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Apr 15, 2026
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MG 722 - Financial Management3 lecture hours 0 lab hours 3 credits
Course Description
This course looks at the role of finance and financial management in today’s business organization. It addresses the role of finance from both the short-term operational management perspective as well as the long-term strategic planning perspective. Topics include the valuation of corporate investments, the concepts of leverage and discount policy, financial planning, the management of operation assets, mergers and acquisitions and international finance. (prereq: MG 620 , MG 633 )
Course Learning Outcomes
Upon successful completion of this course, the student will be able to:
• Be provided with the financial and accounting knowledge necessary to understand the principles behind financial decision-making in today’s business organization, especially in those areas that impact the operating manager
• Identify and relate to the role financial management plays in assisting the operating manager in the day-to-day management of the business
• Be able to calculate the yield on investments using cash flow techniques
• Look at the trade-off between risk and return and identify those measures that can be used to maximize return while minimizing risk
• Identify how the use of leverage and the dividend policy impact long-term financial policy and a company’s capital structure
• Apply the introduced financial tools and techniques in order to make sound business decision in the areas of inventory, accounts receivable, accounts payable and cash balances
• Work in and be familiar with the areas of international finance, mergers and acquisitions, and leasing
Prerequisites by Topic
Understanding of basic accounting and finance
Course Topics
• Introduction to corporate finance Corporate finance - defined and differentiated Introduction to financial markets
• Interest rates and bond valuation Bonds, bond features and bond valuation Bond types and bond ratings Bond markets and yields
• Stock valuation Common stock valuation features of common and preferred stock the stock markets • Return, risk and the security market line expected returns and variances portfolios and risk diversification and portfolio risk the security market line
• Options and corporate finance options, their use and valuation employee stock options
• Raising capital; selling securities to the public; underwriters and the cost of issuing securities; rights and dilution; issuing long-term debt
• Financial leverage and the capital structure; capital structure and the impact of financial leverage; optimal capital structure; bankruptcy
• Dividends and dividend policy; dividend policy; stock dividends and stock split
• Short-term finance and planning; operating cycle and cash cycle; the cash budget; short-term borrowing
• Cash and liquidity management; cash policy and float; cash collections and concentration; investing idle cash
• Credit and inventory management; credit and receivables; determining optimal credit and collection policies; inventory management; inventory management techniques
• International corporate finance; foreign exchange markets and exchange rates; exchange rate risk and international capital budgeting
• Mergers and acquisitions; forms of and accounting for gains from acquisitions; defensive tactics
Laboratory Topics
None appended
Coordinator
Robert Hankes
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