Course Description
The basic concepts and analytical tools of finance in both
corporate finance and investments. Topics include risk and
return, financial institutions, efficient markets, valuation
theory, capital budgeting, portfolio theory, cost of capital,
and international finance. Discussion and analysis of specific
applications of these topics. For non-Terry College of Business
students.
Athena Title
Financial Management Honors
Equivalent Courses
Not open to students with credit in FINA 3001, FINA 3001E, FINA 3000, FINA 3000E, FINA 3000H
Non-Traditional Format
Honors Program students meet for additional break-out sessions.
Prerequisite
(ACCT 2101 or ACCT 2101E or ACCT 2101H) and permission of Honors
Semester Course Offered
Offered every year.
Grading System
A - F (Traditional)
Student Learning Outcomes
- Students will build a strong foundational knowledge for future related coursework and gain a better understanding of the financial aspects of everyday life.
- Students will understand the concept of financial ratios to assess the financial health of a company, with the ability to apply these ratios to real-world business situations.
- Students will evaluate investment opportunities using Time Value of Money concepts, including the calculation of present and future values, and the use of amortized loans and retirement planning strategies.
- Students will apply risk and return analysis, utilizing the Capital Asset Pricing Model (CAPM), to estimate expected returns and make decisions about diversification.
- Students will demonstrate proficiency in valuing bonds and stocks, applying methods such as bond pricing and equity valuation techniques to assess investment opportunities.
- Students will utilize project selection methods (NPV, IRR, and discounted payback period) to assess investment viability, and accurately estimate project cash flows and free cash flows for financial forecasting.
- Students will apply tools and methods to current events to evaluate real-life financial issues.
Topical Outline
- Fundamentals of Finance
- Financial Ratios
- Time Value of Money
-Amortized Loans, Retirement Planning
- Risk and Return
-Portfolio Risk and Return
- Capital Asset Pricing Model
- Determinants of Interest Rates
- Bond Pricing
- Stock Pricing
- Project Selection Methods (NPV, IRR, Discounted Payback)
- Project Cash Flow Estimation
- Free Cash Flow Estimation
- Equity Valuation
- Basics of Options
- Basics of International Finance
- Financial Forecasting
- Basics of Inventory and Cash Management
