LRM 814: FINANCIAL MANAGEMENT FOR LEADERS                                        3 UNITS

Course Purpose

The purpose of LRM 814: Financial Management for Leaders is to cultivate financial acumen in future leaders, enabling them to make informed financial decisions that align with strategic organizational goals and promote fiscal responsibility. The course provides an understanding of financial decision-making and budgeting in leadership roles.

Course Expected Learning Outcomes:

By the end of the course, the students are expected to:

– Effectively interpret financial statements and data.
– Develop budgets aligned with strategic goals.

– Acquire higher financial literacy skills.
– Link financial decisions to organizational strategy.

Course Content

This Course includes:

1. Financial Statement Analysis

1. Introduction to Financial Statement Analysis, Purpose and Importance and Key Financial Statements
2. Financial Statement Components: Balance Sheet, Income Statement, Cash Flow Statement and Statement of Changes in Equity: Analyzing changes in equity components.
3. Financial Ratios and Metrics: Liquidity Ratios, Profitability Ratios, Efficiency Ratios, Solvency Ratios and Market Value Ratios.

2. Budgeting Processes and Financial Forecasting

1. Introduction to Budgeting: Purpose and Benefits and Types of Budgets.
2. Budgeting Processes: Budget Preparation, Budget Approval and Implementation and Budget Monitoring and Control.
3. Financial Forecasting: Forecasting Methods, Sales Forecasting, Expense Forecasting and Cash Flow Forecasting: Predicting future cash inflows and outflows to ensure liquidity and solvency.

3. Funding Strategies and Financial Decision-Making

1. Introduction to Funding Strategies: Purpose and Importance and Sources of Funding,
2. Equity Financing, Types of Equity: Common stock, preferred stock, and venture capital, Advantages and Disadvantages: Assessing the benefits and drawbacks of equity financing and Issuing Stock
3. Debt Financing: Types of Debt, Advantages and Disadvantages and Bond Issuance.

4. Financial Decision-Making

1. Capital Budgeting.
2. Cost of Capital
3. Risk Management

Reading Materials

1. Financial Statement Analysis and Security Valuation by Stephen Penman.
2. Financial Reporting and Analysis by Charles H. Gibson .
3. Budgeting Basics and Beyond by Jae K. Shim and Joel G. Siegel– A practical guide to budgeting processes and techniques.
4. Financial Forecasting, Analysis, and Modelling: A Framework for Long-Term Forecasting” by Michael Samonas
5. Corporate Finance: Theory and Practice by Aswath Damodaran
6. Principles of Corporate Finance by Richard A. Brealey, Stewart C. Myers, and Franklin Allen