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:
MGMT 260

 

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.