This course addresses financial management from the perspective of a financial manager at a medium to large company. Students will examine topics such as the financial environment, interest rates, financial statements, the time value of money, and risk and return. These concepts will be applied through the study of bond and stock valuation, the cost of capital, and capital budgeting.
Students will complete both practice exercises and problem sets where they will apply key concepts addressed in the module themes and assigned readings.
Course Learning Objectives
- Recommend solutions for addressing agency conflict between managers and shareholders.
- For a given firm, describe the financial environment in which it operates and issues that might impact the firm.
- Analyze financial statements and financial ratios for a firm.
- Calculate future value, present value, and time value of money, and conduct a cash flow analysis.
- Apply the Capital Asset Pricing module to compute expected rates of return based on market risk premiums.
- Conduct an analysis of equity investments by applying stock valuation concepts.
- Calculate a firm's Weighted Average Cost of Capital.
- Evaluate a capital budgeting project by calculating the investment cash flows and net present value.
MS Excel, MS Word (with built in equation editor), and a financial calculator are recommended (free web-based calculators will suffice).
This course contains representations of mathematical formulae. For these formulae to display correctly, you must use either Internet Explorer 8 (or greater) or Firefox 4 (or greater).
- IF YOU USE INTERNET EXPLORER (PC ONLY), you must download and install the MathPlayer plugin specified in the syllabus and home page of the course.
- IF YOU USE FIREFOX ON A PC OR MAC, you must download and install additional fonts specified in the syllabus and home page of the course.
All of these downloads are free and take just a couple of minutes to install.