FIN 4400 A01 (3 CH) FINANCIAL MANAGEMENT PRACTICES

WINTER 2020 128 Drake, 10.00- 11.15 am

CONTENTS CONTENTS ............................................................. 1

INSTRUCTOR ......................................................... 1

COURSE DESCRIPTION........................................... 1

COURSE OBJECTIVES ............................................. 2

COURSE MATERIALS .............................................. 2

COURSE FORMAT .................................................. 2

ASSESSMENT OF LEARNING .................................. 2

MISSED EXAM AND LATE SUBMISSION POLICY .... 3

ATTENDANCE POLICY ............................................ 4

ELECTRONIC DEVICE POLICY ................................. 4

OUT-OF-CLASS COMMUNICATION ....................... 4

OTHER COURSE REQUIREMENTS .......................... 4

TENTATIVE CLASS SCHEDULE & IMPORTANT DATES .................................................................... 5

INTENDED LEARNING OUTCOMES ........................ 7

ACADEMIC INTEGRITY POLICY .............................. 9

Typical Penalties for Academic Dishonesty in the Asper School ....................................................... 10

STUDENT SERVICES AND SUPPORTS ................... 11

INSTRUCTOR

Name: Ya Gao Office: 452 Drake Centre Phone: 204-474-7010 Email: ya.gao@umanitoba.ca Office hours: Mon/Wed 3.50-4.50 pm, or by appointment. COURSE DESCRIPTION An introduction to practices of corporate finance regarding the allocation & acquisition of funds. Topics include discounted cash flows, capital budgeting, financial instruments, cost of capital, risk-return trade- offs, market efficiency, capital structure and the use of derivatives. Required Prerequisites: [FIN3080 (or 009.348) (D)]

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COURSE OBJECTIVES Application of theoretical models in finance to real-world problems using cases. Topics include working capital management, long-term investment and financing decisions, valuation, risk management, reorganizations and international financial management. COURSE MATERIALS Text: Custom ordered Case Book available in the U of M Book Store. Suggested Reading: Available via UM Learn. Important Note: All communication with me should be done only via regular university email! Check announcements on UM Learn regularly. COURSE FORMAT The course will be conducted in a combination of lectures and case discussions, and one formal presentation. Students should expect a high level of class participation as 25% of the course grade is based on attendance and participation. For details, see related section below. ASSESSMENT OF LEARNING Final grades are based on the student’s weighted mark and performance relative to other students in the course from all sections. The total score will consist of the following components: *Please note that all group-based scores are subject to change based on results of peer evaluation at the end of the semester.

Performance Measure Weight Class Attendance & Participation* 25% In-Class Presentation* 20% Case Assignment 1: Group Project* 25% Case Assignment 2: Individual Project 30%

Total: 100%

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Your letter grade will be assigned based on the following rule: of all the students who get 50% or over in the course:

Percentile Ranking (100% being highest)

Grade GPA

Of all the students who get 50% or over in total mark in the course:

95.00%-100.00% A+ 4.5

80.00%-94.99% A 4.0

55.00%-79.99% B+ 3.5

40.00%-54.99% B 3.0

15.00%-39.99% C+ 2.5

5.00%-14.99% C 2

0.00%-4.99% D 1.5

Of all the students who get less than 50% in total mark in the course:

Total Mark 49.99 and below F 0.0

Again, please note that all group-based scores are subject to change based on results of peer evaluation at the end of the semester. MISSED EXAM AND LATE SUBMISSION POLICY Late submission of assignments are accepted at a 10% point reduction punishment per day, with a minimum interval of half day (5%). If you miss an assignment or any other graded component of the course for personal or medical reasons, you must report to your instructor as soon as possible and provide written proof supporting your absence from that component. Missing an examination is serious. Students who miss a component and have a valid medical excuse will have the weight of that component added to the final examination (valid medical documentation is necessary). Students who miss a component without a valid medical excuse will receive a mark of 0% for this component of the course. If you miss a final examination for medical or compassionate reasons, you may be granted a deferred examination. Travel plans are not an acceptable reason to miss examinations. University 1 or the Undergraduate Office of the student’s home faculty/school, as appropriate, can arrange a deferred examination for you. The governing documents regarding Final Exams and Final Grades can be found here: http://umanitoba.ca/admin/governance/governing_documents/academic/1299.html

