Course
Discontinued
Yes
Course Code
FINC 2255
Descriptive
Managerial Finance
Department
Finance
Faculty
Commerce & Business Administration
Credits
4.00
Start Date
End Term
201710
PLAR
Yes
Semester Length
15 Weeks X 4 Hours per Week = 60 Hours
Max Class Size
35
Contact Hours
Lecture: 3 Hours
Seminar: 1 Hour
Total: 4 Hours
Method(s) Of Instruction
Lecture
Seminar
Learning Activities
Lectures, seminars and case studies.
Course Description
This course is designed to provide business students with the tools necessary to understand and manage the basic finances of a firm. Students will analyze financial statements to assess the financial well-being of a firm. Short-term and long-term financial management issues will be covered, including: working capital management, the risk-return relationship, the time value of money, valuation of assets, capital budgeting, and the cost of capital. Please note: To receive credit for FINC 2255 and FINC 2340, FINC 2255 must be taken first. Credit will not be granted for FINC 2255 if FINC 2340 has been completed.
Course Content
- Introduction
- financial management
- Canadian financial environment
- financial markets and institutions
- Financial analysis and planning
- financial statement analysis
- financial forecasting and planning
- Financial concepts
- time value of money
- risk and return
- valuation of bonds and stocks
- Short-term financial policy and decisions
- working capital management and policy
- credit management and policy
- Long-term investing decisions
- capital budgeting techniques
- discounted cash flow analysis (NPV, IRR, etc.)
- risk analysis
- Long-term financing decisions
- the cost of capital
- capital structure and leverage
- dividend policy
Learning Outcomes
- Determine the financial condition of a firm by analyzing its financial statements, then produce a financial plan to address those conditions.
- Use time value of money concepts to calculate the value of financial assets such as stocks and bonds.
- Set out a viable plan for managing the working capital of a firm, including: cash, marketable securities, accounts receivable, and inventory.
- Use capital budgeting techniques to support decisions regarding capital investments for a firm.
- Make decisions regarding long term financing for a firm, in particular, the use of equity and debt to finance the firm’s operations.
Means of Assessment
| Assignments & Quizzes | 20% |
| Term Exams (at least two) | 45% |
| Final Examination | 35% |
| Total | 100% |
Textbook Materials
Textbooks and Materials to be Purchased by Students
Gitman, Lawrence, Lorne Switzer, and Arshard Ahmad, Principles of Managerial Finance, First Canadian Edition, Prentice Hall Canada, 2000.
A business/financial calculator that can calculate annuities, net present value, and internal rate of return; for instance, Texas Instruments BA II Plus or Hewlett Packard 10B.