IAF620 - Financial Management

Outline info
Semester
School
Last revision date 2017-05-29 00:29:53.007
Last review date 2017-07-17 00:15:26.158


Subject Title
Financial Management

Subject Description
This course is a continuation of the study of corporate finance started in Finance. It provides an in-depth study of issues and tools that will assist financial specialists in making corporate financing decisions. Students learn how to select the appropriate financial and investment strategies to achieve the company's goals and objectives, given the economic environment in which the firm operates. Analytical techniques relating to financial decision making are studied. Topics include dividend policy, investment decisions, derivatives, risk management, international financial management, options and swaps.

Credit Status
One credit towards the Bachelor of Commerce - International Accounting and Finance degree programs

Learning Outcomes
Upon successful completion of this subject the student will be able to:

1. Explain the principles involved in corporate dividend policy and evaluate the effects of dividend policy on internal financing.

2. Explain the function of capital markets in Canada and discuss the role of investment underwriting.

3. Evaluate the use of long-term debt, preferred and common shares in financing the firm.

4. Illustrate the use of term loans and leases in financing and analyze the factors involved in the lease-purchase decision.

5. Apply discounted cash flow concepts to leasing decisions.

6. Define the meaning and explain the role of various types of derivatives, such as options and futures, and the market for them.

7. Describe warrants and compare them to convertible securities.

8. Calculate the hedge on futures and the values of call and put options.

9. Discuss the importance of financial forecasting and demonstrate the use of financial forecasts to estimate future cash requirements.

10. Describe and analyze corporate restructuring through mergers and divestitures.

11. Define financial distress using the stock-based and flow-based approaches.

12. Evaluate the importance of international factors in the role of the financial manager.

Cheating and Plagiarism
Each student should be aware of the College's policy regarding Cheating and Plagiarism. Seneca's Academic Policy will be strictly enforced.

To support academic honesty at Seneca College, all work submitted by students may be reviewed for authenticity and originality, utilizing software tools and third party services. Please visit the Academic Honesty site on http://library.senecacollege.ca for further information regarding cheating and plagiarism policies and procedures.

Discrimination/Harassment
All students and employees have the right to study and work in an environment that is free from discrimination and/or harassment. Language or activities that defeat this objective violate the College Policy on Discrimination/Harassment and shall not be tolerated. Information and assistance are available from the Student Conduct Office at student.conduct@senecacollege.ca.

Accommodation for Students with Disabilities
The College will provide reasonable accommodation to students with disabilities in order to promote academic success. If you require accommodation, contact the Counselling and Disabilities Services Office at ext. 22900 to initiate the process for documenting, assessing and implementing your individual accommodation needs.

Prerequisite(s)
IAF330
IAF410
IAF550

Topic Outline

TOPICS
Long-term debt, Preferred & Common shares
Capital Markets & Investment Underwriting
Dividend Policy
Financial Forecasting
Term Loans and Leases
Mergers and Divestitures
Financial Distress
Derivatives, options and futures
Warrants and Convertible Securities
Derivatives and Hedging Risk
International Corporate Finance
International Corporate Finance

Mode of Instruction
In-Class

A combination of teaching methods will be utilized which may include lectures, case studies, discussions, group and individual work.

Prescribed Texts

Corporate Finance (withConnect /SmartBook)item photo
Author: Ross, Westerfield, Jaffe, Roberts
Edition: 7th Canadian
Publisher: McGraw-Hill
ISBN: 9781259103599

 

Reference Material
Seneca Libraries. Guide to Research and Citation: MLA Style. Lasted Edition.  Seneca College

Required Supplies
Texas Instrument BAII Plus calculator.

Promotion Policy

Grading Policy
A+ 90%  to  100%
A 80%  to  89%
B+ 75%  to  79%
B 70%  to  74%
C+ 65%  to  69%
C 60%  to  64%
D+ 55%  to  59%
D 50%  to  54%
F 0%    to  49% (Not a Pass)
OR
EXC Excellent
SAT Satisfactory
UNSAT Unsatisfactory

For further information, see a copy of the Academic Policy, available online (http://www.senecacollege.ca/academic-policy) or at Seneca's Registrar's Offices.


Modes of Evaluation

Mid Term Test 30%
Assignments, Quizzes (2), and Cases 30%
Final Exam 40%






Late Assignments and Tests


Tests

  • Assignments must be typed or prepared using a word processor or spreadsheet.
  • Student participation - the key elements of success are prompt completion of assignments, class attendance and participation in discussions. It is expected that all assigned reading will be completed before class. 
  • Test dates have been pre-arranged and are not negotiable. If a test is missed, the student must provide the reason in writing within one week. If accepted, the marks will be added to the final examination; otherwise a zero grade will be assigned for the missed test. 
  • Assignments must be handed in by the due date, and will not be accepted late for reasons other than illness.

English Competencies

All written work on tests and assignments must display the following characteristics of clarity and conciseness:
  • Be technically correct, i.e. correct grammar, spelling and punctuation
  • Use appropriate vocabulary
  • Display no sentence errors, i.e. fragments and run-ons
  • Make a clear main point
  • Support the main point with specific, relevant examples and reasons
  • Be organized in a clear fashion (e.g. headlines, transitional devices, paragraphs, enumerations)
  • Be set out in the appropriate format (e.g. report, essay)
  • Presentation/layout must be professional


Program Coordinator
Cynthia Duncan

Approved by: Academic Program Manager - Business Studies Danielle Mercier