Description: There is a twofold goal desired for this course. First is to provide the required tools to objectively frame financial management issues. Second is the ability to synthesize and incorporate these tools and other academic and professional experiences into a standard yet flexible model for solving financial management problems. Decisions regarding financing, raising capital, managing investments and other short-term assets, and management of liabilities are critical functions within any organization regardless of profit motives. Therefore it is important to understand the financial environment and be able to navigate the fiduciary terrain towards the most objective decisions. This course will discuss and teach the tools to objectively make: capital budgeting, capital structure and working capital decisions. Through case studies, lectures, videos, readings and exams, students learn structured techniques and how to apply them in financial decision making. The course addresses the three fundamental questions of Business Finance: What, Where and How. More specifically: what assets will be needed to support the lines of business, where will the financing for those assets come from, and how will we fund the daily operations of those lines of business. As the course progresses, new topics and skills are integrated into a more sophisticated framework of financial understanding. Students develop and evaluate standard techniques such as: • Discounted cash flow valuation models, Capital budgeting, Pro forma statements & Forecasting • Social Return on Investment • Stock & Bond Valuation • Scenario and Sensitivity Analysis • Security Market Line and Weighted Avg. Cost of Capital • Short and Long Term funding sources and Working Capital Management
Learning Outcomes: Upon completion of this course, the student will be able to: 1. Integrate the basics of the financial environment with the fiduciary terrain. 2. Discuss discounted cash flow valuation models, capital budgeting, pro forma statements and forecasting. 3. Benchmark stock and bond valuation as well as apply the standards of scenario and sensitivity analysis. 4. Differentiate between short and long term funding sources and working capital management.