Course Description
Financial decision-making; time value of money, risk and return, valuation of securities, financial options, cost of capital, capital budgeting, working capital policy, financing decisions. Prerequisite: MBA 701, MBA 702.
Syllabus
Student Learning Outcomes, Goals, Objectives:
Students successfully completing this course will be able to:
- State the major stakeholders in the modern corporation, describe how the interests of the stockholders in a firm may be in conflict with other stakeholders, and the role of ethics
- Understand the economic context and environment where decisions are made by business leadership and management
- Further students understand and the interpretation of financial statements
- Solve time value of money problems (TVM) and be ready to apply TVM techniques in the work environment including to bond and stock valuation
- Identify the risk and return characteristics of financial securities, compare these characteristics and perform data analysis and interpretation
- Recognize financial options and apply option principles to other firm settings
- Apply risk and return estimation methodologies, including to the valuation of equity and debt claims and the firm’s cost of capital
- Identify relevant incremental cash flows, and apply capital budgeting techniques to these cash flows
- Contrast working capital policies in terms of risk and profitability
- Evaluate financing alternatives and the financial structure of the firm
Course Grading Information:
| Activity/Performance Measure | Percentage/Points |
|---|---|
| Exam #1 | 30% |
| Final Exam | 30% |
| Homework | 10% |
| Participation | 10% |
| Case Analysis (4) | 20% |
Course grades are determined as follows:
| Percentage | Letter Grade |
|---|---|
| 92 or Higher | A |
| 90 – 91.9 | A- |
| 88 – 89.9 | B+ |
| 82 – 87.9 | B |
| 80 – 81.9 | B- |
| 78 – 79.9 | C+ |
| 72 – 77.9 | C |
| 70 – 71.9 | C- |
| 68 – 69.9 | D+ |
| 62 – 67.9 | D |
| 60 – 61.9 | D- |
| Below 60 | F |
Attendance/Participation:
Attendance/participation is not a graded component included in the student's final grade for this course.
Course Materials Purchased by the Students:
- Corporate Finance, Ross, Westerfield, Jaffee, and Jordan, McGraw Hill, 13th edition, 2022 – with Connect Access, ISBN - 9781264112135.
- Cases from Darden Publishing - Cases can be obtained directly from Darden Publishing. If you have an account with Darden Business Publishing, click on https://store.darden.virginia.edu/mba-707-01--fall-2026 to purchase the materials.
Scholarly Perspectives
This course engages diverse scholarly perspectives to develop critical thinking, analysis, and debate and inclusion of a reading does not imply endorsement.