MG 620 - Finance and Accounting

• Have the financial and accounting knowledge necessary to understand the principles behind financial decision making in today’s business organization, with a specific focus on capital budgeting and project management
• Identify and relate to the role financial management plays in the management of today’s business organization
• Work with the financial statements, knowing what they report, and how to use them to make better decisions
• Recognize and use cash flow in decision-making
• Work with the concepts of Time Value of Money and use these in the making of investment decisions
• Perform business financial planning including the preparation of budgets and pro-forma financials
• Apply the introduced financial tools and techniques in order to make sound business decisions
• Identify the concept of Cost of Capital and the various related sources of capital available to business, both short-term and long-term.

• None

• Introduction to corporate finance - defined and differentiated, forms of business organizations, introduction to financial markets
• Financial statements, balance sheet and income statement, taxes and cash flows
• Working with financial statements, statement of cash flows, ratios and ratio analysis, Du Pont identify, depreciation as a cost and a cash flow
• Time value of money and its use
• Future value and compounding, present value and discounting, multiple cash flows and annuities
• Net present value and other investment criteria
• Net present value, payback rule, discounted payback rule, average accounting return, internal rate of return, profitability index
• Making capital investment decisions
• Cash flow elements of a project, pro-forma financial statements and cash flows, cost analysis by behavior depreciation (MACRS), net working capital and the project, special cases in discounted cash flows
• Project analysis and evaluation Evaluating NPV estimates, scenario and other what-if analysis, break-even analysis - cash, operating and financial, operating leverage, capital rationing
• Long-term financial planning and growth What is it and what is value, financial planning model with a focus on balance sheet, external financing and growth
• Cost of capital defined and relationship to financial policy, cost of equity, cost of debt and preferred stock, weighted average cost of capital and its use
• Raising capital financing life cycle of a firm, selling securities to the public, alternate issue methods, IPO’s and underwriting, issues surrounding debt and equity issues