FNCE 4111: Advanced Financial Management for Accountants
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
Please be aware that should your course have a final exam, you are responsible for the fee to the online proctoring service, ProctorU, or to the in-person approved Testing Centre. Please contact exams@tru.ca with any questions about this.
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.
| Memorandum 1: Dividend Policy Critique | 5% |
| Memorandum 2: Maturity Matching Policy Critique | 5% |
| Case Study 1: Rocky Mountain Vacations | 20% |
| Memorandum 3: Permanent Financing Critique | 5% |
| Case Study 2: Complex Capital Budgeting with Spreadsheets | 20% |
| Memorandum 4: Business Restructuring Critique | 5% |
| Final Exam (mandatory) | 40% |
| Total | 100% |
Open Learning Faculty Member Information
An Open Learning Faculty Member is available to assist students. Students will receive the necessary contact information at the start of the course.
