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FINA 2209 – Financial Management (#Fin2209)

Spring 2023 Syllabus

Course description:

Designed to develop the financial skills and logical thought processes necessary to understand and discuss financial policy decisions in a global economy. Specific objectives include developing an understanding of the time value of money, the cost of capital, capital asset pricing and risk measurement, short-term and long-term financial policies, using financial statements in decision making, and developing an understanding of financial markets. Students will study the cost of capital, stock and bond valuation, management of short-term assets, short-term and long-term financing, and capital markets. Offers opportunities to consider many broader issues including the relevance of globalization, the world economy, technological advances, and legal, social, and ethical issues.

Course Objectives:

· Analyze the financial performance of a company.

· Understand the financial health of a company by analyzing financial statements through trend analysis and ratio analysis.

· Understand the Time Value of Money (TVM) concept and the impact it has on business and personal financial decisions.

· Calculate the cost of capital using the Capital Asset Pricing Model (CAPM) and other methodologies.

· Apply discounted cash flow techniques to make capital budgeting decisions and to value financial assets such as stocks and bonds.

· Use spreadsheets to help solve business problems.

· Describe how managers determine short-term and long-term financing needs of a company.

· Understand the differences between debt and equity in a company’s capital structure.

Course Overview:

The content of this course is organized into weekly folders (or more) in Canvas.  Each folder contains a number of assignments that relate to the topics for the week.  You are expected to complete all assignments, practice exercises, etc., in each week and lessons by the stated deadlines.  You will apply theory and concepts with online interactive exercises and homework assignments. At the end of this syllabus you will find some tips/guidelines for being successful in an online course.

Course Materials:

•  Textbook (Online Edition): Essentials of Corporate Finance, Ross, Westerfield, and Jordan, McGraw-Hill, 10^th edition. Note that by buying the Connect HW solution online, you also get online access to the text. Please buy the Connect HW solution using the link that is on Canvas. Doing this will get you integrated with Connect and Canvas and you will also be able to access the eBook from Canvas as well as view your connect scores on Canvas. Since this is an online course, I would rather that you learn through a digital copy of the text. If you do want a hard copy, please contact McGraw Hill and they can send you a printed version of the text. Please buy the Connect HW solution and Text from my registration link for Connect present on Canvas. There is no copy of the text or HW available at the bookstore.

• Calculation Tools: Financial calculator or a spreadsheet program – either the BAII+ or the TI-83 financial calculator is recommended.  Excel, however, is strongly recommended.

• Online HW and Exams: McGraw-Hill Connect, as well as the registration of it into this course, is required.  Your Connect homework will be completed and submitted via McGraw-Hill’s website.

· Conceptual Interactive Modules: These modules will help you understand the core concepts and will need to be done after reading the chapter.

The Wall Street Journal: (Discount subscriptions are available. Please see me for application forms.) While subscription to the WSJ is not mandatory, it is recommended to help one understand the financial zeitgeist of the current times.

Academic Honesty

Students are expected to adhere to the highest ethical standards. Northeastern University is committed to the principles of intellectual honesty and integrity. The official policy is available at http://www.northeastern.edu/osccr/academichonesty.html. Work assigned as independent will be done solely by each student.  Plagiarism is the theft of ideas from others.  If it did not originate from your brain, you should cite the source.  Students must be aware that any of the following oversights (intentional or not) constitute plagiarism:

· Failure to place exact text or quotes in quotation marks

· Failure to cite exact text

· Paraphrasing without citation of the original source

· Summarizing without citation of the original source

If a student uses any words other than those crafted by his/her own thought process, acknowledgement must be given to the original author. All students will be held accountable for understanding correct citation guidelines.  To avoid potentially severe penalties, students should go to the Avoiding Plagiarism link on the Northeastern Library website at http://subjectguides.lib.neu.edu/content.php?pid=10382&sid=155546.  Within this link is a related link from Indiana University which provides specific examples of plagiarism: http://www.indiana.edu/~wts/pamphlets/plagiarism.shtml 

While I encourage you to study together, you are expected to complete your spreadsheet assignments and exams independently.  Anyone caught violating this policy will be referred to OSCCR.

