Eng 111 Syllabus PDF
Eng 111 Syllabus PDF
Winter 2015
Teaching Assistants:
Text:
Grading:
Class Participation :
Finance is a dynamic topic. We will follow current events and discuss them in class to see the links between theory and practice. You will
be provided with news articles (via posted links on class website). You are expected to participate in the current-event discussions. You are
encouraged to continue the discussions on the online forum.
Homework 30%:
Homeworks are going to be posted online. You will submit electronic files (PDF files only!). No hard copies will be accepted. No late
submissions will be accepted. The names of the files that you submit should have the following format: assignmentname_lastname_firstname.
If your name is Adam Smith and you are submitting Homework 1, the name of your file should be: homework1_smith_adam. The entire
solution should be given in your submitted homeworks including the methodology that is used. (For example, only one number as the
answer of a question is not acceptable even though it may be correct.)
Midterm 30%:
February 2 , Monday at regular class time. Closed notes and book. A formula sheet will be provided. You will need a calculator. (calculators
nd
Final 40%:
March 16 , Monday 6:30pm-9:30pm. Cumulative with an emphasis on the material covered after the midterm. Closed notes and book. A
th
formula sheet will be provided. You will need a calculator. (calculators that can hold text in memory are not allowed.)
IMPORTANT NOTE: It is your responsibility to make sure that all Homework and Midterm scores appear in online records correctly. If you see
any missing scores let us know before the Final Exam!!!
Course Objectives:
The objective of this course is to introduce the fundamentals of the multidisciplinary fields of finance and marketing within the Technology
Management paradigm.
Course Content:
This course will cover the most critical components of corporate finance theory and practice as they impact the management of technology
commercialization. Students will learn internal (within the firm) and external (in the marketplace) financing of technology innovation. Topics
including financial statements, financial ratios, DuPont identity, discounted cash-flow, uncertainty, Monte Carlo simulation, expected rate, risk
evaluation, efficient portfolio, cost of capital, as well as integration of market research in forecasting are going to be discussed.
Students will be familiarized with business terminology so as to make them comfortable discussing their innovations’ impact on financial
statements with business decision makers. A primary objective is to prepare students for the work environment where articulating ideas
spontaneously and clearly is critical. Hence, students are expected to read and be prepared to discuss the current technology management
topics. The course is intended for junior and senior-level engineering undergraduate students as well as engineering graduate students. No
prior course work in accounting, business, economics, finance, marketing or technology management is necessary.
· Standardized Statements
· Common-sized Balance Sheets and Income Statements
· Ratio Analysis: Liquidity, Profitability, Asset Management and Market Value
· The DuPont Formula
· Shortcomings
· Long-term Planning
· Sustainable Growth
Week 3: Discounted Cash Flow Valuation & Net Present Value – Reading: Ch.4&5
· One-period Models
· Multi-period Models
· Compounding
· Present Value and DCF
· Discrete and Continuous
· Perpetuity
. Accounting and Financial Break Even
· Payback, Average Accounting Return
· Shortcomings of these measures
· Profitability Index
· Practice of Capital Budgeting
Week 4: Capital Investment Decisions and Risk Analysis – Reading: Ch. 6&7
Week 5: Midterm & Valuing Bonds and Stocks – Reading: Ch. 8&9
· Valuing Bonds
· Yield-to-maturity
· Present Value of Common Stocks
· Dividend Growth Models
· Valuing Growth Opportunities
· P/E, M/B and other Valuation Ratios
Week 7: Risk and Return Lessons from History – Reading: Ch. 10&11
· Returns
· Holding Period Returns
· Statistical Analysis of Stock Returns
· Risk Measures
· Estimating CAPM
· Estimation of Beta
· Weighted Average Cost of Capital
· Estimating CAPM
· Estimation of Beta
· Weighted Average Cost of Capital