The course consists of four parts. Part I looks at the management of existing resources, in particular, the use of financial statements and ratio analysis to assess a company’s financial health, performance, and future prospects. Emphasis is on the ties between operating activities and financial performance. Part II examines financial forecasting and financial planning, with emphasis on how to manage growth (and decline). Part III examines the financing of a company’s operations, including a review of the main security types, the markets in which they trade, and the company's choice of which security type to issue. Part IV considers the use of discounted cash flow techniques -- such as the net present value and the internal rate of return - to evaluate investments. It also looks at how to incorporate risk into the investment decision. Finally, (if time allows) it offers an examination of business valuation and corporate restructuring in the context of the proper roles of shareholders, boards of directors, and managers in governing the public corporation.
The specific topics of the course are as follows:
Interpreting financial statements
Evaluating financial performance
Financial forecasting
Managing growth
Financial instruments and markets
The financing decision
Evaluating investment opportunities