ABOU
UT INTERPRO
Michigan Interdisciplinary and Professional
Engineering (InterPro) develops and delivers
programs and services that enable engineers,
managers, and technical professionals to be
more effective, productive, and competitive.
InterPro extends and enhances the programs,
capabilities, and relationships of the faculty and
affiliates of the College of Engineering by offering
graduate degree programs, distance learning,
non-credit public short courses, professional
certification programs, and conferences.
Professional development short courses
and certification programs include:
Six Sigma Certification
Automotive Engineering
Learn Key Financial Skills for Business Decision-Making
online
Transactional
Design Science
Manufacturing
Energy Systems Engineering
Healthcare
Engineering Sustainable Systems
online
Design for Six Sigma Certification
Financial Engineering
Toyota Kata
Lean-Six Sigma Certification
Global Automotive and Manufacturing
Engineering online
Lean Manufacturing Certification
Integrated Microsystems
Manufacturing Engineering
Lean Office Certification
Pharmaceutical Engineering
Lean Healthcare Certification
Robotics and Autonomous Vehicles
Lean Supply Chain & Warehouse
Management Certification
Lean Pharmaceutical Certification
Michigan Human Factors Engineering
Short Course
Design & Control of Hybrid Vehicles
Dynamics of Heavy Duty Trucks
UNIVERSITY OF MICHIGAN
COLLEGE OF ENGINEERING
online
Lean Product Development Certification
Lean Supply Chain for Healthcare
Certification
FINANCIAL MANAGEMENT
FOR ENGINEERS
Graduate degree programs currently
offered include:
online Indicates programs with an online delivery option.
Graduate Certificates of Advanced Studies
in Engineering (CASE) are also available in
some of the programs.
2011
Visit InterPro.engin.umich.edu
to learn more about InterPro programs.
MEonline@umich.edu
(734) 647-7200
PROGRAM
DATES
INTEGRATE A SOUND FINANCIAL
APPROACH INTO YOUR
BUSINESS DECISION-MAKING
June 6–8
This new course will take you step-by-step into
October 24–26
all the financial fundamentals you need to
Ann Arbor, Michigan
understand the language, tools, and techniques
of finance. You will be able to evaluate the business
consequences of your decisions and how
University of Michigan College of Engineering
Interdisciplinary Professional Programs
2401 Plymouth Road, Suite A
Ann Arbor, MI 48105-2193
The University of Michigan, as an equal opportunity/affirmative action employer,
(734) 647-7200 | (734) 998-6127 (fax)
complies with all applicable federal and state laws regarding nondiscrimination
and affirmative action, including Title IX of the Education Amendments of 1972
The Regents of the University of Michigan and Section 504 of the Rehabilitation Act of 1973. The University of Michigan is
Julia Donovan Darlow, Ann Arbor
committed to a policy of nondiscrimination and equal opportunity for all persons
Laurence B. Deitch, Bingham Farms
regardless of race, sex, color, religion, creed, national origin or ancestry, age,
Denise Ilitch, Bingham Farms
marital status, sexual orientation, gender identity, gender expression, disability, or
Olivia P. Maynard, Goodrich
Vietnam-era veteran status in employment, educational programs and activities,
Andrea Fischer Newman, Ann Arbor
and admissions. Inquiries or complaints may be addressed to the Senior Director
Andrew C. Richner, Grosse Pointe Park
for Institutional Equity and Title IX/Section 504 Coordinator, Office of Institutional
S. Martin Taylor, Grosse Pointe Farms
Equity, 2072 Administrative Services Building, Ann Arbor, Michigan 48109Katherine E. White, Ann Arbor
1432, (734) 763-0235, TTY (734) 647-1388. For other University of Michigan
Mary Sue Coleman, (ex officio)
information call (734) 764-1817.
© 2011 The Regents of the University of Michigan 041411
you can create value for your organization.
