FINC 331
Introduction to Business Finance

1. Catalog Entry

FINC 331. Introduction to Business Finance
Three hours lecture.

Prerequisites: ACTG 212 and STAT 205, 208, 211.

This course introduces financial concepts and techniques and emphasizes an understanding of how the principles of finance can be used to enhance the value of the firm. Topics include the mathematics of interest and the time value of money, financial statement analysis and forecasting, valuation techniques, the measurement and relationship between risk and expected return, capital investment decisions, and working capital management.

2. Detailed Description of Content of Course

1. Overview of Corporate Finance

a. Introduction to Corporate Finance
b. Financial Statements, Taxes and Cash Flow

2. Financial Statements and Long-term Financial Planning

a. Working with Financial Statements
b. Long-term Financial Planning and Corporate Growth

3. Valuation of Future Cash Flows

a. First Principles of Valuation: The Time Value of Money
b. Valuing Stocks and Bonds

4. Capital Budgeting

a. Net Present Value and Other Investment Criteria
b. Making Capital Investment Decisions

5. Risk and Return

a. Lessons from Capital Market History

6. Short-Term Financial Planning and Management

a. Short-term Finance and Planning
b. Cash and Liquidity Management
c. Credit Management

3. Detailed Description of Conduct of Course

Primarily a course lecture/discussion where instruction includes demonstrations, in-class exercises, problem assignments, and periodic exams. Instruction is augmented by outside readings and projects that deal with financial statement analysis as deemed necessary by the instructor.

4. Goals and Objectives of the Course

Having successfully completed the course, the student will be able to:

• explain why financial management is important
• understand the financial system, interest rates, and taxes
• analyze financial statements
• understand and use the formula for the time value of money
• use capital budgeting techniques
• explain the relationship between risk and return.

5. Assessment Measures

Graded assignments may include in-class tests, a final examination, pop quizzes, the assignment and presentation of problem exercises, projects, and class preparation and participation.

6. Other Course Information

None

7. Review and Approval

DATE ACTION APPROVED BY
September 2001 Reviewed Dr. Dan Davidson, Chair