Analyze business problems from a finance perspective.
Duration: 8 weeks
Maximizing the value of a business requires a complex understanding of finance. In BUS 622, Financial Fluency II, you’ll continue the exploration of finance undertaken in BUS 621. As you learn to analyze the financial weaknesses and strengths of a business, and to assess its fair value and risk nature, you’ll gain important skills to help you make informed investment decisions.
In BUS 621, you explored the information found in financial reports. Your focus will remain on financial data in this course, but you’ll become more adept at analyzing that information. An in-depth look at financial statements will introduce you to the concepts of earnings before interest and taxes (EBIT), free cash flow (FCF), and more. Financial ratios can be used to detect business strengths and weakness and you’ll gain an understanding of those calculations. As you strengthen your fluency in Excel, you’ll learn to calculate present and future value of both single cash flow and uneven cash flow. The value of a business is based on more than cash flow and assets and you’ll examine the various models used for both corporate and stock valuation.
Learning Exercise Example
In BUS 621, Financial Fluency I, you will have delivered an executive summary based on at least five years of financial information on the company of your team’s choice. In BUS 622, your team will complete this project by performing an analysis of the business, culminating in a 5- to 8-page paper and video presentation.
Determining the cost of a business project requires that you know the cost of equity and debt. You’ll explore how these costs are used to determine the weighted average cost of capital (WACC). Capital budgeting is used to evaluate cash flows and give you a better picture of an investment’s potential. You’ll see how net present value (NPV) and internal rate of return (IRR) are used to illustrate an investment opportunity’s strengths and weaknesses. Risk is another vital consideration in an investment scenario and you’ll explore risk analysis as well as cash flow estimation. The ability to forecast operations is key in creating a financial plan that will identify and eliminate financing deficit or surplus. You’ll consider that process in combination with the Additional Funds Needed equation to estimate if supplementary external financing is needed for the investment.
How do you determine the cost of financing a business project?
Explore this and more in BUS 622.
Throughout this course, you’ll focus on core topics or themes. Sample topics are listed below and are subject to change based on the instructor.
- :: Business Performance I: Cash is the King!
- :: Business Performance II: A Physician’s Approach
- :: Time Does Have Value!
- :: I Wish I Knew the Fair Value of This Business
- :: What is Our Cost?
- :: Should We Really Buy It?
- :: Risks vs. Returns
- :: Make Plans!
Learning Outcomes: Your Top 4 Takeaways
You’ll gain in-depth knowledge of business finance in BUS 622.
- Extract information from financial statements to discover cash flows and other useful finance data.
- Diagnose business weaknesses and strengths by using financial ratios.
- Proficiently apply asset valuation methods in producing business valuation analytics.
- Conduct capital budgeting analysis to determine profitable investment opportunities.
In BUS 622 Financial Fluency II, you gain financial knowledge that can help you make sound investment decisions for your organization. For more information about this course or other courses in Utica College’s online Master of Business Administration degree, request more information or call us at 315.732.2640 or toll-free 866.295.3106.
The content presented on this page is representative information for example purposes and is subject to change as course and student needs change over time.