Lifelong Learning for a Brighter World

Jing Zhou, McMaster University Continuing Education Accounting graduate Jing Zhou, McMaster University Continuing Education Accounting graduate

Accounting

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ACC 933 - Financial Management C32

Academic Credit Value:
3 units
Course Delivery Mode:
Online Self-Study (OSS)
Hours of Study:
42 hours
Course Prerequisite(s):
ACC 927 Intermediate Financial Accounting II & ACC 929 Intermediate Management Accounting or equivalent. Be advised: Students who do not have the required prerequisites will be required to withdraw. CCE’s refund/withdrawal policy will apply.
Course Anti-requisite(s):
N/A
Instructor Name:
Frank Tristani
Course Dates:
03/15/2019 - 08/17/2019



Required Course Materials:
Text: Fundamentals of Corporate Finance – 9th Canadian Edition Stephan A. Ross, Randolph W. Westerfield, Bradford D. Jordan, Gordon S. Roberts McGraw Hill Ryerson
Optional Course Materials:
N/A
Course Description:
ACC 933 Financial Management is a course in Corporate Finance. It is one of the core areas for those majoring in Finance, Accounting and Business Administration programs.  This course introduces current financial concepts and tools towards money management in organizations participating in the local and global economies.

The course covers the current best practices in financial analysis and planning through the application of financial concepts. These include financial performance ratios, time value of money, financial markets and institutions, securities and valuation of firms, cost of capital, risks and return, long-term financial budgeting and working capital management.

In addition, the course also introduces topics on lease financing, hybrid securities and derivatives, trust funds, mergers and acquisitions and international corporate finance.

Financial Management is a comprehensive course. Students taking this course should have an understanding of financial and management accounting at the intermediate level.  

The course is arranged in 9 Units of study and each unit is further divided into modules. Each module explores specific concepts, many of which are interrelated. Even though each assignment will focus on the concepts being covered in the related unit, there is an assumption that the student has acquired, and may need to apply, knowledge gained from previous units.  The final exam will be cumulative in nature and will consist of a number of multiple choice questions, short answer and short case format.

ACC 933 Financial Management concentrates on nine major topic areas each covered in a Unit:
  1. Overview of Corporate Finance
  2. Financial Statements and Long-Term Financial Planning 
  3. Valuation of Future Cash Flows
  4. Capital Budgeting
  5. Risk and Return
  6. Cost of Capital and Long-Term Financial Planning
  7. Short-Term Financial Planning and Management
  8. Topics in Corporate Finance
  9. Derivative Securities and Corporate Finance
Learning Outcomes:
The primary focus of the course is to enable participants to understand the relevance of key financial management concepts and appreciate the responsibility of financial managers towards integrated business analysis and decisions towards overall corporate strategy. Corporate finance is closely related to and draws business models from Economics, Accounting, Marketing and Quantitative Analysis.  Specific unit/module outcomes are posted under each Unit (below).

The current best practices are illustrated through use of management cases and examples outlined in the text and the assignments, through the analysis and interpretation of corporate information leading to business decisions.
Course Evaluation
Students will demonstrate knowledge and an understanding of the accounting concepts covered in financial management by completing five (5) formal credit assignments and a final examination.  

It is a manageable workload.

The due dates are listed in your course package and assignment schedule.  

Assignments are located at the back of the corresponding module/unit to which it applies.  Assignments are also posted to the course shell in Avenue to learn (A2L) and are to be submitted via Avenue to learn.

Distribution of course marks will be as follows:

Assignments (5 @ 8%) 40%
Final Examination 60%

NOTE:  A passing grade on the final examination is required to pass the course.

The final exam must be written on or before your course end date/final exam date. Students who have submitted all assignments ahead of schedule may opt to write their final examination prior to the posted examination/course end date. Although students are permitted to accelerate through course material, no student will be permitted to schedule/sit the final examination earlier than two (2) months post course start date. After the final exam is written no further assignment submissions will be accepted. 
Course Format:

This course is designed to present the fundamental concepts and theories in financial management and promote the application to the workplace and professional practice. Course activities will include instructor presentations, required readings and experiential learning activities (i.e. case studies, group discussions, projects, etc.). 

