HTM 44100 - Financial Management For The Hospitality Industry

This course deals with subjects and issues facing a financial manager in the hospitality and tourism industry. The primary purposes of this course are to understand the role of financial management, to learn analytic concepts and managerial tools for making capital investment decisions and to become familiar with major financial instruments and concepts such as time value of money, risk-return, capital budgeting, cost of capital, and capital structure.

Preparation for Course
P: HTM 10000, HTM 18100, and either HTM 14100 or BUS 20100, and either HTM 24200 or BUS 20200. Each class must be completed with grade of C- or better.

Cr. 3.
Student Learning Outcomes
1. Identify financial management roles in the hospitality industry.
2. Explain financial statements and perform financial statement analysis.
3. Utilize financial concepts/tools such as the time value of money.
4. Apply applicable capital budgeting techniques to the hospitality industry. Determine initial investment cash flows.
5. Explain the concepts of risk/return, and risk preference, investment portfolio, and the Capital Asset Pricing Model (CAPM).
6. Explain the cost of capital concept, cost of debt and stock, weighted average cost of capital, and marginal cost and investment decisions.
7. Explain a firm’s capital structure and describe how to choose optimal capital structure.
8. Explain dividend fundamentals and describe factors affecting dividend policy.
9. Describe interest rates, corporate bonds, and bond valuation.
10. Compare and contrast different types of stock and describe the concept of stock valuation.