UNIVERSITY OF MANITOBA ASPER SCHOOL OF BUSINESS DEPARTMENT OF ACCOUNTING AND FINANCE

UNIVERSITY OF MANITOBA
ASPER SCHOOL OF BUSINESS
DEPARTMENT OF ACCOUNTING AND FINANCE
FIN 3470 – SMALL BUSINESS FINANCE- Fall 2014 Term
Instructor:
Office:
Email:
Office Hours:
Alok Dua
376 Drake Centre
[email protected]
M/W 10/11 or by appointment
Course Objective
The objective of this course is to provide students with an understanding of the concepts
required to start, build, finance, and value an entrepreneurial venture.
Course Description
In this course we will adapt and apply corporate finance tools and techniques in order to plan,
operate, finance, and value entrepreneurial ventures. The course will be taught using in class
lectures, recommended homework, two take home assignments, a mid-term exam, and a final
exam.
It is expected that you have a good knowledge of the pre-requisite courses ACC1100
Introductory Financial Accounting and FIN2200 Corporate Finance.
Required Textbook
Entrepreneurial Finance, 6th edition, Adelman and Marks , pearson 2013 ISBN 13-978-0-13—
314051-4.
Allocation of marks
Class participation
Summaries
Mid term exam (2*15)
Presentation
Final Examination
15%
5%
30%
10%
40%
100%
Participation. (15 % of total marks) Participation is very important. I expect you to be
prepared for each and every class and to participate by making a "substantive contribution"
in a fair number of classes during the term.
In general, a substantive contribution helps push the understanding of the class forward.
Examples include, but are not limited to, being involved in a discussion of assigned
material, arguing your point of view during a case discussion, asking a relevant question,
suggesting an alternate viewpoint, or redirecting our attention to something else in need of
discussion.
Thus, you do not have to be a top participant in each class, nor do you have to have the
"right answer" when you do participate. Please do not hesitate to speak simply because you
think your ideas might be challenged; this is the place for such challenges. The
participation grade is intended to be a stimulant to discussion, not a deterrent.
Although I expect you to attend every class, attendance is not the same as participation. On
very rare and exceptional occasions, you may be unprepared for a class and do not wish
to be called upon. If so, you should let your instructor know before class (preferably by
voicemail or e-mail), but please attend. You do not have to explain why you are
unprepared; I will simply expect more from you on other days.
I judge participation for each session on a scale of 0 to 4, where 4 indicates a substantive
contribution for the day and 0 indicates no contribution. An average contribution, such as
building on points made by others, is worth 1.
At the end of the course, overall participation will be determined by assigning grades to the
best and worst participators and scaling others accordingly. Note: This makes it possible
for everyone to do well in participation.
Case Summaries: All students are supposed to write a summary of 10 out of 12 cases to
be taken up in the class these will have to be submitted prior to the case study discussion in
the class. The summary will not exceed 1 page and will preferably be hand written (0.5
marks each). The summaries are a reward for coming prepared for the class and will be
helpful in class participation.
Mid-Term Exam: There will be two mid-term exam worth 2*15 = 30% of your final grade.
The exam will contain multiple choice questions. A missed mid-term exam, in absence of
medical or compassionate reasons along with required documentation, will result in a
grade of zero. If the mid-term is missed for medical or compassionate reasons, and the
necessary documentation is provided, the marks will be allocated towards the final exam.
Final Exam: There will be one final examination worth 40% of your final grade. The exam
may contain multiple choice, short, or long answer questions and/or case/s. A missed
final exam will result in a grade of zero, this would have to be taken up with your program
office. ( comprehensive)
Presentation : It is a group presentation for 12-15 minutes per group. Details will be
given in the class.
