Description
Prerequisite: MMG514. The major goal of the financial manager is to maximize the value of the firm. Accordingly, this course focuses on analysis and interpretation of financial data from the income statement, balance sheet and the statement of cash flows, for decision making. Powerful planning and control tools such as pro forma budgeting and break-even analysis are introduced, as well as the concepts of operational and financial leverage. Students learn how to estimate the amount of cash an organization will need in its operations. One key focus of the course is on capital budgeting, based on the concepts of the time value of money. This includes calculations of future value (FV), present value (PV), net present value (NPV), internal rate of return (IRR) and payback period.