This is an introductory course that presents the basic principles used in financial management and their applications in the long-term investment and financing. These principles are characterized in time value of money and relation between risk and return. Once the students acquire the basic knowledge on these principles, they will learn how to apply their knowledge to the valuation of stocks and bonds, financial planning, capital budgeting, long-term financing, capital structure, and dividend policy and risk management.
* Upon completing this course the students ought to be able to make basic decisions regarding which project to take, and if so, when; how to finance a project; how much of payouts, in what form, to make; how much debt to carry; and how to hedge away potential risks associated with basic operations of a firm. This course also lays foundation for more advanced investment and corporate finance topics to be taught in the higher-level finance courses.
Field Trip / Invited Speaker
Depending on the schedule and students’ interest, the instructor may be able to arrange a 2-3 hour field trip for the students to get the “feel” of the financial market/industry. Students have an opportunity of hearing from financial experts about how financial markets functions, how to invest and employment opportunities as well. Alternatively, we can arrange to invite a financial expert to speak in class.
Objective
Develop critical thinking skills of financial concepts
Familiarize with the types of the decisions that typically confront financial managers
Understand the risk–return relationship and time value of money in corporate investing and financing decisions and in financial investments
Ensure that students are competent in the utilizing knowledge of analytical techniques commonly employed in the financial decision-making process
Preparations
* Required: Lecture notes (chapter outlines), practice questions, solutions for homework, and other materials related to the course are provided by the instructor.
* Recommended Textbook: Essentials of Corporate Finance, 9th ed. by Jordan,
Westerfield and Ross, 2017, McGraw-Hill Irwin (this edition is readily available internationally, very affordable and virtually the same as the most current one).
Financial Management revised May 20 22