Financial
Management
302



CourseTopicResourcesAssignments

Email

Get
Email

gmail
hotmail
yahoo

Register for an email account that you will use only for Finanncial Managemant 302. You will access Internet based tools during this course that ask for an email address. Do not give your personal email address as this usuage often invites spam and unsolicited email. By having an email account that you will use strictly for this course, you may avoid long term inconveniences of undesired email in your private email.

Do write down your id and password after you register and store the paper in a safe place.

CourseTopicResourcesAssignments

FIN
3080

Personal
Investment
Planning
I

Real Money
[book] [mp3]

Mad Money
[book] [mp3]

Listen attentively to the audio tape of Jim Cramer's Confession of a Street Addict. This book indtroduces the listener to the life of a moneyh manager, the frenetic pace, the constant pressure to outperform the market, and the shark-like attacks fund managers make as they circle a fund perceived to be in trouble.

Frequently update your knowledge of current market conditions by consulting the following web sites. Be very sceptical at all times of the information and, more importantly, the "spin" placed on the information.

You will come to learn and believe that some sources of information and spin are more reliable than other sources. At some point you must make "best judgement" decisions based on your knowledge and the intelligence that you apply to that knowledge.

The knowledge that you acquire and the standards that you apply to evaluating that knowledge heavily influence the relative successes of your investments.

You can begin by checking out the following sources of information. These should be regarded as simply a beginning. Build a person list of World News Bookmarks and Financial News Bookmarks that you use frequently.

  1. TheStreet.com Web Site

  2. Marketwatch from Dow Jones

  3. TheStreet.com Video

For each of the following chapters of Cramer's Real Money, write a essay one page or longer in length, double spaced 12 point Times New Roman or comparable font. The essay is due three period after the chapter is begun. If the chapter is not completed in class, then you must complete it for homework. Use the following questions to stimulate your discussion. You need not answer every question.

  1. Getting Started The Right Way: What did I find that was meaningful in this chapter? What's wrong with the three rules: (1) Buy and hold to make the most money. (2) Trading is always wrong, owning is always right. (3) Speculation is the height of evil. What three rules about betting on horses did Cramer learn from Andy Beyer's "horseplaying" book, Picking Winners? How do Beyer's rules apply to picking stocks?

  2. How Stocks Are Meant To Be Traded: How important is the price at which you bought a stock to deciding whether to sell it? Why? Why use limit orders? Why not just sell with a "market" order? Can you compare the value of two stocks of different companies from their share price>? Why or why not? Explain the equation: "Price per Share = Multiple x Earnings Per Share". What's the advantage of comparing multiples rather than price per share in evaluating stocks? Why is anticipation so important in making a profit with stock? Why are stocks generally more profitable than bonds ... hint - think dividends? What's the difference between a "price-to-earnings rate" and "price-to-growth rate"?

  3. Some Investing Basics: What does Cramer say is the important reason to invest? (Hint: Can you become wealthy by working for a living?) How should you invest differently for two streams of income: the necessity (retirement) stream and the discretionary stream that augments wages? How should your age influence your investment? What factors should you consider in determining whether you should manage your own investments or get someone else to do it for you? How can you take advantage of deferring paying taxes with an RRSP (Registered Retirement Savings Plan)? What does Cramer mean by his law of time and inclination? How much time per week should you set aside for each stock you own? Why is diversification the third, absolutely essential requirement of investment? (Think thoughts of "free lunch" and "putting all your eggs in one basket".) How many stocks does it take to be diversified? Approximately what is the maximum number of stocks to carry in a portfolio before you become your own mutual fund? In terms of age, about how many stocks in a portfolio of five stocks should be speculative? How and why does this vary by your age? Cramer says that you need $2500 dollars to get started to ensure that you are diversified, but Donaldson says that you can start with any amount of money with one stock? Why would you invest in one stock with a little money and risk losing all of that investment in your first few years of investment before 25 years of age? Why is listening to "conference calls" so important before buying a stock? What do you learn during a conference call? Why is net profit so much more important than gross profit? Warren Buffet has said that the best company to invest in is a "market monopoly"? What do you think a market monopoly is? How can different companies experience different profit margins in different ways? How important is competition to a company's chances for large profit margins? How important are "cyclical" margins versus "secular" margins? What are the "metrics" of the cable industry, hotels, airlines, restaurants, banks? What is a "metric" of an indusgtry? Why is the metric of a business so very important to evaluating the profitability of a business? Why is growth of a company's revenue and profitablity so important when investing? Why is the "viability" of a company a necessary prerequisite before considering even its growth? How important is debt to a company's viability? What is the collateral for a company's debt? Why should you always avoid a bad balance sheet? Why should your homework be both offensive (identify companies that grow faster than the market) and defensive (identify when a company has taken on more debt than it can afford)? Why should you never invest in a company simply because it has a great chart? (Hint: a chart is a picture of past performance.) After picking a stock to invest in, why is a risk-reward analysis so important? How is it that the "value guys" create the bottom and how do the "growth guys" create the top price that a stock sells for? Why is it important to assess both the upside and the downside of an investment? Why is the P/E (Price to Earnings ratio) measure of a stock so important is determining whether the upside is more or less than the downside of a stock?

