Curriculum Guideline

Case Studies in Financial Management

Effective Date:
Course
Course Code
FINC 3360
Descriptive
Case Studies in Financial Management
Department
Finance
Faculty
Commerce & Business Administration
Credits
3.00
Start Date
End Term
Not Specified
PLAR
No
Semester Length
15 Weeks X 4 Hours per Week = 60 Hours
Max Class Size
35
Contact Hours
Lecture: 4 Hours Total: 4 Hours
Method Of Instruction
Lecture
Seminar
Methods Of Instruction

Material will be presented within a lecture format.

Course Description
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.
Course Content
  1. 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.
  2. 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.
  3. Mergers and Acquisitions
    • Relevant costs and methods of evaluating investment alternatives.
  4. 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.
Learning Outcomes

At the end of the course, the successful student should be able to:

 

  1. recognize and develop viable financial strategies in the context of a complex corporate environment;
  2. practice and develop competence in financial analysis skills;
  3. develop practical decision-making skills by integrating the conceptual knowledge and functional techniques with case analyses;
  4. 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%.

Textbook Materials

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.
Prerequisites