Week 1 Jan 2012 2012
Babu Gajaria introductions
[email protected] Student introductions Background work experience What you hope to learn from this course? Your favourite and un-favourite learning methods Go over course outline
Why study financial management for engineers?
Get an understanding of how to put a dollar value to a company Advance your career Be able to carry out independent financial analysis to determine the economic viability of an engineering project
Learn how and from where to access relevant data Learn about life cycles and fundamentals of engineering project evaluation methods Calculate NPV, IRR, payback period of various projects Use of NPV & IRR techniques for project selection
Carry out discounted cash flow analysis Be able to evaluate bonds and stocks from 1st principles Carry out fundamental and relative value analysis using techniques such as P/E and P/CF Learn how to make capital budgeting and investment decisions Learn how to quantify an inherent risk in a particular business
How will you finance your engineering development project? With debt or equity? Or a combination of both? Learn about optimal capital structure and financial leverage What techniques are used in determining market value of an engineering or high tech company?
Learn how to calculate cost of capital. Does dividend policy matter? Why do companies merge? Illustrate the concept with recent examples.
University of Toronto Library Valuation: Measuring and Managing the Value of Companies , 5th Edition McKinsey & Company Inc., Tim Koller , Marc Goedhart, David Wessels . ISBN: 978-0470-42470-4. July 2010. Publishers Wiley The Dark Side of Valuation, 2nd Edition: Valuing Young, Distressed, and Complex Businesses (FT Press, ISBN-
13: 9780137126897, $64.99, 600 pages, hardcover, August 2009) 2nd edition 2009. Aswath Damodaran. FT Prentice Hall.
Corporate Finance with Connect Access Card, Sixth Canadian Edition by Stephen Ross, Randolph Westerfield, Jeffrey Jaffe,
Gordon Roberts ISBN-13: 9780071091350 (ISBN-10: 0071091351). McGraw-Hill Ryerson
