Case Studies in Financial Management
Commerce & Business Administration
15 Weeks X 4 Hours per Week = 60 Hours
Max Class Size
Lecture: 4 Hours Total: 4 Hours
Method Of Instruction
Methods Of Instruction
Material will be presented within a lecture format.
This is a case course where students apply financial theory to actual company situations. Cases will be concerned with the financing of current operations through efficient management of current assets and situations where long-term financing is appropriate.
- Financing Current Operations:
- Determinants of capital needs: accounts receivable, inventories and seasonal funds requirements.
- Current asset management: ratio analysis, flow of funds and cash budgeting.
- Managing corporate assets: liquid cash management, trade credit policy and strategy, and inventory management.
- Long-Term Financing
- Valuation: methods of valuation including long-term capital structure and cost of capital.
- Dividend policy.
- Debt management and leasing.
- Capital budgeting decisions.
- Mergers and Acquisitions
- Relevant costs and methods of evaluating investment alternatives.
- Public Offerings
- the use of common and preferred stock as a source of new capital.
- Pricing the new issue.
- Use of derivative instruments: warrants, rights and convertible securities.
At the end of the course, the successful student should be able to:
- recognize and develop viable financial strategies in the context of a complex corporate environment;
- practice and develop competence in financial analysis skills;
- develop practical decision-making skills by integrating the conceptual knowledge and functional techniques with case analyses;
- clearly present and substantiate all case recommendations, recognizing the strengths and weaknesses of each analysis.
Means of Assessment
Minimum of 3 evaluations, none of which will exceed 40%, for a total of 100%.
Textbooks and Materials to be Purchased by Students
- De Mello, Jim. Cases in Finance, latest ed. McGraw Hill Irwin.
- Shaw, Foerster. Canadian Cases in Financial Management, latest ed. Prentice Hall.