Financial Management-AW417

Financial Management-AW417 Online Services


Financial Management


Course Description


The course explores managerial finance from both domestic and international perspectives. Topics include valuation, capital budgeting, capital structure and financial leverage, long-term financing decisions, cost of capital, mergers and acquisitions, international finance, and risk management. Uses spreadsheets and financial calculators.


Course Objectives


In this course you will have an opportunity to learn about

  • The parties in the financial markets
  • Capital budgeting and investment cash flows
  • Risk in capital budgeting
  • Financial leverage
  • Optimal Capital Structure
  • Dividend payout policies
  • Cost of capital
  • Working capital management
  • Liability management
  • Derivatives


Course Methodology: Each week, you will be expected to

  • Review the week’s learning objectives.
  • Complete all assigned readings and review all lecture materials.
  • Participate in the Discussion Board.
  • Complete and submit any weekly assignments by the due dates. Note:  Grade on late submissions up to one week reduced by 50%, after that, by 100%.



Each week NUOnline Discussion Board questions and/or problems will be assigned for posting and discussion.  All Discussion Board questions require at least one primary response from each student followed by at least one secondary response (comments to another student’s post) per week per discussion question.  Students are expected to actively participate in the Discussion Board on a weekly basis.


A posting should reflect your learning from the text material and include at least one external source with proper citation.

Plan on participating in Discussion Boards as follows

  • Post a primary response to each week’s question(s)/problem(s), due by Wednesday of that week.
  • Post one secondary responses, due by Saturday of that week. Additional responses are optional and can be made beyond this deadline.  Note your reply must add value to the discussion. It cannot be something simple such as “good posting”.

  • Required responses tardy up to one week are reduced by 50% of grade; after that, by 100%.
  • Responses are to be within the guidelines stated above.

  • Participation in the Discussion Board is 48% of your grade.
  • Citations and quotation marks are required of any external source material, but the majority of your postings and responses should be your own words and thoughts

  • The best answers for discussion board questions are those which illustrate their answers with references to external authorities and with examples gained from Internet research and your other studies and work experiences.




Weekly Assignments

In the Course Material Tab, for each week, go to the weekly Course Material/Assignments folder, click on the Assignment link to view any weekly assignment. Send your assignment to Professor Hancock by e-mail ( Once your assignment has been graded, you will be able to view the grade and feedback I have provided by clicking on my grades in Blackboard.


Final Objectives

The final project for this course is for you to select four questions out of nine questions (questions included in syllabus week 13 assignments). You will research the four questions and prepare written answers to the questions based upon your studies, experience, and research. Research should include at least two articles per topic obtained from the Internet which expand your knowledge and provide you information and examples to improve and support your answers. You may also be requested to obtain a company’s financial report to illustrate your answer. You cannot use a company for more than one question (different companies for different questions). You must cite all referencesources. Your answers should be approximately two-three pages for each question.  Submit to Professor Hancock by e-mail (


Grading/Evaluation Standards: Your Grade will be determined as follows

  • Participation (replies) in Discussion Boards 28 points
  • Weekly Discussion Questions 125 points
  • Research Questions Final Project                                          40 points
  • Assignments 70 points

263 points


Week Schedule / Topical Outline

Week Week of Topics Text Reading
1 09/08/2014 Cost of Capital Ch. 9
2 09/15/2014 Capital Budgeting Ch. 10
3 09/22/2014 Capital Budgeting (continued) Ch. 10
4 09/29/2014 Capital Budgeting Cash Flows Ch. 11
5 10/06/2014 Risk: Capital Budgeting Ch. 12
6 10/13/2014 Financial Leverage Ch. 13
7 10/20/2014 Dividend Payout Policies Ch. 14
8 10/27/2014 Working Capital Management Ch. 15
9 11/03/2014 Current Liabilities Management Ch. 16
10 11/10/2014 Derivatives Ch. 17
11 11/17/2014 Mergers Ch. 18
12 11/24/2014 International Financial Management Ch. 19
13 12/1/2014  Final Project  


End-of-Course Evaluation Surveys
Your feedback regarding your educational experience in this class is very important to the College of Professional Studies.  Your comments will make a difference in the future planning and presentation of our curriculum.


