Managerial Finance BUS 465    At Mount Mary College   

Accelerated Program 2000 Term 2

Instructor: Jack Muryn      Class Hours: 6:00 – 9:00 PM  Mondays

Office:                                   Office Hours: half hour before & after class

Telephone:                          email: jmuryn@uwc.edu     or     jmuryn@execpc.com

Text:              Fundamentals of Financial Management by Eugene. F. Brigham and Joel F. Houston, 8^th Edition, 1998.  

Class Lecture Slides: Ch. 9     Ch. 10     Ch.11    Ch. 13    Ch. 14    Ch. 16    Ch. 17    Ch. 18

Completed Sample Exams: Exam One.  Exam Two

Congratulations Class! You did fairly well on the Mid Term!

Completed solutions for problems in the Mid Term Exam:  Answers for Mid Term.

Objectives:

1.      Gain a comprehensive knowledge and understanding of the field of investment finance,

2.      Apply the concepts of managerial finance learned in the lectures, discussions, readings and problems to personnel financial management.

3.      Understand the current and popular literature of finance and financial institutions.

Grading Criterion:

Participation                         10%

Problems                               10%

Stock Project                        20%

Mid Term Exam                    30%

Final Examination                30%

Master Schedule:

Solutions to assigned Problems:    10-17      10-22    13-7    14-9    16-9    17-7 & 17-17    18-12 & 18-14

Document:

        Use the internet to find the daily, weekly, monthly, or yearly quotes.

        Stock Project's Procedure using current technology: The  INTERNET

Stock Project:  

Reference: http://www.contemporarybusiness.com/student/bkstock.htm

Your Uncle Duane died and left you $25,000.  He specifically requested that you use the money to purchase at least three different stocks.  One of the stocks purchased must be a company, which has gone public sometime in the past 4 years (Initial Public Offering IPO]).  Also, one stock must be on the list of stocks used to calculate the DOW Jones Industrial Average (DJIA).  Stocks must be purchased in 100 share blocks.  You will pay a $50 commission for each 100 shares purchased.  You must spend at least $25,000 on your stocks.  If you want, you can add your own money to the purchases but do not spend more than $30,000 in total.

You should buy your stocks during the first week of class using the closing price in the Wall Street Journal (WSJ).  If you want, you may sell your stock and then buy other stock during the semester.  Remember that you will pay a $50 commission for every 100 shares sold or purchased.  You must make sure to keep track of all sales and the resulting gains or losses.  Any money you receive from selling your stock must be reinvested in new stock.

As soon as you know what stock you want to purchase from the DJIA list please let me know.  I'd like each person to purchase a different company so it will be done on a first come basis.

Twice a week you need to check the closing prices of your stocks.  A table of the closing prices and dates should be prepared along with a graph of the prices.  Do a separate graph for each holding.  On the same date, look at the DJIA and graph that on a separate graph.

You also need to do some research on your DJIA & IPO stocks. As discussed in class, you can find information regarding the company in Value Line, Standard and Poors, Business Week, Forbes, WSJ, other business publications, and on the Internet.  You will be writing a two to three page paper summarizing this information.  In addition, you will be presenting your stock portfolio and information on your companies to the class.  Also obtain, as soon as possible the most recent annual reports for your DJIA and IPO companies.  Any articles that you cut out should be mounted on 8 1/2" by 11" paper.

Put together a folder of the information listed above so it can be easily handed in during the Term. The following is a schedule of when I will be collecting your folders to review your holdings.  Also listed are items I will be looking for in your folder.  This project counts for 20% of your grade

Stock Report Part 1: Monday, October 30, 2000

*List of your purchases and date of purchases

*Cost per share before and including commissions

*Total amount spent on your portfolio including commissions

*4 closing prices for each holding and their graphs

*DJIA graph

*Two to three page typed paper discussing your stock portfolio and why you chose the stocks.  Also summarize the information you found regarding the DJIA and IPO stocks purchased including when the company was established, product line(s), dividend policies, markets they are in, performance during 1999, and how analysts view your stock as an investment for the future.

Stock Report Part 2: November 13, 2000

*10 closing prices for each holding and their graphs

*Updated DJIA graph

*Annual report for your DJIA and IPO companies (or letter showing it has been requested)

*Any trades during the last month?  If so, applicable information

*Net worth of portfolio at the last closing date used, calculate the gain or loss.

*Any recent developments that have affected your stock prices?

*At least two recent WSJ articles regarding your companies (If not WSJ then other sources dated after 12/31/99)

Final Report, November 27, 2000

*10 closing prices for each holding and their graphs

*Updated DJIA graph

*Annual report for DJIA and IPO companies

*Any trades during the last month?  If so, applicable information.

*Two more recent WSJ articles regarding your companies (dated after 12/31/99)

*Using November 22, 2000 closing prices, what is the net worth of your portfolio?

*What is the gain or loss since you first purchased your stocks?

*Article from any business publication regarding the foreign markets your DJIA stock or IPO stock is involved in or plans to expand into foreign markets.

I would like a one to two page typed summary analyzing how your stocks performed compared to the DJIA that we have been plotting. Remember beta?  Check on what that is for each of your companies and sees if is seems to be accurate.  Also, what have you learned about the companies you owned during the semester?  Did any of the information you learned affect the stock price?  What did you learn from the project and do you have any suggestions about what else we could have done?