FIN 3240 Course Outline January – April 2015 University of Manitoba

FIN 3240
Course Outline
January – April 2015
University of Manitoba
I.H. Asper School of Business
FIN 3240 – Entrepreneurial Finance
January – April 2015
Instructor:
Telephone:
Email:
Office:
Time:
Location:
Office Hours:
Use Email for Questions:
Prerequisites:
Jialong Li
474-8975
[email protected]
371A Drake
Tuesdays and Thursdays A01: 16:00-17:15
140 Drake
Tuesdays and Thursdays13:30 – 15:00
Please use “FIN3240” as the subject.
FIN 2200 and ACC 1100
Course Objective:
The objective of this course is to provide students with an understanding of how the new
business ventures may be financed. Among various types of entrepreneurial financing method,
we focus on venture capital and private equity in depth.
Course Description:
There has been dramatic creation of value through new ventures. Private equity has become a
large part of the capital market because regulatory changes have enabled the involvement of
institutional investors. Parallel to this, academic research on entrepreneurial finance has made
good use of tools from mainstream finance and economics. As a result, we now have
scientifically established principles and theoretical explanations for many of the practices and
rules of thumb used to finance new ventures.
This course adopts an approach balanced between the theoretical and practical which is intended to
provide students with a more systematic understanding about the special problems related to
launching and financing a new venture. Seeing how financial principles are applied to valuing
and financing new ventures will, hopefully, deepen students' understanding of financial theory.
The course is planned around the following activities: lectures, videos, in class assignments for
participation, two midterm exams and a final exam. It is expected that you have a good knowledge
of the pre-requisite courses ACC 1100 and FIN 2200.
1
FIN 3240
January – April 2015
Course Outline
Required Textbook:
Venture Capital, Private Equity & the Financing of Entrepreneurship, First Edition, Josh
Lerner, Ann Leamon and Felda Hardymon, 2012.
Course Assessment:
Cumulative Marks
90-100
80-89
75-79
70-74
65-69
60-64
50-59
Below 50
Grade
A+
A
B+
B
C+
C
D
F
GPA
4.5
4.0
3.5
3.0
2.5
2.0
1.0
0.0
Performance
Exceptional
Excellent
Very Good
Good
Satisfactory
Adequate
Marginal
Failure
Allocation of Marks:
Participation
First Midterm Examination
Second Midterm Examination
Final Examination
10%
20%
20%
50%
Participation:
There will be 7 in-class assignments which will not be graded. Each assignment weighs 2%
and if students hand in 5 or more in-class assignments, they will get the full mark 10%.
Midterm Exam:
There will be TWO midterm exams, each worth 20% of your final grade. The exam may
contain multiple-choice, short, and long answer questions. Everybody must write the midterm
exams on the scheduled dates, except for medical reasons which must be accompanied by a
Medical Absenteeism Form signed by the student and the attending physician. The Medical
Absenteeism Form is attached at the end of this outline. A missed mid-term exam, in absence
of medical or compassionate reasons along with required documentation, will result in a grade
of zero. If a student misses a midterm exam for medical reasons, the 20% for it will be
reallocated to the other midterm exam so that the other one will be worth 40% of his/her final
grade.
Final Exam:
There will be a final examination worth 50% of your final grade, and it will be scheduled by
the Registrar’s Office. The exam may contain multiple-choice, short, or long answer questions.
2
FIN 3240
Course Outline
January – April 2015
Tentative Course Schedule:
Date
Jan 6th
Jan 8th ,13th ,15th
Jan 20th , 22th
Jan 27th to Feb 10th
Feb 12th
Feb 24th ,26th
Mar 3th, 5th
Mar 10th, 12th
Mar 17th
Mar 19th
Mar 24th, 26th,31th
Apr 2nd, 7th
Apr 9th
Topic
Introduction
Review of Corporate Finance Topics
Private Equity Cycle
Deal Sourcing, Structure and Evaluation
First Midterm Exam
After the Money Arrives
Achieving Liquidity
Risk and Return
Impact of Private Equity
Second Midterm Exam
Scaling and Institutionalization
Boom and Bust
Wrapping up
Chapters
1-2
3-5
6
7-8
9
10
11-12
13
14
3
FIN 3240
Course Outline
January – April 2015
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.
4
FIN 3240
January – April 2015
Course Outline
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
___________________________________________
Telephone Number
_________________________________
Fax Number
__________________
Postal Code
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.
5