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BA 360 - New Venture Finance
Winter 2006
Instructor: Jim Nielsen, Bexell 429, Office
Phone 737-3226
Office Hours: MON 1:00 - 2:00
TUE
9:00 - 10:00
WED
2:00 - 3:00
and by appointment
Prerequisite: ECON 201, BA 213 or BA 215, and junior standing
Required text: Brooks, Financial
Management: A Modern Approach (Preliminary
Edition), Pearson Custom Publishing, 2008.
Optional
Material: Wall Street Journal
Course
Objectives:
This course is designed to introduce you to the same topics
covered in the standard introductory finance class that all business majors
take (BA 340). The overriding objective
of BA 340 (and this course) is learning how to make good financial decisions.
Specific topics include the time value of money; risk and return tradeoffs;
stock and bond valuation; analyzing financial statements; preparing cash flow
projections, capital budgeting; financial planning; cost of capital; and
dividend and capital structure policy.
However, this course is unique in that we will use the
context of new ventures to study these topics and we will explore more deeply issues
that are critical to entrepreneurial start-ups and new ventures within existing
organizations.
In keeping with these objectives, the course will expose the
student to a number of readings, lectures, problems, and exams. In other words,
exams are also considered to be part of the learning experience.
Examinations and Grading Policy:
Two exams will be given during the term (a midterm and a
final). Each exam will be composed of problem type questions and will be
weighted equally. I do not give make-up exams. As a result, if you miss the
midterm examination your course grade will be determined on the basis of the
final (weight 70%) and homework (weight 30%).
This paragraph applies only to students who miss the midterm. For these students, homework problems assigned prior to
the midterm will be due on February 20th. The remaining homework problems will
be due on the day they are scheduled. These assignments must be turned in at
the beginning of class and late assignments will not be collected.
Everyone should understand that missing the midterm and
turning in the homework is NOT an option. I only allow this to happen in
situations where students are not able to come on the day of the midterm due to
a serious illness, death in the family, etc. In this case, the only reason I
collect homework is to see whether the student has been working in the class.
As far as I am concerned, copying my classroom presentation and turning it in
as your homework is graded as an F.
If you have a question regarding your grade on the midterm
exam, you must discuss this with me during my office hours by February 27th.
After this date, no changes will be made.
Academic Dishonesty:
See
AR 15 in the Schedule of Classes.
If you are caught cheating in this class, you will be given
an “F” for the course.
HANDOUT
DATE TOPIC CHAPTERS PROBLEMS
Jan 9 Introduction 1
11 Long Term Financing 6 (136-152), 7 (165,176,
193-195)
16 MLK DAY (no class)
18 Operating/Financial Leverage 12 (321-332)
23 Financial Statement Analysis 15 1
25 Margin and Turnover/ 10 (263-274) 2
Funds
Statements
30 Cash Budgeting 13 (353-357) 3
Feb 1 Working Capital/Forecasting 13 (347-353) 4
6 Cash and A/R Management 13 (358-367) 5
8 Case Problem
13 Case Problem continued
15 MIDTERM
20 MIDTERM DISCUSSION
22 Time Value of Money 2, 3 IN CLASS
27 Capital Budgeting 9, 10 (274-288) 6
Mar 1 Capital Budgeting 7
6 Short Term Financing 4 8, 9
8 Underwriting / Venture Finance SPEAKER
13 Cost of Capital 11 (295-308) 10
15 Capital Structure
FINAL EXAM – Monday, March 20th
at 7:30 AM
Location to be
announced
NOTE:
You
are also highly encouraged to review the material presented in Chapter 14 prior
to the final exam. This material will be
discussed in various classes throughout the term but not in the degree of
detail presented in the textbook.