3 credits
Fall 2026 Lecture Upper Division
To create value for owners, managers need to understand the implications of long-term investment and the importance of securing finance to ensure sustainable growth. The primary purpose of this course is 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.
2Demonstrate proficiency in using Excel to model cash flows and calculate returns in the capital budgeting process.
3Explain how the risk-return relationship affects cost of capital and stocks/bonds valuation.
4Explain how capital structure affects firm value and dividend decisions.
Prerequisites
Restrictions
made by Purdue students.