Sources of managerial information that are provided by money and capital markets, primary and secondary markets, and cash and futures markets. Money and capital market instruments, relevant return measures, risk metrics for bonds and equities. Theory, policy, and practice of financial management are examined through the elements of financial analysis, sources of funds, investing, capital planning and budgeting, dividend policy, and working capital management.
By the end of the semester, students are expected to be able to: 1. Explain and construct an optimal capital structure, including the use of hybrid financing. 2. Calculate the cost of capital of a firm. 3. Construct an optimal dividend policy. 4. Analyze the effects of globalization and mergers and acquisitions on corporate wealth.