Managerial Finance II
Course Description
This course is an overview of the fundamentals of financial administration. Emphasis is on using financial thought and decision-making skills to understand a firm's working capital management, short-term and long-term financing policies, and special topics in the field of financial management.
Topics and Objectives
Time Value of Money, Valuation, and Rates of Return
- Calculate present value and future value for single amounts, annuities, and uneven streams of cash flow.
- Identify various financial applications of the time value of money.
- Calculate the present value of bonds preferred stocks, and common stocks using required rates of return (yield to maturity).
Capital Budgeting
- Describe the importance and role of capital budgeting in organizations.
- Make capital budgeting decisions utilizing alternative capital budgeting decision models and risk analysis techniques.
- Prepare a lease versus buy analysis to determine the advantages and disadvantages of leasing.
Long Term Funding
- Analyze the impact of leverage on earnings and risk.
- Describe the characteristics of various debt and equity instruments.
- Analyze dividend policy and derivatives strategies in relation to maximizing shareholder wealth.
Capital Structure and Cost of Capital
- Calculate an organization's Weighted Average Cost of Capital (WACC).
- Calculate how optimal capital structure is determined using the Capital Asset Pricing Model (CAPM) and Weighted Average Cost of Capital (WACC).
- Explain the relationship between cost of capital, bond ratings, and the capital budgeting decision-making process.
Mergers, Acquisitions, and International Finance
- Assess the effects of mergers and acquisitions on the value of a firm.
- Assess the important issues in international financial management.
