AND WEEKLY TIME DISTRIBUTION:
||credits 3 (hrs lect 3 - hrs sem 0 - hrs lab 1)
||Examines financial and investment decisions from the corporation's
perspective. The financial markets, the trade-off between risk and
return, the firm's cost of capital, capital budgeting decisions, the
firm's working capital management decisions and the derivatives markets
are integral to the valuation of financial assets.
Prerequisites: BUSI 370
Fundamentals of Corporate Finance, 9th Canadian Edition by Ross, Westerfield, Jordan & Roberts, McGraw-Hill
DISTRIBUTION IN PERCENT:
||Upon successful completion of this course, students will be able to
- Critique the goals of financial management and assess the role of financial markets.
- Differentiate the goals, functions and foundations of financial management.
- Appraise market efficiency and the role of capital markets.
- Contrast the institutions and practices of the financial markets.
- Evaluate the underwriting function and its impact on earnings per share and share price.
- Evaluate financial management in an international context.
- Execute and examine techniques for working capital management.
- Explain working capital management and its components.
- Identify the risks and profitability in working capital positions.
- Analyze current asset investment decisions.
- Analyze current liability financing decisions.
- Execute and examine techniques for the valuation of capital assets.
- Apply time value of money techniques.
- Value and determine yields for financial assets.
- Execute and examine various capital budgeting techniques.
- Assess the results of investment analysis.
- Discuss and apply the CAPM (Capital asset pricing model).
- Execute and examine evaluation techniques for bond or lease financing.
- Examine and appraise capital structure.
- Determine the cost of capital for a firm.
- Evaluate capital structure in the context of maximization of firm value.
- Apply the cost of capital to investment decisions.
- Describe the key features of debt and equity.
- Examine and value alternative financing options to include rights, warrants, and convertibles.
- Examine the payout policies of the firm.
- Execute and examine techniques for risk management.
- Define and calculate financial and operating leverage [optional].
- Execute and examine risk adjustment and decision analysis techniques.
- Justify risk reduction techniques including hedging, diversification and derivatives.
- Introduction, Syllabus
- Project Analysis and Evaluation
- Lessons from Capital Market History
- Return, Risk and the Security Market Line
- Cost of Capital
- Raising Capital
- Financial Leverage and Capital Structure Policy
- Dividends and Dividend Policy
- Short-term Finance and Planning
- Cash and Liquidity Management
- Credit and Inventory Management
- Mergers and Acquisitions
- Options and Corporate Securities