Grading policy

Your grade will be calculated as below:  

Connect HW problems 15%

Exam 1 15%

Exam 2 15%

Company Paper               20%

Class Participation 15%

Final Exam 20%

Total 100%

Please mark your calendar with the exam days and times and make arrangements to be available at that time.  Everyone will need to take the exams on the given dates. There will be no make-ups for any exam.  The exam is open book, so you may consult your text and other course materials.  However, you may NOT use other internet sources or consult with individuals.  You are expected to work independently– no group work.

Please keep in mind that Canvas will contain your Connect scores and Exam scores. Also, note that while you are able to view individual homework assignment scores as well as your exam scores in Canvas, I maintain a separate confidential scorecard which, in addition, to the scores from Canvas will contain scores from your company paper as well as class participation scores.

Note that grading standards for this course are set and modified at my discretion. I reserve the right to modify grades and not adhere to the policies detailed in this syllabus, at any time. Candidly, I have the reputation of being very fair but, if someone misses an exam or does not complete all the homework assigned or submits sub-standard work for the company paper, then naturally, I will have to take appropriate action, including reduction in grade points.

Grading Scale

A 95% and above C+ 77 – 79 D+ 67 – 69

A- 90 – 94 C 73 – 76 D 63 – 66

B+ 87 – 89 C- 70 – 72 D- 60 – 62

B 83 – 86 F Below 60%

B- 80 – 82

Connect HW, LearnSmart Tools:

Connect is required for my section of FINA-2209. If you already have a valid

subscription for Connect for our text, please go directly to the Connect enrollment

instructions on Canvas. For those who don’t have Connect, subscription instructions

will be placed on Canvas.

Some students have had some difficulty accessing Connect from Mac computers. If you

use a Mac, check your Connect accessibility early so that you can adapt as necessary.

All technical questions should be sent over to McGraw Hill tech support who can be

reached via email or phone.

In addition to reading preparation for each week, for each chapter there are weekly Connect homework assignments, both practice and graded. These assignments are required of all students. Please read and comply with the Connect instructions. The assignments are due each Monday, and there will generally be multiple Connect assignments due each Monday, so be sure to allow sufficient time to complete them properly.

Students are expected to complete and submit all Connect graded assignments by midnight on the specified due dates. There will be no extensions. An extension may be provided if you have a serious emergency. If you have an emergency – I will need documentation to submit to the office. All assignments will be computer graded and scores and completion statistics will be reported by Connect.

Class Participation:

Since this is an online class, I will measure your participation levels by reviewing your tweets on topics relevant to the subject matter covered in class. A Twitter feed around my username will be placed on Canvas.

Pretend that you are the CFO of the publicly traded company that you are analyzing for this course. An executive requires to be a strong communicator, a problem solver and have a growth outlook.

To begin using Twitter:

· Please create an account and choose a username using the naming standard as follows. E.g. @Spring22”Company ticker symbol”CFO. So if your company is Amazon (AMZN), your Twitter handle should be @Spring22AMZNCFO. If your username is not available, it is safe to say that someone else from your class has chosen your company. You can still choose the same company but modify the username so that it is @Spring22AMZNCFO2. (Note that you will now be competing with another student(s) which means that you will have to ensure that your tweets differ.)

· Follow my account @ProfLowell.

· I may tweet requests for participation around certain topics by posing comments and questions. Otherwise, please tweet around the subject matter covered for the week.

· Tweet comments and observations on the chapter of the week in question but relate the tweets to the company that you have chosen for analysis for your company paper. Be precise and insightful and keep your comments to 280 characters. Twitter allows for 280 characters since Nov 2017.

· Before tweeting, read your tweet carefully. Edit, rewrite and analyze your tweet before you post it. This is a quality that will hold you in good stead in the corporate world and in life.

· Please attach the hashtag #Fin2209 to your tweets and address all tweets to me @ProfLowell.

· Please refrain from retweeting material that is frivolous, disrespectful and is not in line with the code of conduct policies of NEU.

· Please ensure that you provide your Twitter username with your company paper so I can review your tweets and give you credit for class participation.

· Bonus points are possible if someone utilizes new tools or tech and shares that with the class.

· I expect around 3 concise and insightful tweets a week from each student. Additional incisive tweets will be noted by me and could be ‘money in the bank’ but it is at my discretion only.

· Towards the last week of the course, please collect all your tweets in a word doc and include them within the appendix of your company paper. Also indicate if you have retweeted other tweets of relevance and if you have ‘liked’ certain tweets of relevance and why you liked them.

