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(ENTR 499) Cash and Valuation

The Cash and Valuation course provides the financial tools, skills, and judgment students need to maximize the value of a firm and their equity in it. This course allows students to measure, forecast, and value the free cash flows of their business in order to make better management decisions.

Credit Hours 3.0 Lecture
Prerequisites ENTR 483
Offered Winter, Spring
Programs -

Course Outcomes

1. Decide whether to risk making a sunk investment1(like building a factory) or a fixed-period cost commitment (like hiring an employee) in order to be able to produce and sell more products and services.
2. Forecast how investments and operating decisions will affect the Free Cash Flows to your Firm and the Intrinsic Firm Value (the value you place on its free cash flows.)
3. Use Financial Statement Analysis to compare your firm’s business model with other companies.
4. Choose the right amount of debt (if any) to minimize your cost of capital and maximize the Intrinsic Equity Value of the cash flows to you as the owner, without risking bankruptcy if your revenue forecasts turn out to be optimistic.
5. Compare the Intrinsic Equity Value to the Market Price that a motivated buyer might pay, so you know when it is time to sell all or part of your equity.
6. Accurately report your firm’s financial results to third parties.