WELCOME TO

MBA 6204: Managerial Finance (12279)

(2-2-0)
Spring 2022

1. Instructor Information:
Instructor: Dr. Esther E Castro, Assistant Professor
Keenan Carstens, Corporate Fellow
Email: castroe@uhd.edu.
Office: Davies College of Business Building, Room 458
Office Telephone: 713-226-5248
Office Hour: In Person → M 4:00 PM – 5:45 PM and TH 11:30 AM – 1:00 PM
Zoom → TH 4:30 – 5:30 PM or email to schedule an appointment.
Class Location: SSB-119

My preferred method of contact is EMAIL. Responses to messages received will be sent within
24-48 hours. However, please note that emails sent over the weekend may not receive a reply until
the next business day. It is important to plan accordingly. If you have not received an email in the
48 hours, please email again.

Gatormail is the official student email of UHD. All email correspondence from you and to you
will occur using Gatormail. Please do not blackboard message me.

2. Course Information

2.1 Catalog Description

Analysis of managerial decisions in finance includes financial planning, working capital
management, capital budgeting, valuation analysis, portfolio management, capital structure, and
ethical and multinational concerns. Individual and group assignments.

2.2 Course Details

This course will provide the basic conceptual and analytical skills required by a financial manager
to make financial decisions. The course will focus on four key aspects of modern corporate finance:
(1) the time value of money and the valuation of cash flows streams associated with a security or a
firm; (2) the measurement and pricing of financial risk and required return; (3) appropriate
techniques for evaluating capital budgeting projects, including how do decide which projects will be
firm-value-maximizing; (4) determining the proper mix of long-term financing and short-term
financial decisions that will maximize firm value.

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2.3 Course Objectives
1. Develop the rationale behind “wealth-maximization” (a.k.a. stock price maximization) as
the best strategic goal for executives to use in managing the firm. Demonstrate how
stock price maximization maximizes the well-being of all shareholders.
2. Determine why Net Present Value (NPV) analysis is the best method for rank ordering
firm projects. Be able to demonstrate the potential problems that can occur when other
methodologies.
3. Recognize the essential elements of market efficiency and understand the implications of
market efficiency for developing sound management practices within firms.
4. Derive an appropriate discount rate for use in a firm’s capital budgeting decisions (NPV
analysis).
5. Understand the impact of financing projects/fixed assets with debt versus equity (i.e.
capital structure policy) on the cost of capital, on the stock value, and for making sound
management decisions.

PREQUISITES
Admission to the MBA program.

3. Required Texts & Materials

3.1 Required Text

Financial Management Theory and Practice – 16th Edition – Brigham and Ehrhardt – Cengage
ISBN 978-1-337-90260-1

3.2 Required Technology

To maximize your success in online courses at UHD, you should have access to a desktop or
laptop computer running an up-to-date Windows or macOS operating system, using the latest
Firefox or Chrome browsers. A built-in or add-on webcam is also required for zoom and/or exam
proctoring tools (Lockdown Browser) are used. Chromebooks and some other tablets are not
compatible with test proctoring tools such as ProctorU or Lockdown Browser. While the
Blackboard App (e.g., on your phone) can be helpful for some course features, UHD
recommends that you do not use it for working on or submitting graded activities. To avoid
being disconnected at critical moments, we encourage you to access courses, in particular exams,
on a computer that is hardwired to the Internet router (via Ethernet using a Cat 5 or Cat 6 cable)
as opposed to depending on Wi-Fi whenever possible. For more information on taking
Blackboard tests, see this guide. If you are experiencing challenges with technology, please
communicate with your instructor in a timely manner and seek help from our UHD IT Support to
identify possible solutions.

A financial calculator will be needed; the Texas Instruments BA II Plus is recommended.

3.3 Optional Readings

Any Additional reading assignments outside of the textbook readings are posted on Blackboard.
Recommended to read financial articles for discussion.

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 4. Course Format

This course is delivered in hybrid format. In addition to the weekly face-to-face meeting, there is
a significant online component that comprises approximately half the course requirements. Lecture
videos will be posted online, students are expected to watch the videos before coming to class. In
class we will review the videos and work on example problems as well as hear from our corporate
fellow.

