Spring 2001

BUS614:Managerial Finance and Accounting

Professor:S. Ghon Rhee (Managerial Finance)

Office:C304, FEI, CBA

Tel No.: 956 2535 and Fax No.: 956 2532

e-mail:

web site:

Office Hours:4:30 p.m. – Prior to Class, Monday or By Appointment on other week days

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REQUIRED TEXT

1.Eugene F. Brigham, Louis C. Gapensiki, and Michael C. Ehrhardt, Financial Management: Theory and Practice, 9th Edition, The Dryden Press, 1999.

2.Lectures will also be drawn on materials from other sources, including class notes.

COURSE DESCRIPTIONS

The objective of this course is to develop an understanding of the theory of corporate finance so that you will have the conceptual foundation for making intelligent financial decisions. Basic issues such as risk and return, capital budgeting, cost of capital and capital structure (including dividend decisions) will be covered. Considerable time will be devoted to the proper treatment of uncertainty and its effect on optimal corporate decisions. You will learn the effects of capital budgeting decisions, capital structure decisions, and dividend decisions on the value of a firm and its stockholders' wealth.

GRADING POLICY

Midterm Exam100 Points (40%)

Comprehensive Final Exam 150 Points (60%)

  1. Examinations: Exams will be developed from lecture materials and assigned readings materials from the textbook.
  1. Class Participation: All students are strongly encouraged to contribute to class discussions. This includes participating actively in class discussions and problems solving.

COURSE OUTLINE

WeekTopicsReading Assignments

1.An Overview of Finance

2.Martin Luther King, Jr. Holiday

  1. a. Scope of Financial ManagementChapter 1

b.Time Value of MoneyChapter 7

4.Time Value of Money-Cont’dChapter 7

5. Capital Budgeting Decisions (I)Chapter 11

6.Capital Budgeting Decisions (II)Chapter 12

  1. Presidents’ Day Holiday
  1. Mid Term Exam
  1. Risk and Return (I)Chapter 5

10.Risk and Return (II)Chapter 6

11.Capital Asset Pricing Model (I)Chapter 10

  1. Spring Recess
  1. Capital Asset Pricing Model (II)Chapters 10 and 13

14.Capital Structure Decisions(I)Chapter 15

15.Capital Structure Decisions (II)Chapter 16

16.Dividend DecisionsChapter 17

17. Final Exam

LECTURE MATERIALS

You can download lecture materials from my web site. Please visit sub-directory “BUS614 (2001)” in for your copies. No hard copy versions will be distributed in class.

WHO IS YOUR PROFESSOR?

For my professional activities, please visit my web site. You may also visit the web site of the Asia-Pacific Financial Markets Research Center, if you want to learn more about the Center’s research activities. A one-page bio is attached to his course syllabus for your reference.

SUGGESTIONS

Please subscribe and read The Wall Street Journal and/or The Financial Times.

S. Ghon Rhee

K. J. Luke Chair of International Finance and Banking and

Executive Director of Asia-Pacific Financial Markets Research Center

University of Hawai’i

Dr. Rhee received his BA from Seoul National University Law School, MBA from Rutgers University, and Ph.D. from Ohio State University. He is the K. J. Luke Chair of International Finance and Banking and serves as Executive Director of the Asia-Pacific Financial Markets Research Center newly created at the University of Hawai’i. Before he joined the University of Hawai’i, he was Resident Scholar (1997-1999) of the Asian Development Bank and a Professor of Finance and Director of the Sandra Ann Morsilli Pacific-Basin Capital Markets (PACAP) Research Center of the University of Rhode Island. He also taught at University of Pittsburgh, Carnegie-Mellon University, Ohio State University, and University of Zagreb.

As Resident Scholar of the Asian Development Bank, he spearheaded research programs on Asian financial crisis, mortgage-backed securities markets, and government bond markets. He was involved with financial sector reform programs for Thailand, Indonesia, and Korea as part of the International Monetary Fund’s support packages. He edited or authored a number of books on Asian financial markets, including:

  • The Feasibility of Creating Mortgage-Backed Securities Markets in the Asia-Pacific Region (Manila, Philippines: Asian Development Bank, 2000)
  • Rising to the Challenge in Asia: A Study of Financial Markets Volume 1-12 (Manila, Philippines: Asian Development Bank, 2000)
  • Pacific-Basin Capital Markets Research Volumes I, II, and III (Amsterdam, Netherlands: North-Holland)
  • Dynamic Asian Securities Markets and Systemic Risks (Paris, France:Organization for Economic Cooperation and Development, 1992).

He serves as Managing Editor ofPacific-Basin Finance Journal, a premier academic journal, which focuses on the Asia-Pacific capital markets and financial systems. His research has been published in numerous academic journals, including: Journal of Finance, Journal of Financial and Quantitative Analysis, Journal of Risk and Insurance, Journal of Financial Services Research, Journal of International Business Studies, Decision Sciences, Managerial and Decision Economics, Financial Management, Journal of Business Finance & Accounting, Pacific-Basin Finance Journal, etc.

He served as Program Chair of the Annual Pacific-Basin Finance Conferences, 1989-1997. He was the founding president of the Pacific-Basin Financial Management Society, an academic association created to promote academic research on the region’s financial and capital markets. He also served as a board member of the U.S. Financial Management Association. Dr. Rhee consulted for a number of international institutions such as Asian Development Bank, International Chamber of Commerce, International Monetary Fund, Organization for Economic Cooperation and Development, Securities and Futures Commission of Hong Kong, United Nations Industrial Organization, U.S. Agency for International Development, Kuala Lumpur Stock Exchange, Jakarta Stock Exchange and a number of financial institutions in the Asian and Pacific Region.

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