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.
Methods of Instruction
Material will be presented within a lecture format.
Means of Assessment
Minimum of 3 evaluations, none of which will exceed 40%, for a total of 100%.
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.
Course Guidelines for previous years are viewable by selecting the version desired. If you took this course and do not see a listing for the starting semester/year of the course, consider the previous version as the applicable version.
Below shows how this course and its credits transfer within the BC transfer system.
A course is considered university-transferable (UT) if it transfers to at least one of the five research universities in British Columbia: University of British Columbia; University of British Columbia-Okanagan; Simon Fraser University; University of Victoria; and the University of Northern British Columbia.
For more information on transfer visit the BC Transfer Guide and BCCAT websites.
If your course prerequisites indicate that you need an assessment, please see our Assessment page for more information.