Administrative details#

Course Information#

Name

Working Capital Management

Location

Rehn Hall 326

Meeting time

MW 9:35 AM – 10:50 AM

Name

Security Valuation

Location

Rehn Hall 326

Meeting time

MW 11:00 AM – 12:15 PM

Professor information#

Name

Tyson D. Van Alfen

Email

Tyson.VanAlfen@siu.edu

Office

Rehn Hall 126A

Office hours

Tuesdays 9–10am
Thursdays 3–4pm
By appointment

Objectives#

The objective of this course is to provide the background necessary for understanding working capital (short-term) financial management. Areas covered will include the role of working capital and liquidity analysis, management of working capital (e.g., inventory, accounts receivable, and accounts payable), cash management (e.g., cash collections and disbursement), forecasting and planning (e.g., cash forecasting and short-term financial planning), and short-term investing and financing.

This is a course on fundamental analysis. The primary emphasis is on equity valuation, with a focus on developing and applying methods to value firms using financial statement analysis.

The course has a very practical focus. Topics include models of shareholder value, such as residual earnings, abnormal earnings growth, discounted cash flows, analysis of growth and valuation generation in a firm, diagnosis of accounting quality, forecasting earnings and cash flows, and the determination of price/earnings and market-to-book ratios.

The course does not “assume market efficiency”. Instead it develops the techniques for challenging traded prices in order to assess whether investments are appropriately priced. It adopts the philosophy that one of the risks in investing is the risk of paying too much.

The course will be taught from the perspective an equity research department. As such, the material covered in the course is relevant to the security analyst who issues buy/hold/sell recommendations on stocks. It is also relevant to the corporate financial analyst for evaluating acquisitions, restructurings, and other investments.

Prerequisites and restrictions#

Prerequisite: FIN 361 or concurrent enrollment.

Restrictions: College of Business majors or minors, junior standing or higher; or departmental approval required.