Shannon Donovan BA, MFS, DBA

Course AF-485  Tues 3-4:40PM & 6-8:40PM

Office Hours: M: 12pm – 1:30pm, T: 1:00pm- 3:00pm & 8:40pm-9:10 pm, W: 12:00pm- 1:00pm, and by appointment. I also respond quickly to e-mail.

Spring 2003

Web Site – or and go to Faculty Web sites

Blackboard: (

Telephone: 508-531-2684



COURSE DESCRIPTION: This course explores the decision processes involved in the securing of long term physical corporate assets, or in committed long term intangible assets, including spreadsheet analysis of cash flows, tax implications, decision making criteria, risk analysis and the computation of cost of capital.


METHOD:  Instructional methods employed may include lecture, cases, skill-building exercises, problem solving, student presentations and other activities.  These events heighten understanding of the course material.  The student’s preparation before class and serious participation in these activities will contribute to learning in this course.


Each chapter and each class will build upon one another in this course, so students need to be prepared prior to each class.  If you find yourself falling behind, please see me right away.  As you can see from my schedule above, I am available often and in many different formats (class, office, phone and e-mail), so there is no excuse for you not to contact me.   


Course Objectives/Outcomes




1. To familiarize students with concepts and principles of capital budgeting.

Students will pass in-class examinations.

2. To let students demonstrate their ability to use the techniques they have mastered.

Students will complete two projects in which they will use the techniques examined in the course and will include the use of spreadsheets. 

3. Give students the opportunity to learn collectively and to exchange ideas on capital budgeting.

Students will participate both individually and in teams in problem solving and discussion in class to demonstrate their working knowledge of the subject.



Required Reading: Finance – Primis Online, Brealey, Myers, & Marcus, Demello, McGraw-Hill/Irwin.


Other Reading as assigned.


Materials: A financial mode calculator is required – the Texas Instruments BA 35 II is recommended and will be taught in class.  You may use another financial mode calculator if you know how to use it. The ability to do spreadsheet assignments are important and basis accounting courses are a prerequisite.





Student Evaluation


1.             Class Participation and homework                                                                                    10%

2.             Exams (2)                                                                                                                               40%

3.             Comprehensive Final                                                                                                           25%

4.             Group Case Presentation                                                                                                    10%

5.             Spreadsheet Project                                                                                                             15%


1.       Class Participation: Attendance, timeliness, preparation of assigned readings, and constructive comments and activity during class sessions are included in Class Participation.  Assigned readings, problems, and cases should be done prior to the class meeting for which it is assigned in the schedule (below) or in class. These problems may be periodically collected.  Participation in in-class activities is necessary for enhanced learning in the course.  Quality participation is more important than mere attendance. Participation is graded in each class and includes preparation of the material, thoughtful questions, and insights.  The text provides the foundation of knowledge for class activities and discussion. The course assumes that the student has read the text and that the student’s role is active and dynamic. The final grade in this area will reflect the student’s oral contribution to the classroom learning environment. 


Students are encouraged to ask and answer questions during class, however all discussion should be directed to the professor and the class in general.  No talking among classmates outside this discussion will be tolerated; it is distracting to the professor and the other students in the classroom and it is rude.  This will count highly towards your participation grade.


Attendance is an integral part of this course.  Some material for which you will be responsible is not included in the text. Two absences will be allowed for the classes that meet once a week and four will be allowed for the classes that meet twice a week. For every incremental two absences beyond the two allowed, the lowering of a student grade by 1/3 grade will result.  For example, if cumulative grade is “B” and you miss four classes, your final grade will be lowered to a “B-“.  Success in this course requires attendance and should require a preparation level of 6-10 hours outside class WEEKLY.


Participation and attendance is important.  Each chapter builds on the other and there will be information and discussion given in class that will be included in exams and is not in the text.   You will be responsible to get every assignment, so it is advised that you exchange phone numbers or e-mails with classmates if you miss class.


2.       Exams : Two exams will be given covering specific chapters. A detailed study guide will be given before the exam to help you prepare.


3.       Comprehensive Exam: This exam will test the student’s comprehension of all the material in the course.  This will be given during the final exam period.


4.       Group Case Presentation: The class will be divided into groups and cases will be assigned for presentation.


5.       Spreadsheet Project:  This project will allow the student to demonstrate their skills by using their capital budgeting techniques and spreadsheet skills.



If you are having trouble, see me right away.  My schedule is on my office door.  Also, there is a phone number and e-mail that I have provided.  There should be no excuse that you could not reach me. Extra help will gladly be provided to all those who attend class regularly and complete homework assignments.  Prepare – read the chapter, do the homework, attend classes and participate. Don’t fall behind.






Schedule of Events- Tuesday Class






Chapters 3-5- A Review of Managerial Finance

Ch 3: Quiz:1-20, Prob: 21,48

Ch 4: Prob. 11-14,16,17

Ch. 5: 3,4,10,11,12



Go over Problem from Chapter 3-5

Chapter 6



Go over Problems from Chapter 6

Chapter 7



Go over problems from Chapter 7

Chapter 8



Exam (Ch 3-7)





No class



Go over Problems from Chapter 8

Chapter 9 and Chapter 10


3/ 4 & 3/11

Two Week Break



Go over Problems from Chapter 9 & 10

Chapter 11



Go over Problems from Chapter 11

Cases –10,11,12,15,16 Groups




Finish Group Presentations

Chapter 15




Exam (Chapters 8-11)





Go over Problems from Chapter 15

Chapter 16



Go over Problems from Chapter 16

Chapter 22 & 24



Go over Problems from Chapter 22 & 24 and dividend case




Final Exam



* Assignments will be given during class.

Syllabus may be changed at the instructor’s discretion.