ORGANIZATIONAL
MANAGEMENT AND CONTROL

This course focuses on project-based financial analysis. The content addresses three main questions: What is cash flow, how to monetize it, and what is the cost of capital. Students will address the first question by learning financial planning. They will solve the second question by learning the calculation of the time value of money and using simple models to value bonds and stocks. The cost of capital represents the opportunity cost—if shareholders do not invest their funds, they will lose their capital. If a company can utilize shareholder investment to achieve greater benefits than the shareholders would gain by investing themselves in an equivalent risk environment, the company can bring dividends to shareholders. Students will study investment theory to better understand the meaning of 'equivalent risk environment.' They will also learn about financial options available to companies, analyze how companies can reduce their cost of capital, and create value for their shareholders through financing choices.