Your survey responses are completely anonymous and confidential.  For courses 6 weeks in length or shorter, surveys will be open one week prior to the end of the courses; for courses greater than 6 weeks in length, surveys will be open for two weeks.  An email will be sent to your HuskyMail account notifying you when surveys are available.




Weekly Assignments


WEEK 1 Cost of Capital (week of 9/8/14)

Note: Many students will have covered this subject in the previous Financial Management I course. However, given the importance of the subject, a review does not hurt. Also the subject is a good starting point for the second course in Financial Management.

Due date for week 1 assignments is being extended to September 21 due to the need to revise the syllabus.


Learning Objectives

  • Understand basic concept and sources of capital associated with the cost of capital.
  • Explain the marginal cost of capital.
  • Determine the cost of long-term debt, preferred stock, and common stock.
  • Calculate the weighted average cost of capital.

Reading: Text Chapter 9

Lecture Slides: See lecture slides in Blackboard Course Material Week 1.


Discussion Board: (Click on Blackboard Discussion tab to find this week’s discussion questions)

Note: In addition to posting your answer to the assignments on Blackboard, you must reply to at least one other student’s posting per question.

Week 1 Discussion Board Question DB1-1

Introduction.Post a brief description of yourself including your Northeastern experience, professional activities, family and hobbies/interests.

Week 1 Discussion Board Question DB1-2

(5 points) Ethics have always been important in how we live and work. After the financial disasters of 1998 through 2002, much attention has been given to business ethics. Research at least one company that has faced public disclosure of unethical behavior. Explain what happen and the consequences of such action (e.g., company officers going to jail).  

Week 1 Discussion Board Question DB 1-3

(5 points) Explain how to calculate the cost of debt, preferred stock, common stock, retained earnings and new common stock.

Week 1 Discussion Board Question DB 1-4.

(5 points) Explain “weighted average cost of capital” and its use.



Assignment week (A1-1) (10 points) Work problem 9-19 in the text,which can also be found in Course Materials, week 1.

What’s Next: Capital Budgeting


WEEK 2 CAPITAL BUDGETING (September 15-Septembeer 21)

Learning Objective

  • Understand the key elements of the capital budgeting process.
  • Calculate the payback, net present value and internal rate of return.
  • Use net present value profiles to compare NPV and IRR tecchniques.


Reading: Text Chapter 10

Lecture Slides: See Lecture Slides in Week 2 Course Material.

Discussion Board

Note: In addition to posting your answer to the assignments on Blackboard, you must reply to at least on other student’s posting per question.

Week 2 Discussion Board Question DB 2-1 (3 points) The “payback method” of capital budgeting is the simplest method to use but also has its drawbacks. Explain the payback method and its strengths and weaknesses.

Week 2 Discussion Board Question DB2-2 (2 points) Which is more superior, NPV or IRR? Why would anyone use a less superior approach to capital budgeting?


Week 2 Assignment A2-1 (10 points). Work assignment A2-1 found in Week 2 Course Materials.

What’s Next: Capital Budgeting (continued)


WEEK 3 CAPITAL BUDGETING (CONTINUED)(September 22-September 28)

Learning Objectives

  • Apply capital budgeting techniques in a case study.

Reading: Text Chapter 10

Lecture Slides: See week 2

Discussion Board: There are no discussion board assignments for this week.


Week 3 Assignment A3-1(15 points) Case study Girsch Pumps.

Questions appearing at the end of the case. The case can be found in Course Material

Week 3.

What’s Next:  Capital Budgeting Cash Flows



Learning Objectives

  • Discuss the three major cash flow components
  • Discuss sunk cost and opportunity cost
  • Discuss the tax implications associated with the sale of an old asset
  • Find the relevant operating cash flows associated with a proposed capital expenditure.
  • Determine the terminal cash flow associated with a proposed capital expenditure.

Reading: Text Chapter 11

Lecture Slides: See Course Material for Week 4, Chapter 11

Discussion Board

Note: In addition to your posting, you need to reply to at least one student’s posting per question.

