The content of this course covers actual analysis of financial problems involved in the formation management of organizations, especially businesses. The course includes study of the financial aspects of promotion, securing of capital, effective utilization of funds, capitalization, dividend policies, financial analysis, current financing, bankruptcy and related issues. Students will understand the nature of the finance function and the role of the financial manager in the attainment of the goal of maximization of shareholder wealth. In this course, students will: understand the relationships of the internal and external financial environment in regard to the risk/return impact of the decision making process; apply tools of financial ratio analysis to determine the financial strength and weaknesses of a business; understand the principles and theories of working capital management; apply capital budgeting techniques used in the control and development of the capital budget; Apply NPV, IRR, PI, and payback methods to capital budgeting decision situations; solve problems involving the time value of money as it relates to the present value of a cash payment and the future value of existing funds; understand the elements of long and short term financing and the process of evaluating the elements of the cost of capital; and demonstrate proficiency in financial management by applying techniques to case studies.
Prerequisites: A grade of “C” or better in BSMT 261, ACCT 210, ACCT 211, and MATH 171.
BSMT 440 Financial Management