General Information
Promotional Video
Unavailable
Instructor Bio
Professor Xu is an Assistant Professor of Finance at the Rotman School of Management. Previously, he was an Assistant Professor of Finance at the Darden School of Business at the University of Virginia. Professor Xu has taught FinTech and Financial Management to MBAs and EMBAs. His research focuses on entrepreneurial finance, fintech, and corporate finance. His research has been published in top academic journals and has been featured in leading media outlets such Bloomberg, BBC, and NPR, etc. He holds a Ph.D. in Finance from the University of British Columbia and a MA in Economics from the Hong Kong University of Science and Technology.
Target Audience
In addition to serving students who are looking for careers in non-financial firms, this course also teaches those who will work in financial institutions and financial markets to better understand the drivers of corporate decisions that represent the “demand” side for financial services. The toolsets covered and the case-based approach will appeal to both finance specialists and non-finance specialists, as well as those who will have corporate clients in the future. A basic familiarity with Microsoft Excel and some foundations from Finance 1 and Finance 2 from the core will be useful, and a bit of Accounting and Stats knowledge will help.
Prerequisites
Core MBA courses
Format
Two 3-hour in-person sessions per week over 4 weeks
Course Mission
This course covers financial decision making inside non-financial firms. The goal is to make good decisions for non-financial firms while understanding that obtaining and using capital efficiently is important, and therefore finance matters. Financial institutions (banks and others) as well as financial markets (stock markets and others) play a crucial limiting and enabling role for non-financial firms, and therefore this course will help those inside the non-financial firm to better understand financial institutions and markets, as well as help those who are working at financial institutions and markets to better understand the non-financial firms. This also includes small firms and multi-national firms, who both have somewhat unique financial needs but also obtain and allocate capital and try to do so efficiently.
Course Scope
We take the perspective of various corporate decision makers: not just the CFO, but also other executives including the CEO, COO, and divisional and functional heads. The course is mostly case based, and we will learn how to use financial tools including Shareholder (and Stakeholder) Value Maximization, Capital Budgeting, Cash & Working Capital Management, Real Options, Hedging, Lease-versus-Buy Decisions, Simulations, Exchange Rate Risk Management, etc. We will examine how firms can “create value” as well as “avoid running out of money” while they grow and execute strategic plans.
Evaluation and Grade Breakdown
| Component | Due Date | Weight |
|---|---|---|
| Class Participation | Ongoing | 20% |
| Quizzes | Ongoing | 20% |
| Group Case Memo | Mid-Course | 25% |
| Final Exam | During the Exam Period | 35% |
Required Resources
Cases and required readings will be posted on Quercus.