An in-depth analysis of financial management in corporations with emphasis on decision making. Working capital management, short-term and long-term financing, mergers, business failures, and reorganizations are considered in depth with and extension of the valuation concepts presented in the basic financial management course.
1. Our aim in this course is to provide an enduring understanding of the basic conceptual and practical skills that enable a student as a manager to increase the intrinsic value of the firm.
2. With the focus upon the big picture, we provide an introduction to financial environment and decision making rooted in current financial theory and the current state of world economic condition.
3. Throughout this course, the student will understand the general nature of financial principles, and major financial decisions of corporations.
4. Specific attention is given to the risk and return; asset and debt pricing; cost of capital; capital structure; capital budgeting; financial analysis and forecasting; financial decisions and market efficiency; working capital; derivatives; portfolio management.
Module 1: An Overview of Financial Management and the Financial Environment
Module 2: Analysis of Financial Statements
Module 3: Time Value of Money
Module 4: Bonds, Bond Valuation, and Interest Rates
Module 5: Risk, Return, and the Capital Asset Pricing Model
Module 6: Stocks, Stock Valuation, and Stock Market Equilibrium
Module 7: Hybrid Financing: Preferred Stock
Module 8: The Cost of Capital
Module 9: Financial Planning and Forecasting Financial Statements
Module 10: Distributions to Shareholders: Dividends and Repurchases
Module 11: Capital Structure Decisions
Module 12: Working Capital Management
Module 13: Derivatives and Risk Management
Problem-solving, case studies, and presentation methodologies are applied to illustrate the theories and tools used in corporate finance and financial decision making