This course examines the competencies, responsibilities, and tasks performed by financial managers in business organizations. Students will explore current theories of finance, tools, issues, and controversies, and how these impact financial managers in their quest for effective decision-making. Students will investigate a wide range of related topics including:
- Financial accounting foundations (financial statement analysis, time value of money, and valuation of securities)
- Working capital management and short-term financing
- Management of long-term assets and long-term financing
Students will analyze case studies and solve realistic finance problems designed to determine depth of understanding of concepts and ability to apply them in a business setting. Microsoft® Excel simulations are provided for practice in applying course concepts in the real world.
Course Learning Objectives
- Identify the financial objectives of a corporation.
- Use financial statements to evaluate a company's financial condition.
- Use the concept of time value of money to make financial decisions.
- Value a corporation's major financial instruments.
- Apply the basics of financial forecasting and planning.
- Evaluate short-term assets and liabilities of a corporation, its working capital policy, and its approach to cash management and accounts receivable management.
- Evaluate long-term investments under conditions of certainty and uncertainty.
- Analyze a corporation's cost of capital and how it determines the interest rate at which it will discount its cash flows.
- Discuss the reasons for portfolio diversification and the workings of the Capital Asset Pricing Model.
- Perform break-even analysis.
- Calculate relevant leverages.
- Explain the basics of capital structure theory.
- Work effectively within established corporate dividend policy.
- Proficiency in MS Excel
- Textbook comes with Financelab. It is beneficial but not required; students can purchased separately off the publisher website.