Register Online Today: InterPro.engin.umich.edu/FinancialSkills
PROGRAM DETAILS
$2,100* COVERS THE ENTIRE
THREE-DAY SEMINAR
Fee includes tuition, instructional materials,
continental breakfast, lunch and breaks. Fee is
payable in advance. Upon registration, you will
receive an email confirmation including directions
to the program site and recommended lodging.
* Seminar fee at time of brochure printing. Check our current
program fee schedule at InterPro.engin.umich.edu.
Fee is subject to change.
PROGRAM INSTRUCTOR
PROGRAM PREREQUISITES
Knowledge of statistics is not a requirement.
Algebra will be used. Students need to be
familiar with Excel to some extent and can bring
a laptop with Excel if available.
CERTIFICATION
A non-credit certification of professional achievement will be awarded upon successful completion
of this program which includes completing an
exam with a score of 80% or more.
NEJAT SEYHUN is Jerome B. and Eilene M. York Professor of Business Administration and Professor of Finance at the University of Michigan Business School. He
has taught in MBA and Ph.D. programs as well as Executive Education programs
all over the world. He is currently the director of the Financial Engineering program
at the University of Michigan. His current teaching interests are in the areas of
commercial and investment banking, corporate finance and investments. His current research interests include time series behavior of asset prices, insider trading,
managerial
i l motivation
ti ti in corporate takeovers, taxes and trading strategies, and corporate bankruptcies.
Professor Seyhun received his Ph.D. and M.S. degrees from the University of Rochester and his BSEE
from Northwestern University.
PROGRAM COMPONENTS
WHO SHOULD ATTEND
LEARNING OBJECTIVES
This interactive, hands-on seminar will primarily benefit
middle to upper management and decision-makers
(in both private and public sector organizations across
a variety of functions and industries) including, but not
limited to:
Upon the completion of this program,
you will be able to:
Improve communications with people in
financial areas
Understand the general concepts of
finance and accounting and how they
relate to daily decision-making
Understand financial statements
Identify and evaluate critical
assumptions
Develop financial policy for your
department, unit, or organization
Better understand and analyze the
financial impact of both strategic and
operational decisions on profitability
Master the financial tools necessary to
evaluate proposed projects such as
acquisition of new equipment, lease
versus buy decisions, replacement of
aging equipment, hiring, firing, and
training new personnel
Engineering and other non-financial managers
(from such additional areas as marketing,
manufacturing, human resources, sales,
administration, legal advisors, as well as general
managers who have been promoted through
these routes) who wish to better understand the
interface between finance and their roles in their
organizations
Senior decision-makers, such as directors, chief
executive officers and presidents, whose jobs
require a more in-depth knowledge of the role of
finance in executive decision-making
Executives whose main expertise lies outside
the accounting and financial management fields
including operations managers, corporate
development officers, directors of customer
services, directors of quality, private business
owners, and others with cross-functional team
responsibilities
DAY 1
DAY 2
Analyze the health of the firm
Financial statements are the source of all financial
information. The program begins by examining
the balance sheet and income statement and
understanding the links between them. Next, three
important tools to analyze the health of the firm
are introduces: ratio analysis, sources and uses
of funds statement, and proforma income and
balance sheets. Ratio analysis covers primary and
secondary ratios (which show both causes and
effects of managerial decisions) and allows us to
compare our firm with strong industry competitors
as well as against historical trends.
Investment Decision Rules
In this session, we compare and contrast different
investment decision rules and discuss their strengths
and weaknesses. The NPV (net present value) rule
is introduced, followed by the IRR (internal rate of
return) rule, the ARR (accounting rate of return), ROI
(return on investment), the payback period rule and the
profitability index. We also discuss why many of these
investment decisions can be quite misleading, although
they are extremely popular.
The sources and uses of funds statement shows
the evolution of the firm between two points in
time and shows where the funds came from, how
they were spent, and whether the firm grew in a
healthy, balanced way. Proforma statements show
the expected future state of the financial statements. They are useful in understanding whether
a firm is creating value, our funds’ needs and
establishing good banking relationships, as well as
financial planning and control. Applications will be
done to ensure full understanding of these ideas.