DB 4-1.(3 points) Why is it important to evaluate capital budgeting projects on the basis of incremental cash flows?

DB 4-2.(2 points) What factors do you need to consider when finding the initial investment (relevant cash outflows) of a prospective capital expenditure?

DB4-3 (5 points) Describe three situations where you had to decide between two or more investments and the role sunk cost and opportunity cost may have played in your decision.


Access Week 4 Assignment 1 from Course Materials Week 4 Assignments.(10 points)


What’s Next: Risk and Capital Budgeting




Learning Objectives. After this week you should

  • Understand the importance of recognizing risk in the analysis of capital budgeting projects.
  • Describe the determination and use of risk-adjusted discounts rates
  • Select the best of a group of unequal-lived, mutually exclusive projects using net present value.


Reading: Text Chapter 12

Lecture slides: See Week 5 in Course Material

Discussion Board

Note: In addition to posting your answer to the assignments on Blackboard, you must reply to at least one other student’s posting per question.


Week 5 Discussion Question DB5-1 (5 points) Explain any two of the following items and how their inherent risk can be managed from a financial point of view

  1. Exchange rate risk
  2. Political risk
  3. Tax law differences
  4. Transfer pricing


Week 5 Discussion Question DB5-2 (5 points)

Suppose you had two projects. Project A has a NPV of $11,277.24 and a 3-year life. Project B has a NPV of $19,013.27 and a 5-7 life (reference example on page 487 of the text). The text suggests Project B is a better choice if the projects are mutually exclusive. Under what conditions might Project A be the better choice?

Week 5 Assignments

Week 5 Assignment A 5-1 can be found in week 5 Course Materials.(5 points)

What’s Next

Leverage and Capital Structure



Learning Objectives: After this week you will better understand

  • Financial leverage, capital structure, break-even analysis,
  • Operating, financial, and total leverage and the relationship among them
  • The different types of capital and capital structure
  • Optimal capital structure


Reading: Text Chapter 13

Lecture Slides: See lecture slides in week 6 Course Materials



Discussion Board: Click on Discussion at left of this screen for Week 6 Discussions.

Note: In addition to posting your answer to the assignments on Blackboard, you must reply to at least one other student’s posting per question.

Week 6 Discussion Question DB 6-1 (5 points)

Explain what is meant by financial and operating leverage, how does they work, and why a company would want to use (not use) these leverages.

Assignment Week 6 (15 points)Barbie case study

See Assignments in Week 6 Course Material.

What’s Next: Payout Policy


WEEK 7 PAYOUT POLICY(October 20-October 26)

Learning Objectives: by the end of the week you will better understand

  • Cash payout procedures, their tax treatment, and the role of dividend reinvestment plans.
  • The residual theory of dividends
  • Key factors involved in establishing a dividend policy.
  • Evaluate stock dividends
  • Explain stock splits and the firm’s motivation for undertaking them.


Reading: Text Chapter 14

Lecture Slides: Available in Week 7 of Course Material

Discussion Board Week 7

Note: In addition to posting your answer to the assignments on Blackboard, you must reply to at least one other student’s posting per question.


Week 7 Discussion Board DB 7-1(5 points) Since its beginning in 1975, Microsoft did not pay a dividend. Microsoft investors wanted Microsoft to retain profits and reinvest them in the company. By 2004 Microsoft has amassed almost $50 billion Today the latest dividend is $0.31 per share. What might have motivated Microsoft to begin paying a dividend? What might Microsoft have considered with planning to pay a dividend? Why start with a regular dividend of $0.08 and a special dividend of $3 at the same time?


Week 7 Discussion Board DB 7-2 (5 points) You own stock In a company. What would you prefer, a cash dividend or a stock dividend? Why?
Week 7 Discussion Board DB 7-3 (3 points) What is a DRIP? What are the advantages and disadvantages? What type of person might use a DRIP?
Week 7 Discussion Board DB 7-4 (2 points) On June 9, 2014, Apple split their stock 7:1. What decisions might be behind this action?
Assignment. There are no assignments for week 7.

