FINC 1010 - Introduction to Finance

Credit Hours: 3.00

Objectives:

1. Define the field of finance.
2. Distinguish between the various forms of business organizations.
3. Discuss the role of corporate governance, social responsibility, and ethical behavior.
4. Explain the role of financial markets and identify the various classifications.

Outcome 2: Upon completion of the course, students will be able to explain the importance of time value of money concepts.

Objectives:

1. Apply the time value of money concepts when calculating the present value and future value of lump sums.
2. Identify the different types of annuities.
3. Apply the time value of money concepts when calculating the present value and future value of both an ordinary annuity and annuity due.
4. Explain the difference between normal, periodic and effective interest rates.
5. Apply the basic functions of a financial calculator.

Outcome 3: Upon completion of the course, students will be able to perform basic financial statement analysis.

Objectives:

1. Identify the basic financial statements and identify the kinds of information that they provide to corporate managers and investors.
2. Explain what ratio analysis is.
3. Calculate ratios from five major categories.
4. Analyze ratios from five major categories.
5. Perform basic trend analysis over a period of time.
6. Compare a firm’s ratios with those of other firms (benchmarking).

Outcome 4: Upon completion of the course, students will be able to explain basic capital budgeting techniques.

Objectives:

1. Define capital budgeting.
2. Define the cost of capital.
3. Calculate payback period, internal rate of return and net present value.
4. Identify the pros and cons of using each capital budgeting method introduced.
5. Explain why the weighted average cost of capital (WACC) is used in capital budgeting.

Outcome 5: Upon completion of the course, students will be able to explain the basics behind financial instruments and risk.

Objectives:

1. Identify factors that influence the cost of money
2. Describe what CAPM is
3. Identify the factors that go into how interest rates are determined.
4. Discuss how bond and stock prices are determined in the market.
5. Differentiate between stocks and bonds.
6. Compare and contrast the basic rights of a stockholder and bondholder.

1. Introduction to Financial Management
   1. An Overview of Financial Management
   2. Financial Markets and Institutions
2. Fundamental Concepts in Financial Management
   1. Financial Statements, Cash Flow and Taxes
   2. Analysis of Financial Statements
   3. Time Value of Money
3. Financial Assets
   1. Interest Rates
   2. Bonds and Their Valuation
   3. Risk and Rates of Return
   4. Stocks and Their Valuation
4. Investing in Long‐Term Assets: Capital Budgeting
   1. The Cost of Capital
   2. The Basics of Capital Budgeting