Working Capital Management
- 3 credits
- Prerequisite: F370 or F304 with a grade of C or better
Emphasizes the set of decisions and problems that financial managers face in determining short-term financial policy, financial diagnostics, and operations of the company. Major topics include identifying working capital elements and their relationships to company operations, financial analysis, cash forecasting, banking relations, cash-flow systems, and short-term investment and borrowing strategies.
(1) The development and application of a NPV model for evaluation of short-term finance decisions.
(2) Payment mechanisms and payment systems.
(3) Cash management system design and implementation, including collection, concentration, and disbursement.
(4) Measuring and managing corporate liquidity.
(5) Managing short-term funding.
(6) Forecasting short-term cash flows.
(7) The financial impact of credit policy.
Typical Reading and Text: Hill and Sartoris, Short-Term Financial Management
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