FINC 332
Intermediate Business Finance
FINC 332. Intermediate Business Finance
Three hours lecture.
Prerequisites: FINC 331
This course applies the analytical tools acquired in FINC 331 Introduction to Business Finance to further explore the theory and practice of financial decision making to enhance firm value. Topics include advanced capital budgeting techniques, cost of capital, capital structure, dividend policy, mergers and acquisitions, and international finance.
1. Project Analysis and Evaluation Under Uncertainty
2. Risk and Return
a. Return and Risk in the Securities Markets
3. Cost of Capital and Long-Term Financial Policy
a. Issuing Securities to the Public
b. Cost of Capital
c. Financial Leverage and Capital Structure Policy
d. Dividends and Dividend Policy
e. Options and Corporate Securities
4. Corporate Control and Corporate Restructuring
a. Mergers and Acquisitions
b. Failure and Reorganization
c. International Corporate Finance activity within and across national boundaries.
The class includes lectures on the above topics and application of theory to problem solving. Instruction is augmented by outside readings and a project on the securities market as deemed necessary by the instructor.
Having successfully completed the course the student will be able to:
1. Relate to the concepts of risk and reward in the financial market place.
2. Account for forecasting risk' in project analysis.
3. Understand methods used to raise funds in the capital markets.
4. Understand how the cost of capital is estimated for individual firms.
5. Understand the rationale for merger and acquisitions
6. Understand the terminology and concepts for foreign investments.
Graded assignments may include in-class tests, a final examination, pop quizzes, the assignment and presentation of problem exercises, portfolio management projects, and class preparation and participation.
None
DATE ACTION APPROVED BY
September 2001 Reviewed Dr. Dan Davidson, Chair