Fundamentals of Financial Management

Catalog description

This course provides a conceptual and analytical foundation in financial management, equipping students with the essential tools to make financial decisions within the firm. Students will learn how to interpret and analyze financial statements, including the balance sheet, income statement, and statement of cash flows, while developing core financial concepts such as the time value of money, interest rates, and the law of one price as the basis for understanding valuation. The course emphasizes quantitative approaches to valuing bonds, stocks, and investment projects, covering topics such as discounted cash flow (DCF) analysis, net present value (NPV), internal rate of return (IRR), capital budgeting under uncertainty, and estimating the cost of capital using tools like the Capital Asset Pricing Model (CAPM) and Weighted Average Cost of Capital (WACC). Students are also required to use and learn basic programming techniques in Excel.