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COURSE TITLE: Introduction to Finance
CREDIT WEIGHT AND WEEKLY TIME DISTRIBUTION: credits 3 (hrs lect 3 - hrs sem 0 - hrs lab 1.5)
CALENDAR DESCRIPTION: This course provides a general corporate framework for financial decision-making. The course examines: Introduction to Financial Management, the Canadian Financial System, and Environment; The Time Value of Money; Risk and Value; The Cost of Capital; Capital Budgeting: Certainty, Part I; Capital Budgeting: Certainty, Part II; Capital Budgeting: Uncertainty; Financing Decisions and Capital Structure; Dividend Policy and Retained Earnings; Financial Analysis and Planning; Financial Forecasting and Planning; Management of Working Capital; Sources of Long-term Capital; and Other Financial Topics: Mergers, International Financial Management, Corporate Reorganizations and Liquidation.

Prerequisites: BUSI 253 and one of STAT 300 or BUSI 320
  • Ross, Westerfield, Jordan & Roberts. Fundamentals of Corporate Finance, 9th Canadian edition: McGraw-Hill Ryerson.
  • The Student Guide can be accessed on line using the publisher’s website.
Do something interesting in Finance, then tell us about it in class10% Labs30%
Final Examination40%
COURSE OBJECTIVES: This first course provides an introduction to corporate finance. We will begin with an overview of key financial statements and some ways in which they can be used in financial decision making. We will next study the valuation of future cash flows and the use of future cash flow valuation in the pricing of securities as well as in capital budgeting. We will then look at look at the notions of risk and return.
Students successfully completing this course should have a good overall understanding of the main issues and concepts of corporate finance. They should also have a good grasp of the mechanics of the valuation of future cash flows, and the implications of this concept on both corporate planning and evaluation. They should also have a good understanding of the relationship between risk and return, and the role of risk in corporate decision making and management.
  • Introduction, Course Outline, Discussion
  • Introduction to Corporate Finance
  • Financial Statements, Taxes, and Cash Flow (review)
  • Working with Financial Statements (review)
  • Long-term Financial Planning and Growth
  • The Time Value of Money
  • Discounted Cash Flow Valuation
  • Interest Rates and Bond Valuation  
  • Stock Valuation
  • NPV and Other Investment Criteria
  • Making Capital Investment Decisions
  • Project Analysis and Evaluations
  • Lessons Learned from the Capital Markets

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