Upon successful completion of this course, students will be able to: identify key financial issues facing a manager when making financial and investment decisions; explain the time value of money and the concept of discounting; use financial statements and identify cash flow and taxes; evaluate a company's performance based on their financial statements; discuss the role of financial markets and institutions on company policy; determine interest rates and explain the role of interest rates in financial markets; calculate the price and value of bonds and stocks; demonstrate how the relationship between risk and rates of return effect prices; compute cost of capital in financial analysis; discuss basics of capital budgeting and their bearing on investment decisions in the long term; analyze cash flows and risk; determine optimal allocation of resources in various types of financial assets (weighing capital structure and leverage); understand dividend policy and know when and why distributions are made; and use working capital, financial planning and forecasting to guide multinational financial management.
Instruction:
This introductory course in finance is for students who have no prior background in economics or finance. The instructional approach is mostly non-quantitative with some arithmetic calculations used in case examples to strengthen students' understanding. Students learn the basic concepts and tools used in finance that provide them with a better understanding of how firms make decisions regarding financial management issues. Additional topics include: pricing of financial assets and management of financial capital in the short and long term. Evaluation criteria include: required readings, essay assignments; class participation; and final exam.
Credit recommendation:
In the lower division associate/baccalaureate degree category, 3 semester hours in Principles of Finance, Introduction to Finance, or Business (1/13) (3/18 revalidation) (5/23 revalidation).