Executive Mba Program

Executive MBA Program

Finance 502: Managerial Finance

Trimester I: August 25 - October 27, 2007

Professor: George W. Gallinger | Office: BAC 524 |Telephone: 480.965.4221

Office Hours: TTh 8-10:30 a.m. & by appointment | Class: Friday / Saturday - BA 119

Web Homepage: http://www.public.asu.edu/~bac524

E-mail: george.gallinger@asu.edu

Go directly to the assignments

Latest Version: August 14, 2007

Educational Objective

The primary objective of this course is to provide a framework for analyzing financing and investing

decisions within a company to assess whether the decisions benefit shareholders. Discussion will

show that there is a clear link between business strategy and finance since managers are under

constant surveillance by financial markets to add value to shareholders' investments. The question is:

What are the key drivers contributing to value? This course will concentrate on identifying the drivers

and show you how to value assets in a risk-return framework.

Content, Organization & Delivery

A major theme in this course is risk versus return. This theme is woven throughout the following

modules:

Foundational backdrop provides an overview of the financial system, the importance of

efficient financial markets, and the integration of managerial finance with business strategy. To

understand the strengths and weaknesses of a firm, it is necessary to have an understanding of

the strategy management is following and how the firm is able to compete in the factor,

product, and financial markets.

Time value of money concepts are central to financial decision making. Time value of money

means that funds have a risk-adjusted opportunity cost because alternative uses for funds exist.

Valuation of debt and equity examines how to price these securities and, thus, value the firm.

Capital structure analysis addresses the financing issue of how much debt financing to use

and what is the resulting weighted average cost of capital (WACC) for...