Introduction to Finance

Prof. Michael Page
Required Core Course
Fall -- 1 credit
 
Although managing for shareholder value is considered controversial by some, there is little doubt that corporate performance is usually judged in terms of the value created for the providers of financial resources. Consequently, value based management has become central to the international corporate landscape and its impact on decision-making extends well beyond the narrow finance function of the modern corporation.

The "hyper-competitive" competitive environments within which a large number of companies operate means that executives throughout most organizations find that themselves under the microscope of "value creation". Competition for customers and capital makes understanding how organizations are currently performing and how they are configured for value creation a business imperative of all key decision makers. What operating decisions have the greatest likelihood of enhancing value? What strategies should be adopted when considering new product introduction, capital expenditure, acquisitions and divestments?
 
This foundation course in financial management begins the process of developing your understanding of value based management. The course consists of eight sessions of three hours duration and a final examination. Students are also expected to spend a significant amount of time individually and in their groups preparing for each of the sessions.
 
The course has three major objectives. Firstly, it aims to provide students with a conceptual and theoretical framework for understanding corporate finance. Without a sound theoretical base, graduates may find it difficult to keep up to date with the continual developments in the field during their subsequent careers. Secondly, through the use of review questions and case studies, students are expected to be able to develop an understanding of the practical aspects of corporate financial management and the relationship between theory and practice. Finally, the course lays the necessary foundation for all future finance courses undertaken during the MBA.