    Check out the CanWest News Service article (Monday, May 21, 2007, page B5), The Wit and Wisdom of Warren Buffett. Warren Buffett is generally conceded to be the "guru" of investment. His company, Berkshire Hathaway, is one of the most profitable holding companies in history.

  4. Spotting Stock Moves Before They Happen: What makes stocks go up and down in price in the time we own them? How can we figure out which stock is going to go up before it goes up? How do we figure out which stocks are going to go up the fastest so we can capture those bursts? How can a large investor move a stock simply by buying it? What is a "marginal dollar"? What is the difference between an actual company and its stock? Do you buy the assets and equities of a company when you buy stock? How great is the linkeage between a stock and the fundamentals of a company over a year? How can stocks increase or decrease signig=ficantly in value without a fundamental change in a company? Comment on how these different types of companies influence opportunities to make profits: undiscovered companies with undervalued stocks, discovered companies with undervalued stocks, and undiscovered companies with fully valued stocks. Why does Cramer recommend that speculation be part of your investment strategy? Why do most discovered stocks simply mimic the market?

  5. Stock-Picking Rules to Live By: What is the difference between trading and investing? Create two recall patterns, one for each of the two sets of "rules". For each rule, give one phrase or sentence that accurately paraphrases the rule that explains what is meant by the rule.

    1. The Ten Commandments of Trading

    2. Twemty-Five Investment Rules to Live By

  6. Creating Youir Discretionary Portfolio:

  7. Spotting Bottoms In Stocks:

  8. Spotting Tops in Stocks:

  9. Advanced Strategies for Speculators:

CourseTopicResourcesAssignments

FIN
3090

Personal
Investment
Planning
II

Investopedia
Stock
Simulator

Tutorials --> Beginners

Sign-up to Investopedia's Investing Basics Newsletter.

Make a mind map (aka a recall pattern) for each of the following articles.

  1. Investopedia's Simulator Training Program [pdf]
  2. Investing 101: A Tutorial for Beginner Investors [pdf]
  3. Stock Basics Tutorial [pdf]
  4. Bond & Debt Basics Tutorial [pdf]
  5. Mutual Fund Basics Tutorial [pdf]
  6. Economics Basics Tutorial [pdf]

You are encouraged to create the shape of a mind map that best represents patterns that you yourself find in an article. Typical mind maps are:

Spider
Pictorial
Random
Radial
Slash
Linear
Fishbone
CourseTopicResourcesAssignments

FIN
3040

Financial
Statements
Using
Quickbooks

Quickbooks
In The
Classroom
[pdf]

ChapLesson

1

Getting Started Read chapter 1. Answer the following questions in complete sentences.

  1. What are "lists" used for in QuickBooks?
  2. What is th edifference between "Cash" and "Accrual" basis accounting?
  3. Define "Equity" from an accounting standpoint.
  4. List the three main ways that data is entered into Quickbooks.
  5. List three ways to access features in QuickBooks.

2

Setting Up QuickBooks Read chapter 2. Answer the following questions in complete sentences.

  1. Define "Opening Balances" as it pertains to setting up a company in QuickBooks.
  2. Why are accurate Opening Balances important when setting up a company in QuickBooks?
  3. In QuickBooks, what does "Multicurrency" mean, and when is it used?
  4. How should you determine whether you should be setting up one or multiple company files in QuickBooks?
  5. List five functions that you can turn on or off through the "Preferences" section of QuickBooks.

3

Working With Lists Read chapter 3. Answer the following questions in complete sentences.

  1. Provide an example of a QuickBooks "list" and explain the advantage of it.
  2. Provide three examples of informatio that could be entered into "Custom Fields" on any list and what that information could be used for.
  3. Explain what "printing a list to a file" means.
  4. Provide three different methods you could use to sort a "Customer:Job list".
  5. What situation must exist in order for QuickBooks to allow you to delete an entry from a list?

