University of Texas at Dallas ---- School of Management

Course: FIN 6350 (Advanced Financial Management) – Fall 2005 (Tuesdays, 7 to 9:45pm)

Objective: This course will pick up where FIN 6301 typically ends, and cover financial analysis and planning,
business valuation, short-term financial management, long-term financial management, options in corporate finance,
mergers and acquisitions, and corporate restructuring.

Instructor: Robert L. Kieschnick

Where and when to get help: My office is located in room SM 3.705 on the third floor of the School of
Management Building. While I am generally on campus during the day, I will maintain office hours from 1 to 5 p.m.
on Tuesdays for this class. I can also be reached by phone at 972-883-6273 or by email at rkiesch@utdallas.edu. I
have found that email is often an effective mode of communication for specific questions.

Course Material: This course will be structured around the textbook: Intermediate Financial Management, E.
Brighman and P. Daves, Thomson South-Western (8 th edition, 2004). As supplements to this textbook, I recommend
either Valuation: Measuring and Managing the Value of Companies, McKinsey & Company, John Wiley (4rd
University edition, 2005) or Corporate Valuation: A Guide for Managers and Investors, by P. Daves, M. Ehrhardt, and
R. Shrieves, Thomson South-Western (2003). These supplements are primarily intended to provide you with additional
help on your term project and are not required texts.

Basis for Evaluating Course Performance: To evaluate how well you have mastered the material, I will
evaluate your performance based upon a term project, a mid-term exam, a final exam, and class participation.

Term Project: You will have a term project, which will be described in separate handout.

Mid-term Exam: Exam grades will be scaled so that the highest score is 100.

Final Exam: While the final exam will be comprehensive, it will focus primarily on the material covered after the mid-
term exam. Exam grades will be scaled so that the highest score is 100.

Class participation: I expect students to show up for class, to have read the assigned material, and to be prepared to
discuss or raise questions about the material in class. The essential point is that you will not learn as much from this
course if you do not do these things.

Using the above indicia of your mastery of the material, I will determine your grade for the course as follows. Assume
that your project grade is X 1, your adjusted score on the mid-term is X2 , your adjusted final exam score is X3 , and your
participation grade is X4, then I will compute your final score as [0.25*X1 + 0.30*X2 + 0.40*X3 + 0.05*X4 ]. Using
these scores, I will assign letter grades according to the following scale: A: 85 to 100, B: 70 to 85, C: 55 to 70, F: below
55.

Computing Requirements: You will find it in your interest to learn how to use spreadsheets to solve financial
problems, particularly if you decide to pursue a career in finance or accounting. Good books to learn such skills for
corporate finance are: (1) Spreadsheet Modeling in Corporate Finance, by Craig Holden, Prentice-Hall (2002), or (2)
Financial Modeling, by S. Benninga, The MIT Press (2nd edition, 1997). In addition to these skills, you should also
become familiar with the use of a financial calculator. As with professional certification exams, you will be allowed
only to use a calculator on your exams. I recommend that if you do not already have a financial calculator that
computes the internal rate of return for a sequence of cash flows, that you consider the HP-12C, TI BAII Plus, or the TI
BAII Plus Professional as these calculators can be used on most certification exams (e.g., CPA, CFA, etc.). If you use
a calculator, then you will be responsible for knowing how to use it.

Topical Schedule: A topical outline of the course along with assigned readings, are provided below. Copies of the
lecture overheads and other material will be provided online on the course web page on Campus Pipeline.

Topic 1 Financial Statements and Financial Analysis

IM: Chapters 6 and 7; VM: Chapters 1, 2, 3, (9, 10)
2 Financial Forecasting
IM: Chapter 8; VM: Chapters 5, 6, 7, 8, and (12)
3 Cost of Capital Estimation
IM: Chapter 9; VM: Chapters 4 (11)
4 Corporate Valuation
IM: Chapter 10; VM: Chapters 2, 13
5 Options and Corporate Finance
IM: Chapter 13, 19
6 Corporate Capital Policies
IM: Chapters 14, 15
7 Rasing equity capital
IM: Chapters 17, 18
8 Shareholder control and compensation
IM: Chapter 16
9 Mergers and Acquisitions
IM: Chapter 25
10 Corporate Restructuring
IM: Chapter 24
11 Raising debt capital
IM: Chapters 17, 18
12 Working Capital Management
IM: Chapter 20, 21, 22, 26