PBL: Financial Analysis & Decision Making Competency: Business Finance/Corporate Finance Tasks 1.

Evaluate the concepts and principles behind long-term debt and equity financing.

2.

Characterize markets for long-term business funds.

3.

Explain the following concepts: money has time value, efficient capital markets, agency problem, diversification, cash flow and taxes, and their implications for financial managers.

4.

Describe the purpose of balance sheets and income statements.

5.

Analyze cash flow statements and utilize them in financial decision making.

6.

Perform financial statement analysis using financial ratios, DuPont system, and company performance measures.

7.

Develop forecasts and make financial plans.

8.

Explain the difference between net cash flow and net income.

9.

Analyze the ways to both assess a firm’s financial health and determine alternatives for continued success or improvement in a variety of business settings.

10. Analyze sources available for business organization financing. 11. Appreciate the difference between venture capital, private equity, early stage, and traditional financing sources. 12. Differentiate between mergers and acquisitions. 13. Explain the uses and benefits of a holding company. 14. Describe fundamental financial concepts involved in the management of corporate finances such as the nature of depreciation. 15. Discuss the financial planning process. 16. Describe short-term (operating) financial plans and long-term (strategic) financial plans. 17. Explain hostile takeovers. 18. Discuss restructuring an organization. 19. Discuss external forces affecting a company’s value. 20. Explain how value is created for a company. 21. Determine business liquidity. 22. Calculate business ratios (e.g., corporate activity, corporate debt, and market) to evaluate company performance.

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PBL: Financial Analysis & Decision Making Competency: Capital Management Tasks 1.

Explain the concepts and principles behind financial planning and working capital management.

2.

Evaluate short-term and long-term sources of business financing.

3.

Assess the concept of the time value of money.

4.

Apply capital management strategies: financing working capital and optimal plan, term structure of interest rates, float, inventory management and EOQ, collection policy and discounts, and sources of ST financing.

5.

Conduct project analysis: capital budgeting, methods of selecting capital projects, capital rationing, and impact of risk on capital budgeting.

6.

Define inflation and its relationship with interest rates.

7.

Discuss the theories of interest rates.

8.

List the factors that determine the cost of capital.

9.

Compute cost of debt, preferred and common stock capital, and develop the overall cost of capital for the firm.

10. Determine the role of tax laws in computing cost of capital. 11. Define capital structure. 12. Discuss how a firm identifies its optimum capital structure. 13. Name some of the key theoretical developments in the field of capital structure and how they relate to the real world. 14. Describe the tools for capital structure management. 15. Discuss the implications of tax laws, agency costs, and bankruptcy costs in determining capital structure for firms. 16. Describe the benefits of cash management. 17. Demonstrate the uses of various cash management models. 18. Manage accounts receivables. 19. Determine operating cash inflows. 20. Discuss the best financing options for a company. 21. Prepare and evaluate a cash budget.

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PBL: Financial Analysis & Decision Making Competency: Financial Institutions and Markets Tasks 1.

Explain the structure of the securities market.

2.

Explain the role of efficient capital markets in corporate finance.

3.

Discuss weaknesses and strengths of efficient capital markets.

4.

Explain types of financial markets (e.g.,, money markets, securities markets, property market, and market for risk transfer).

5.

Discuss the purpose of financial markets and the key components of the financial market system.

6.

Explain the different types of customers in each market and the types of securities in each market.

7.

Describe how the NYSE and other stock exchanges work.

8.

Consider corporate and strategic venture funds.

9.

Explain inflation, deflation, recession, depression, and their impact on the banking industry.

10. Discuss the relationship between inflation and interest rates. 11. Distinguish between different types of financial institutions. 12. Describe how financial institutions manage their liquidity by participating in money markets. 13. Identify the organizational structures in banking and other financial institutions. 14. Define the determinants of market interest rates and their term structures. 15. Describe the role of financial institutions. 16. Explain the role of investment bankers. 17. Evaluate the effect of credit markets on a company’s ability to finance its operations.