4

Working With Bank Accounts Read chapter 4. Answer the following questions in complete sentences.

  1. Explain the purpose of the "Expense" and "Item" tabs in the "Write Cheques" screen Provide an example of when you would use the "Expense" tab. Provide an example of when you would use the "Items" tab.
  2. What does "Quick Add" do in QuickBooks? When would you use it?
  3. Define "reconciliation" from an accounting perspective. What is the purpose of it?
  4. What does the "AutoRecall" feature in QuickBooks do?
  5. How often should you perform a reconciliation?

5

Using Other Accounts In QuickBooks Read chapter 5. Answer the following questions in complete sentences.

  1. Explain the difference between a "Current Asset" and a "Non-current" or "Fixed" Asset.
  2. Describe to different timing methods of entering credit card charges into the "Enter Credit Card Charges" screen and one advantage for each.
  3. Briefly describe what "Depreciation" means from an accounting perspective, and how it is used.
  4. Briefly describe the proper way to track a long-term liability and subsequent payments against that liability.
  5. Briefly describe what the "Equity" section on a balance sheet represents.

6

Entering Sales and Invoices Read chapter 6. Answer the following questions in complete sentences.

  1. What is the main difference between an Invoice and a Sales Receipt in QuickBooks? Provide an example of when you would use each one.
  2. Describe a situation in which you would want to set up multiple price levels in QuickBooks.
  3. List two advantages to using "Customer Billing Statements" or "Enter Statement Changes" in QuickBooks over "Invoices". List two disadvantages.
  4. You have setup various price levels. Whenever you use those price levels, the amounts are displayed with partial dollar amounts. How would you change this?
  5. What is the difference between a "Customer Billing Statement" and a "Reminder Statement"?

7

Receiving Payments and Making Deposits Read chapter 7. Answer the following questions in complete sentences.

  1. You invoice a customer and later collect payment from them. How do you enter that payment into QuickBooks?
  2. How does QuickBooks handle an overpayment from a customer?
  3. Briefly describe how you would apply an existing customer credit against a new Inoice for that customer.
  4. Briefly describe how payments you receive from your customers get associated with the appropriate accounts in QuickBooks when you deposit them with your bank.

8

Entering and Paying Bills Read chapter 8. Answer the following questions in complete sentences.

  1. List the four methods for dealing with business expenses in QuickBooks.
  2. Briefly describe the benefits of using "Accounts Payable" to track expenses in QuickBooks.
  3. What is a "Bill Payment Cheque" and how does it differ from a regular cheque in QuickBooks?
  4. You want to determine all bills in QuickBooks that are eligible for a discount. Briefly describe the steps to achieve this.
  5. How would you setup QuickBooks to automatically use discounts and apply discount amounts to the same discount account?
CourseTopicResourcesAssignments

Feb
1st
&
2nd
2008

Financial
Forum &
Wealth
Management
Expo

Web Site

Highlights

Why Attend?

Seminars

Location: Exhibit Hall D, Roundup Centre, Stampede Park.

Registration
Invitation Code:
MONEY1

Financial Forum & Wealth Management Expo

Credit in a 1-credit Financial Management course may be earned by successfully completing this assignment.

This unit will require approximately 20-25 hours: 12-17 hours attending the forum and 8 hours summarizing the experience and materials.

  1. Register online for the forum as soon as possible. Do not pay the $20 registration fee. Instead use the "Invitation Code" MONEY1 ( ie: "MONEY" + the digit one ). Registration begins on this web page.

    You will receive a confirmation in your email. Print and bring that confirmation to the forum.

  2. Arrange with your Financial Management 302 teacher to attend the Financial Forum.

  3. Make a schedule of the seminars that you intend to attend. Your plans for your attendance should include time to observe and speak with exhibitors about their products as well.

  4. Attend your seminars and vist your exhibitors.

  5. Take all the notes and collect all of the material (handouts, brochures, business cards) that you can. You will later rely upon this material to do your dossier.

  6. Create a dossier which organizes and comments upon your experiences and materials from the Financial Forum.

  7. Submit your completed dossier to your Financial Management 302 teacher by a deadline agreed between you and your teacher.


[Counter On Strike [Home of Gerry Donaldson's Com Sci Gate]
[Gerry Donaldson's Email Address]
gdonaldson@cbe.ab.ca
ICQ# 62833374
[EFC Blue Ribbon - Free Speech Online]

URL:   http://www.donaldson.org/    Last Revised:   April 10, 2005