Time Value of Money
The basics of investment are established. These
include present values, net present value, future
values, discounting, compounding, cost of capital,
annuities, perpetuities, growing annuities, growing perpetuities, capital recovery factors, loan
amortization, savings for retirement problems,
compounding intervals and stated and effective
interest rates, bond pricing, and nominal and real
interest rates.
Even though there will be intensive treatment of several
topics, this program assumes that you have little or no
knowledge of financial concepts.
HOW TO REGISTER
GROUP REGISTRATION
Visit InterPro.engin.umich.edu/FinancialSkills
or send an email to MEonline@umich.edu
or call (734) 647-7200.
Registration of five or more individuals
qualifies an organization for a group
discount of 10 percent off the registration
fee for every registrant beyond the fifth.
Applications of Time Value of Money
Group work with problems involving time value of
money such as saving for retirement, paying for
college, choosing the optimal retirement package,
and home mortgage loan refinancing.
Analysis of Cash Flows
In this session, we study incremental cash flow, sunk
costs, sunk benefits, incidental effects, net cash flow,
salvage value, taxation of salvage value, net working
capital, and capital budgeting applications involving
asset acquisition, replacement of aging assets, valuing
subsidies, lease versus buy decision, optimal timing of
investment decisions, and determining the optimal life
of capital assets.
Case Analysis
Group work with a number of cases involving replacement of an assembly line, lease or buy decisions, and
decision relocate headquarters. Participants will be
divided into groups and asked to analyze the cases and
present their findings.
DAY 3
Financing Decisions and Cost of Capital
Topics include risk, business and financial risk, diversification, unique risk, market risk, beta risk, capital
asset pricing model, cost of equity, cost of debt, and
weighted average cost of capital.
Super Project Case
Group work with a case involving the introduction of
a new product. Critical issues involve estimation of
the cash flows from the new product, estimating the
cost of capital, estimating the cost of excess capacity, cannibalization of existing products as a result of
the introduction of the new product. Once again, the
participants will be divided into groups and asked to
analyze the case and present their findings.
PROGRAM DETAILS
$2,100* COVERS THE ENTIRE
THREE-DAY SEMINAR
Fee includes tuition, instructional materials,
continental breakfast, lunch and breaks. Fee is
payable in advance. Upon registration, you will
receive an email confirmation including directions
to the program site and recommended lodging.
* Seminar fee at time of brochure printing. Check our current
program fee schedule at InterPro.engin.umich.edu.
Fee is subject to change.
PROGRAM INSTRUCTOR
PROGRAM PREREQUISITES
Knowledge of statistics is not a requirement.
Algebra will be used. Students need to be
familiar with Excel to some extent and can bring
a laptop with Excel if available.
CERTIFICATION
A non-credit certification of professional achievement will be awarded upon successful completion
of this program which includes completing an
exam with a score of 80% or more.
NEJAT SEYHUN is Jerome B. and Eilene M. York Professor of Business Administration and Professor of Finance at the University of Michigan Business School. He
has taught in MBA and Ph.D. programs as well as Executive Education programs
all over the world. He is currently the director of the Financial Engineering program
at the University of Michigan. His current teaching interests are in the areas of
commercial and investment banking, corporate finance and investments. His current research interests include time series behavior of asset prices, insider trading,
managerial
i l motivation
ti ti in corporate takeovers, taxes and trading strategies, and corporate bankruptcies.
Professor Seyhun received his Ph.D. and M.S. degrees from the University of Rochester and his BSEE
from Northwestern University.