This course is Blackboard enabled. Assignments, announcements, and information will be

distributed and submitted via Blackboard. Please access your account daily for class
announcements and course material. Note: If you plan to access the course from work, try
connecting early in the course. Some businesses have very rigid settings on their firewalls
that do not allow for participation in activities such as chats, quizzes, or exams.

Please familiarize yourself with Blackboard completely before you begin the class. Pay attention
to recommended computer configuration as technology problems not related to UHD are not an
acceptable reasons for missed work. No late work is accepted.

Blackboard help is available online by visiting www.uhd.edu/blackboard or calling 713-221-8540.

5. Course Requirement
All assigned/scheduled work must be completed and submitted to receive credit for the course on
or before due date.

5.1 Discussion – Reality Based Education

To improve the student’s awareness of current events and to develop their critical thinking,
students will be asked to contribute to discussion that correlates with the current topic. The student
will use outside sources as supporting evidence for their argument. The student will be asked to
pick one publicly owned company and have a series of questions to discuss the company. Every
student should have a different company. You will have 4 different discussion entries. You will be
discussing topics such as Financial Statements, Debt, Stocks, and Cost of Capital. The discussion
forum will give more specific questions to guide entry. You are also need to contribute to one other
student discussion post.

5.2 Cases
Two cases will be analyzed and discussed during the semester: Financial Analysis Case and
Daniel’s Portfolio. Your grade on each case will be based on your objective answers and
discussion questions related to the cases which will be given on the case assignment sheet on
Blackboard. You will be allowed to work in a group of up to 4 people, but you need to tell me at
the beginning of the semester.

The due dates for each case is indicated below and will also be announced in class.

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5.3 Quizzes
Students will take a number of quizzes this semester on the material that was covered during the
week. Quizzes are used to determine whether students read the material.
These quizzes are meant to give you an opportunity to practice for future exam and to help you
learn the material. Take your time, you can use your book and class material, but you cannot use
each other.

5.4 Exam
The midterm and final will be taken on blackboard using Respondus LockDown Browser, your
computer needs to have a camera available. The Midterm Exam will open Friday February 18th
and close on Sunday, February 20th at 10 PM. You will have 2 hours to complete the exam in one
sitting.

It is prohibited to talk about exam with other students (or take them together), until everyone has
taken the exam, if I hear that it is not the case than it will be considered as cheating! You will need
to open the exam through Lockodwn Browser and will need video capabilities, you can download
it through the following website:
https://download.respondus.com/lockdown/download.php?ID=354814027

The Final Exam is comprehensive and will also be administered online. Similar to the midterm,
the exam you use Respondus LockDown Broswer to take the Final. The final exam will open on
Thursday, March 10th at 8 a.m. and close Saturday, March 12th at 10 p.m. You will have 2.5 hours
to complete the final exam.

For exams, you will be allowed to use your calculator, and a one page (standard print page) that
you can either fill with formulas and notes (NO textbook is allowed).

6. GRADING
Your grade in this course will be calculated using weighted average. While the grades are made
available in blackboard, I do have a separate gradebook as well. Your grades will be calculated
using a weighted average and will be based on the following weights:

Discussion 05%
Quizzes 15%
Case 1 – Financial Analysis 20%
Case 2 – Daniel’s Portfolio 20%
Midterm Exam 20%
Final Exam 20%

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6.1 Grading Policy
90 and above A
80 – 89% B
70 – 79% C
60 – 69% D
Below 60 F

No late work will be accepted, quizzes will not be reopened if you miss the deadline. Make sure
that you submitted cases and quizzes on or before the deadline. Any assignment missed will
receive a grade of zero (0). You may submit an assignment early without penalty. Assignments
will be submitted through blackboard.

There will be NO MAKE-UP exams. If you have a job-related conflict with the scheduled exam
date, it is up to you to notify me by at least two weeks in advance so that we can schedule an
alternative exam date before the scheduled time.

6.2 Administrative Drop Policy

Your failure to engage course material or make contact with faculty to adequately explain your
absence by the 10th class calendar day of the semester will result in your being administratively
dropped from this course. Being dropped from this course may affect your enrollment status
and/or your financial aid eligibility.

6.3 Attendance Policy

Class attendance is mandatory. Since our course is only 8 weeks long, if you miss more than 2
class, that will result in an automatic drop in letter grade. You must also arrive to class on time,
since late arrival may disrupt others. I expect you to be present in class and prepared to contribute
to the class discussions.

