AVM 338 - Aviation Finance

• Explain and apply the basic elements and theoretical foundations of finance - the time value of money, the notion of risk and return, and the complex nature of costs (fixed, semi-fixed, variable, and marginal) - in the aviation industry.
• Explain the difference between managerial accounting and financial accounting. Use GAAP accounting principles to create financial statements of an aviation business or organization.
• Apply ratio analysis to analyze the financial condition of an existing aviation business or organization.
• Apply and compare financial techniques used to acquire and value assets including equity finance, debt finance, buying versus leasing, depreciation, and amortization.
• Define and apply financial tools and techniques, including futures contracts, derivatives, speculation, hedging, protecting profits, and insurance, to protect asset value.
• Describe the four phases of a business cycle and explain which phase of the cycle best represents the current macroeconomic business environment. Then use basic economic theory to predict the timing and severity of the next phase of the business cycle both domestically and internationally.