PROGRAM COMPONENTS
WHO SHOULD ATTEND
LEARNING OBJECTIVES
This interactive, hands-on seminar will primarily benefit
middle to upper management and decision-makers
(in both private and public sector organizations across
a variety of functions and industries) including, but not
limited to:
Upon the completion of this program,
you will be able to:
Improve communications with people in
financial areas
Understand the general concepts of
finance and accounting and how they
relate to daily decision-making
Understand financial statements
Identify and evaluate critical
assumptions
Develop financial policy for your
department, unit, or organization
Better understand and analyze the
financial impact of both strategic and
operational decisions on profitability
Master the financial tools necessary to
evaluate proposed projects such as
acquisition of new equipment, lease
versus buy decisions, replacement of
aging equipment, hiring, firing, and
training new personnel
Engineering and other non-financial managers
(from such additional areas as marketing,
manufacturing, human resources, sales,
administration, legal advisors, as well as general
managers who have been promoted through
these routes) who wish to better understand the
interface between finance and their roles in their
organizations
Senior decision-makers, such as directors, chief
executive officers and presidents, whose jobs
require a more in-depth knowledge of the role of
finance in executive decision-making
Executives whose main expertise lies outside
the accounting and financial management fields
including operations managers, corporate
development officers, directors of customer
services, directors of quality, private business
owners, and others with cross-functional team
responsibilities
DAY 1
DAY 2
Analyze the health of the firm
Financial statements are the source of all financial
information. The program begins by examining
the balance sheet and income statement and
understanding the links between them. Next, three
important tools to analyze the health of the firm
are introduces: ratio analysis, sources and uses
of funds statement, and proforma income and
balance sheets. Ratio analysis covers primary and
secondary ratios (which show both causes and
effects of managerial decisions) and allows us to
compare our firm with strong industry competitors
as well as against historical trends.
Investment Decision Rules
In this session, we compare and contrast different
investment decision rules and discuss their strengths
and weaknesses. The NPV (net present value) rule
is introduced, followed by the IRR (internal rate of
return) rule, the ARR (accounting rate of return), ROI
(return on investment), the payback period rule and the
profitability index. We also discuss why many of these
investment decisions can be quite misleading, although
they are extremely popular.
The sources and uses of funds statement shows
the evolution of the firm between two points in
time and shows where the funds came from, how
they were spent, and whether the firm grew in a
healthy, balanced way. Proforma statements show
the expected future state of the financial statements. They are useful in understanding whether
a firm is creating value, our funds’ needs and
establishing good banking relationships, as well as
financial planning and control. Applications will be
done to ensure full understanding of these ideas.
Time Value of Money
The basics of investment are established. These
include present values, net present value, future
values, discounting, compounding, cost of capital,
annuities, perpetuities, growing annuities, growing perpetuities, capital recovery factors, loan
amortization, savings for retirement problems,
compounding intervals and stated and effective
interest rates, bond pricing, and nominal and real
interest rates.
Even though there will be intensive treatment of several
topics, this program assumes that you have little or no
knowledge of financial concepts.
HOW TO REGISTER
GROUP REGISTRATION
Visit InterPro.engin.umich.edu/FinancialSkills
or send an email to MEonline@umich.edu
or call (734) 647-7200.
Registration of five or more individuals
qualifies an organization for a group
discount of 10 percent off the registration
fee for every registrant beyond the fifth.
Applications of Time Value of Money
Group work with problems involving time value of
money such as saving for retirement, paying for
college, choosing the optimal retirement package,
and home mortgage loan refinancing.
Analysis of Cash Flows
In this session, we study incremental cash flow, sunk
costs, sunk benefits, incidental effects, net cash flow,
salvage value, taxation of salvage value, net working
capital, and capital budgeting applications involving
asset acquisition, replacement of aging assets, valuing
subsidies, lease versus buy decision, optimal timing of
investment decisions, and determining the optimal life
of capital assets.
Case Analysis
Group work with a number of cases involving replacement of an assembly line, lease or buy decisions, and
decision relocate headquarters. Participants will be
divided into groups and asked to analyze the cases and
present their findings.
DAY 3
Financing Decisions and Cost of Capital
Topics include risk, business and financial risk, diversification, unique risk, market risk, beta risk, capital
asset pricing model, cost of equity, cost of debt, and
weighted average cost of capital.
Super Project Case
Group work with a case involving the introduction of
a new product. Critical issues involve estimation of
the cash flows from the new product, estimating the
cost of capital, estimating the cost of excess capacity, cannibalization of existing products as a result of
the introduction of the new product. Once again, the
participants will be divided into groups and asked to
analyze the case and present their findings.
