Finance

FINC5000

Code

FINC5000

School

WGS

Description

The student examines the general nature of financial management, the American financial system, taxes, and the major financial decisions of corporations. Specific attention is given to present value and capital budgeting; risk and asset pricing; financial analysis and forecasting; financial decisions and market efficiency; and capital structure. Problem-solving methodology is used to illustrate the theories and tools in financial decision-making.

Module Level

Module Code

FINC5000

Webster Code

FINC 5000

Class

EL|

Availability

DE|SA|

Available Summer

Credits

Contact Hours

Course Length (wks)

Learning Outcomes

Upon successful completion of this course, the student will be able to:

Outcome	Expectation
1. Students can determine the value of fixed income securities	Students can use equations and financial calculators to solve for all variables within the bond pricing equation.
2. Students can determine the value of equity securities	Students can compute the value of equity using the Gordon Growth Model.
3. Students can discuss market functioning and the role efficient markets play in security valuation	Students can identify the three levels of market efficiency, and are able to distinguish between the three when presented with a scenario.
4. Students can evaluate capital budgeting decisions using standard methodologies	Students can employ NPV, IRR, and payback methods to analyze potential capital investments.
5. Students can explain the impact of capital structure decisions on financial performance and the cost of capital	Students can explain the affect of varying the firm’s debt and equity levels on the weighted average cost of capital.
6. Students can identify agency problems within a corporation and formulate strategies to address them	Students can explain the conflicts of interest that exist between shareholders and managers in firms with less than 100% ownership by the manager of the firm. They can discuss a methods used by corporations (profit sharing, employee stock options, takeovers, etc.) to align manager and shareholder interests.
7. Students can evaluate credit and interest rate risk	Students can explain the impact of interest rate risk on risk premiums. They can discuss factors which increase interest rate risk.
8. Students can utilize financial analysis to assess an organization’s financial condition	Students can compute ratios from the information on financial statements. The ratios are in the categories of liquidity, profitability, market valuation, and efficiency. Students can apply the DuPont Model.

Pre-Requisites

BUSN 5600 and BUSN 5760

Course Conduct

Academic Honesty
The university is committed to high standards of academic honesty. Students will be held responsible for violations of these standards.

Attendance

Students are expected to attend ALL class sessions of EVERY course. In the case of unavoidable absence, the student must contact the instructor. The student is subject to appropriate academic penalty for incomplete or unacceptable makeup work, or for excessive or unexcused absences. Generally, a student who misses more than one four-hour course period (per course) without a documented excuse (such as illness) and advanced permission from the instructor should withdraw from the class.

This means:

You may not miss the first 2 weeks of any class and expect to continue in that class. If you have begun a class, and subsequently have 2 absences, we will call you in and you may be asked to withdraw. Your student visa status may be affected.

Weekly Schedule

Full syllabus provided during the first lecture.