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:

  • 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;
  • To understand the economic context and environment where decisions are made by business leadership and management;
  • To further students’ understand and the interpretation of financial statements;
  • To solve time value of money problems (TVM) and be ready to apply TVM techniques in the work environment including to bond and stock valuation;
  • To identify the risk and return characteristics of financial securities, compare these characteristics and perform data analysis and interpretation;
  • To recognize financial options and apply option principles to other firm settings;
  • To apply risk and return estimation methodologies, including to the valuation of equity and debt claims and the firm’s cost of capital;
  • To identify relevant incremental cash flows, and apply capital budgeting techniques to these cash flows;
  • To contrast working capital policies in terms of risk and profitability;
  • To evaluate financing alternatives and the financial structure of the firm.

Course Grading Information:

Activity/Performance Measure Percentage/Points
Homework 25%
Case 15%
Discussion 20%
Exam 40%

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 -- MyLab Finance with Pearson eText Access Code Electronic Product by Jonathan Berk; Peter DeMarzo - 6TH 24

Scholarly Perspectives

This course engages diverse scholarly perspectives to develop critical thinking, analysis, and debate and inclusion of a reading does not imply endorsement.