This course provides an introduction to the principles and tools required in financial decision making. Quantitative analysis involving time-value of money, risk return trade-off, capital budgeting, cost of capital, and corporate financing decisions will be covered.
1. Introduction to corporate finance, financial statement analysis, valuation of cash flows.
2. Security valuation for stocks and bonds including time-value of money, discounting, expected risk/return, Capital Asset Pricing Model (CAPM) and diversification.
3. Cost of capital for project decision making, including working capital and discounted cash flow analysis.
4. Financing decisions including; capital structure; debt and dividend policy decisions; mergers and acquisitions.
Methods of Instruction
Material will be presented within a lecture/discussion environment.
Means of Assessment
|Term Tests (2-4)
At the end of the course, the successful student should be able to:
1. describe the financial environment within which the financial manager must operate;
2. analyse financial statements to determine a company's performance relative to its industry or competitors;
3. apply time value of money concepts, cash flow valuation, and risk premiums in making financing and capital budgeting decisions;
4. apply cost of capital (before and after tax) and net working capital analysis (before and after tax), as well as debt versus equity financing considerations (including projected interest and foreign exchange rates) in financial management decisions;
5. demonstrate a broad understanding of the theory of capital structure and its impact on management decision-making including corporate restructuring activities; and
6. assess valuations of stocks and bonds.
(ACCT 1210 or ACCT 1235 or approved substitute) and (FINC 1231 or FINC 1230 or MATH 1125 or approved substitute, or MATH 1120 with permission of instructor) or currently active in PDD Financial Planning or PDD Financial Analysis or PBD Accounting. CSIS 1190 is highly recommended.
Course Guidelines for previous years are viewable by selecting the version desired. If you took this course and do not see a listing for the starting semester/year of the course, consider the previous version as the applicable version.
Below shows how this course and its credits transfer within the BC transfer system.
A course is considered university-transferable (UT) if it transfers to at least one of the five research universities in British Columbia: University of British Columbia; University of British Columbia-Okanagan; Simon Fraser University; University of Victoria; and the University of Northern British Columbia.
For more information on transfer visit the BC Transfer Guide and BCCAT websites.
If your course prerequisites indicate that you need an assessment, please see our Assessment page for more information.