Spring 2009 Rev. H Syllabus EM14 Executive Engineering Finance SMU EMIS 8363

For your 1st class you are required to have your team’s “P” HW on Excel and on a flashdrive. Do not upload HW, ST and Q. Be ready to stand at the front of the room and present your problem solution to the class or discuss “Q” HW. I will arbitrarily choose which team presents which problem, so each student must work all problems that are assigned for that day. Review the PowerPoint slides before class and be prepared to ask questions.

# / Date / Ch / Description / Elements / HW (Team input)
1 Mar 21
/ 1 / Overview of Financial Management / Ethics-Interest Rates-Yield Curve
/ ST1Q1 P1, 2, 7
See the HW codes below
2 / Time Value of Money / FV + PV-Annuity-Perpetuities-Rate types / ST2 Q1 P1
3 / Fin. Statements, Cash Flows / BS-IS-RE-MVA-EVA-Taxes-Cash flow / ST1 Q1 P8
2 Apr 04 / 4
5 / Risk & Return: The Basics
Risk & Return Theory / Portfolio risk –Investment returns
-Beta - CAPM - Behavioral Finance / ST1 Q1 P2, 4, 6, 8
CH5 – scan read only – no HW
6 / Bonds and their Valuation / Bond elements-Yields-Riskiness / ST1 Q1 P3, 4, 10, 12
7 / Stocks and their Valuation / Stock types-Markets-SML-Req’d return / ST1,2 Q1 P1, 2, 3, 4
Input Projects-A (35FND, 42EBM) due in Bb 48 hours before the start of the 8am class
3 Apr 18 / 9 / Cost of Capital / WACC- Cost of debt & Equity - CAPM / ST1 Q1 P1, 2, 3, 8
10 / Basics of Capital Budgeting / Evaluating cash flows-NPV-IRR-MIRR-PI / ST1 Q1 P1, 2, 5, 18a,c, & e
Mid-term exam through Ch 7 at Verizon/Idearc Center2200 West Airfield Drive 972-453-7000
Input Projects-B (22ART, 42EBM) due in Bb 48 hours before the start of the 8am class
4 May 02 / 14 / Financial Plan & Forecasting / Strategic plans – AFN – Sales forecast / ST3 Q1 P6
15 / Corp. Valuation / Value-based management – Terminal Val. / ST1 Q1 P10
Input Projects-C (42EBM) due in Bb 48 hours before the start of the 8am class
5 May 09
/ 8 / Fin. Options & Valuation / Puts & calls - strike price - exercise value / ST1,2 Q1 P2
13 / Analysis of Fin. Statements / Ratios –Liquidity - Asset - Benchmarking / ST2 Q1 P1
Input Projects-D (22ART, 42EBM) due in Bb 48 hours before the start of the 8am class
Final comprehensive exam – all chapters at Verizon/Idearc Center2200 West Airfield Drive 972-453-7000

Textbook: Financial Modeling for Engineers, Brigham/Ehrhardt, ISBN 0324627807 (same as previous class)

Order book online at

Order book at SMU bookstore 214-768-2435, r

Syllabus codes:: ST= Self Test, Q= Questions, P= Problems, MC= Mini Case, TK = Tool Kit

Read chapter and work ST, Q, and Pbefore the class meeting.Answers to ST and P are in the textbook.

  • A calculator with NPV & IRR functions is required to work test problems.
  • Access Blackboard (Bb) with your SMU ID & psw after the 1st class
  • Students are responsible to frequentlycheck Bb for course instruction updates and information.
  • Administration questions: Tammy Sherwood 214-768-1100 [fax = 1112]
  • Professor Jack Pickels, 214-357-1962, Email
  • Professor David Peters, 214-351-2171, Email:
  • Streaming video/audio questions: Send email to
  • Project uploads shown above are due to Bb 48 hours before the start of class at 6:30pm CST.
  • Cell phones, computers, and other electronic devices are not allowed in any class.
  • Exams must be taken on exam dates and no make-up exams will be given.

oIf you cannot take the exams on the dates shown above, do not take this course.

oExams are open book using only a financial calculator and both sides of one 8.5 x 11 crib sheet.