To account for fixed assets

Understand accounting for liabilities

Evaluate shareholders’ equity section of a balance sheet, and

Understand preparation and information provided by cash flows statement.

Explain the tradeoffs between risk and return.

Form a portfolio of securities and calculate the expected return and standard deviation of that portfolio.

Describe what is meant by market efficiency and what it implies for patterns in stock returns and for the asset-management industry.

Conduct specific examples of a market multiples valuation.

Interpret and use the CAPM and the 3-Factor Model to evaluate the performance of investments.

Compare returns in the form of dividends and capital gains and their tax consequences.

Describe evidence regarding the performance of individuals’ stock investments and the performance of actively-managed mutual funds.

Evaluate strategies designed to “earn alpha”.

Forecast and manage a company's short- and long-term liquidity needs

Measure the contribution of a new project or acquisition to shareholder value

Incorporate risk into investment decisions using the appropriate discount rates

Evaluate the performance of a company or divisions of a company

Evaluate the benefits and costs of different types of debt such as bonds and bank debt.

Manage risks that cannot be hedged with derivatives using liquidity and other tools.

Use the NPV concept to identify situations of unfairness and injustice.

Identify potential conflicts between equity holders and debtholders in firms that are close to bankruptcy.

Demonstrate knowledge of concepts, theories, and approaches learned in the Financial Management Specialization courses.

Apply course-related tools, techniques, and approaches to realistic situations in support of analysis, planning, and decision making.