Course Title: Financial Management
Course Code: 12514
Course Credits: 4
Teaching Hours: 64
Prerequisites: Fundamental Accounting Principles & Economics of Money and Finance
Overview
The students will learn the general nature of financial management, the American financial system, taxes and the major financial decisions of corporations. Specific attention should be given to present value and capital budgeting, risk and asset pricing, financial analysis and forecasting, financial decisions and market efficiency and capital structure. Problem-solving methodology is used to illustrate the theories and tools in financial decision making. Students will work in teams consisting of a maximum to work on a S&P500 company of their own choice. In order to work efficiently it is required that students should form teams before the first class and choose a S&P500 company to work on. During the first class, the instructor will register the teams and the chosen companies will be registered in one week before the end of the course. This is a hands-on course which focuses on applying learned concepts from day to day business decisions.
Learning Outcomes:
After completing this course, you will be able to:
* Calculate selected financial ratios.
* Differentiate the components of the extended DuPont equation and calculate the
Return on equity using the DuPont format.
* Calculate or describe the common measures of investment performance.
* Understand basic framework of the financial system.
* Understand TVM (Time Value of Money) concepts and calculations including future
value of a present sum, present value and present and future values of annuities.
Algebraic methodologies and the use of Excel spreadsheets will be encouraged.
* Understand the different rates of returns for different assets.
* Describe common features and types of bonds.
* Describe major characteristics of common and preferred stock.
* Understand how capital structure is related to investing decisions.
* Integration of finance theory with the chapter materials.
* Have a basic understanding of risk and return, efficient market hypothesis, competitive markets and the consequences and challenges for financial managers.
* Calculate Weighted Average Cost of Capital.
* Understand the various techniques used in capital budgeting decisions.
* Describe techniques used to forecast financial statements.
* Calculate the Equity and Company Value of assets and Companies
Syllabus
l Introduction to Financial Management
l An Overview of Financial Management
Fundamental Concepts in Financial Management
l Financial Markets and Institutions
Financial Statements, Cash Flow, and Taxes
Analysis of Financial Statement
Time Value of Money
l Financial Assets
Interest Rates
Bonds and Their Valuation
Risk and Rates of Return
Stocks and Their Valuation
Evaluation
Participation / Team Presentations 20%
Quizzes 20%
Final Exam and Assignments Portfolio 60%
Teacher Information
ZHENHU JIN, Ph. D
College of Business Administration
Valparaiso University, Professor of Finance with Tenure