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ATTENDANCE POLICY A sign-in sheet will be distributed at the beginning of each class. You are required to sign your names to be considered present for the class. Attendance counts 5% toward the final grade while in-class participation counts the other 20%. Please note that attendance is essential to earn participation points. During each lecture, the instructor will provide questions to be answered by students. For questions that require group discussion, participation points will be accumulated toward the ENTIRE group whose member provides satisfactory answers. Otherwise, participation points will be accumulated toward the person who provides the satisfactory answer. ELECTRONIC DEVICE POLICY Students are allowed to use laptops or tablets in class. However, please obtain the permission of the instructor prior to audio/video-recording a lecture. OUT-OF-CLASS COMMUNICATION All communication of the class will be conducted via your UM account e-mail and UM Learn. OTHER COURSE REQUIREMENTS Pre-lecture Preparation For each lecture, you are expected to have thoroughly read a given case, along with its suggested readings before arriving in class. You are also encouraged to briefly analyze the case on your own and write down a few keywords. This will greatly enhance your in-class participation experience. Groups Most part of the class will proceed in the form of group work. A group shall consist 3-4 people, with at least one person from non-Canadian culture background, and no more than two from same culture background except for Canadian-oriented culture backgrounds. Group sign-up sheets will be distributed at the end of the first class, and shall not change afterward without instructor approval. For the course, group members are expected to:

Contribute to in-class discussion. Our peer-lead discussion in class will be performed by groups. Group members shall present their answers to the entire class after discussion to earn participation points for their group.

Complete In-class presentation as a team. For details, see “In-Class Presentation” section below.

Work on group case assignments 1. Two case analyses are due during class process, on the dates indicated in the Course Schedule below. No reports will be accepted after the given deadline.

Each group is expected to submit a group copy of their assignments via UM Learn.

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At the end of the semester, an individual, confidential peer evaluation will be distributed. Each student will have the opportunity to comment on their peer’s contribution on group discussion, group presentation, and group assignment, respectively. A low rating on peer evaluation may results in as much as 100% change in your score on the corresponding section. In case of a hostile stage amongst group member, please approach the instructor as early as possible. Please also note that any evaluation-related harassment or abuse among group members, either verbal or physical, is considered academic dishonesty by the college and may result in a failing in the course. Group Case Assignment & In-Class Presentation Each group will be assigned one of the four alternative cases as their group case assignment & in class presentation. The cases will be similar to our discussion during the lecture. Each group is expected to submit a written case report and perform a 20-minute presentation based on their case report. For detailed requirement on the report, please see report instruction. Nameplate Please display your nameplate on the desk with you during all classes. TENTATIVE CLASS SCHEDULE & IMPORTANT DATES You will find that the course progresses quickly and the material covered builds on earlier material. It is important to stay current in your studies otherwise, you will not understand the new material as it is presented. If you read the text in advance of the relevant classes, you will have a much better chance of keeping pace with the material. It is the student’s responsibility to read the assigned material prior to the relevant class.

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Lecture Topic Case Assignment & Presentation

Week 1 (1/6/, 1/8/2019)

Introduction: Size-Up Analysis

Anwar Aluminum Works

Week 2 (1/13, 1/15) Cash Budgeting &

Projected Statements Envy Rides Incorporated

Week 3 (1/20, 1/22)

Cash Budgeting & Interpretation of

Statements

Adept Chemicals

Textbook Reading: Finding Information for Industry Analysis

Week 4 (1/27,1/29) Financial Analysis University of Regina Club

Week 5 (2/3)

University of Regina Club Tesco: From Troubles

to Turnaround

Week 5 (2/5) Cost of Capital Walmart’s Cost of Capital

Week 6 (2/7) Walmart’s Cost of Capital

Week 6 (2/9) Capital Structure Hutchison Whampoa

Week 7 (10/16) Winter Break, No Class

Week 8 (2/24, 2/26) Capital Structure Hutchison Whampoa Hag’s Singapore Note

Issue (with WACC)

Week 9 (3/3, 3/5) Dividend Policy Fuyao Glass

Week 10 (3/10)

