HOSP 3820: Hospitality Financial Management
Effective date
September 2018
Department
Hospitality Management App Deg
School
Hospitality, Food Studies and Applied Business
Description
This course prepares students in the development of foundational concepts of financial management in the hospitality industry. This enables them to understand how corporations make important investment and financing decisions and how they establish working capital policies. This course is taught using the standards of the Hospitality Financial and Technology Professionals (HFTP).
This course is part of the full-time Bachelor of Hospitality Management program.
Year of study
3rd Year Post-secondary
Course Learning Outcomes
Upon successful completion of this course, students will be able to:
- Explain the fundamentals of interest rate determination and the popular theories of the term structure of interest rates.
- Calculate a firm's free cash flows and financing cash flows.
- Calculate and use a comprehensive set of measurements to evaluate a company's performance.
- Explain the mechanics of compounding and bringing the value of money back to the present.
- Define and measure the expected rate of return and risk of an individual investment
- Evaluate the costs of the individual sources of capital.
- Explain how the capital-budgeting decision process changes when a dollar limit is places on the capital budget.
- Distinguish between business and financial risk.
- Describe the trade-off between paying dividends and retaining (reinvesting) firm profits.
- Use the percent of sales method to forecast the financing requirements of a firm.
- Describe the determinants of net working capital, and compute the firm's cash conversion cycle.
- Explain purchasing-power parity theory, and discuss the risks that are unique to capital-budgeting analysis of direct foreign investment.
- Apply ethical decision making when managing finances.
Prior Learning Assessment & Recognition (PLAR)
To learn more about the PLAR pathways for this course review the Bachelor of Hospitality Management Program Content Guide.
Hours
Lecture, Online, Seminar, Tutorial: 45
Total Hours: 45
Instructional Strategies
Presentations, discussions, case studies, lab exercises, computer program applications, individual and group work.
Grading System
Letter Grade (A-F)
Evaluation Plan
Type
|
Percentage
|
Assessment activity
|
Midterm Exam
|
25
|
|
Final Exam
|
30
|
|
Project
|
20
|
Capital Budgeting Project
|
Assignments
|
15
|
Classroom and Homework Assignments
|
Quizzes/Tests
|
10
|
Tests
|
Course topics
- An Introduction to the Foundations of Financial Management
- Financial Markets and Interest Rates
- Financial Statements and Cash Flows
- Evaluating a Firm's Financial Performance
- The Time Value of Money
- Meaning and Measurement of Risk and Return
- The Cost of Capital
- Capital-Budgeting Techniques and Practice
- Business and Financial Risk
- Dividend Policy and Internal Financing
- Short-term Financial Planning
- Working-Capital Management
- International Business Finance
- Ethics in Financial Management
Notes:
- Course contents and descriptions, offerings and schedules are subject to change without notice.
- Students are required to follow all College policies including ones that govern their educational experience at VCC. Policies are available on the VCC website at:
https://www.vcc.ca/about/governance--policies/policies/.
- To find out if there are existing transfer agreements for this course, visit the BC Transfer Guide at https://www.bctransferguide.ca.