7. University Policies and Procedures

UHD has developed many resources to support your learning. We have developed a website that
will offer a “one stop shop” for access to many of the resources you might need this semester to
support your educational goals. Please access this website to get started:
https://tinyurl.com/SSR2020. If you do not find the resource you need on this website, please
contact your instructor, who will make every effort to connect you with the help you need.

7.1 Responses to University-Wide Disruptions

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In the event of university-wide disruptions for any reason, including weather, health, and safety
concerns, UHD may require instructors and students to engage in their classes via different
modalities and/or timelines to minimize disruption to the continuity of the semester. Such
changes may entail adjustments in syllabus content. Instructors will communicate any changes in
writing to all enrolled students as soon as circumstances allow. Disruptions aside, instructors
reserve the right to adjust their syllabi as needed in order to accommodate the education needs of
the class, but any such changes will be communicated to students in writing during the course of
the semester.

Please continue to check the UHD website uhd.edu to understand how UHD is responding to the
most current COVID-19 circumstances and regularly check your class Blackboard site and
Gatormail sources for information specific to your classes.

7.2 COVID-19 Exposure or Diagnosis

Any student who is exposed to or diagnosed with COVID-19 should self-report to the university
using forms found on our UHD COVID-19 Webpage, even if you are taking only online courses.
Self-reporting allows the university to offer support and guide you to university and community
resources, as well as maximize safety for the larger UHD community. You as a student may be
eligible for short-term academic accommodations if you are affected by COVID or are asked to
quarantine. You should make this request through the Office of Disability Services. Please note
that reporting through faculty or staff does not constitute official self-reporting.

For classes with in-person meetings (FTF or Hybrid): If any member of the class reports
exposure or diagnosis while on campus, instructors will follow the instructions for immediate
action posted in all classrooms. Our UHD contact tracing team may contact class members and
instructor with appropriate steps, which may include self-isolation for a period of time. All
students and instructors should be responsive to contact tracing outreach and watch for emails
through official UHD email accounts for any information about class meetings or follow-up
steps.

7.3 Safety Precautions

All individuals coming to the UHD campus must observe all safety precautions articulated by the
university. Please review the most current requirements on our website. We encourage all UHD
community members to get vaccinated and follow; masks are optional but encourages as per
state health guidance. Failure to comply with any institutional policies, including those regarding
COVID precautions, may constitute a violation of the student code of conduct and lead to
disciplinary action through the Office of the Dean of Students.

7.4 Student Support Services

UHD has developed many resources to support your learning, engagement with UHD activities,
and other UHD processes. We have developed a website that will offer a “one stop shop” for
access to many of the resources you might need this semester to support your educational goals.
Please access this website to get started. If you do not find the resource you need on this website,

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please contact the Dean of Students Office at 713-221-8100 or uhdstudentaffairs@uhd.edu; they
will make every effort to connect you with the help you need.

7.5 Student Counseling Services

As a student you may experience a range of issues that can cause barriers to learning. These
might include strained relationships, anxiety, high levels of stress, alcohol/drug problems, feeling
down, or loss of motivation. UHD Student Counseling Services is here to help with these or
other issues you may experience. You can learn about the free, confidential mental health
services available on campus by calling 713-221-8121 at https://www.uhd.edu/student-
life/counseling/.

7.6 Accessibility and Statement of Reasonable Accommodations

The University of Houston-Downtown (UHD), is committed to creating a learning environment
that meets the needs of its diverse student population. Accordingly, UHD strives to provide
reasonable academic accommodations to students who request and are eligible, as specified by
Section 504 and ADA guidelines. Students with disabilities may work with the Office of
Disability Services to discuss a range of options to removing barriers in this course, including
official accommodations. If you have a disability, or think you may have a disability, please
contact the Office of Disability Services, to begin this conversation or request an official
accommodation.
Office of Disability Services, One Main St., Suite GSB 314, Houston, TX 77002. (Office Phone)
713-221-5078; (Website) www.uhd.edu/disability/; (Email) disabilityservices@uhd.edu.

No accommodation can be made by an individual instructor for a student without specific

direction from the Office of Disability Services.

7.7 Technology Requirements

All classes at UHD require students to access materials in our Blackboard learning system or
other learning applications. Online, hybrid or even face-to-face classes will assign work that
requires access to a computer for creating and submitting assignments, taking tests, conducting
research, working with classmates, or engaging with the class. As importantly, if University
locations are not available to students for any reason, the online environment becomes a critical
pathway for continuing our classes and supporting your goals of completion. Unfortunately, most
phones and even some tablets may not provide the level of technology or access that can
maximize your success. Therefore, it is essential for every student at UHD to have reliable
access to internet and a computer that meets some basic requirements.

You should communicate in a timely manner with your instructors in the case of any challenges
in using technology.

Here are some resources to help you determine equipment needs and usage:
For recommended technology requirements: Technology recommendation
For challenges in using technology: UHD IT support center
For resources on purchasing technology: Computer access and support

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7.8 Testing and Final Exams
Any class may use an online testing option through Blackboard but for in-person or hybrid
classes, the exam may be in-person during the scheduled exam period. For more information on
taking Blackboard tests, see this guide. If proctoring is required, your instructor will inform you
of the process for setting up this option either through Blackboard or an alternative venue, and
they will inform you of whether there are any additional costs as part of the course syllabus.

UHD has a final exam period at the end of the semester. For any courses with an in-person
component, there are specific times scheduled for the exams which can be found on our
academic calendars webpage. Students are expected to be available during the scheduled period
unless they have consulted their instructor and identified an alternative option.

7.9 Religious Holy Days

The University of Houston-Downtown respects the religious observances of students even
though they may conflict with university class meetings, assignments, or examinations as per the
Texas Higher Education Coordinating Board Texas Administrative Code §4.4 Student Absences
on Religious Holy Days.
A student whose absence is excused under this policy shall be treated consistently with the
instructor’s policies and procedures relating to other excused absences, except that no
instructor’s policy may deny the opportunity for make-up work, as described here. Instructors
should announce reasonable time periods for make-up work and exams in writing to the class
and make clear the consequences of a student’s failure to meet such time requirements. Students
needing to reschedule missed work or exams for a holy day should submit a written request to
each instructor at least one week prior to the class period or assignment/exam date that will be
missed. An instructor should acknowledge receipt of that request via email to the student’s
official UHD email address. A new date for taking an examination or completing classwork
missed for a holy day shall be set by the instructor in accordance with announced policies.
If a student and an instructor disagree about whether the absence is for the observance of a
religious holy day, or if they disagree about whether the student has been given a reasonable time
to complete any missed assignments or examinations, either the student or the instructor may
appeal to the Office of the Provost. For further information about the state law, please see the
Texas Higher Education Coordinating Board Texas Administrative Code §4.4 or contact the
offices of the UHD Title IX/Equal Opportunity Services to review the policy.

7.10 Use of Blackboard, Gatormail, and Zoom

You are expected to regularly participate in your classes as scheduled as well as engage course
material through Blackboard as required by instructors. Gatormail is the official UHD email
communication system and UHD staff and faculty must use it to share student-specific
information that is protected by FERPA guidelines. You should check your account regularly for
both class and university messages.

If you are taking a class that has virtual online meetings that use Zoom, you are expected to
attend at scheduled times and participate fully following any protocols established by your

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instructor. Specific course elements and/or exams may require live video. Your instructor will
provide this information to you as part of the course syllabus. Students with concerns regarding
any requirement to participate in live video for specific course learning outcomes and/or
assignments should consult their instructor.

7.11 Recording of Class Sessions

Some of the sessions in courses with online engagement may be pre-recorded, recorded or live-
streamed by the instructor. Such recordings/streaming will be available only to students
registered for this class. Students should not share these instructor-recorded sessions with those
not in the class, or upload them to any other online environment. Students should not record or
stream course sessions. Doing so may be a violation of the Federal Education Rights and Privacy
Act (FERPA). Please check with your instructor before sharing recordings of class content with
any individual.

7.12 Academic Honesty

As a UHD student, you are responsible for following the UHD Academic Honesty Policy
Statement 3.A.19, which defines the scope of academic honesty and identifies processes for
addressing violations, including an appeal process. As per the policy, “students are responsible
for maintaining the academic integrity of the University by following the Academic Honesty
Policy. Students are responsible for doing their own work and avoiding all forms of academic
dishonesty.” Academic dishonesty includes, but is not limited to, cheating and plagiarism. Your
faculty member will identify the penalty for academic honesty violations and the penalty of an F
in a course is recommended “in instances of multiple and/or flagrant violations.” The policy also
requires that all violations are reported to the Office of the Dean of Students.