Examples of acceptable tweets:

Example 1 (Week when we cover Dividend policy):

Tweets from students:

@ProfLowell #Fin2209 MRNA’s stock appreciation of >6X has resulted in capital appreciation but it is not a good buy for an income investor since it has not paid out any dividends. The biotech industry dividend payout tends to be <1% annually. Perhaps, this is because of the high cash burn rate for this sector.

@ProfLowell #Fin2209. GE’s reputation as a strong dividend stock is under siege. Since late 2018, their quarterly dividend is a penny per share. They have serious Covid trouble – potentially laying off 13K jobs in their aviation group.

Example 2:

Sample Tweet from @ProfLowell:

The new Tax Cut and Jobs Act has corporate taxes down to 21% or so and yet companies are complaining? Wonder why. #Fin2209.

Responses from students:

@ProfLowell #Fin2209 Possible that it may not apply to all firms. Even before this law,  corp tax rate varied for different classes of firms – my company - P&G paid 28% corp tax in 2017. In prior years, on average their effective tax rate was 30%.

@ProfLowell #Fin2209 New tax laws apply mostly to manufacturing sector & is another way to drive more mfg in the US. CPAs at my co-op said that cos are waiting for IRS guidelines. Btw, Boeing paid $1.2B in taxes in 2018 at an effective tax rate of 23%.

Example 3:

Sample Tweet from @ProfLowell:

Our topic this week was ratio analysis which uses ratios to analyze the financial health of a company. How are your cos faring with respect of profitability ratios, asset management ratios and liquidity ratios compared to your competitors? #Fin2209.

Responses from students:

@ProfLowell #Fin2209 P&G’s liquidity ratios are stronger compared to Unilever. Their current ratio is 1.2 compared to Unilever’s 0.9, their inventory turnover is 5X compared to 4.5X for Unilever.

@ProfLowell #Fin2209 Boeing operates with limited competition – Airbus & Bombardier. Liquidity is not as good as Airbus. Boeing is at 0.3% for current ratio whereas Airbus is at 0.4%. Profitability is low with GM at 7% and Airbus GM at 8%.

Discussion board:

I will also have a discussion board on Canvas for two short assignments.

Assignment 1: 

Write a 7-9 sentence paragraph explain why you are analyzing your company of choice for your company. To be submitted within the first 7 days of this course.

Assignment 2:

Part 1: Write a 7-9 sentence analysis on how the Covid-19 pandemic has affected your company.

Part 2: Comment on a classmate’s analysis about whether you agree or disagree and why.

Part 3: Respond to peer comment(s) to your analysis. Agree or disagree with your peer and explain why.

This assignment is to be completed by April 14.

Assignment 3: This assignment may be added to the discussion board in March.

Homework

Connect Assignments

As with most classes, practice is the best way to truly learn the material, so attempt any assigned problems seriously prior to seeking help from the TAs or your instructor.  In addition, the nature of the course is such that each topic builds on previous material so it is important to understand the early topics and to not fall behind.

Your homework assignments should be completed online through Connect.  The information for accessing Connect is given in the beginning course information.  Connect assignments will be graded by Connect. The SmartBook modules on Connect are for practice only.  They will not be graded.

All assignments should be submitted by the due date specified below in order to receive a grade. Please refer to Connect for specific details.  Please note that all problems in an assignment must be completed before submitting for a grade.  All Connect homework problems can be found at the end of the related chapter AND on Connect.

Exams – Q & A Chats:

To assist with review preparations before the exam, I plan to hold ‘Q & A Chat’ sessions possibly via Zoom or Teams. Dates for these sessions are noted in this syllabus. Attendance for these sessions are non-mandatory.

Resources

I am always available by e-mail and by phone, upon request.  In addition, there are two other resources if you are having difficulty with the material.  Teaching assistants are available via email or phone (if needed) to help all students in the introductory finance courses.  Their hours will be posted in the announcements.  In addition, Connect offers “SmartBook” modules that help you to review the material.  If you are having difficulty with a particular concept or chapter, working through the SmartBook module can be very helpful.  It is another way to make sure that you have a firm grasp of the concepts and applications in this course.

COURSE SCHEDULE:

Week 1: Introduction to Financial Management: Jan 09 – Jan 17

Read: Chapter 1

View/Listen: Video Lecture by Prof. D’Souza

Practice: Connect SmartBook Exercise Chapter 1 (no due date)

Company Paper assigned. Please select a publicly traded company that you wish to analyze and post a 7- sentence paragraph on the Canvas discussion board as to why you want to work on this company. This paper is due on April 19th by EOD. Guidelines are provided at the end of the syllabus.