 ACC 933 consists of nine (9) units of study.  These areas will be more fully described in the Content Section of the course shell in Avenue to Learn.  Each unit/module contains learning objectives/expectations, text readings, course notes (A2L), review activities and suggested learning strategies and resources.  

It is expected that the recommended activities, which include practice exercises/ web based quizzes/problems, be completed prior to submission of formal credit assignments.  Each formal credit assignment relates to the materials covered and will be less difficult if the suggested review activities are completed.  In addition, completing text readings, reviewing suggested resources and completing suggested review activities, will enable the student to study more easily for the final exam.  You can expect to see material on the final examination of similar level of difficulty to that of the formal credit assignments.

Assignment Submission:
Course assignments are submitted to the appropriate A2L Assignment folder by the specified due date
Late Coursework:
Late assignments will be subject to a 2% per day late penalty (includes weekends and holidays) for up to seven (7) days. After this date, no assignments will be accepted and a grade of zero (0) will be applied. Extensions for course work must be approved by the instructor before the due date (see Academic Regulations below), and will be granted for illness or emergencies only. Students may be asked to submit supporting documentation for an extension request.  NOTE:  This policy applies to assignments and other hand in type coursework only.  This policy does not apply to discussion board topics/postings which do not allow for late postings/contributions. 

Policy & Procedures:

Academic Regulations (Attendance, Coursework, Tests/Exams):
In accordance with McMaster University’s General Academic Regulations, “it is imperative that students make every effort to meet the originally scheduled course requirements and it is a student’s responsibility to write examinations as scheduled.” Therefore, all students are expected to attend and complete the specific course requirements (i.e. attendance, assignments, and tests/exams) listed in the course outline on or by the date specified.  Students who need to arrange for coursework accommodation, as a result of medical, personal or family reasons, must contact the course instructor within 48 hours of the originally scheduled due date. It is the student’s responsibility to contact the Program Manager/Program Associate to discuss accommodations and procedures related to deferred tests and/or examinations within 48 hours of the originally scheduled test/exam, as per policy.  Failure to contact the course instructor, in the case of missed coursework, or the Program Manager/Program Associate, in the case of a missed test/examination, within the specified 48 hour window will result in a grade of zero (0) on the coursework/exam and no further consideration will be granted.  

*Note: Supporting documentation will be required but will not ensure approval of accommodation(s).​

Academic Integrity

You are expected to exhibit honesty and use ethical behaviour in all aspects of the learning process. Academic credentials you earn are rooted in principles of honesty and academic integrity. Academic dishonesty is to knowingly act or fail to act in a way that results or could result in unearned academic credit or advantage. This behaviour can result in serious consequences, e.g. the grade of zero on an assignment, loss of credit with a notation on the transcript (notation reads: “Grade of F assigned for academic dishonesty”), and/or suspension or expulsion from the university.

 It is your responsibility to understand what constitutes academic dishonesty. For information on the various types of academic dishonesty please refer to the Academic Integrity Policy, located at http://www.mcmaster.ca/academicintegrity/

 The following illustrates only three forms of academic dishonesty:

1.     Plagiarism, e.g. the submission of work that is not one’s own or for which other credit has been obtained.

2.     Improper collaboration in-group work.

3.     Copying or using unauthorized aids in tests and examinations.

Academic Accommodations:
Students with disabilities who require academic accommodations must contact the Student Accessibility Centre (SAS) to meet with an appropriate Disability Services Coordinator. To contact SAS, phone 905-525-9140 ext. 28652, or email sas@mcmaster.ca. For further information, consult McMaster University’s Policy for Academic Accommodation for Students with Disabilities.
On-line Elements:

In this course, we will be using on-line elements, which may include email, Avenue to Learn, WebEX, and external web sites.  Students should be aware that, when they access the electronic components of this course, private information such as first and last names, user names for the McMaster e-mail accounts, and program affiliation may become apparent to all other students in the same course. The available information is dependent on the technology used. Continuation in this course will be deemed consent to this disclosure. If you have any questions or concerns about such disclosure please discuss this with the course instructor.  

