This course focuses on skills for making effective financial decisions in private and public sector organizations. Students will use financial techniques such as net present value analysis and internal rate of return to make optimal corporate finance decisions, determine the value corporate bonds and stock, and calculate and apply an appropriate cost of capital for project decisions. Students will investigate a wide range of related topics including:
- Role of the financial manager and firm value
- Discounted cash-flow analysis
- Bonds, stocks, and risk valuation
- Weighted average cost of capital
Students must have successfully completed BBA305, BBA306, and BBA307 or equivalent courses before taking this course. Microsoft Excel® is required for the preparation of various financial statements and analysis of financial data in course assignments.
Course Learning Objectives
- Describe the role of the financial manager and value creation in a firm.
- Explain how the balance sheet, income statement, and statement of cash flows are used in corporate financial analysis.
- Explain the concept of the time value of money.
- Demonstrate time value of money techniques including NPV and IRR.
- Explain how discounted cash-flow analysis can be used to make investment decisions.
- Explain and demonstrate the valuation of bonds and stocks from a corporate perspective.
- Explain risk, return, and the opportunity cost of capital.
- Explain how profitable decisions can be made by using cost of capital consideration.
- Explain how corporations finance their project investments, including issuance of securities and venture capital.
- Discuss how firms make initial public offerings, including the role of underwriters.
Microsoft Excel® or compatible spreadsheet software is required to complete assignments in this course.