Set up a Twitter account and post three tweets about the company that you are choosing to analyze for this course and why.

………………………………………………………………………………………………

Week 2: Financial Statement Analysis: Jan 17 – Jan 23

Read: Chapters 2 and 3

View/Listen: Video Lectures 1 and 2 by Professor D’Souza

Complete: Connect homework for Chapters 2 and 3 Due Jan 23 at 11:59 pm

Practice: Connect SmartBook Exercise Chapters 2 and 3 (no due date)

Post: Three or more concise and incisive tweets on Financial Statement Analysis especially how the ratios pertain to your company. Attach #Fin2209 and tweet to @ProfLowell

Week 3: Time Value of Money: Jan 23 – Jan 30

Read: Chapters 4 and 5.1-5.2

View/Listen: Video Lecture 1 by Professor D’Souza

Complete: Connect homework for Chapters 4 and 5a Due Jan 30 at 11:59 pm

Practice: Connect SmartBook Exercise Chapters 4 and 5 (no due date)

Post: Three or more concise and incisive tweets on TVM. Attach #Fin2209 and tweet to @ProfLowell

………………………………………………………………………………………………

Week 4: Time Value of Money continued and Exam 1 review: Jan 30 – Feb 06

Read: Chapter 5.3-5.4

View/Listen: Video Lecture 1 by Professor D’Souza

Complete: Connect homework for Chapter 5b Due Monday, Feb 06 at 11:59 pm

Practice: Connect SmartBook Exercise Chapter 5 (no due date)

Post: Three concise and incisive tweets on TVM. Use #Fin2209 and tweet to @ProfLowell

Exam Review Chat Monday, Feb 06 at 7 – 8 pm

EXAM 1: Chapters 1-5 Opens Wednesday, Feb 08 at 7:00 am Closes Thursday, Feb 09 at 10:00 pm

  (two-hour time limit – plan your time accordingly)

Remember that you are required to work independently on this exam.  You may only consult your course materials during the exam.  Do not use internet sources or consult with other individuals. There is no make-up exam. You will need a financial calculator to complete the exam. While most of the exam will be multiple choice or true /false or conceptual problems, I may ask questions of a subjective nature. Please work independently. I will use scripts or canned software to look for similarities.

Week 5: Interest Rates, Bond Valuation and Analysis: Feb 06 – Feb 13

Read: Chapter 6

View/Listen: Video Lectures 1 and 2 by Professor D’Souza

Complete: Connect homework for Chapter 6 Due Feb 13 at 11:59 pm

Practice: Connect SmartBook Exercise Chapter 6 (no due date)

Post: Three concise and incisive tweets on interest rates and bond valuation as it applies to your chosen company or its industry. Use #Fin2209 and tweet to @ProfLowell

………………………………………………………………………………………………

Week 6: Stock Valuation and Analysis: Feb 13 – Feb 20

Read: Chapter 7

View/Listen: Lectures 1 and 2 by Professor D’Souza

Complete: Connect homework for Chapter 7 Due Feb 20 at 11:59 pm

Practice: Connect SmartBook Exercise Chapter 7 (no due date)

Post: Three concise and incisive tweets on stock valuation as it applies to your chosen company. Use #Fin2209 and tweet to @ProfLowell

.

Week 7: Capital Budgeting: Feb 20 – Feb 27

Read: Chapter 8 (exclude sections on Average Accounting Return, Modified IRR, and Profitability Index) and Chapter 9

View/Listen: Lectures 1 and 2 by Professor D’Souza

Complete: Connect homework Chapters 8 and 9   Due Feb 27 11:59 pm

Practice: Connect SmartBook Exercise Chapters 8 and 9 (no due date)

Post: Three concise and incisive tweets on capital budgeting as it applies to your chosen company. Use #Fin2209 and tweet to @ProfLowell

………………………………………………………………………………………………

Week 8: Risk and Return: Feb 27 – Mar 06

Read: Chapters 10 and 11

View/Listen: Video Lectures 1 and 2 by Professor D’Souza

Complete: Connect homework for Chapters 10 and 11  Due Mar 06  at 11:59 pm

Practice: Connect SmartBook Exercise Chapters 10 and 11 (no due date)

Post: Three concise and incisive tweets on capital budgeting and risk & return as it applies to your chosen company. Use #Fin2209 and tweet to @ProfLowell

Week 9: Spring Break: Mar 06 – Mar 12

Take this time to re-energize yourselves. Feel free to explore possible formats for your company papers. I’m available to meet with anyone 1:1 all through this week via zoom.