WEBSITE AID TO ACCOMPANY TEXT:  McGraw-Hill Connect website for the text contains many valuable study aids and practice questions. It will become invaluable to you as you progress. McGraw-Hill Connect Site supporting Text located at: https://connect.mcgrawhill.ca/app/login/connect/index.php

Avenue to Learn (A2L): The module notes and assignments included in this package are also available on A2L. Updates and templates will also be available when applicable.

Unit/Module Notes
The outlines and notes contained in this package are intended to summarize the major objectives for each unit.  They are not intended to be substitutes for the information in the textbook.  Additional examples maybe provided in the notes where applicable.  The most advantageous way to use the outlines and notes is as an introduction to each topic area.  It is advisable not to move to a new topic until you understand the material from the unit that you are working on.  Then complete the suggested activities and practice exercises

Avenue to Learn (A2L): http//avenue.mcmaster.ca
Another resource for your learning will be access to a website for this specific course.  To access the course website, you will need a Mac ID.  Information on the website, obtaining a Mac ID and accessing A2L is included in your course package.  Access to the website is limited to students who are taking this course through correspondence.  

The resources on the website include:
- Module Notes
- Assignments
- Practice Exercises
- Discussion Topics​

Turnitin.com:
In this course, we will be using a web-based service (Turnitin.com) to reveal plagiarism.  Students will be expected to submit their work electronically to Turnitin.com so that it can be checked for academic dishonesty.  Students who do not wish to submit their work to Turnitin.com must still submit a copy to the assigned Assignment folder and add a note in the comment section that they do not wish to have the paper scanned by Turnitin.  Those files will not be selected for submission.  No penalty will be assigned to a student who does not submit work to Turnitin.com.  All submitted work is subject to normal verification that standards of academic integrity have been upheld (e.g., on-line search, etc.).  To see the Turnitin.com Policy, please go to www.mcmaster.ca/academicintegrity.
Course Changes:
The instructor reserves the right to modify elements of the course and will notify students accordingly.
Course Withdrawal Policy:
Policies related to dropping a course and course withdrawals are posted to the Centre for Continuing Education’s program webpage, FAQs & Policies (https://www.mcmastercce.ca/cce-policies#Dropping). 
Storm Closure Policy:
In the event of inclement weather, the Centre for Continuing Education will abide by the University’s Storm Closure Policy: https://www.mcmaster.ca/policy/Employee/storm_emergency_policy.pdf, and will only close if the University is closed. All in-class courses, exams and room bookings by internal and external clients will be cancelled if the Centre for Continuing Education is closed. On-line courses will take place as scheduled.
Grading Scale:
 Grade Equivalent
Grade Point
Equivalent Percentages
A+ 12 90-100
A 11 85-89
A- 10 80-84
B+ 9 77-79
B 8 73-76
B- 7 70-72
C+ 6 67-69
C 5 63-66
C- 4 60-62
D+ 3 57-59
D 2 53-56
D- 1 50-52
F 0 0-49
Course Schedule:
ACC 933 FINANCIAL MANAGEMENT

COURSE OUTLINE

The Course is organized into the following nine Units:

Unit 1: Overview of Corporate Finance

Unit Overview
Unit 1 lays the foundation for the whole course. It describes the three (3) major areas namely, financial markets, financial services and corporate finance. The course begins with a discussion of the various careers that develop from the study of Financial Management. It further lays out the structures of various business entities from sole proprietorship to corporate structures and the implications inferred.

Accounting is a prerequisite to this course and a quick review begins in the opening unit with a review of Cash Flows and Taxes. Regardless of how confident you may be in these areas, review them carefully as the financial manager interprets the information differently from the accountant. The financial manager works with the information to make decisions or to identify “what if” scenarios usually resulting from the inclusion of intangible issues that may include such things as corporate politics or other vested interests within the company. Also, the finance manager works within corporate committees that include all of the disciplines such as marketing, human resources and operations to name a few. This is a recurring theme in the text as each chapter usually identifies multidisciplinary issues that may impact the chapter topic.

Unit 1 Key Concepts and Learning Outcomes are detailed at the beginning of each Unit

Unit 2: Financial Statements and Long-Term Financial Planning

Unit Overview
Unit 2 continues the review of accounting through financial statement analysis and financial planning and forecasting. Once the accounting basics are reviewed, you are introduced to how the financial manager may use and assess the information. This develops into how the information can be used to predict the future through Pro Forma statements. In reality, these predictions also form the structure usually of company goals.

