MGMT 260 - Principles of Coporate Finance I

This course introduces students to the function of finance in a corporation. Topics include: capital investment decisions, taxes, cash flow, time value of money, capital budgeting, stock and bond valuations.

 

Credits: 3

 

Hours: 45 (Lecture Hours: 45)

 

Total Weeks: 15

 

Prerequisites:

MATH 11 or equivalent, MGMT 109 or MGMT 120 and MGMT 150, OR permission of Chair.

 

Non-Course Prerequisites:

None

 

Co-Requisites:

None

 

Course Content:
- Overview & Goals of Corporate Finance
- Financial Statements: Taxes & Cash Flow
- Working with Financial Statements
- Long-Term Financial Planning & Growth
- Valuation: Time Value of Money
- Discounted Cash Flow Valuation
- Interest Rates & Bond Valuation
- Stock Valuation
- Net Present Value & Other Investment Criteria

- Making Capital Investment Decisions

 

Learning Outcomes:
Upon successful completion of this course, the student should be able to:
- Identify the suppliers and users of capital, and explain how their needs are met by the capital market.
- Analyze the effect of the tax environment on the financial executive's decisions.
- Calculate and analyze financial ratios in the evaluation of financial statements.
- Apply the basic techniques of time value of money, capital budgeting and financial forecasting to financial
decisions.
- Identify the general determinants of interest rates.
- Understand and calculate how investors value financial instruments (bonds, common stock, and preferred stock)
of a firm.

- Use discounted cash flow analysis and see how it applies to making capital investment decisions.

 

Grading System: Letters

 

Passing Grade: D (50%)

 

Percentage of Individual Work: 80

 

Percentage of Group Work: 20

 

Textbooks:
Textbooks are subject to change.  Please contact the bookstore at your local campus for current book lists.