B.C.'s Energy College


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MGMT 261 - Principles of Corporate Finance II

A continuation of MGMT 260, this course examines topics of: evaluation of risk vs. return trade-offs. determining the cost of capital, the capital structure question, dividend policy, cash, credit and inventory management.

 

Credits: 3

 

Hours: 45 (Lecture Hours: 3)

 

Total Weeks: 15

 

Prerequisites:

One of Principles of Math 11, Foundations 11, Pre-Calculus 11 or MATH 040, and MGMT 103 Foundations of Financial Accounting 1, MGMT 109 Foundations of Financial Accounting II, MGMT 150 Business Mathematics, MGMT 260 Principles of Corporate Finance I.

 

Non-Course Pre-Requisites:

None

 

Co-Requisites:

None

 

Course Content:
- Capital Market History
- Return, Risk & the Security Market Line
- Cost of Capital
- Raising Capital
- MIDTERM EXAM
- Financial Leverage & Capital Structure Policy
- Dividends and Dividend Policy
- Short Term Finance & Planning
- Cash and Liquidity Management
- Credit and Inventory Management
- FINAL EXAM

Learning Outcomes:
Upon successful completion of this course, the student should be able to:
- Explain the relationship between risk and return and the reduction of risk through diversification
- Evaluate alternative forms of external financing; short-term, intermediate and long-term, in making capital structure decision.
- Apply the principles of working capital management in relation to matching maturities, liquidity, inventory management, and business expansion.
- Calculate and apply the correct cost of capital in business decision-making
- Evaluate major capital spending decisions under conditions of uncertainty
- Analyze the effect dividend policy has on the value of the firm

- Evaluate cash, credit, and inventory management approaches

 

Grading System: Letters

 

Passing Grade: D (50%)

 

Percentage of Individual Work: 80

 

Percentage of Group Work: 20

 

Textbooks:
Textbooks are subject to change.  Please contact the bookstore at your local campus for current book lists.
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