Introduces basic tools of finance and applications of financial theory in use today. These tools include rates of return, the time value of money, those that can be applied to capital budgeting decisions, and the logic and fundamentals of financial statements. Designed to enhance a student’s approach to financial decision-making and emphasizes quantitative approaches to decision making. Introduces students to equity and debt markets and securities, and serves as a stepping stone to advanced courses in finance.
Course Outcomes
- Describe the function of financial management and how financial principles can lead to stockholder wealth maximization.
- Calculate and analyze balance sheets and income statement ratios, and compare findings to industry averages for a particular business.
- Use sales forecasts to calculate future assets and cash flow needs.
- Describe the principles of an effective working capital management program for inventory, accounts receivable, cash, and marketable securities.
- List various sources of funds for a business. Assess the advantages and disadvantages of each source the impact of debt or equity on long-range profitability.
- Evaluate stock, bond, and capital investments, considering the time value of money and risk.
- Calculate the weighted cost of capital for an enterprise.
Co-Requisite Courses