7.13 Book Purchasing

A student of this institution is not under any obligation to purchase a textbook from a university
affiliated bookstore. The same textbook may also be purchased from an independent retailer,
including an online retailer.

7.14 End-of-Course Student Surveys (IDEA): During the last week of the course, you will be
asked to complete an end of course survey. Your thoughtful and honest responses to the survey
are extremely important. We learn best what works, and what doesn’t, by listening to our students.
The survey is your chance to help us improve.

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 8. DETAILED COURSE CALENDAR
The Course calendar below contains only the general outline of the activities and assignments that you
are responsible for each week. Specific instructions for each week are provided in Blackboard.

Preparatory Assignments Face-to-Face Meeting Hybrid Assignments

Week 1 – Introduction
▪ Video Lecture Martin Luther King Jr. – No ▪ Read Syllabus
o Introduction Class ▪ Discussion post –
▪ Read Ch. 1 and 2 Introduce yourself and
company selection and
summary
▪ Group Formation –
email professor if
working in group
▪ Read Case 1
Week 2 – Financial Ratios (1/24)
▪ Video Lectures 1. Reality Base Discussion ▪ Work on Case 1
o Financial Statement 2. Financial Statements ▪ Quiz 1
o Free Cash Flow 3. Financial Ratios Analysis ▪ Discussion post –
o Financial Ratios 4. Announcements & Questions Company Financial
o FS Analysis Statement analysis
▪ Read Ch. 2 and 3
Week 3 – Bond & Interest Rate (1/31)
▪ Video Lectures 1. Reality Base Discussion ▪ Continue working on
o Time Value of Money 2. Bond Discussion Case 1
o Bond Concept 3. Interest Rate Discussion ▪ Quiz 2
▪ Key Features of 4. Yield to Maturity Discussion ▪ Discussion post –
Bonds 5. Announcements & Questions Company’s Debt profile
▪ Bond Valuation
▪ Bond
Relationships
o Bond Risk
o Interest Rate
Determination
▪ Ch. 4 and 5
Week 4 – Corporate and Stock Valuation and Exam (2/7)
▪ Video Lectures 1. Reality Base Discussion ▪ Case 1 Due February 13
o Risk and Return 2. Stock Discussion ▪ Quiz 3
o Portfolio Basic 3. Preferred Stock Discussion
o Stock Concept 4. Announcements & Questions
▪ Introduction to
Stock

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 ▪ Free Cash Flow
Model
▪ Dividend Growth
Model
o Preferred Stock
▪ Read Ch. 6 and 7
Week 5 – Cost of Capital (2/14)
▪ Video Lectures 1. Reality Base Discussion ▪ Midterm Exam
o Cost of Capital Intro 2. Cost of Capital Discussion (ONLINE)
o Cost of Capital 3. Mistakes to Avoid (Chapters 1, 2, 3, 5, 7)
Component Valuation 4. Announcements & Questions Feb. 18 – 20
▪ Debt ▪ Start working on Case 2
▪ Preferred Stock ▪
▪ Common Equity
▪ WACC
o Project Risk
▪ Read Ch. 9
Week 6 – Capital Budgeting (2/21)
▪ Video Lectures 1. Reality Base Discussion ▪ Discussion Post –
o Capital Budget 2. Capital Budgeting Company Stock profile
Introduction Discussion ▪ Work on Case 2
o NPV & IRR 3. Announcements & Questions ▪ Quiz 4
o MIRR
o PI & Payback
o How to Use your
Calculator
o Other Issues
▪ Read Ch. 10
Week 7 – Review (2/28)
▪ Review Video Lectures 1. Semester Review ▪ Case 2 Due March 6th
2. Workday ▪ Quiz 5
3. Announcements & Questions

Week 8 – Final Exam (3/7)

▪ Prepare for Final Exam ▪ NO CLASS ▪ Final Exam
(Comprehensive) March 10-
12

Some information contained in the syllabus and course content, such as assignments, tests,
exams, etc. may be changed at the discretion of the instructor to better facilitate the class
throughout the semester. Any such changes will be announced in the class.

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