Skip to main content

Course Outlines

FMGT 7510

Advanced Finance

School School of Business + Media
Program Bachelor of Accounting
Course Credits 3
Minimum Passing Grade 50%
Start Date September 09, 2021
End Date December 09, 2021
Total Hours 45
Total Weeks 13
Hours/Weeks 3.46
Delivery Type Lecture/Lab
Pre-requisites Completion of FMGT 3510 and FMGT 4510 with a minimum average grade of 65%
CRN 32091

Acknowledgement of Territories

The British Columbia Institute of Technology acknowledges that our campuses are located on the unceded traditional territories of the Coast Salish Nations of Sḵwx̱wú7mesh (Squamish), səl̓ilwətaɁɬ (Tsleil-Waututh), and xwməθkwəy̓əm (Musqueam).

Instructor Details

Name Terry Gordon
E-mail Instructor to provide
Location SE6 341
Office Hours Instructor to provide

Course Description

This course stresses the application of financial strategies to financing challenges faced by business enterprises. Using a predominantly small business, case-based approach, students are introduced to various areas of business operations which drive financing requirements, or exacerbate financial challenges and then examine means of satisfying those requirements or modifying operations to minimize financial challenges.

Course Learning Outcomes/Competencies

Upon successful completion, the student will be able to:

  • Evaluate financing issues and challenges small business managers face.
  • Compare and analyze various short-term financing options available to a small business.
  • Select assumptions for constructing forecast financial statements.
  • Select an appropriate supporting rationale for commercial loan applications.
  • Compare and contrast various methods and criteria employed in valuing and assessing start-up ventures.
  • Evaluate capital budgeting opportunities for businesses in different industries.
  • Evaluate currency-hedging alternatives by comparing among different alternatives.
  • Outline the impact financial decisions may have on other aspects of the business.
  • Construct and interpret a valuation model for a business.
  • Select a suitable financial instrument as well as appropriate terms and conditions by evaluating financial opportunities.

Learning Resources

Required:

Case study pack available at BCIT bookstore, and

Articles in course outline schedule

Recommended:

Davis and Pinches. Canadian Financial Management, 4th edition, Addison Wesley Longman, 2002.

or

Ross, Westerfield, Jordon, Roberts, Corporate Finance, 4th, 5th, or 6th Cdn ed. McGraw Hill Ryerson, 2005

or

Brigham, Ehrhardt, Gessaroli and Nason Financial Management: Theory and Practice, Nelson, First Canadian Edition, 2010 or Second Canadian Edition 2013 or Third Canadian Edition 2016

Evaluation Criteria

Mid-term exam = 25%

Final exam = 35%

Group case presentation = 10%

Capital IQ assignment = 5%

Weekly case studies & participation = 25%*

*Criteria/Rubric for allocating weekly case study mark will be provided to students in the first class.

The mid-term and final exams will be held on campus in room SW1 1021

Attendance Requirements

Attendance will be taken at the beginning of each Zoom session throughout the course. A student’s absence will result in a grade of zero for that week’s case study.

Please note that this class will be completed online.

Course Schedule and Assignments

Date

Material Covered

Readings

Case due at beginning of class

1. Sept 9

  • Introduction and Course Orientation
  • Review of financial statement analysis

2. Sept 16

  • Financial Statement Analysis
  • Loans
  • Welsh, J. and White, J. “A small business is not a little big business”, Harvard Business Review, Jul/Aug 1981. (LH)
  • Levin, R. and Travis V. “Small company finance: what the books don’t say”, HBR, Nov/Dec 1987. (LH)

Delisle Industries

3. Sept 23

  • Impact of growth on cash flow
  • Loan evaluation
  • Working capital & financing review
  • Arnold, J. “How to negotiate a term loan”, HBR, Mar/Apr 1982. (LH)
  • “Note on Bank Loans”, Harvard Business School, Oct. 29, 1993 (In case package).

Jones Electrical Distribution

4. Sept 30

National Truth & Reconciliation Day – No class

5. Oct 7

  • Working capital policy and financing case
  • Credit policy review
  • Capital IQ orientation
  • Viscone, J. “How long should you borrow short term?” HBR, Mar/Apr, 1986 (LH)

Sophisticated Petites

6. Oct 14

Mid Term Exam

7. Oct 21

  • Working capital and credit policy case
  • Capital Budgeting review
  • Wilson, N. & Summers, B. “Trade Credit Terms Offered by Small Firms: Survey Evidence and Empirical Analysis”, Journal of Business Finance & Accounting, Vol. 29, Ap/My 2002, pp. 317 – 329, 348, 349.

