FIN 333

Course Number and Title: Finance 333 – Introduction to Financial Management

Catalog Description: The role of finance in the modern business organization with emphasis on the decision process.  Prerequisite: ACC 231

Learning Objectives: Upon successful completion of this course the student should be able identify the goal of financial management and explain why it is superior to other possible goals; describe the relation of the financial markets to the economy and financial management; construct and interpret the tools of financial analysis including financial ratios, pro forma financial statements, and cash budgets; understand how financial instruments are priced in financial markets; explain the concepts of risk, return and time value of money, including the application of these concepts to securities, portfolios and capital budgets; describe, calculate and interpret the rate of return on different types of securities issued by corporations; and explain and calculate the cost of capital for corporations and explain its relationship to the capital structure; describe and compare the sources of funds which a corporation might use to finance its operations. These objectives require quantitative analysis, problem solving critical thinking and computer skills.

Specific Topics:

Required:

• Goal of financial management
• Analysis of financial statements
• Financial forecasting and pro forma financial statements
• Financial markets and institutions
• Risk and rates of return
• Time value of money
• Valuation of bonds and stocks
• The cost of capital
• Capital structure and leverage
• Cash-flow analysis
• Capital budgeting

Optional:

• Arbitrage pricing theory
• Cash and marketable securities management
• Working capital management
• Use of futures, options and swaps
• Corporate restructuring: combinations and divestitures
• International business finance
• Pension plan management
• Hybrid financing: preferred stock, warrants and convertibles
• Dividend policy
• Real options
• Bankruptcy and reorganization
• Lease financing
• Break-even analysis

Current Textbook: Brigham & Houston, Fundamentals of Financial Management, Concise 4th edition, South Western.