Financial Management of the Business Enterprise (Honors)

Catalog description

Development of advanced practices of financial management and their application to decision making in a business firm. FIN 305M Financial Management of the Business Enterprise (Honors ) (3) The objective of this course is to give students an understanding, and working knowledge of the major decisions faced by corporate financial managers. In general, the course will emphasize three major areas: investment and capital budgeting, financing and capital structure, dividend policy and corporate growth. A basic understanding of financial analysis and valuation will be provided. Basic corporate securities markets will be described. Determinants of securities prices, yields, and returns will be discussed. Special emphasis is placed on the role of the capital markets in financing corporate operations and investment, in facilitating corporate reorganizations and financial restructuring, and in reflecting owner's wealth and evaluating the performance of corporate management. Students taking, the course should have a working knowledge of elementary statistics, and a basic understanding of accounting and financial statements. As an Honors course, students will study the impact of corporate activities on the market value of its stock, so a common stock pricing model is needed that accounts for factors that matter to investors. FIN 305M looks at these issues through topics such as, time value of money, risk and return, and valuation of stocks and bonds. The course concludes with topics related to specific business activities, such as capital budgeting, capital markets, capital structure, and dividend policy. The level of discussion and critical analysis expected in FIN 305M compliments the expected level of performance for honors students.