To download a PDF of the syllabus, please click the link below.
FIMBA I - Managerial Finance.pdf
Level: 500
All businesses need to take risks, but managerial finance experts do so without risking it all. This course focuses on present value analysis, capital markets and budgeting, and corporate capital structure. You’ll learn to assess company value, understand debt vs. equity financing, and forecast financial performance while gaining skills in budget management and decision-making that allow you to drive value creation in every aspect of the corporate world. Learn more at rize.pub/FIMBA-I.
Corporate Finance involves planning, raising, managing, and allocating funds to achieve business goals, which goes beyond money management to the art and science of decision-making and value creation. A solid foundation in corporate finance principles allows future managers to assess profitability, risk, and company value, ensuring sustainability and growth.
How can you measure and maximize the value of your company in a competitive market?
Present Value Analysis revolves around the concept that a dollar today is worth more than a dollar in the future. This principle is crucial for making informed financial decisions and investment evaluations. By understanding the time value of money, cost of capital, and discounting future cash flows, managers can accurately assess project viability and make strategic investment choices.
How do you determine the present value of future cash flows to decide if an investment is worthwhile?
Capital Markets, including stocks, bonds, and other financial assets, are essential for raising funds and driving economic growth. Understanding how these assets differ, their roles in raising capital, and how investors balance risk and return is vital for evaluating financial outcomes and making informed investment decisions.
How do investors assess and balance risk and return when choosing where to invest their money?
Capital Budgeting involves evaluating investment opportunities to ensure resources are allocated to projects that maximize shareholder value. Accurate cash flow estimation and the use of investment criteria like Net Present Value (NPV) help managers compare project profitability and guide strategic decisions on how resources should be allocated.
What criteria do you use to decide which projects will add the most value to your company?
A company’s Capital Structure, its mix of debt and equity financing, significantly impacts its financial strategy. Understanding the advantages and disadvantages of debt vs. equity, the factors influencing cost of capital, and the impact of dividend policy on shareholder value are crucial for making informed financial decisions and managing company growth effectively.
How do you determine the optimal mix of debt and equity to fund your company's operations?
Corporate Financial Planning and Budgeting involve forecasting financial performance and managing budgets to achieve business objectives. Effective financial planning sets goals, monitors progress, and ensures resources are used efficiently. Understanding these processes equips managers with the tools and methods to drive financial success and organizational growth.
How do you create a budget that aligns with your company's strategic goals and adapts to changing financial conditions?
This course also interacts with more advanced topics, such as Mergers and Acquisitions (M&A) and Financial Distress and Bankruptcy. M&A knowledge allows managers to evaluate potential acquisitions, identify synergies, and integrate operations, while understanding financial distress and bankruptcy allows them to detect early warning signs and implement turnaround strategies, ensuring the firm's stability and resilience.
| Behavioral Outcomes
| These are key behaviors that a successful student will be able to put on their resumé to stand out from the crowd. By the end of this course, you will: |
|---|
| Make corporate financial decisions and solve financial problems using modern financial modeling techniques. |
| Communicate financial analyses, insights, and strategies to stakeholders to drive financial success. |
| Skill Outcomes
| These are the core skills that this course teaches to achieve those behaviors. By the end of this course, you will be able to: |
|---|
| Conduct present value analysis for complex investment projects to determine profitability and investment viability. |
| Develop financial models to forecast financial outcomes and support strategic decision-making. |
| Identify the core financial assets traded in public capital markets and their primary uses. |
| Evaluate risk and return of various investment options using quantitative analysis techniques. |
| Design corporate financial plans and budgets to support long-term financial goals and operational efficiency. |
Fundamentals of Corporate Finance, 11th Edition, by Richard Brealey, Stewart Myers and Alan Marcus (2023), ISBN: 1264101562