Week 10: Exam 2 and Cost of Capital & Capital Structure: Mar 13 – Mar 20

Exam Review Chat Tuesday Mar 14 at 7 – 8 pm

EXAM 2: Chapters 6 – 11 Opens Thursday, Mar 16 at 7:00 am

Closes Friday, Mar 17 at 10:00 pm

         (two hour time limit – plan your time)

Remember that you are required to work independently on this exam.  You may only consult your course materials during the exam.  Do not use internet sources or consult with other individuals. There is no make-up exam. You will need a financial calculator to complete the exam. While most of the exam will be multiple choice or true /false or conceptual problems, I may ask questions of a subjective nature. Please work independently. I will use scripts or canned software to look for similarities.

Week 10: Cost of Capital & Capital Structure: Mar 13 – Mar 20

Read: Chapters 12 and 13

View/Listen: Video Lectures 1 and 2 by Professor D’Souza

Complete: Connect homework for Chapters 12 and 13 Due Mar 20 at11:59 pm

Practice: Connect SmartBook Exercise Chapters 12 and 13 (no due date)

Post: Three concise and incisive tweets on cost of capital and capital structure as it applies to your chosen company. Use #Fin2209 and tweet to @ProfLowell

………………………………………………………………………………………………

Week 11: Dividend Policy: Mar 20 – Mar 27

Read: Chapter 14

View/Listen: Video Lecture 1 by Professor D’Souza

Complete: Connect homework for Chapter 14 Due Mar 27 at 11:59 pm

Practice: Connect SmartBook Exercise Chapter 14 (no due date)

Post: Three concise and incisive tweets on dividend policy as it applies to your chosen company. Use #Fin2209 and tweet to @ProfLowell

Week 12: Raising Capital, Operating & Cash Cycles: Mar 27 – Apr 03

Read: Chapter 15

View/Listen: Video Lecture 1 by Professor D’Souza

Complete: Connect homework for Chapter 15 Due Apr 03 at 11:59 pm

Practice: Connect SmartBook Exercise Chapter 15 (no due date)

Post: Three concise and incisive tweets on raising capital and cash management policy as it applies to your chosen company. Use #Fin2209 and tweet to @ProfLowell

………………………………………………………………………………………………

Week 13: Short-term Financial Planning - I: Apr 03 – Apr 10

Read: Chapter 16.1-16.3 & 16.4-16.5

View/Listen: Video Lecture 2 by Professor D’Souza.

Complete: Connect homework for Chapter 16 Due Apr 10 at 11:59 pm

Practice: Connect SmartBook Exercise Chapter 16 (no due date)

Post: Three concise and incisive tweets on raising capital and short-term financial planning as it applies to your chosen company. Use #Fin2209 and tweet to @ProfLowell

Week 14: Short-term Financial Planning - II: Apr 10 – Apr 17

Read: Chapter 16.1-16.3 & 16.4-16.5. Chapter 17

View/Listen: Video Lectures 1 and 2 for Chapter 17.

Complete: Connect homework for Chapter 17 Due Apr 17 at 11:59 pm

Practice: Connect SmartBook Exercise Chapter 16 (no due date)

Post: Three concise and incisive tweets on raising capital and short-term financial planning as it applies to your chosen company. Use #Fin2209 and tweet to @ProfLowell

Week 15: Company Paper Submission & Review for Final: Apr 17 – Apr 19

This week, please take the time to complete you company paper which is due on TurnitIn. I will provide the required link on Canvas. Assignment is to be submitted on Apr 19th by EOD. If you submit your paper after this due date, I will accept it, but you will lose 33% of your points for the company paper.

Exam Q&A Chat Monday, Apr 17 at 7 – 8 pm

FINAL EXAM: Can be taken between Apr 29 and Apr 30

Chapters 2, 3, 4, 5, 6, 7, 10, 11 & 12 through 17

Final Exam Opens Apr 21 at 7:00 am

Closes Mon, Apr 22 at 10:00 pm

  (two-hour time limit – plan your time accordingly)

Remember that you are required to work independently on this exam.  You may only consult your course materials during the exam.  Do not use internet sources or consult with other individuals. There is no make-up exam. You will need a financial calculator to complete the exam. While most of the exam will be multiple choice or true /false or conceptual problems, I may ask questions of a subjective nature. Please work independently. I will use scripts or canned software to look for similarities.

