3 credits
Fall 2025 Lecture Upper Division
This course deals with subjects and issues facing a financial manager in the hospitality and tourism industry. The primary purposes of this course are to understand the role of financial management, to learn analytic concepts and managerial tools for making capital investment decisions and to become familiar with major financial instruments and concepts such as time value of money, risk-return, capital budgeting, cost of capital, and capital structure.
Learning Outcomes1Identify financial management roles and describe the agency problem in hospitality and tourism businesses.
2Explain financial statements and perform financial statement analysis.
3Utilize financial concepts/tools such as the time value of money.
4Apply applicable capital budgeting techniques to the hospitality and tourism industry. Determine initial investment cash flows.
5Explain the concepts of risk/return, and risk preference, investment portfolio, and the Capital Asset Pricing Model (CAPM).
6Explain the cost of capital concept, cost of debt and stock, weighted average cost of capital, and marginal cost and investment decisions.
7Explain a firm's capital structure and describe how to choose optimal capital structure.
8Explain dividend fundamentals and describe factors affecting dividend policy.
9Describe interest rates, bond valuation, and stock valuation.
Prerequisites
Restrictions
GPA by professor
made by Purdue students.