Unit 2 Key Concepts and Learning Outcomes are detailed at the beginning of each Unit

ASSIGNMENT ONE is due after completion of Unit 2

Unit 3: Valuation of Future Cash Flows

Unit 3 deals with the Time Value of Money and specifically with the calculations underlying the types identified. These form the basics of more complicated concepts such as Net Present Value (NPV) and various asset valuation models including cash flow valuation and bond valuation.   

Unit 3 Key Concepts and Learning Outcomes are detailed at the beginning of each Unit

ASSIGNMENT TWO is due after completion of Unit 3

Unit 4: Capital Budgeting

Unit 4 covers specifically, capital budgeting, its principles and techniques, and other topics in capital budgeting including project risk. The NPV or net present value method is outlined, using the discount rate as your total risk benchmark. Future cash flow expectation is used. Various forms of risk also are included and you are led to understand how those variables can be quantified, albeit a projection, assumption or opinion by the financial manager, which would usually be an informed and substantiated opinion.  

Unit 4 Key Concepts and Learning Outcomes are detailed at the beginning of each Unit

Unit 5: Risk and Return

Unit 5 discusses risk and return and valuation of financial securities, which has to account for the relative risk perceived to be associated with it. The risk return trade-off is described through its various constituents. Different stakeholders have different concepts of risk and the return they should then expect. Many of them use quantifiable variables to do that. Once these are discussed, it becomes a natural extension that a hierarchy of risk can be quantified for different financial securities. Many of these valuations use the Time Value of Money concept to quantify it on the basis that the value of a security has to include expected and or forecasted cash flows. The various definitions and formulas are covered.

Unit 5 Key Concepts and Learning Outcomes are detailed at the beginning of each Unit

ASSIGNMENT THREE is due after completion of Unit 5

Unit 6: Cost of Capital and Long-Term Financial Policy

Unit 6 deals with the cost of capital, leveraging and its impact on the capital structure and the company’s dividend policy. There are various costs associated with formulating the capital structure of a company. There is an optimal structure, which would minimize the cost especially when having to use a leveraging strategy to do it. Leveraging is borrowing and this implies the company has to borrow from a bank, other financiers or if it is strong enough it may issue paper, bonds or other instruments. This is where topics covered in earlier units tie in. A firm’s dividend policy helps it to decide what to do with excess cash it generates. The company may decide to reinvest in the company instead of issuing dividends but it may reach a point where it cannot generate a reasonable or prescribed return, such as ROI, so it decides to give it back to the investors in the company i.e. shareholders. All the different strategies and arguments are presented.

Unit 6 Key Concepts and Learning Outcomes are detailed at the beginning of each Unit

Unit 7: Short-Term Financial Planning and Management

Unit 7 addresses the working capital question. The subjects of short-term financial planning, cash management, and credit management are covered. It deals with the management of the company through managing working capital by managing current assets and current liabilities. Unit one and two reviewed such issues as ratio analysis. Other previous units dealt with where a company can go to finance operations. Optimal management of assets and liabilities are a method the company can use to finance operations internally rather than using outside and possible more expensive sources. Managing turnover of receivables and payables are an easy way of doing that and other methods are identified and methods of quantifying them are covered.

Unit 7 Key Concepts and Learning Outcomes are detailed at the beginning of each Unit

ASSIGNMENT FOUR is due after completion of Unit 7

Unit 8: Topics in Corporate Finance

Unit 8 contains the important special topic of leasing. Leasing techniques and the lease versus buy discussion is quantified. NPV again plays an important role, which is understandable given the concept of projected cash flows. Another special topic covered is international corporate finance including Mergers and Acquisitions.

Unit 9: Derivative Securities and Corporate Finance

Unit 9 covers risk management and derivative securities.  These are methods of hedging risks and engineering products to mitigate risk.

Unit 9 Key Concepts and Learning Outcomes are detailed at the beginning of each Unit

ASSIGNMENT FIVE is due after completion of Unit 9