FINANCE 5853

Fall 2011

Instructor: Keith Wm. Fairchild

Office:BB 4.02.54

TTh3:00 – 3:30pm and 5:00 – 5:30pm

and by appointment

phone: 458-5307

e-mail:

website: faculty.business.utsa.edu/kfairchild

Objectives:The course focuses on applying general financial theory and principles to small firms, with an emphasis on the specific issues that confront small businesses through their life cycle of development, start-up, expansion, maturity and harvesting.

Prerequisites: FIN 5023 or the equivalent

Text:Entrepreneurial Finance, 4th ed., Leach & Melicher

Date TopicReading Due

Aug25Introduction and OverviewCh. 1

30Characteristics of Small BusinessesHandout (Characteristics)

Sep 1The Business Plan, New Venture StrategyCh. 2

6Forms of Organization & TaxationCh. 3,

Handout (Organizational Forms)

8Assessing a New VentureHandout (Assessing a Venture)

13Small Business & New Venture FinancingCh. 12

Sept. 9th “Shark Tank” Evaluation due

15New Venture FinancingHandout (Financing)

20New Venture FinancingHandout (Financing)

22Measuring Financial PerformanceCh. 4

27Evaluating Financial PerformanceCh. 5

29Financial PlanningCh. 6

Oct 4Financial PlanningHandout (Financial Forecasting)

Sept. 30th “Shark Tank” Evaluation due

6Costs of Financial CapitalCh. 7

11Project Development

13Fundamentals of Securities LawCh. 8

18Fundamentals of Securities Law

20Catch-up/Review

25MIDTERM EXAM

27Review Exam

Nov 1ValuationCh. 9

Oct. 30th “Shark Tank” Evaluation due

3Valuation Ch. 10

8ValuationHandout (Valuation Methods)

Date TopicReading Due

10Professional Venture CapitalCh. 11

15Security Structures and Enterprise ValueCh. 13

17Financial Distress and Exit StrategiesCh. 14

22Financial Distress and Exit StrategiesCh. 15

Nov. 18th “Shark Tank” Evaluation due

24No Class

29Project Presentations

Dec 1Project Presentations

6Project Presentations

Dec 13Project Presentations – 5:30PM

Grading:

“Shark Tank” Evaluations 30%

Midterm Exam 30%

Final Project 30%

Class Participation/

Peer Evaluation 10%

TOTAL =100%

Note that the grading system employed in this course does not use the plus/minus (+/-) system of grade assignments.

The “Shark Tank” Evaluation assignments are based upon watching and critiquing the ideas pitched to the venture capitalist panel. Shark Tank appears on the ABC network on Friday nights from 7:00 – 8:00PM central time. Each show features four entrepreneurs seeking funding for their businesses. Your assignment is to critically review each of the four pitches, identifying their strengths and weaknesses in both their “dog-and-pony show” to the sharks, as well as their product(s) or service. Include question(s) you would ask that the sharks did not. The lowest grade of the four evaluation assignments will be dropped. Also, any of the four assignments will be postponed for one week should ABC not broadcast an episode on the identified given night.

The midterm exam will be a combination of multiple choice, short answer essay, and short problem applications. In addition, each student will be a member of a team that will either find a small business willing to work with them or plan a new business and develop a comprehensive business plan as a term project. The business plan will be presented to the class at the end of the semester. Guidelines for the business plan will be posted on my website.

Disability Services:

Appropriate academic accommodation will be made for any student registered through the Office of Disability Services. Please note that only the Office of Disability Services, 210-458-4157, (http://www.utsa.edu/disability/) may issue instructions for academic accommodations.

Legal Disclaimer:

“This Syllabus is provided for informational purposes regarding the anticipated course content and schedule of this course. It is based upon the most recent information available on the date of its issuance and is as accurate and complete as possible. I reserve the right to make any changes I deem necessary and/or appropriate. I will make my best efforts to communicate any changes in the syllabus in a timely manner. Students are responsible for being aware of these changes.”

The University of Texas at San Antonio Academic Honor Code

A.Preamble

The University of Texas at San Antonio community of past, present and future students, faculty, staff, and administrators share a commitment to integrity and the ethical pursuit of knowledge. We honor the traditions of our university by conducting ourselves with a steadfast duty to honor, courage, and virtue in all matters both public and private. By choosing integrity and responsibility, we promote personal growth, success, and lifelong learning for the advancement of ourselves, our university, and our community.

B.Honor Pledge

In support of the ideals of integrity, the students of the University of Texas at San Antonio pledge:

“As a UTSA Roadrunner I live with honor and integrity.”

C.Shared responsibility

The University of Texas at San Antonio community shares the responsibility and commitment to integrity and the ethical pursuit of knowledge and adheres to the UTSA Honor Code.


The University of Texas at San Antonio is a community of scholars, where integrity, excellence, inclusiveness, respect, collaboration, and innovation are fostered.

As a Roadrunner,

I will:

  • Uphold the highest standards of academic and personal integrity by practicing and expecting fair and ethical conduct;
  • Respect and accept individual differences, recognizing the inherent dignity of each person;
  • Contribute to campus life and the larger community through my active engagement; and
  • Support the fearless exploration of dreams and ideas in the advancement of ingenuity, creativity, and discovery.

Guided by these principles now and forever, I am a Roadrunner!