Finance for Operations Managers
Term MSOM 2009-10 Academic Year Term I
Instructor Name: Dennis Mickelsen
Email: firstname.lastname@example.org or email@example.com
Catalog The scope and environment of finance for operations
Description managers, including financial markets, interest rates, financial
statements, cash flows, and performance evaluation;
valuation of financial assets using time value of money and
meaning and measurement of risk and return; capital-
budgeting, cost of capital, capital structure, and dividend
Prerequisites Familiarity with Microsoft Excel and/or Use of a Financial
Calculator such as the TI BA II Plus.
Required Foundations of Finance by Keown, Martin, Petty, and Scott, Jr., 6th
Textbook edition, Prentice Hall Publisher
The Wall Street Journal, The Financial Times, and The
References Economist are excellent resources for research and course
Course The objective of this course is to introduce the fundamental
Objectives financial tools and techniques required in managerial decision
The student should be able to:
1. Read and interpret internal and external financial
Outcomes reports and financial statements.
2. Use financial statements and reports to measure
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3. Use financial statements and reports to improve
strategic planning and decision making, and thus
improve organizational performance.
4. Understand the time value of money and how the
concept is used for decision making.
5. Understand the concept of cash flow and its impact on
6. Analyze current business articles and relate them to
accounting, finance and management decisions and
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Assigned problems and
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90 - 100%
80 - 89%
70 - 79%
65 - 69%
The grading scale above reflects the baseline for the course.
Based on the general performance of the class as well as
individual performance throughout the course I may lower the
cut-off for some or all of the letter grades. Such changes will
not occur until all graded events have been recorded.
Activities • Students are encouraged to participate actively in class in
regard to analysis and discussion of reading material,
lecture material, problems, and cases.
• Class time will be devoted to lecture, discussion, and
analysis of assigned problems. Students should complete
readings and assigned problems prior to class meetings.
Written answers should be prepared for all assigned
problems; they will be considered in determining course
• Students should expect to spend substantial amounts of
time, in and out of class, to keep up with readings and
assignments. Frequently, there may not be sufficient time
to review all assigned work & topics in the classroom.
However, it is an important learning tool to attempt all
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tasks, and ask questions on any unclear concepts and
problems. Students are encouraged to work together on
homework and projects.
• Paper: A financial analysis of a company of the student’s
• Homework and projects are due on the date indicated on
the syllabus, or as modified in class.
Policy University policies are provided in the current course catalog
Statements: and course schedules. The following policies are of
Policies Academic Honesty
• The University of Arkansas strives to be a center of
academic excellence. As part of our Statement of
Ethics, the University strives to preserve academic
honor and integrity by repudiating all forms of academic
and intellectual dishonesty, including cheating,
plagiarism and all other forms of academic dishonesty.
Academic dishonesty is unacceptable and is subject to
a disciplinary response.
• Students who are caught cheating or committing
plagiarism may be given a failing grade in the course by
the professor and may be subject to dismissal or
• Plagiarism is often misunderstood. It can be defined as
submitting someone else’s work as your own. It is not
permissible to “cut and paste” and then just cite
another’s work. In writing for homework or projects,
you should read and learn, process through your mind,
relate ideas, and then express what you learned in your
own words. Cite the references where you found your
information. If you do use someone else’s words, you
must use quotation marks and cite. You should not
overuse quotes – save them for a rare occurrence.
Students should check their e-mail on a daily basis.
Class announcements including unexpected
cancellations will be e-mailed to your.
Since every student is entitled to full participation in
class without interruption, disruption of class by
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inconsiderate behavior is not acceptable. Students are
expected to treat the instructor and other students with
dignity and respect, especially in cases where a diversity
of opinion arises. Students who engage in disruptive
behavior are subject to disciplinary action, including
removal from the course.
If the base closes for inclement weather or other
reasons, your program coordinator will be the first to
know. She will call the professors and send the students
e-mail advising of class cancellations. If your professor
cancels a class he/she will contact the site coordinator,
and she will send an e-mail to the students in that class
advising of class cancellation.
Course Policies This syllabus may be revised at the discretion of the
instructor without prior notification or consent of the student.
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The schedule below presents an approximate expectation of course
progress. The instructor reserves the right to add, delete, or modify any
weeks of this schedule. Any changes will be announced in class. All
assignments must be completed in typewritten format.
Ses Topic and Chapter Assignment
1 • Introduction to Foundations
of Financial Management,
2 • Financial Markets and Problems 1-14,
Interest Rates, Chapter 2 2-3, 2-6
3 • Understanding Financial
Statements and Cash
Flows, Chapter 3
4 • Understanding Financial Problems 3-1,
Statements and Cash 3-2
Flows, Chapter 3 Cont’d
5 • Evaluating a Firm’s
6 • Evaluating a Firm’s Problems 4-6,
Financial Performance, 4-8, 4-10
Chapter 4 Cont’d
7 • Mid-Term Exam (Chapters
1, 2, 3, 4)
8 • Time Value of Money,
9 • Time Value of Money, Problems 5-1,
Chapter 5, Cont’d 5-2, 5-3, 5-4,
5-6, 5-10, 5-12,
5-113, 5-14, 5-16,
10 • Meaning and Measurement
of Risk and Return, Chapter
11 • Student Presentation of Problems 6-1,
Case 6-6, 6-11
Techniques and Practice,
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12 • Student Presentation of
• Continuation of Capital-
Budgeting Techniques and
Practice, Chapter 9
13 • Student Presentation of Problems 9-4,
Case 9-5, 9-7
• Cash Flows and Other
Topics in Capital Budgeting,
14 • Student Presentation of
• Cost of Capital, Chapter 11
15 • Student Presentation of Problems 17-1,
• International Issues
Affecting Financial **Paper due
Performance, Chapter 17
16 • Course Wrap-up
• Final examination (Chapters
5, 6, 9, 17)
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This assignment will be completed as a team exercise. The team should
select a publicly traded company. Research the company and a competitor
in the same market, using at least 3 sources with recent information. The
Internet is the best source for a public company. Prepare a typewritten
summary of this analysis and a presentation for the class. Key elements of
this analysis will include:
• A brief background of the company, e.g., where it is located, when it
was established, the name of the CEO, and what the company does.
• A ratio analysis of strengths and weaknesses (use Key Financial
• Other factors affecting the company, including competitive factors,
macro-economic factors, new products, etc.
• Your assessment of the future of the company.
• Whether you would recommend purchasing stock in the company.
• A bibliography. The bibliography is a separate page.
• You may attach as many exhibits as you wish to support your paper,
e.g., financial statements and other information you obtain from the
Internet or elsewhere.
Each team will present the analysis during a class session. The presentation
should be a minimum of 15 minutes in length.
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