What’s Next: Working Capital and Current Asset Management


Learning Objectives:After this week you should have a better understanding of

  • Understanding working capital management
  • Describe the cash conversion cycle
  • Explain credit selection process and procedure for evaluating changes in credit standards.
  • Review the procedures for quantitatively considering cash discount changes, other aspects of credit terms and credit monitoring

Reading: Text Chapter 15
Lecture Slides: See week 8 Lecture Slides in Course Materials.
Discussion Board
Note: In addition to posting your answer to the assignments on Blackboard, you must reply to at least one other student’s posting per question.


Week 8 DB 8-1. (5 points) What customer credit terms can be considered by a company? What are the pros and cons of such terms?
Week 8 DB 8-2.(5 points). Assume you are a bank lending officer. Someone, just like you, approaches the bank for a loan. How  would you apply the Five C’s of Credit in deciding if a loan should be made?
Week 8 DB 8-3. (5 points) Inventory is a major current asset for most firms, and one that does not earn income until sold. Explain the ways and tools management uses to control the level of inventory. What impact may/is happening due to Just-In-Time inventory?

Week 8 DB 8-4 (5 points)What is “cash concentration”? What are zero-balance accounts?

Assignments: There are no assignments for week 8.

What’s Next: Current Liabilities Management




Learning Objectives: After this week you will better understand:


  • The components of credit terms
  • 0
  • The basic features of commercial paper
  • The various ways in which inventory can be used as short-term-loan collateral.

Reading: Text Chapter 16
Lecture Slides: Access Lecture Slides in Week 9 Course Material.
Discussion Board

Note: In addition to posting your answer to the assignments on Blackboard, you must reply to at least one other student’s posting per question.


Week 9 Discussion Board DB 9-1(5 points) Explain your accounts payable management. What are the effects of not paying your liabilities in a timely manner? If you carry credit card debt, would it make sense to take out a bank loan to pay off the credit card balances? Explain the advantages and disadvantages of you obtaining a “line of credit” with your bank.
Week 9 Discussion Board DB 9-2 (5 points)Explain what is meant by “spontaneous” current assets and current liabilities.

There are no assignments for week 9.

What’s Next: Hybrid and Derivative Securities


WEEK 10 HYBRID and DERIVATIVE SECURITIES (November 10-November 16)
Learning Objectives: At the end of the week you will have a better understanding of

  • Differentiate between hybrid and derivative securities
  • The types of leases, leasing arrangements and the effects of leasing on future financing.
  • Convertible securities
  • Procedure for determining the straight bond value
  • Market for convertible bond
  • Key characteristics of stock purchase warrants
  • Options
  • Hedging foreign currency

Reading: Text Chapter 17
Lecture slides: Access slides in Week 10 of Course Material
Discussion Board
Week 10 DB 10-1 3 points) Why might a firm want to issue convertible securities?
Week 10 DB10-2 (5 points) Why do convertible securities normally have a call option? How does one decide to convert or not convert convertible securities? What is an overhanging issue?
Week 10 DB10-3 (5 points) Explain what is a warrant including how you calculate its value.
Week 10 DB10-4 (5 points) You plan to purchase a machine from a German manufacturer and pay with euros. You are concerned that the value of euros may adversely change in value relative to the US dollar. How can you use options to protect your purchase cost?
Assignments: Access assignment in Course Materials Week 10 assignment
What’s Next: Mergers, LBOs, Divestitures and Business Failure


Learning Objectives: After this week you should have a better understanding of

  • Merger fundamentals
  • Objectives and procedures used in leveraged buyouts and divestitures
  • Procedures used to value companies in the merger negotiation process
  • Major causes of business failure
  • Bankruptcy

Reading: Text Chapter 18
Lecture Slides: Access Week 11 Course Materials
Discussion Board Week 11

Note: In addition to posting your answer to the assignments on Blackboard, you must reply to at least one other student’s posting per question.


Week 11 Discussion Board 11-1 (5 points) Explain the effect on earnings per share of a merger.

Week 11 Discussion Board 11-2 (2 points) Explain how management of a company may fight off an undesirable (hostile) take-over action.

Assignment: There are no assignments for week 11.