Online Learning Student Guidelines/Tips

1. Read the Syllabus:  Make sure you understand the course requirements and expectations in regards to completion of course material, activities and online participation. Estimate how much time per week you will need to spend on the course and plan your week accordingly.

2. Keep your course materials organized: In an online course, information comes at you fast and furious and, before you realize it, you are buried under a deluge of data and piles of printouts. Organize both your printed and computer files the same way. The naming structure you have on your computer should mirror what you have in the real-world. Organizing your coursework will save you time, ease your frustration and help keep you focused on the course.

3. Manage your time wisely: Maintain an accurate calendar and schedule. At the start of the course, enter all assignment due dates in your planner. Then, determine how many days you will need to complete each assignment. For instance, if an assignment is due on Thursday that you believe will take three days to complete, mark your planner to work on the assignment on Monday, Tuesday, and Wednesday. Remember to allow time for personal and employment related events. If possible, allow an extra day or two for technology glitches, project team members running behind on projects, and other unforeseen delays. Do not forget to set aside time for studying, reviewing, researching, and replying to others’ comments in the discussion board.

4. Do not procrastinate: Do not wait until the last minute to complete assignments. You need self-discipline and must stick to a weekly schedule. Many assignments may require research, which is something that cannot be done properly in a short space of time. Technical glitches with the system can also happen unexpectedly. Set several smaller study or assignment goals - if you have been given a task that you find overwhelming, break it down into smaller parts.

5. Always include your name and any other important information: Just as your instructor cannot distinguish your handwriting, neither can your instructor distinguish your font type from another student’s. ALWAYS, ALWAYS include your name. If you have a question about a Connect problem, be sure to include a screen shot of the problem so I can help you.

6. Take responsibility for your learning - be your own guide: Students need to get accustomed to learning in an online environment, and facilitators have to learn the new online students learning styles every semester. Many are excellent guides however, it is a new and different experience for every online class taught. You can help by communicating clearly and effectively with your instructor. Confirm that the e-mail address listed in Canvas is the one you will check most frequently. Keep Emails to one question or one topic; multiple questions in a message may be overlooked in a response. Make use of all methods of communication provided by the facilitator: such as office hours, phone, Email, or online text chat. If you do contact the instructor by phone or chat, follow up with an Email or posting afterwards stating what you asked and what you believe the answer was. Never wait for a situation to become unbearable before asking for help or clarification.

7. Get engaged - Make connections - Stay motivated: Staying motivated in the class is a challenge for students studying independently. Students who develop a personal motivation strategy find it a great asset to the online learning experience, one that can keep them from losing interest or burning out. Online discussions with fellow students and the instructor are central to the learning experience. Developing and asking thoughtful questions will motivate and engage both fellow students and the instructor. Another technique is the importance of making a connection with fellow students. Students who develop a connection with other students can receive and provide support. Online connections also promote a sense of being a learner among other learners.

Company Paper Structure & Guidelines:

4-page paper, plus exhibits, describing and explaining the financial management of your chosen company, its successor lack of success over the past 3-5 years, its prospects for the future, and why should an investor be interested (or not) in your company. 11 or 12-point type. Single spacing.

Note:

· I recommend that you choose a company that aligns with your long-term strategic work goals. If you are looking to join a certain company for a co-op or a full-ti.me job, it may be prudent to analyze that company for this course to give you financial insight into how this company operates.

· Your company has to be publicly-traded. I will accept private firms only if you are certain that you can obtain all required financial data.

· All information drawn from external sources must be properly and completely documented. All URLs referenced must provide the complete URL.

· You can include as many exhibits as you like within your appendix. There is no limit on the number of exhibits but your paper has a page limit of 4.

· Please mention your Twitter username in your company paper so I can collate and give you credit for participation.

· As part of your paper submission, please collect all your tweets and add it as part of your exhibits.

For this online course, your company paper will illustrate your grasp of the financial concepts that you will obtain from this course. Prepare early and aim to work on this paper sooner rather than later.

