SBNM 5321 Financial Modeling

This course studies the planning, design, development and applications of a financial model. The focus of the course is a comprehensive, applied, project deliverable executing many financial concepts acquired earlier in the program. The skills applied include: construction of a pro forma balance sheet, income statement and cash flow statement; defining business drivers and assumptions; estimating the cost of debt; establishing an equity structure; calculating the weighted average cost of capital; assessing tax, depreciation and amortization effects; and performing enterprise valuations using the discounted cash flow and multiples techniques. The model will be used to estimate scenarios, including the capstone which involves a simulated negotiation of an acquisition opportunity.

Credits

2

Prerequisite

Prerequisite: SBNM 5310.

Offered

Spring