ABOU
UT INTERPRO
Michigan Interdisciplinary and Professional
Engineering (InterPro) develops and delivers
programs and services that enable engineers,
managers, and technical professionals to be
more effective, productive, and competitive.
InterPro extends and enhances the programs,
capabilities, and relationships of the faculty and
affiliates of the College of Engineering by offering
graduate degree programs, distance learning,
non-credit public short courses, professional
certification programs, and conferences.
Professional development short courses
and certification programs include:
Six Sigma Certification
Automotive Engineering
Learn Key Financial Skills for Business Decision-Making
online
Transactional
Design Science
Manufacturing
Energy Systems Engineering
Healthcare
Engineering Sustainable Systems
online
Design for Six Sigma Certification
Financial Engineering
Toyota Kata
Lean-Six Sigma Certification
Global Automotive and Manufacturing
Engineering online
Lean Manufacturing Certification
Integrated Microsystems
Manufacturing Engineering
Lean Office Certification
Pharmaceutical Engineering
Lean Healthcare Certification
Robotics and Autonomous Vehicles
Lean Supply Chain & Warehouse
Management Certification
Lean Pharmaceutical Certification
Michigan Human Factors Engineering
Short Course
Design & Control of Hybrid Vehicles
Dynamics of Heavy Duty Trucks
UNIVERSITY OF MICHIGAN
COLLEGE OF ENGINEERING
online
Lean Product Development Certification
Lean Supply Chain for Healthcare
Certification
FINANCIAL MANAGEMENT
FOR ENGINEERS
Graduate degree programs currently
offered include:
online Indicates programs with an online delivery option.
Graduate Certificates of Advanced Studies
in Engineering (CASE) are also available in
some of the programs.
2011
Visit InterPro.engin.umich.edu
to learn more about InterPro programs.
MEonline@umich.edu
(734) 647-7200
PROGRAM
DATES
INTEGRATE A SOUND FINANCIAL
APPROACH INTO YOUR
BUSINESS DECISION-MAKING
June 6–8
This new course will take you step-by-step into
October 24–26
all the financial fundamentals you need to
Ann Arbor, Michigan
understand the language, tools, and techniques
of finance. You will be able to evaluate the business
consequences of your decisions and how
University of Michigan College of Engineering
Interdisciplinary Professional Programs
2401 Plymouth Road, Suite A
Ann Arbor, MI 48105-2193
The University of Michigan, as an equal opportunity/affirmative action employer,
(734) 647-7200 | (734) 998-6127 (fax)
complies with all applicable federal and state laws regarding nondiscrimination
and affirmative action, including Title IX of the Education Amendments of 1972
The Regents of the University of Michigan and Section 504 of the Rehabilitation Act of 1973. The University of Michigan is
Julia Donovan Darlow, Ann Arbor
committed to a policy of nondiscrimination and equal opportunity for all persons
Laurence B. Deitch, Bingham Farms
regardless of race, sex, color, religion, creed, national origin or ancestry, age,
Denise Ilitch, Bingham Farms
marital status, sexual orientation, gender identity, gender expression, disability, or
Olivia P. Maynard, Goodrich
Vietnam-era veteran status in employment, educational programs and activities,
Andrea Fischer Newman, Ann Arbor
and admissions. Inquiries or complaints may be addressed to the Senior Director
Andrew C. Richner, Grosse Pointe Park
for Institutional Equity and Title IX/Section 504 Coordinator, Office of Institutional
S. Martin Taylor, Grosse Pointe Farms
Equity, 2072 Administrative Services Building, Ann Arbor, Michigan 48109Katherine E. White, Ann Arbor
1432, (734) 763-0235, TTY (734) 647-1388. For other University of Michigan
Mary Sue Coleman, (ex officio)
information call (734) 764-1817.
© 2011 The Regents of the University of Michigan 041411
you can create value for your organization.
Register Online Today: InterPro.engin.umich.edu/FinancialSkills