The objective of this course is to provide a general understanding of financial valuation and quantitative analysis of corporate and individual financing and savings decisions. We will seek to develop an understanding of what any asset is ‘worth’, and how a variety of conceptual tools can help managers and investors make investment decisions. In the first section of the course, we will explore the time value of money, and learn how investors value streams of cash flows that arrive at different times. Next, we will consider capital budgeting decisions and evaluation of those decisions. Finally, we will explore what may be the most fundamental and perplexing questions facing investors and financial economists alike when we study risk. We will consider what it means for an investment to be risky, and we will examine methods of valuing risky assets.
The course emphasizes understanding, analyzing, and integrating financial information as an aid to making financial decisions. The course discusses the impact of interest rates, taxation, dividends, cash flow, and other business considerations on financial decision making. It also examines the role of financial institutions and regulations in corporate financial management. Building on the conceptual foundations of financial management, the course also introduces some interesting but complex topics in corporate finance.
Prerequisite(s):
ENGL 099, MATH 104, COMM 293
Transfers to:
UBC COMM 298 (3)
SFU BUS 2XX (3) & SFU BUS 312 (0), Exemption
UVIC COM 240 (1.5)
UNBC COMM 220 (3)
TRU FNCE 2120 (3)