This course aims to provide a market-oriented framework for analyzing the major types of financial management decisions as they apply to the profit-oriented business organization. Major areas covered are discounted cash flow techniques, the trade-off between risk and return, financial asset valuation, capital investment decisions, cost of capital, capital structure and financing decisions.
Note: FINC 2345 does not meet CPA requirements. Students should take the equivalent course FINC 2340 in order to meet CPA requirements
- Introduction to financial management, financial statement analysis and ratios
- Time value of money and discounted cash flow analysis
- Fundamental properties and valuation of bonds and stocks
- Capital budgeting decisions
- Risk and return in capital markets, equity risk premium and CAPM
- Long-term financing decisions: the cost of capital, capital structure decision and dividend policy
Methods of Instruction
Material will be presented within a lecture format.
Means of Assessment
Term Examinations (2-3) 40 - 50%
Final Examination 30 - 40%
Quizzes and/or Assignments (2-8) 10 - 20%
To pass the course, students must achieve a cumulative grade of 50% in all non-group assessments as well as 50% overall in the course. In other words, students must have achieved at least 50% on their cumulative individual assessments in order to be eligible to earn marks from group work.
At the end of the course, the successful student should be able to:
- describe the financial environment within which the financial manager must operate;
- analyze information contained in financial statements and understand how it is used to make financial decisions;
- apply time value of money methodology to cash flow applications including valuing bonds and stocks;
- use capital budgeting techniques to support decisions regarding capital investments for a firm; and
- make decisions regarding long term financing for a firm, in particular, the use of equity and debt to finance the firm’s operations.
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.