Financial Management

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 HigherA
90 – 91.9A-
88 – 89.9B+
82 – 87.9B
80 – 81.9B-
78 – 79.9C+
72 – 77.9C
70 – 71.9C-
68 – 69.9D+
62 – 67.9D
60 – 61.9D-
Below 60F

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.