Jan 28, 2023
AC 640 - (Applied) Corporate Financial Management
This is a case based course that explores the tools and concepts of modern finance, using the case method. Cases link managerial decisions to capital markets and to the expectations of investors. Case topics include: value creation; market efficiency; opportunity costs; resource allocation; and financial strategy. Tutorials relating to the major themes are also presented.
Prerequisites & Notes
For Leadership MBA students: MB510 (undergraduate FI301) or equivalent academic and/or experiential background in capital asset management, financial statement analysis, risk & return, time value of money, managing corporate risk, and strategic investment and financing decisions.recommended.
Course Learning Objectives
Upon completion of this course, you should be able to do the following:
- Analyze corporate governance; assess where the power of the firm lies and the potential for conflicts of interest.
- Given specific data points, calculate variance, sigma, and other statistical measures for the purpose of quantify risk.
- Apply the Capital Asset Pricing Model (CAPM) in order to evaluate expected returns after risk assessment.
- Determine project viability using several tools including payback, net present value, and internal rate of return.
- Construct capital, financial, and budget decision trees by application of time value of money concepts.
- Evaluate the tradeoffs between debt and equity as part of capital structure.
- Synthesize the advantages and disadvantages of debt and equity.
- Discuss Weighted Average Cost of Capital (WACC) and its effect on capital budgeting decisions.
- Evaluate procedures used by corporations to effectively manage their short-term financing.
- Apply financial modeling dividend analysis and firm valuation.
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