This course provides students with a working ability to make financing decisions. It begins with the discussion on dividend and debt policy and how they affect a firm’s value. Then, financial statement analysis and financial planning will be presented. Given the importance of the latter, both long-term and short-term planning will be discussed in greater details. While short-term planning concerns with a firm’s ability to pay its bills, working capital management focuses on the credit policy, inventory and cash management of a company. Finally, special topics including mergers and acquisitions, international financial management and options will be discussed.

CILO-1: Assess the costs and benefits associated with the different types of long-term financing. CILO-2: Evaluate a firm’s exposure to operating and financial risk and examine the relationship between capital structure and stock price. CILO-3: Analyze the potential benefits of mergers and various means of corporate divestitures and restructuring. CILO-4: Critically discuss the basic features, characteristics and applications of derivatives in corporate finance. CILO-5: Demonstrate how foreign exchange and political risks impact international financial management.