Business Finance I

Student Learning Outcomes, Goals, Objectives:

Students successfully completing this course will be able to:

• Discuss the interrelated areas of finance, the role of finance within an organization, forms of the business organization, agency problems, and the factors that influence the stock price.
• Explain the information provided by the income statement, balance sheet, statement of cash flows and how modifications of accounting data can be used for making corporate and stock valuation decisions.
• Describe the nature of ratio analysis, the groups and types of ratios, the DuPont system, and quantitative and non-quantitative factors in evaluating a company’s performance.
• Identify the steps in the financial planning process.
• Describe the different financial markets, financial market instruments, the components and factors influencing the interest rate, the yield curve, and explanations for the shape of the yield curve.
• Define risk, return, diversifiable risk, market risk, and explain how to measure and apply required risk and return in the context of an individual stock and a stock portfolio.
• Demonstrate how to find the present and future values of lump sums and annuities, solve for the time or interest rate in TVM problems, calculate periodic and effective interest rates, and construct a loan amortization schedule.
• List the main classifications and characteristics of bond, calculate bond price and various bond yields, and explain the importance of bond ratings and criteria for rating bonds.
• Identify important stock ownership rights and terms, how to value common and preferred stock, and understand stock market information in the newspaper and market efficiency.
• Explain the concept of a firm’s weighted average cost of capital, define and calculate the component costs of capital using alternative approaches, calculate the weighted average cost of capital, and identify situations when the use of the composite WACC is not appropriate.
• Explain capital budgeting and steps in the capital budgeting project, methods to evaluate project financial viability, NPV profiles, the problem of multiple IRRs.

Course Grading Information:

Activity/Performance Measure	Percentage/Points
Homework	30%
Ethics quiz	10%
Discussion	10%
Exam	50%

Attendance/Participation:

Attendance/participation is not a graded component included in the student's final grade for this course.

Course Materials Purchased by the Students:

MyLab Finance with Pearson eText Access Code for Principles of Managerial Finance by Chad Zutter;Scott Smart - 16TH 22

Course Letter Grade Assignments:

Grading Scale

Percentage	Letter Grade
92% and above	A
90 – 91.99%	A-
88 – 89.99%	B+
82 -87.99%	B
80 – 81.99%	B-
78 – 79.99%	C+
72 – 77.99%	C
70 – 71.99%	C-
68 – 69.99%	D+
62 - 67.99%	D
60 – 61.99%	D-
< 60%	F