FIN 623 Financial Management



Course Catalog Description

Introduction

This course provides students with a rigorous introduction to the fundamental principles of finance. The primary concepts covered include the time value of money, principles of valuation and risk. Specific applications include the valuation of debt and equity securities as well as capital budgeting analysis, financial manager’s functions, liquidity vs profitability, financial planning, capital budgeting, management of long term funds, money and capital markets, debt and equity, management of assets, cash and accounts receivable, inventory and fixed assets. Additional topics include derivative markets.

Prerequisites: MGT 600 & working knowledge of statistics A zero credit Statistics boot camp offered to our MBA students. The boot camp could be taken concurrently with this course.


Campus Fall Spring Summer
On Campus X X
Web Campus X X

Instructors

Professor Email Office
Victor Luo
vluo@stevens.edu Babbio Center Room: 620
Frank Gallucci
fgallucci@whitestone.net

More Information

Course Outcomes

By the end of this course, the students will be able to:

  1. Apply knowledge of financial markets, interest rates, risk and return to make sensible capital financing and strategic decisions
  2. Use financial ratios to analyze a company’s financial statements
  3. Estimate the weighted average cost of capital
  4. Perform a capital budgeting analysis
  5. Use futures and options as tools to offset or protect against risk
  6. Better understand the utility of data analytics
  7. Be able to communicate financial topics to a variety of audiences

Course Resources

Textbook

  • Financial Management: Theory & Practice by Brigham & Ehrhardt, 15th Edition

Grading

Grading Policies

Weights
1 Team Project: Using AI to create value 50%
2 Team Book Review 1: “The Mathematical Corporation” 15%
3 Team Book Review 2: “Red Notice” 15%
4 Participation 20%

Lecture Outline

Topic Readings Assignments
Week 1 Introduction to course content and materials. Instructor expectations, team formation and assignment explanations Ch. 1,2,3 Comments and Questions
Week 2 Topic: The Company and Its Environment Tools and Concepts: Opportunity Costs Ch. 4, 5 Tool and Concepts Assignment Book Reviews 1 and 2 Team Project
Week 3 TTopic: Fixed Income Securities Tools and Concepts: Compounding Interest Ch. 6, 7, 8 Tool and Concepts Assignment Book Reviews 1 and 2 Team Project
Week 4 Topic: Stocks and Options Tools and Concepts: Risk and Return Ch. 9, 10, 11 Tool and Concepts Assignment Book Reviews 1 and 2 Team Project
Week 5 Topic: Projects and Their Valuation Tools and Concepts: Cost of Capital Ch. 12, 13 Tool and Concepts Assignment Book Reviews 1 and 2 Team Project
Week 6 Topic: Corporate Valuation and Governance Tools and Concepts: Integrity Ch. 14, 15 Tool and Concepts Assignment Book Reviews 1 and 2 Team Project
Week 7 Topic: Cash Distribution and Capital Structures Tools and Concepts: What is debt? Who provides it? Ch. 16, 17 Tool and Concepts Assignment Book Reviews 1 and 2 Team Project
Week 8 Topic: Managing Global Operations Tools and Concepts: Global Competitive Analysis, why is it important? 18, 19, 20 Necessary Tool and Concepts Assignment Book Reviews 1 and 2 Team Projec
Week 9 Topic: Tactical Financing Decisions Tools and Concepts: Equity: What is it? Is it expensive? 21, 22, 23, 24 Tools and Concepts Assignment Book Reviews 1 and 2 Team Project
Week 10 Topic: Strategic Finance in a Dynamic Environment Tools and Concepts: Private Equity: What is it? Who provides it? Tool and Concepts Assignment Book Reviews 1 and 2 Team Project
Week 11 Special Topic: The importance of networking Tools and Concepts: Why “network”? If you should, how should you network? Tool and Concepts Assignment Book Reviews 1 and 2 Team Project
Week 12 Special Topic: The Liquidity Event Book Reviews 1 and 2 Team Project
Week 13 Book Review 1: “The Mathematical Corporation” Book Review 2 Team Project
Week 14 Book Review 2: Team Project
Week 15 Team Presentations