NCB Office Products Inc.

8. Oct 28

  • Capital budgeting case
  • Review of Options
  • Block, S. “Capital Budgeting Techniques Used by Small Business Firms in the 1990s”, The Engineering Economist, Summer 1997, Vol. 42, No.4 (LH)
  • Options reading 1: Ross, Westerfield et al. Corporate Finance, 4th Cdn ed., pp. 648-671 (LH)

Eastview Heights

9. Nov. 4

  • Valuing a new venture case
  • Real Options
  • Venture Capital
  • Zider, B. “How Venture Capital Works” HBR, Nov/Dec 1998. (LH)
  • Note On Venture Capital (in case package).
  • Options reading 2 - Ross, Westerfield et al. Corporate Finance, 4th Cdn ed., pp. 681-683, 699-705 (LH)

CNS Company

10. Nov 11

Remembrance Day – No class

11. Nov 18

  • Capital IQ assignment presentations

12. Nov 25

  • Cost of Capital
  • “Cost of Capital in 2012” (IMD649, IMD) (In case package)

Chestnut Foods

13. Dec 2

Group presentations

Student cases due

14. Dec 9

Final Exam

BCIT Policy

Any student who needs special assistance in the event of a medical emergency or building evacuation (either because of a disability or for any other reason) should promptly inform their course instructor(s) and Accessibility Services of their personal circumstances.

Human Rights, Harassment and Discrimination:
The BCIT community is made up of individuals from every ability, background, experience and identity, each contributing uniquely to the richness and diversity of the BCIT community as a whole. In recognition of this, and the intrinsic value of our diversity, BCIT seeks to foster a climate of collaboration, understanding and mutual respect between all members of the community and ensure an inclusive accessible working and learning environment where everyone can succeed.

Respect, Diversity, and Inclusion is a supportive resource for both students and employees of BCIT, to foster a respectful learning and working environment. Any student who feels that they are experiencing discrimination or harassment (personal or human rights-related) can confidentially access this resource for advice and support. Please see Policy 7507 – Harassment and Discrimination and accompanying procedure.

Students should make themselves aware of additional Education, Administration, Safety and other BCIT policies listed at https://www.bcit.ca/about/administration/policies.shtml

Guidelines for School of Business + Media

Attempts:
Students must successfully complete a course within a maximum of three (3) attempts at the course. Students with two attempts in a single course will be allowed to repeat the course only upon special written permission from the Associate Dean. Students who have not successfully completed a course within three attempts may not be eligible to graduate from their respective program.

Attendance:
Regular attendance in lectures and labs is seen as integral to student success, therefore, attendance in class is monitored. Unexcused absences in excess of 10% of the time prescribed for this course may result in the assignment of a failing grade. Attendance may be taken at any time during class. A student not present for attendance will be marked absent. A student who leaves class for a period of time deemed excessive by the instructor may be considered absent regardless of whether they are present when attendance is taken.

In case of illness or other unavoidable absence, students must communicate with the instructor, or the appropriate Program Head, as soon as possible (preferably in advance) indicating the reason for the absence. Students who are seeking accommodation for a medical absence must have a BCIT-approved medical certificate ). For other absences, students must be prepared to provide appropriate supporting documentation.

A student who has unexcused absences in excess of 10% of the time prescribed for the course by the Withdrawal Deadline is considered to have ‘Vanished’ and will be assigned a grade of ‘V’. In these cases, no further work will be graded.

These requirements are set out in accordance with BCIT Policy 5101 Student Regulations. More information regarding withdrawals from PTS courses is available at https://www.bcit.ca/pts/pts_withdrawals.shtml.

Approved

I verify that the content of this course outline is current.
Terry Gordon, Program Head
August 31, 2021

I verify that this course outline has been reviewed.
Jennifer Kerr, Academic Coordinator
August 31, 2021

I verify that this course outline has been reviewed and complies with BCIT policy.
Robin Day, Associate Dean
September 06, 2021

Note: Should changes be required to the content of this course outline, students will be given reasonable notice.