School of Business
Undergraduate

Term: Summer 2024
Session: 1st 8 Week Online (May 07 - Jun 28)
Start Date: Tuesday, May 07, 2024
End Date: Friday, Jun 28, 2024
Availability: Online
Day(s):
Time: to

This is an introductory finance course that emphasizes basic financial concepts tools and practices essential to managing a business. The topics introduced include the time value of money basic asset valuation financial analysis and planning capital budgeting cash flow analysis operating and financial leverage risk/return trade-offs cost of capital and capital structure. Particular attention is paid to how firms acquire allocate and control financial resources. The course complements its introduction of financial concepts and relationships with a strong focus on problem solving. At its essence this course stresses the financial objective of a business which is to maximize firm value. Of course this objective is subject to many constraints including regulation ethics social responsibility and market conditions to name a few. Nonetheless any significant business decision must ultimately be evaluated in terms of its effect on firm value. Students are taught to use net present value as the metric for this evaluation. Other metrics in particular financial ratios such as ROE are of limited usefulness in addressing firm value or evaluating business decisions. This course relies heavily on financial accounting concepts and students are stronglyadvised to take it as soon as possible after completing ACCT2030. Credits: 3 creditsPrerequisites: ACCT2030 and MATH1010 MATH 2040 or MATH2070