Course Abstract Details
XFN-215, Financial Management
FN-215, Financial Management, is a comprehensive presentation of financial principles and techniques needed for analyzing business finance cases and for understanding investments. Topics include present value, business risk, cost of capital, capital budgeting, lease/purchase, financial statement analysis, working capital, and economic order quantity. Prerequisite: ACCT-101 and READ-099. Three lecture hours per week. Three credits. Three billable hours.
Course Objectives and Grading Information
Major Course Objectives: Upon successful completion of this course, students will be able to:
1. Identify maximization of shareholder wealth as the goal of the firm.
2. Describe the corporate tax features that affect business decisions.
3. Describe the key components of the US financial market system.
4. Differentiate between the nominal and real rates of interest.
5. Understand financial statements and cash flows. (ACCT PG 3)
6. Calculate a comprehensive set of financial ratios and use them to evaluate the financial health of a company. (ACCT PG 3, GE GOAL 3)
7. Apply the concept of the time value of money by calculating present and future values for single sums, annuities, and perpetuities. (ACCT PG 1, GE GOAL 3)
8. Define and measure the expected rate of return and riskiness of an individual investment or portfolio. (ACCT PG 1, GE GOAL 3)
9. Distinguish between different types of bonds and estimate the value of a bond.
10. Identify the basic features of preferred and common stock and estimate the value of preferred and common stock. (ACCT PG 1, GE GOAL 3)
11. Determine whether a new project should be accepted using the payback period, net present value, profitability index, and internal rate of return. (ACCT PG 1, BUAD PG 5, GE GOAL 3)
12. Describe the factors underlying a firm?s cost of capital.
13. Explain the concepts of risk, breakeven analysis, and leverage.
14. Identify the decisions involved in determining the optimal capital structure for a corporation. (BUAD PG 5, GE GOAL 2)
15. Describe how companies make decisions concerning dividend policy.
The abbreviations in parentheses represent Learning Goals which have been identified for this course and program of study: