DePaul University

Finance 555 - Financial Management

 

Dr. Joseph Vu
Office: 6121 DePaul Center
Phone: (312) 362-5121
Office Hours: Wednesday 2:30 - 5:00 p.m.  & by appointment

Required Text:

Brigham, Gapenski, and Ehrhardt, Financial Management: Theory and Practice, 9th edition.

Other Resources:

Wall Street Journal and Barron's

Course Objective:

This course is designed to develop the students' logic and understanding of important factors in corporate financial decision making. The important topics include: time value of money, risk and return,0 firm valuation, capital budgeting, financial ratios, cost of capital, and capital structure.

Class Preparation:

It is expected that students read and study in depth all assignments relating to a chapter before the class meeting. The average student should expect to spend two hours in preparation for each hour in class. You are expected to do the assigned end-of-chapter problems, which will be discussed at the beginning of the next class meeting.

Grade Policy:

There are two exams. The mid-term examination comprises 50% of the course grade, and the final examination will also count as 50% of the grade. The examinations will include numerical problems and essay questions.

LECTURE      TOPICS                                                             ASSIGNMENTS           PROBLEMS

 1                       An Overview of Financial Management                 Chapter 1                       1-5, 1-9, 1-10

                          Financial Statements, Cash Flow, and Taxes         Chapter 2                       2-2, 2-3, 2-13, 2-14, P2-14
 

 2                       Analysis of Financial Statements                          Chapter 3                        3-2, 3-5, 3-6, 3-8, P3-13

                         The Financial Environment                                   Chapter 4                       4-2, 4-7, 4-10, P4-1, P4-3, P4-9
 

 3                      Risk and Return: The Basics                                 Chapter 5                      5-4, 5-5, P5-10, P5-15

                        Risk and Return: Extensions                                 Chapter 6                       6-2, P6-1

 4                     Risk and Return: Extensions (cont'd)

                        Time Value of Money                                         Chapter 7                         P7-1, P7-2, P7-3, P7-4,
                                                                                                                                        P7-5, P7-6, P7-7, P7-9, P7-11
 
 5                     Bonds and Their Valuation                                 Chapter 8                         8-4, 8-7, P8-1, P8-2, P8-13

                        Stocks and Their Valuation                                 Chapter 9                         9-2. P9-2, P9-4, P9-7

 6                     MID-TERM EXAMINATION (50% of total grade)

 7                     The Cost of Capital                                          Chapter 10                         10-4, P10-8, P10-12

                        The Basics of Capital Budgeting                       Chapter 11                         11-5, 11-7, P11-6, P11-14, P11-19

 8                     Cash Flow Estimation and                                 Chapter 12                        12-4, 12-6, P12-5, P12-6, P12-8
                        Other Topics in Capital Budgeting

 9                     Capital Structure: The Basics                             Chapter 15                        15-10, 15-12, P15-1, P15-3

                        Capital Structure: Extensions                             Chapter 16                        16-2, P16-2, P16-3

10                     Distributions to Shareholders:                           Chapter 17                        17-2, 17-9, 17-10
                        Dividend and Repurchases

11                     FINAL EXAMINATION (50% of Total Grade)