BUS 108 - Principles of Finance

 
Description
This course is an introduction to the principles of finance including the concepts of money and interest, forms of business enterprises, capitalization of corporations and financial reports.

1. Define and describe the goals and functions of financial management.
2. Use financial ratios to evaluate the financial performance of a firm.
3. Perform financial forecasts given baseline data.
4. Use recognized analytical methods to evaluate capital projects for investment.
5. Explain the relationship of securities markets to corporate financial management.
6. Calculate break-even and describe the impact of operating leverage on the firm.
7. Create and/or interpret and compare scenarios of financial leverage and the impact on the firm.
8. Compare and contrast the use of debt and equity in the capital structure of a corporation and the related cost of capital.
9. Define and describe sources of short-term financing.
10. Utilize models for managing current assets, such as creating cash flow budgets, calculating the economic ordering quantity (EOQ) for inventory and calculating return on investments in accounts receivable.
11. Measure relative risk as it relates to portfolio theory of investments.
12. Describe the factors that affect dividend policy.

1. The goal of maximizing shareholder wealth
2. Capital markets
3. Financial analysis
4. Financial forecasting
5. Leverage
6. Time value of money
7. Valuation of securities
8. Cost of capital
9. Capital budgeting
10. Dividend policy
11. Risk
12. Working capital management

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