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PBL: Financial Analysis & Decision Making Competency: Financial Management/Managerial Finance Tasks 1.

Describe business financial management functions.

2.

Identify the forms of financial business and discuss their goals.

3.

Explain a manager’s responsibility for corporate social responsibility and financial ethics.

4.

Discuss financial management concepts and principles.

5.

Identify the key aspects of financial decision making and explain the role of financial managers in the decision making process.

6.

Describe the financial manager’s role and responsibilities in domestic and international business conditions.

7.

Discuss the goals and functions of the financial manager to make sound business and personal decisions.

8.

Develop a conceptual framework upon which to base decisions of financial management.

9.

Use techniques for analyzing financial data for purposes of managerial decision-making.

10. Demonstrate an understanding of the effect of currency fluctuations as they impact a company’s finances and investment rating. 11. Describe short-term financial management and discuss the link between short-term and long-term financing. 12. Discuss the role of project valuation in capital allocation decisions. 13. Discuss methods for valuing flexibility. 14. Explain the concept of management and managerial ethics. 15. Implement an inventory management system. 16. Utilize planning tools to guide finance organization’s activities (e.g., goals, mission, SWOT, and business plan).

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PBL: Financial Analysis & Decision Making Competency: Investments Tasks 1.

Differentiate mutual funds and corporate and government bonds as they relate to investing.

2.

Describe the differences between initial public offerings and secondary market trading.

3.

Identify factors that affect stock prices and methods to value stocks.

4.

Describe the regulatory framework that surrounds stock transactions.

5.

Describe stock transactions and how the market works.

6.

Define and differentiate a mutual fund from a fund management company.

7.

Identify the difference between open end and closed end funds.

8.

Explain load and no load funds.

9.

Describe the various features of mutual funds, such as diversification, contributions and redemption, professional management, etc.

10. Define capital markets, exchange, market efficiency, investment banking and underwriting. 11. Explain bonds: markets, yields, prices, interest rates. 12. Describe the following about stock markets: types of securities, rights of common stockholders, and rights offerings. 13. Define and explain hedge funds. 14. Evaluate the effect of commodity prices on a company’s operations and utilize this information in investment decision making. 15. Demonstrate an understanding of the calculation of the Capital Asset Pricing Model (CAPM) and integrate the results in the valuation of a company’s stock. 16. Describe the different kinds of bonds in the market. 17. Describe the basic characteristics of stocks. 18. Calculate expected and required rate of return for stocks. 19. Define and give examples of marketable securities. 20. Distinguish between cash dividends and stock dividends. 21. Define stock splits. 22. Discuss various dividend policies. 23. Differentiate between public versus private placement of securities. 24. Explain the benefits and risks associated with common stock. 25. Describe and implement a process for margin trading. 26. Utilize short selling in a down trend market. 27. Define and give examples of convertible securities. 28. Explain the uses of stock warrants.

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PBL: Financial Analysis & Decision Making References: Career Cluster Resources for Business, Management and Administration. 2012 National Association of State Directors of Career Technical Education Consortium. Washington, DC. Career Cluster Resources for Finance. 2012. National Association of State Directors of Career Technical Education Consortium. Washington, DC. Business Education Standards. National Business Education Association. Reston, VA. Entrepreneurial Finance Course Syllabus, 2008. University of Texas at Dallas, Dallas, TX. Financial Concepts & Tools for Managers, 2012. Professional Educational Services, Granite Bay, CA. Financial Strategies for Managers Course Syllabus. Argosy University, Multiple Locations. Financial Markets and Institutions and Finance Capstone Course Syllabuses, 2010. New England College of Business and Finance, Boston, MA. Financial Management Course Syllabus, 2011. School of Business, University of Indianapolis, Indianapolis, IN. Business Finance Course Syllabus, 2006. University of Louisiana at Lafayette, Lafayette, LA. Managerial Finance Course Syllabus, 2011. Gustavus Adolphus College, St. Peter, MN. Managerial Finance Syllabus, 2004. Dickinson State University, Dickinson, ND.

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