GMGT 5150 - Financial Measurement

Credits: 4

This course develops the basic concepts and procedures underlying corporate financial statements and provides practical tools for financial decisions and valuation. A managerial view of financial statements encompasses understanding how they show the economic consequences of doing business, facilitate the identification of future financing needs, and provide a structured approach to measuring the impact and sustainability of growth. We initially explore the basic concepts in accounting and financial management with an emphasis on the measurement of corporate financial performance. Building on these analytical techniques, we then examine financial planning with a particular emphasis on managing growth and decline. The next part of the course focuses on developing tools for evaluating investments opportunities and measuring risk. We analyze the strengths and weaknesses of common criteria used in evaluating investment opportunities, and recommend the one that best provides a consistent rule to value creation. We conclude by exploring how the recently acquired practical and analytical tools can be integrated and applied to the art of measuring the value of businesses. Business valuation techniques are essential in structuring mergers and acquisitions, pricing initial public offerings, searching for undervalued securities, and evaluating investment opportunities by venture capitalists.