The company paper has to be written in the style of a typical analyst report where you conduct a full analysis using the concepts you have learned from this course. This will be a 4-page paper. I will upload a couple of analyst reports on Netflix, Coca Cola etc. to give you some context. This is an important assignment and constitutes 20% of your grade. Please be sure to contact me if you have questions.

The following points are strongly suggested minimum areas on analysis that you should include within your paper, unless stated otherwise. If you, as a student, think that more analysis or metrics are required to analyze your company please go ahead and include them. Initiative, innovation and creativity is appreciated. For certain parts of the paper like understanding the company’s risk preferences, you may have to make assumptions. A critical aspect of communication here is how you justify your assumptions and present them in a clear and concise narrative in your paper.

- Collect and attach 3-5 years of financial data, Financial statements – Balance Sheet, Income Statement, etc.

- Horizontal and Vertical Trend analysis. Look at the numbers year over year and within the year itself. Identify trends and comment on them.

- Industry and competitor ratios.

- Ratios compared for the numbers till date as well as against the forecast.

- Ratios compared to the industry and competition. Identify 2 key competitors and compare their financial ratios to your company’s ratios. What trends do you see?

- Current CAPEX investments – NPV, IRR, Payback. (Only if available)

- Working Capital analysis. Cash cycle analysis. Short-term financing analysis.

- Weighted average cost of capital (WACC). How is their WACC affecting their operations? Their valuation?

- Capital Structure analysis. How is the existing capital structure affecting their WACC?

- Dividend policy (Payout ratios, trending of payouts etc.)

- Risk analysis, Volatility. (Only if available)

- Technical analysis for the last year. Any significant movements. (optional)

- Analyst ratings.

- Recommendation on whether to invest in the company.

Note:

· While I am OK with a student using ratios and other calculations from say, MorningStar or Google Finance, please ensure that you provide an adequate analysis around those numbers.

· In some cases, CAPEX or cash management policy information will not be available. Please ensure that you specify the same. Note that I will be utilizing Bloomberg and/or Company 10K reports to cross-check your numbers and analysis.

· Plan your paper in advance. It takes time to write a good report and collect and organize all the exhibits into an appendix. Consider this; you will have to create the written analysis on word, the financial analysis on excel, the exhibits which could be a mix of word docs, excel docs and pdfs. You will then have to print them out and then scan them all in one cohesive company project and then upload this to Turnitin. I do not want to hear excuses about how you were unable to get a certain piece on information added to the paper and then send me attachments via email.

· A Turnitin instance has been created for submission of the paper.

· Date of submission: April 19th EOD.

Rubric for grading the company paper:

This report will illustrate how well you have learned the financial concepts explored in this course and how you have applied that learning to your chosen company. I require a professional work product from you for this project. This will be a work product that you can use to demonstrate the quality of work done during this course. You will score between 0 and 10 for each section.

Structure:

A score of 10 guides the reader through the report with organizational clarity providing the reader with information that is needed at each moment. A score of 7 does not go out of its way to help readers, but is reasonably well structured and logically sound. A score of 2 is skimpy or bloated, with haphazard organization, regular disregard for logic, and little consideration for the reader.

Writing Style:

A score of 10 is eloquent and effective, with varied sentence structures, good rhythm, fluid transitions, and a distinct voice. A score of 7 is coherent and appropriate, but uneventful and uninspiring. A score of 2 often contains sentences that are not comprehensible and alienating to the reader.

Editing and Conventions:

A score of 10 demonstrates maturity with regard to grammar, syntax, word choice, and attribution of sources. A score of 7 is reasonably well edited but features a small number of distracting errors in phrasing, punctuation, citation, etc. A score of 2 has regular or repeated problems with these features that impedes reader comprehension.

Analysis (Critical thinking) & Relevance:

A score of 10 here demonstrates a sure grasp of finance, providing insightful connections from the material to key parts of the company financial statements. A score of 7 responds appropriately to the assignment, but does not effectively analyze the company well or communicates the key connections between the material and actual financials. A score of 2 exhibits financial inaccuracies that prevent understanding by the reader.

Design:

A score of 10 demonstrates a clean design with a seamless flow of information elaborated upon at key parts of the paper utilizing tables and graphs. A score of 7 is reasonably well designed but features a small number of distracting errors in placement of supporting charts and graphs etc. A score of 2 has regular or repeated problems with these features that impedes reader comprehension.

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