What’s Next: International Managerial Finance





Learning Objectives
By the end of the week you should better understand

  • The major factors that influence the financial operations of an international company.
  • The differences between purely domestic and international financial statements.
  • The exchange rate risk
  • The role of the Eurocurrency market in short-term borrowing

Reading: Text Chapter 19
Lecture Slides: Access Week 12 Course Material
Discussion Board:
Note: In addition to posting your answer to the assignments on Blackboard, you must reply to at least one other student’s posting per question.

You can read more about our case study assignment help services here.

How it Works

How It works ?

Step 1:- Click on Submit your Assignment here or shown in left side corner of every page and fill the quotation form with all the details. In the comment section, please mention Case Id mentioned in end of every Q&A Page. You can also send us your details through our email id with Case Id in the email body. Case Id is essential to locate your questions so please mentioned that in your email or submit your quotes form comment section.

Step 2:- While filling submit your quotes form please fill all details like deadline date, expected budget, topic , your comments in addition to Case Id . The date is asked to provide deadline.

Step 3:- Once we received your assignments through submit your quotes form or email, we will review the Questions and notify our price through our email id. Kindly ensure that our email id and must not go into your spam folders. We request you to provide your expected budget as it will help us in negotiating with our experts.

Step 4:- Once you agreed with our price, kindly pay by clicking on Pay Now and please ensure that while entering your credit card details for making payment, it must be done correctly and address should be your credit card billing address. You can also request for invoice to our live chat representatives.

Step 5:- Once we received the payment we will notify through our email and will deliver the Q&A solution through mail as per agreed upon deadline.

Step 6:-You can also call us in our phone no. as given in the top of the home page or chat with our customer service representatives by clicking on chat now given in the bottom right corner.

Case Approach

Scientific Methodology

We use best scientific approach to solve case study as recommended and designed by best professors and experts in the World. The approach followed by our experts are given below:

Defining Problem

The first step in solving any case study analysis is to define its problem carefully. In order to do this step, our experts read the case two three times so as to define problem carefully and accurately. This step acts as a base and help in building the structure in next steps.

Structure Definition

The second step is to define structure to solve the case. Different cases has different requirements and so as the structure. Our experts understand this and follow student;s university guidelines to come out with best structure so that student will receive best mark for the same.

Research and Analysis

This is the most important step which actually defines the strength of any case analysis. In order to provide best case analysis, our experts not only refer case materials but also outside materials if required to come out with best analysis for the case.

Conclusion & Recommendations

A weak conclusion or recommendations spoil the entire case analysis. Our expert know this and always provide good chunks of volume for this part so that instructors will see the effort put by students in arriving at solution so as to provide best mark.

Related Services


Week 12 Discussion Board DB 12-1 (10 points) Some USA companies are considering relocating their headquarters to a foreign country to avoid US taxes. This move is called “inversion”. Explain inversion and how such a move might help reduce taxes. Will Congress allow companies to move in order to save on taxes? Research the topic on the Internet and describe the topic. Give your opinion if inversion should be allowed.
Assignment: There are no assignments for Week 12.


WEEK 13 FINAL PROJECT(December 1-December 6)


As your final project, you need to submit by e-mail to Professor Hancock your answers to four of the following questions. Answers should be 2-3 pages and include research findings on the Internet as well as examples to illustrate your points. Make sure you cite any external sources you use. Each question is worth 10 points.
There are no additional discussion board or assignment questions for week 13.

  1. With the fall of the USSR, the “cold war” between Russia and the USA began to be replaced by direct business investment by US firms into Russia. Investors include Mobil Exxon, Pepsi Cola, and McDonalds. Recently this trend has been reversed as Russia invaded Chechnya, and the US began forming a coalition to impose economic sanctions again Russia. Have the sanctions made an impact upon the Russian people? Do you believe the approach of economic sanctions will work to shape Russia’s future? Support your answer with facts gained from researching this issue.



  1. Carl Icahn is known as a hostile takeover investor. Recently PayPal, as a result of Icahn’s pressure, announced a split of PayPal from eBay. Research Carl Icahn and describe how he influences companies to do what he wants. What are some examples of Icahn’s hostile takeover tactics? Has he been successful? Where has he failed?



