Course Description

This course focuses on how economic events are reflected in a firm’s financial statements including a balance sheet, an income statement and a statement of cash flows. It also focuses on how financial statement information is used by various stakeholders such as shareholders, creditors, employees and customers in making decisions with regard to the firm, including credit decisions and/or valuing a firm’s equity securities. And it also discusses how managers evaluate a company’s investments in working capital and capital expenditure projects. And finally, it discusses how a company raises capital from equity investors and lenders, and how it chooses the right mix of debt and equity to minimize it’s cost of capital.

Learning Objectives

By the end of this course, you should be able to:

  • Understand how economic events affecting a business are quantified and summarized in a company’s financial statements, including its balance sheet, income statement and statement of cash flows
  • Be able to analyze a company’s financial performance, benchmark its performance against peers, and determine how a company could improve its future performance Analyze a company’s working capital investments
  • Use financial criteria such as net present value (NPV), internal rate of return (IRR) to evaluate whether capital expenditure projects increase shareholder values

Teaching Methods

This module uses case studies, lectures/discussions, presentations, videos and action learning exercises as vehicles to increase participants’ understanding of financial management and reporting issues. The lectures are intended to provide basic information, to help structure that information, and to be a source of explanation. Students are expected to read relevant texts to supplement the information provided in the lecture. That is, the lectures are provided as a guide only and as a starting point for the student’s own independent learning.