FIN 601 - Applied Financial Management

This course has three primary components. One component involves student participation in a comprehensive multi-period case that attempts to simulate real-world business situations. Each group begins the simulation with an identical company as described by a set of financial statements and forecasts of key economic variables such as interest rates and product demand. Based on company strategy and the expected economic environment, each group makes a variety of financial (and other) decisions about the firm including the level of production, dividend distributions, investment in capital budgeting projects, sources of external financing, and so forth. Important feedback comes to participants in the form of financial statements that reflect the impact of the economic environment and the group’s decisions. Success is measured in terms of shareholder wealth enhancement. Students who devote sufficient time and effort into understanding how their simulated firms function are likely to enjoy the class and learn much about corporate finance. The second course component involves topics covered in FIN 501 such as capital budgeting, capital structure, and financial analysis. These topics will be covered in more depth and discussed in the context of the simulation. The third course component involves corporate finance topics beyond those discussed in Financial Decision Making, such as hybrid securities and derivatives.

Concentrations - Finance

Credits: 3