  1. Go to the web site for General Motors and Ford, Investors’ relations, and get a copy of their annual report (just the four major financial statements). Calculate their cost for debt, preferred stock, common stock and retained earnings. Calculate their weighted average cost of capital. You may need to make some assumptions; if so, make sure you explain you assumptions. Show all calculations



  1. Northeastern, Inc. is considering two projects, each with an initial investment of $150,000. The school’s Board of Trustees has set a maximum 4-year payback requirement and has set its cost of capital at 9%. The cash inflows associated with the two projects are shown below.

                                                         Cash Inflows
    Year Project Happy Project Sad
    1 $45,000 $75,000
    2 45,000 60,000
    3 45,000 30,000
    4 45,000 30,000
    5 45,000 30,000
    6 45,000 30,000


    1. Calculate the payback period for each period.
    2. Calculate the NPV of each project at 0%
    3. Calculate the NPV of each project at 9%.
    4. Derive the IRR of each project
    5. Rank the projects by each of the techniques used. Make and justify a recommendation.



    1. a. How does depreciation enter into the calculation of operating cash flows?
    2. Why do companies pay dividends? Why do companies, once they begin to pay a dividend, want to continue to pay the same or greater dividend in the future?



    1. a. Explain what is meant by financial and operating leverage
    2. Explain what is meant by “degree of financial leverage” and give an example.



    1. Describe the cash-to-cash cycle. In what ways can a company reduce the cash-to-cash cycle? Select a company to illustrate your answer.



    1. Your business is growing faster than you ever expected. Your accountant reports your profits are strong and increasing. A reason for the growth is your policy of letting customers charges their purchases with payments due in 30 days. But you seem to have difficulty paying your bills. What can you do?



    1. What are the pros and cons using options as your investment tool? How do you value options?


    Academic Honesty and Integrity Statement
    The University views academic dishonesty as one of the most serious offenses that a student can commit while in college and imposes appropriate punitive sanctions on violators.  Here are some examples of academic dishonesty.  While this is not an all-inclusive list, we hope this will help you to understand some of the things instructors look for.  The following is excerpted from the University’s policy on academic honesty and integrity.

    • Cheating – intentionally using or attempting to use unauthorized materials, information or study aids in an academic exercise. This may include use of unauthorized aids (notes, texts) or copying from another student’s exam, paper, computer disk, etc.

    • Fabrication – intentional and unauthorized falsification, misrepresentation, or invention of any data, or citation in an academic exercise. Examples may include making up data for a research paper, altering the results of a lab experiment or survey, listing a citation for a source not used, or stating an opinion as a scientifically proven fact.

    • Plagiarism – intentionally representing the words or ideas of another as one’s own in any academic exercise without providing proper documentation by source by way of a footnote, endnote or intertextual note.
    • Unauthorized collaboration – Students, each claiming sole authorship, submit separate reports, which are substantially similar to one another. While several students may have the same source material, the analysis, interpretation and reporting of the data must be each individual’s.

    • Participation in academically dishonest activities – Examples include stealing an exam, using a pre-written paper through mail order or other services, selling, loaning or otherwise distributing materials for the purpose of cheating, plagiarism, or other academically dishonest acts; alternation, theft, forgery, or destruction of the academic work of others.

    • Facilitating academic dishonesty – Examples may include inaccurately listing someone as coauthor of paper who did not contribute, sharing a take home exam, taking an exam or writing a paper for another student.


    Northeastern University Online Copyright Statement
    Northeastern University Online is a registered trademark of Northeastern University.  All other brand and product names are trademarks or registered trademarks of their respective companies.  This course material is copyrighted and all rights are reserved by Northeastern University Online.  No part of this publication may be reproduced, transmitted, transcribed, stored in a retrieval system, or translated into any language or computer language, in any form or by any means, electronic, mechanical, magnetic, optical, chemical, manual, or otherwise, without the express prior written permission of Northeastern University Online.

    Product code: Financial Management-AW417

    Looking for best Financial Management-AW417 online ,please click here