FNCE 4111 - Advanced Financial Management for Accountants

Course Description

Building on FNCE 2120: Financial Management, students majoring in accounting further develop the knowledge and skills in business finance required for admission to the Chartered Professional Accountant program. Topics include dividend policy; maturity matching of assets and liabilities; short-and long-term financial planning; working capital management; sources of temporary and permanent financing; advanced capital budgeting; business valuation; mergers and acquisitions and corporate restructuring; and bankruptcy, liquidation, and reorganization.

Learning outcomes

• Formulate an appropriate dividend policy for a business.
• Analyze the degree to which a company matches the maturity of its assets and liabilities and the problems mismatching may create.
• Develop a financial plan for an organization which attains its operational and financial goals and objectives while adhering to its financial policies and loan conditions.
• Manage an organization’s operating assets and liabilities including its temporary financing.
• Appraise the suitability of various forms of permanent debt and equity financing.
• Calculate the net present value of a new project or business venture using complex capital budgeting techniques under conditions of uncertainty.
• Measure the worth of a business using different valuation techniques.
• Recommend an appropriate takeover bid for a business and suitable takeover defences.
• Develop a plan to successfully liquidate or reorganize a business that is experiencing financial difficulties.
• Describe the different types of business risks and how they can be effectively hedged.

Course topics

• Module 1: Dividends and Dividend Policy
• Module 2: Maturity Matching Module 3: Financial Planning and Growth
• Module 4: Working Capital Management
• Module 5: Permanent Debt and Equity Financing
• Module 6: Capital Budgeting
• Module 7: Business Valuation
• Module 8: Mergers and Acquisitions and Corporate Restructuring
• Module 9: Bankruptcy, Liquidation, and Reorganization

Required text and materials

Students will access the following open textbook free of charge as follows:

Thompson, D. (2020). Financial management.

Assessments

To successfully complete this course, students must achieve a passing grade of 50% or higher on the overall course, and 50% or higher on the final mandatory exam.

Recommended requisite(s)

FNCE 2120 or FNCE 2121

ECON 2330 or ECON 2331

Exclusions

• FNCE 4110
• FNCE 4111
• FNCE 4120
• FNCE 4121
• FNCE 4130
• FNCE 4131