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.