Jun 15, 2021
FN 215 - Principles of Financial Management
Number of Credits: 3
Principles of Financial Management provides students with fundamental principles associated with business financing decisions. Topics include financial markets, present value, business risk, interest rates, cost of capital, capital budgeting, lease/purchase, financial statement analysis, working capital, and taxation Three hours lecture. Three Credits. Three billable hours.
Pre-requisite(s): ACCT 101 , plus eligibility for ENGL 101 .
Course Objectives: Upon successful completion of this course, students will be able to:
- Identify maximization of shareholder wealth as the goal of the firm.
- Describe the corporate tax features that affect business decisions.
- Describe the key components of the US financial market system.
- Differentiate between the nominal and real rates of interest.
- Understand financial statements and cash flows. (ACCT PG 3)
- Calculate a comprehensive set of financial ratios and use them to evaluate the financial health of a company. (ACCT PG 3, GE GOAL 3)
- 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)
- Define and measure the expected rate of return and riskiness of an individual investment or portfolio. (ACCT PG 1, GE GOAL 3)
- Distinguish between different types of bonds and estimate the value of a bond.
- Identify the basic features of preferred and common stock and estimate the value of preferred and common stock. (ACCT PG 1, GE GOAL 3)
- 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)
- Describe the factors underlying a firm’s cost of capital.
- Explain the concepts of risk, breakeven analysis, and leverage.
- Identify the decisions involved in determining the optimal capital structure for a corporation. (BUAD PG 5, GE GOAL 2)
- Describe how companies make decisions concerning dividend policy.
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