FINC 5810: Capital Budgeting and Corporate Investment

Course Description

The student examines the corporate investment decision process which includes working capital management, financial statement analysis, determination of cash flows, risk return analysis, forecasting, and asset investment.

Prerequisites

FINC 5000

Course Level Learning Outcomes

Outcome	Expectation
1. Students can utilize time value of money (TVM) concepts.	Students can use equations and financial calculators to solve for all variables within a stream of cash flows of a present or future value.
2. Students can evaluate capital budgeting decisions using standard methodologies	Students can employ NPV, IRR, and payback methods to analyze potential capital investments.
3. Students can discuss the impact of good capital budgeting techniques.	Students can identify the relative impact of making positive, neutral or negative NPV investment decisions on the value of a firm.
4. Students can identify relevant cash flows in a capital budgeting decision.	Students can detect, differentiate, and quantify the differences between relevant and irrelevant cash flows and incorporate the items in a cash flow estimation for the purposes of capital budgeting.
5. Students appreciate the interaction between investment decisions of a firm and the firm's cost of capital.	Students can explain the affect of risk in the investment process and its impact on the suppliers of capital and possible changes in their perceived risk of the firm.

Course Materials

Please go to MBS Direct to find the appropriate textbooks for this course.

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Course Activities

The course will be concluded entirely online. Students are expected to participate in all course activities as assigned by the instructor. Course activities may include discussions, weekly assignments, quizes, case studies, and learner assessments. However, individual instructors may incorporate other activities into the course materials.

Grading

The GRADUATE catalog provides these guidelines adn grading options:

A/A–	Superior graduate work
B+/B/B–	Satisfactory graduate work
C	Work that is barely adequate as graduate-level performance
CR	Work that is performed as satisfactory graduate work (B– or better). A grade of “CR” is reserved for courses designated by a department, involving internships, a thesis, practicums, or specified courses.
NC	Unsatisfactory graduate work *(School of Education only)*
F*	Work that is unsatisfactory *The School of Education (MAT, MA and EdS) does not utilize the “F” Grade.
I	Incomplete work
ZF	An incomplete which was not completed within one year of the end of the course. ZF is treated the same as an F or NC for all cases involving GPA, academic warning, probation, and dismissal.
IP	In progress
W	Withdrawn from the course

A student in the School of Education may choose to receive Credit/No Credit, rather than a letter grade, by completing a grade choice form by the second week of classes. Education students must complete 33 credit hours with a B average or the equivalent.

Grades are available on the Internet to all students at the end of each scheduled term. (A hard copy is available upon request and may be requested online via the Academic Services Channel within Connections.)

Policy Statements

University policies are provided in the current course catalog and course schedules. They are also available on the university website. This class is governed by the university’s published policies. The following policies are of particular interest:

Academic Honesty

The university is committed to high standards of academic honesty. Students will be held responsible for violations of these standards. Please refer to the university’s academic honesty policies for a definition of academic dishonesty and potential disciplinary actions associated with it.

Drops and Withdrawals

Please be aware that, should you choose to drop or withdraw from this course, the date on which you notify the university of your decision will determine the amount of tuition refund you receive. Please refer to the university policies on drops and withdrawals (published elsewhere) to find out what the deadlines are for dropping a course with a full refund and for withdrawing from a course with a partial refund.

Special Services

If you have registered as a student with a documented disability at the Academic Resource Center (ARC) and are entitled to classroom or testing accommodations, please verify with your instructor at the beginning of the class that the instructor has received your accommodations letter from the ARC. If you have a disability and need academic accommodations but have not been documented with the ARC, please contact Barbara Stewart at (314)-968-7495 or stewart@webster.edu . Contacting the ARC to complete ADA documentation is the only way to ensure you may receive reasonable accommodations.

Disturbances

Since every student is entitled to full participation in class without interruption, disruption of class by inconsiderate behavior is not acceptable. Students are expected to treat the instructor and other students with dignity and respect, especially in cases where a diversity of opinion arises. Students who engage in disruptive behavior are subject to disciplinary action, including removal from the course.

Student Assignments Retained

From time to time, student assignments or projects will be retained by The Department for the purpose of academic assessment. In every case, should the assignment or project be shared outside the academic Department, the student's name and all identifying information about that student will be redacted from the assignment or project.

Contact Hours for this Course

It is essential that all classes meet for the full instructional time as scheduled. A class cannot be shortened in length. If a class session is cancelled for any reason, it must be rescheduled.

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