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Faculty
Daniel J. Borgia, Florida Gulf Coast University

Course Coordinator
ISUP Secretariat

Prerequisite/progression of the course

Financial Accounting, Economics, Statistics.
Closed for CBS students studying Cand.merc.AEF, Cand.merc.FSM, Cand.merc.FIR or Cand.merc.ASC

Course content, structure and teaching

Financial Management is a core component of this and all other AACSB-accredited MBA programs. It involves an analysis of financial decisions in the business enterprise and examines the interface of the firm with capital markets. Although we will touch on many different aspects of the broad field of finance, our approach mainly will be from the perspective of a financial manager of a corporation. This course will focus on the advanced aspects of strategic investment and financing decisions, tactical financing decisions, working capital management, international finance, and other special financial management topics. This course is distinguished from the "foundations" finance course (Finance 5405) in that coverage is substantially more in-depth and comprehensive, incorporates more theory, and covers a greater breadth of topics. Although our focus will be on practice, we often will examine the nature and development of the theory that underlies various financial models.

Learning Objectives

To enable advanced level graduate students to use financial accounting data to assess the financial health and direction of a firm and to formulate strategies for maintaining financial strengths and addressing financial weaknesses. (Quiz and exam questions that emphasize financial statement and ratio analysis,utilizing the income statement, balance sheet, and statement of cash flows).

To teach advanced level graduate students to learn to utilize advanced time value of money mathematics to make multi-period investment and financing decisions. (Quiz and exam questions on present and future valuations of lump sums, ordinary annuities and annuities due, and uneven cash flow streams).

To help advanced level graduate students to understand the importance and techniques for managing cash flow for making strategic working capital and short-term financial management decisions. (Quiz and exam questions on current asset and liability management, inventory and receivables management, and the cash conversion cycle).

To enable advanced level graduate students to use statistical analysis to measure, quantify risk and return in uncertain economic environments in order to make efficient risk adjusted profit maximizing management decisions.(Quiz and exam questions on determining expected rates of return, standard deviation of returns, and other applications of statistics to quantify risk and return forecasts).

To enable advanced level graduate students to understand the application of time value of money to security analysis and asset pricing. (Quiz and exam questions on stock and bond valuation problems).

To enable advanced level graduate students to understand how to forecasting cash flows and how to utilize capital budgeting decision techniques to make capital investment decisions. (Quiz and exam questions on cash flow forecasting methods and capital budgeting techniques, to include payback method, net present value method, and internal rate of return method).

Teaching methods

We will discuss the basic insights of corporate finance theory, but emphasize the application of theory to real business decisions. All class sessions will begin with some period of lecture followed by significant team based discussions using the case study method. Because of the reliance on interactive discussions, student participation is critical to the success of the course. Students are expected to read all cases, come to class, and participate in class discussion.

Examination

Final exam: 4-hour written exam (open book).

Exam aids: Textbook, Notes, Financial Calculators and/or Microsoft Excel.

Re-take exam: 24-hour written exam.

Recommended literature

The required textbook for this course is Corporate Finance: A Focused Approach, Third Edition, authored by Michael C. Ehrhardt and Eugene F. Brigham, and published by Thompson South Western (2009). The textbook also includes chapter mini cases that will be used to drive in class group discussions of the material. The course also will be supplemented with selected articles from publications such as the Wall Street Journal and The Economist to facilitate and drive discussion of relevant current events.

Last updated by ISUP Secretariat 28/01/2010