Finance 631

FINC 631: Financial Management

Prerequisite: MBA status or permission of the instructor

Credit Hours: (3)

Examines techniques and concepts used in modern business and the theoretical advances in the areas of asset management and capital structure planning. Topics include capital budgeting, working capital management, valuation, cost of capital, capital structure planning, dividend policy, option pricing, mergers and acquisitions. Problems and short cases used to enhance student skills in financial planning and decision making.


Detailed Description of Content of Course

1. Goals and Functions of Finance
2. Concepts in Valuation
3. Market Risk and Return
4. Valuation from a Relative Standpoint
5. Principles of Capital Investment
6. Risk and Managerial Options in Capital Budgeting
7. Capital Structure: Theory and Decision-making
8. Working Capital Management
9. Mergers and the Market for Corporate Control
10. Corporate Restructuring
11. International Financial Management


Detailed Description of Conduct of Course

The class includes lectures, application of theory to problem solving, case presentations and paper presentations.


Goals and Objectives of the Course

Having successfully completed the course, the student will be able to:

  • Understand the goals and functions of finance
  • Understand the concepts in valuation of assets
  • Relate to concepts of risk and return in financial markets
  • Determine the value of derivative securities
  • Recognize managerial options in Investment and financing decisions
  • Understand and evaluate the market for corporate control and corporate restructuring
  • Relate to issues in international financial management


Assessment Measures

Graded assignments may include in-class tests, a final examination, pop quizzes, the assignment and presentation of problem exercises, cases and papers with both primary and secondary research components.


Other Course Information


Review and Approval

March 1999 Revised