Focuses on maximizing economic value or wealth for business owners: a study of how to allocate scarce resources over time under conditions of uncertainty. Students will consider such financial decisions as when to introduce a new product, when to invest in new assets, when to replace existing assets, when to borrow from banks, when to issue stocks or bonds, and how much cash to maintain. Concepts of cash flow analysis and financial planning, time value of money, net present value of cash flows, valuation of stocks and bonds, capital budgeting, and ratio analysis will be explored. This class may include students from multiple sections.
- Describe the concept of finance, financial assets, and financial markets.
- Explain and apply the mechanics of time value of money.
- Describe and apply risk and return concepts.
- Calculate the value of various financial assets.
- Determine whether a new project should be accepted or rejected using capital finance tools.
- Define and measure the expected rate of return of an individual investment.
- Describe and apply working capital management tools.