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Economics, Finance and Quantitative Analysis
This short-term financial management course is an elective for upper level, undergraduate finance majors. It focuses on working capital and treasury management topics that are vital for anyone interested in a career in corporate finance.
Short-term financial management refers to the utilization of the firm’s current assets and liabilities in order to maximize shareholder wealth and reduce financial risk. This course begins by reviewing the time value of money concepts, and the basics of financial statement analysis. The focus then shifts to short-term operating assets and short-term operating liabilities, and a discussion of the cash conversion cycle and the importance of reducing it. More specifically, this course provides insights into inventory management strategies, based on both the benefits and costs associated with holding inventory. The essentials of credit management, including the trade-offs associated with extending trade credit, are presented in the context of making credit policy decisions which help firms monitor investments in accounts receivable and manage the collections process. Supplier financing is presented as a spontaneous source of liquidity that can improve working capital management efficiency. This course also highlights the important role banks play in the day-to-day successful management of short-term finance, through the use of lines of credit, cash collection and concentration systems, short-term investment options, and short-term borrowing options.
4 timed, online, non-cumulative exams
10 homework submissions
2 case studies (assigned as group work)
1 optional final exam
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