Tentative Course Schedule
Date
Sep 4
Sep 9
Sep 11
Topic
Course Outline
Ch 1 Financial and economic concepts (summary 1 on ch1 due )
Ch 8, 9 Time Value of money
Sep 16
Sep 18
Sep 23
Ch 8, 9 Time Value of money
Ch 10 Capital budgeting
Free cash flow to the firm and free cash flow to the equity
Sep 25
Ch 2 Financial management and planning
Discussion on venture capital (summary 2 on ch2 due )
Ch 5 profit, profitability and break even analysis + Ch 6 Forecasting + ch 2
concepts via the case: Elite personal Training : break even + financial
projections ands planning (summary 3 on case due )
Valuing young and start up firms ( ch 6 concepts) (summary 4 on ch 6 due )
Sep 30, Oct 2
Oct 7
Oct 9
Oct 14
Oct 16
Nov 11
Private equity at work: Purchasing cake masters (summary 5 on case due )
Mid term 1: Ch 1,2,5,6,8,9,10
GOLFGAMEZ (A+ B): FUNDING A DIGITAL STARTUP (summary 6 on
case due )
Cenabel A and (B, case to be read in class) (summary 7 on case due )
Ch 3: Financial statements, Ch 4 Analysis of financial statements
Case: INDUSTRIAL ACCESSORIES LTD. Bankruptcy, equity vs debt
financing, ratios, valuation) (summary 8 on case due )
Valuing firms with negative earnings
JOSEPH VIGNEAULT & THE CAPITAL POOL COMPANY PROGRAM
(summary 9 on case due )
Ch 7 Working capital Management
Ch 11 Personal Finance (summary 10, 11 on Ch 7 and Ch 11 due )
No Class
Nov 13
Nov 18, 20
Mid term 2 Ch 3,4,7,11
Valuing Rajat Bhatia’s Business Plan
Nov 25
Nov 27
Dec 2
TBA
Presentations
Presentations
Presentations
Final Exam: 3 Hours comprehensive
Oct 21
Oct 23, Oct 28
Oct 30
Nov 4
Nov 6
(summary 12 on case due )
Academic Integrity
It is critical to the reputation of the I. H. Asper School of Business and of our degrees, that
everyone associated with our faculty behaves with the highest academic integrity. As the faculty
that helps create business and government leaders, we have a special obligation to ensure that our
ethical standards are beyond reproach. Any dishonesty in our academic transactions violates this
trust. The University of Manitoba Undergraduate Calendar addresses the issue of academic
dishonesty under the heading “Plagiarism and Cheating.” Specifically, acts of academic
dishonesty include, but are not limited to:
 using the exact words of a published or unpublished author without quotation marks and
without referencing the source of these words
 duplicating a table, graph or diagram, in whole or in part, without referencing the source
 paraphrasing the conceptual framework, research design, interpretation, or any other
ideas of another person, whether written or verbal (e.g., personal communications, ideas
from a verbal presentation) without referencing the source
 copying the answers of another student in any test, examination, or take-home assignment
 providing answers to another student in any test, examination, or take-home assignment
 taking any unauthorized materials into an examination or term test (crib notes)
 impersonating another student or allowing another person to impersonate oneself for the
purpose of submitting academic work or writing any test or examination
 stealing or mutilating library materials
 accessing tests prior to the time and date of the sitting
 changing name or answer(s) on a test after that test has been graded and returned
 submitting the same paper or portions thereof for more than one assignment, without
discussions with the instructors involved.
Group Projects and Group Work
Many courses in the I. H. Asper School of Business require group projects. Students should be
aware that group projects are subject to the same rules regarding academic dishonesty. Because of
the unique nature of group projects, all group members should exercise special care to insure that
the group project does not violate the policy on Academic Integrity. Should a violation occur,
group members are jointly accountable unless the violation can be attributed to a specific
individual(s).
Some courses, while not requiring group projects, encourage students to work together in groups
(or at least do not prohibit it) before submitting individual assignments. Students are encouraged
to discuss this issue as it relates to academic integrity with their instructor to avoid violating this
policy.
In the I. H. Asper School of Business, all suspected cases of academic dishonesty are passed to the
Dean’s office in order to ensure consistency of treatment.
UNIVERSITY OF MANITOBA
I. H. Asper School of Business
Medical Absenteeism Form
Student Identification: (please print clearly)
______________________________
Last Name
___________________ ___________
First Name
Middle Initial
_______________________________
U of M Student Identification Number
I hereby authorize ________________________________ to verify with the attending physician or his/her
(Name of Instructor/Administrator)
staff or colleagues that the contents of this form are true.
________________________________________
Student’s Signature
_______________________________________
Date
To be completed by the attending physician: (after the above section is completed)
________________________________________ ________________________________ ________________
Physician’s Last Name (please print clearly)
Physician’s First Name
Middle Initial
________________________________________ ________________________________ ________________
Street Address
City, Province
Postal Code
________________________________________
Telephone Number
________________________________
Fax Number
To the attention of the physician: Your evaluation of the student’s condition is being used for the purpose of
determining whether or not the student has a valid reason to miss an important exam or assignment. Your professional
evaluation is necessary to ensure that only valid cases are excused.
I certify that the nature of the student’s condition is severe enough to prevent the student from taking an exam or completing
an assignment. If requested, my associates or I will verify for the above-named instructor/administrator that this information
is accurate.
The student’s condition will likely span the following dates:
____________________________
(indicate start date)
until ____________________________
(indicate end date)
___________________________________
Physician’s Signature




_________________________________
Date
Notes to physician:
Please make a note in the student/patient’s file indicating that the student has given the above-named
instructor/administrator permission to verify with you, your staff, or your colleagues, that the information contained on
this form is correct. Thank you for your professional evaluation of this student’s condition.
PLEASE ATTACH THIS FORM TO YOUR REGULAR OFFICE STATIONERY THAT INDICATES THE
STUDENT VISITED YOUR OFFICE.
Note to student:
The use of this form is at the option of the student. However, in order to obtain an excused absence for an
assignment or exam, the student must obtain a doctor’s certification that the student’s condition is severe enough
to prevent the student from taking the exam or completing the assignment.
It is NOT SUFFICIENT to provide a note that only indicates the student visited the doctor’s office.