FinanceModule Details

Objectives of the Course:

· Provide an overview of the key finance principles
· Understand how financial markets operate and how security prices are determined.
· Show how managerial finance can affect the value of the firm.
· Understand the importance and role of finance in valuation techniques and risk analysis
· How financial theory can be used to address practical problems

Learning Outcomes:

1. Define the importance and role of finance in the organization. (Students should be able to understand the important role finance plays in an organization’s efforts to maximize shareholders wealth).
2. Explain the analysis of financial statements (students should be able to evaluate a firm’s current financial position using financial statements. They will examine the types of actions that the a firm can take to improve its financial position in the future.
3. Calculate and apply time value of money concepts (students should be able to understand the present value, future value, annuity and the comparison of different interest rates.
4. Measure risk and rates of return (students will acquire the necessary knowledge and understanding to be able to measure the risk and return of an investment.
5. Assess the valuation of Bonds and Stocks (students will have the skills and knowledge to be able to determine the market value of debt and equity, using different models.
6. Illustrate cash flow estimation for expansion projects and replacement projects.( students should be able to apply the valuation concepts to investment decisions involving the fixed assets of a firm.(capital budgeting )
7. Explain the cost of capital (students should be able to understand the types of capital that the firms use to finance investments and the cost of each capital component.
8. Estimate the firm’s optimal capital structure (students should be able to understand the concept of optimal capital structure and examined the effects of financial leverage on stock prices, earnings per share, and the cost of capital.