Dividend Policy

Fuyao Glass

Berkshire Hathaway： Dividend Policy

Paradigm

Week 10 (3/12) Valuation & Mergers &

Acquisitions Loblow and Shoppers Drug Mart

Week 11 (3/17, 3/19) Valuation & Mergers &

Acquisitions Loblow and Shoppers Drug Mart

Canadian Occidental Petro

Week 12 (3/24) Valuation & Mergers &

Acquisitions The Legal Aspects of Mergers &

Acquisitions in Canada Canadian Occidental

Petro

Week 12 (3/26)

Foreign Exchange Hedging IFC Manufacturing - Foreign

Exchange Hedging

Week 13 (3/31) Foreign Exchange Hedging IFC Manufacturing - Foreign

Exchange Hedging

Week 13 (4/2) FinTech Elixir: Fintech Banking Solution

for Millennials

Week 14 (4/7) FinTech Elixir: Fintech Banking Solution

for Millennials

April 13, 2019 Individual Case Assignment Due

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INTENDED LEARNING OUTCOMES

AACSB Assurance of Learning Goals and Objectives The Asper School of Business is proudly accredited by AACSB. Accreditation requires a process of continuous improvement of the School and our students. Part of “student improvement” is ensuring that students graduate with the knowledge and skills they need to succeed in their careers. To do so, the Asper School has set the learning goals and objectives listed below for the Undergraduate Program. The checked goal(s) and objective(s) will be addressed in this course and done so by means of the items listed next to the checkmark.

Goals and Objectives in the Undergraduate Program

Goals and Objectives

Addressed in this Course

Course Item(s) Relevant to these

Goals and Objectives

1 Quantitative Reasoning

A. Determine which quantitative analysis technique is appropriate for solving a specific problem.

Quantitative analysis

throughout entire course

B. Use the appropriate quantitative method in a technically correct way to solve a business problem.

Quantitative analysis throughout entire

course

C. Analyze quantitative output and arrive at a conclusion.

Interpretation of results of

quantitative analysis

2 Written Communication

A. Use correct English grammar and mechanics in their written work.

Bloomberg Project,

Lab Quizzes, and

Exams

B. Communicate in a coherent and logical manner

Bloomberg Project,

Lab Quizzes, and Exams

C. Present ideas in a clear and organized fashion.

Bloomberg Project,

Lab Quizzes, and Exams

3 Ethical Thinking

A. Identify ethical issues in a problem or case situation

B. Identify the stakeholders in the situation.

Chapter 1: Principal

Agent problem,

shareholder wealth

maximization,

stakeholder

satisfaction.

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C. Analyze the consequences of alternatives from an

ethical standpoint.

Chapter 1: Principal

Agent problem,

shareholder wealth

maximization,

stakeholder

satisfaction.

D. Discuss the ethical implications of the decision.

Chapter 1: Principal

Agent problem,

shareholder wealth

maximization,

stakeholder

satisfaction.

4 Core Business Knowledge

Entire course

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ACADEMIC INTEGRITY POLICY It is critical to the reputation of the Asper School of Business and of our degrees that everyone associated with our faculty behave with the highest academic integrity. As the faculty that helps create business and government leaders, we have a special obligation to ensure that our ethical standards are beyond reproach. Any dishonesty in our academic transactions violates this trust. The University of Manitoba General Calendar addresses the issue of academic dishonesty under the heading “Plagiarism and Cheating.” Specifically, acts of academic dishonesty include, but are not limited to:

using the exact words of a published or unpublished author without quotation marks and without referencing the source of these words

duplicating a table, graph or diagram, in whole or in part, without referencing the source paraphrasing the conceptual framework, research design, interpretation, or any other ideas of

another person, whether written or verbal (e.g., personal communications, ideas from a verbal presentation) without referencing the source

copying the answers of another student in any test, examination, or take-home assignment providing answers to another student in any test, examination, or take-home assignment taking any unauthorized materials into an examination or term test (crib notes) impersonating another student or allowing another person to impersonate oneself for the purpose

of submitting academic work or writing any test or examination stealing or mutilating library materials accessing test prior to the time and date of the sitting changing name or answer(s) on a test after that test has been graded and returned submitting the same paper or portions thereof for more than one assignment, without discussions

with the instructors involved Group Projects and Group Work

Many courses in the Asper School of Business require group projects. Students should be aware that group projects are subject to the same rules regarding academic integrity. All group members should exercise special care to ensure that the group project does not violate the policy on Academic Integrity. Should a violation occur, group members are jointly accountable unless the violation can be attributed to specific individuals.

Some courses, while not requiring group projects, encourage students to work together in groups before submitting individual assignments. If it’s unclear whether it is allowed, students are encouraged to seek clarification from the instructor to avoid violating the academic integrity policy. In the Asper School of Business, all suspected cases of academic dishonesty in undergraduate courses are reported to the Dean's office and follow the approved disciplinary process. See following table for typical penalties for academic dishonesty in the Asper School.

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Typical Penalties for Academic Dishonesty in the Asper School

If the student is from another Faculty and the academic dishonesty is committed in an Asper course, the student’s Faculty could match or add penalties beyond the Asper School’s.

F-DISC on transcript indicates the F is for disciplinary reasons.

ACADEMIC DISHONESTY PENALTY

Cheating on exam (copying from or providing answers to another student)

F-DISC in course Suspension from taking Asper courses for 1 year Notation of academic dishonesty in transcript

Sharing exam questions electronically during exam

F-DISC in course Suspension from taking Asper courses for 2 years Notation of academic dishonesty in transcript

Possession of unauthorized material during exam (e.g., cheat notes)

F-DISC in course Suspension from taking Asper courses for 1 year Notation of academic dishonesty in transcript

Altering answer on returned exam and asking for re-grading

F-DISC in course Suspension from taking Asper courses for 1 year Notation of academic dishonesty in transcript

Plagiarism on assignment F-DISC in course Suspension from taking Asper courses for 1 year Notation of academic dishonesty in transcript

Submitting paper bought online F-DISC in course Suspension from taking Asper courses for 1 year Notation of academic dishonesty in transcript

Inappropriate Collaboration (collaborating with individuals not explicitly authorized by instructor)

F-DISC in course Suspension from taking Asper courses for 1 year Notation of academic dishonesty in transcript

Group member had knowledge of inappropriate collaboration or plagiarism and played along

F-DISC in course Notation of academic dishonesty in transcript

Signing Attendance Sheet for classmate F-DISC in course Notation of academic dishonesty in transcript

Impersonation on exam Expelled from the University of Manitoba and reported to Winnipeg Police

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STUDENT SERVICES AND SUPPORTS

The University of Manitoba provides many different services that can enhance learning and provide support for a variety of academic and personal concerns. You are encouraged to visit the below websites to learn more about these services and supports. If you have any questions, please do not hesitate to contact your instructor or the Undergraduate Program Office.

For Information on… …follow this link

Admission, Registration, Tuition Fees, Important Dates, Final Exams, Graduation, and Transcripts

Registrar’s Office

Academic policies & procedures, regulations, Faculty-specific information, degree and major requirements

Academic Calendar

Help with research needs such as books, journals, sources of data, how to cite, and writing

Library Resources

Tutors, workshops, and resources to help you improve your learning, writing, time management, and test-taking skills

Writing and Learning Support

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Student Accessibility Services

Copyright-related questions and resources to help you avoid plagiarism or intellectual property violations

Copyright Office

Student discipline bylaws, policies and procedures on academic integrity and misconduct, appeal procedures

Academic Integrity

Policies & procedures with respect to student discipline or misconduct, including academic integrity violations

Student Discipline

Students’ rights & responsibilities, policies & procedures, and support services for academic or discipline concerns

Student Advocacy

Your rights and responsibilities as a student, in both academic and non-academic contexts

Your rights and responsibilities

Full range of medical services for any physical or mental health issues

University Health Service

Information on health topics, including physical/mental health, alcohol/substance use harms, and sexual assault

Health and Wellness

Any aspect of mental health, including anxiety, stress, depression, help with relationships or other life concerns, crisis services, and counselling.

Student Counselling Centre

Support services available for help regarding any aspect of student and campus life, especially safety issues

Student Support Case Management

Resources available on campus, for environmental, mental, physical, socio-cultural, and spiritual well-being

Live Well @ UofM

Help with any concerns of harassment, discrimination, or sexual assault

Respectful Work and Learning Environment

Concerns involving violence or threats, protocols for reporting, and how the university addresses them

Violent or Threatening Behaviour