?

b.If the firm's earnings before interest and taxes increase to $10,000,000 and the applicable tax rate is 40 percent, what would the earnings per share be under each financing alternative? (Assume annual interest before financing of $1,000,000.)

Problem 8. (5 points)

The Bogus Company recently experienced a 2-for-1 stock split. Its partial balance sheet after the split is presented below.

After the stock Split
Common stock (12,000,000 shares at $.50 par) . . . . . . . . . . $ 6,000,000
Capital in excess of par . . . . . . . . . . . . . . . . . . . . . . 4,000,000
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000,000
$ 20,000,000

a.Reproduce the partial balance sheet that existed before the stock split.

Problem 9. (4 points)

The Glow Corporation issued $1,000 thirty-year bonds that pay $110 annually in interest and are currently selling at par.

a.What is the coupon rate?
b.What is the current price of the bonds?
c.What is the current yield?
d.What is the yield to maturity?

Problem 10. (4 points)

The stock of JKL Corporation is currently trading at $30 per share. The firm's dividend yield is 8 percent.

a.If the firm distributes 40 percent of its earnings, what are the earnings per share?
a.What is the firm's P/E ratio?


Discussion Questions (6 points each)

Answer the following questions on separate paper. A few sentences and up to two pages per answer will suffice. Keep your answers concise and accurate. Do not write more than two pages per answer.

1.What two components make up the required rate of return on common stock?

2.Why is the cost of new common stock (kn) higher than the cost of retained earnings (Ke)?

3.What are the important administrative considerations in the capital budgeting process?

4.Discuss the major implications of the Securities Act of 1933 and the Securities Exchange Act of 1934?

5.What are some reasons a corporation may prefer to remain privately held?

6.Under what circumstances would a call on a bond be exercised by a corporation? What is the purpose of a deferred call?

7.What advantages to the corporation and to the stockholder do dividend reinvestment plans offer?

 

Randell's post

Thanks Randell. This great. I'm reading the posts and will call Susan at NCU. I'm accepted into the PhD BA and since I want to do the stats course anyway, will likely decide whether to covert to the DBA down the road. I'm working towards an MAI designation in commercial real estate valuation, which requires a final project. I think that if I can parlay my NCU dissertation to suite my needs for the MAI, then I'd do the DBA, since it would have to be an applied research product. I don't think I could bend the PhD dissertation far enough to make it work as well as the DBA.

 

In looking at the syllabus, I noticed the text was Block & Hirt.

It has been a long time since I looked at the text books, but I seem to recall that Block & Hirt is an undergradute book.

The questions also seem to be mostly undergraduate. Is the FIN 5013 supposed to be a doctoral level?

 

FIN5013 Investment Management

PRIMARY TEXT: (for FIN5013 Investment Management)
Sharpe, William F., Gordon J. Alexander, and Jeffery V. Bailey (1999). Investments (6th ed.). Englewood Cliffs, NJ: Prentice-Hall. ISBN 0130101303.

 

Sorry, that should have been MGT 5005, not Fin 5013 for which I saw the Block & Hirt text.

The Sharpe book for FIN 5013 also appears to be an introduction undergradute text - the preface of the book says, "We have structured Fundamentals to present students taking their first course in investments"

 

Is that uncommon??? For example, when I graduated with a MA from the state university system, I was required to buy the following book for a graduate-level stat course:

• Interpreting Basic Statistics
  ISBN 1-884585-39-6
  Sample Source

My undergraduate statistics textbook from a private college was much more rigorious than my graduate statistics textbook from a state university.

 

I don't know what is "common".

I can tell you that for both my MBA and MS Finance, the books we used were not undergraduate introduction books. When I taught finance, I looked for different books, depending on whether the course was undergraduate or graduate. Although many of the topics were similar, what they did with them and the level of discussion was very different.

To proceed to a PhD level in business where specific there exists a specific core course requirement, I would think necessitates something other than an introductory text in the major field.

There are probably some very well written and advanced texts that can be used at the graduate level, such as the but I think this may be the exception rather than the rule.

 

At a glance, how can one tell an undergraduate textbook from a graduate textbook? In your opinion, what is the difference between the two? Do the publishers (or authors) make a distinction between undergraduate and graduate textbooks that is readily identifiable?

My undergraduate degree is in business management and my graduate degree is in criminology, so it is not realistic for me to compare undegraduate business textbooks with the textbooks we used for criminology at the graduate level.

 

It is usually discussed in the preface of the text book. I have found the discussions to generally be an accurate description of the book.

Also, I have found that the accounting and finance text books I use are catagorized (graduate, undergradute, introductory) by the publishers.

 

I wish I had saved all my undergraduate and graduate textbooks, but I was simply collecting too much and "cleaned house" one day and got rid of them all. I figured that all future collegiate endeavors would comprise the reviewing of professional journals and saw no need to collect college textbooks, some of which seemed worthless at the time. I did save all my textbooks and notes on statistics, figuring they might come in handy in the future during a dissertation.

 

Because I need reference material in my work, I hung on to my advanced undergraduate and graduate texts for a while, but found I had to get updated copies due to the changes in the information.

 

Great discussion and a web search (.edu sites)using various terms showed this text being used in undergraduate and graduate classes.

This may help:

http://www.prenhall.com/financecenter/html/catalog/0130101303.html