Prerequisites: 90-710 Applied Economic Analysis or 91-803 Economic Principles of Policy Analysis, 90-711 Empirical Methods or 91-801 Data Analysis for Managers, 90-724 Financial Management and Control or 91-804 Financial Analysis for Managers. Skills Level: Ability to use spreadsheets This course focuses on the fundamentals of financial decision making for the profit and non-profit entity. Theoretical models are used in the real world to value assets and solve financial problems on a daily basis. The students are introduced to these theoretical models. Additionally, illustrations of how they affect the decisions made by managers are provided. Pricing techniques introduced in this course include present value models and the capital asset pricing model. Decisions making, based upon these pricing models, focuses on capital budgeting, cost of capital, capital structure, and buy versus lease decisions. Furthermore, managers' objectives need to be aligned with those of the firm. We will discuss how this goal is achieved through the use of management compensation contracts. Students will gain practical experience through projects, homework assignments and case materials.
