The Financial Management of Business

This class deals with a broad range of problems in the financial management of business firms of importance to senior managers. The first half concerns working capital management and short term financing. Problems covered include financial statement analysis, forecasting, use of bank credit, liquid asset management, accounts receivable, and inventory decisions. The second half concerns long-term financial decisions and includes problems in valuation, public and private securities issues, and capital budgeting.

The course is built around a series of case problems--some of which are available from the bookstore, three attached, and the rest, including some readings, are in the course packet “Supplementary Cases and Readings” to be distributed. Background reading assignments are to be used at the option of the student but are recommended. Daily assignments do not require written work to be handed in unless specifically indicated as such. Associated with each case are questions which are intended to help you in your analysis. They do not substitute for your own assessment of the problems and issues in the situation. You should take the situation as presented and (usually) come up with a recommended course of action or decision. That is your fundamental assignment for each case.

The data in the exhibits for most of the cases are available in the form of Excel worksheets on the course web page (us.badm.Washington.edu/Haley/F551). Students should copy the worksheets to their own computers. Use of a PC is highly recommended for this class. This is a relatively low cost opportunity for you to gain hands-on experience with spreadsheets in an applied setting where you have realistic problems to work on.

Daily class preparation is essential for obtaining the maximum benefit from this course. It is not expected that students have the "right" answer coming into class, but that everyone is prepared to participate