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 2015 Term
Instructor:
Office:
Email:
Office Hours:
Alok Dua
376 Drake Centre
[email protected]
T/R 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*17.55)
Presentation
Final Examination
10%
5%
35%
5%
45%
100%
Participation. (10 % 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*17.5 = 35% 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 45% 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 10
Sep 15
Sep 17
Topic
Course Outline
Ch 1 Financial and economic concepts (summary 1 on ch1 due )
Ch 8, 9 Time Value of money
Sep 22
Sep 24
Sep 29
Ch 8, 9 Time Value of money
Ch 10 Capital budgeting
Free cash flow to the firm and free cash flow to the equity
Oct 1
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 )
Forest city tennis Club ( ch 3 Financial statements; concepts) (summary 4 on
ch 3 due )
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:, Ch 4 Analysis of financial statements
Chang Dental Clinic(summary 8 on case due )
Case: INDUSTRIAL ACCESSORIES LTD. Bankruptcy, equity vs debt
financing, valuation) (Summary 9 on the case due)
Valuing firms with –ve earnings
JOSEPH VIGNEAULT & THE CAPITAL POOL COMPANY PROGRAM
(summary 10 on case due )
Ch 7 Working capital Management
Ch 11 Personal Finance (summary 11, 12 on Ch 7 and Ch 11 due )
Mid term 2 Ch 3,4,7,11
Oct 6, 8, 13
Oct 15
Oct 20
Oct 22
Oct 27
Oct 29,
Nov 3, 5
Nov 10
Nov 12
Nov 17
Nov 19
Nov 24
Nov 26, Dec 1,
3
Dec 8
TBA
Presentations
Review
Final Exam: 3 Hours comprehensive
AACSB Assurance of Learning Goals and Objectives.
The Asper School of Business is proudly accredited by AACSB. Accreditation
requires a process of continuous improvement of the School and our students. Part of
“student improvement” is ensuring that students graduate with the knowledge and
skills they need to succeed in their careers. To do so, the Asper School has set the
learning goals and objectives listed below for the Undergraduate Program. The
checked goal(s) and objective(s) will be addressed in this course and done so by means
of the items listed next to the checkmark.
Goals and Objective in the Undergraduate Program
1
B.
C.
3
Determine which quantitative analysis technique is appropriate for
solving a specific problem.
Use the appropriate quantitative method in a technically correct
way to solve a business problem.
Analyze quantitative output and arrive at a conclusion.

Case discussions


Written Communication
A.
Use correct English grammar and mechanics in their written work.

B.
Communicate in a coherent and logical manner

C.
Present ideas in a clear and organized fashion.

Written case
summaries
Written case
summaries
Written case
summaries
Ethical Thinking
A.
B.
C.
D.
4
Course Item(s)
Relevant to
these Goals
and Objectives
Quantitative Reasoning
A.
2
Goals and
Objectives
Addressed
in this
Course
Identify ethical issues in a problem or case situation
Identify the stakeholders in the situation.
Analyze the consequences of alternatives from an ethical
standpoint.
Discuss the ethical implications of the decision.
Core Business Knowledge
Case discussions
Case discussions
Case discussions
Case discussions
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.